China warns Israel-Iran conflict could spiral ‘out of control'
BEIJING: China's Foreign Minister Wang Yi on Wednesday (Jun 18) warned that escalating hostilities between Israel and Iran could spiral out of control, urging all sides to prioritise a ceasefire to prevent the region from sliding into an 'abyss'.
Israel and Iran exchanged fire again on Wednesday, the sixth day of strikes between the regional rivals, fuelling fears of a drawn-out conflict that could engulf the Middle East.
'Israel's acts of disregarding international law and international rules have caused the situation in the Middle East to suddenly become tense, and China is also deeply concerned that the situation may get out of control,' Wang said in a call with his Egyptian counterpart, according to a readout from China's foreign ministry.
In a separate call with Oman's foreign minister, Wang said the two countries 'cannot sit idly by and let the region slide into an unknown abyss', adding that reaching a ceasefire agreement was a 'top priority'.
China and other world powers have pushed to find an off-ramp to the hostilities, which erupted after Israel launched large-scale strikes on Iran last Friday.
The United States, meanwhile, has called for Iran's 'unconditional surrender', with US President Donald Trump on Wednesday saying Washington may still take part in the conflict.
Iran's Supreme Leader Ayatollah Ali Khamenei said the Islamic Republic would never surrender and warned the United States of 'irreparable damage' if it intervenes. Israel said on Wednesday it had destroyed the internal security headquarters in Tehran.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
43 minutes ago
- CNA
Investors see quick stock market drop if US joins Israel-Iran conflict
Financial markets may be in for a "knee-jerk" selloff if the U.S. military attacks Iran, with economists warning that a dramatic rise in oil prices could damage a global economy already strained by President Donald Trump's tariffs. Oil prices fell nearly 2 per cent on Wednesday as investors weighed the chance of supply disruptions from the Israel-Iran conflict and potential direct U.S. involvement. The price of crude remains up almost 9 per cent since Israel launched attacks against Iran last Friday in a bid to cripple its ability to produce nuclear weapons. With major U.S. stock indexes trading near record highs despite uncertainty about Trump's trade policy, some investors worry that equities may be particularly vulnerable to sources of additional global uncertainty. Chuck Carlson, chief executive officer at Horizon Investment Services, said U.S. stocks might initially sell off should Trump order the U.S. military to become more heavily involved in the Israel-Iran conflict, but that a faster escalation might also bring the situation to an end sooner. "I could see the initial knee-jerk would be, 'this is bad'," Carlson said. "I think it will bring things to a head quicker." Wednesday's dip in crude, along with a modest 0.3 per cent increase in the S&P 500, came after Trump declined to answer reporters' questions about whether the U.S. was planning to strike Iran but said Iran had proposed to come for talks at the White House. Adding to uncertainty, Iranian Supreme Leader Ayatollah Ali Khamenei rejected Trump's demand for unconditional surrender. U.S. Treasury yields fell as concerns over the war in Iran boosted safe haven demand for the debt. The U.S. military is also bolstering its presence in the region, Reuters reported, further stirring speculation about U.S. intervention that investors fear could widen the conflict in an area with critical energy resources, supply chains and infrastructure. With investors viewing the dollar as a safe haven, it has gained around 1 per cent against both the Japanese yen and Swiss franc since last Thursday. On Wednesday, the U.S. currency took a breather, edging fractionally lower against the yen and the franc. 'I don't think personally that we are going to join this war. I think Trump is going to do everything possible to avoid it. But if it can't be avoided, then initially that's going to be negative for the markets,' said Peter Cardillo, Chief Market Economist at Spartan Capital Securities in New York. "Gold would shoot up. Yields would probably come down lower and the dollar would probably rally." Barclays warned that crude prices could rise to $85 per barrel if Iranian exports are reduced by half, and that prices could rise about $100 in the "worst case" scenario of a wider conflagration. Brent crude was last at about $76. Citigroup economists warned in a note on Wednesday that materially higher oil prices "would be a negative supply shock for the global economy, lowering growth and boosting inflation—creating further challenges for central banks that are already trying to navigate the risks from tariffs." Trump taking a "heavier hand" would not be a surprise to the market, mitigating any negative asset price reaction, Carlson said, while adding that he was still not convinced that the U.S. would take a heavier role. Trades on the Polymarket betting website point to a 63 per cent expectation of "U.S. military action against Iran before July", down from as much as an 82 per cent likelihood on Tuesday, but still above a 35 per cent chance before the conflict began last Friday. The S&P 500 energy sector index has rallied over 2 per cent in the past four sessions, lifted by a 3.8 per cent gain in Exxon Mobil and 5 per cent rally in Valero Energy. That compares to a 0.7 per cent drop in the S&P 500 over the same period, reflecting investor concerns about the impact of higher oil prices on the economy, and about growing global uncertainty generated by the conflict. Turmoil in the Middle East comes as investors are already fretting about the effect of Trump's tariffs on the global economy. The World Bank last week slashed its global growth forecast for 2025 by four-tenths of a percentage point to 2.3 per cent, saying that higher tariffs and heightened uncertainty posed a "significant headwind" for nearly all economies. Defense stocks, already lifted by Russia's conflict with Ukraine, have made modest gains since Israel launched its attacks. The S&P 500 Aerospace and Defense index hit record highs early last week in the culmination of a rebound of over 30 per cent from losses in the wake of Trump's April 2 "Liberation Day" tariff announcements. Even after the latest geopolitical uncertainty, the S&P 500 remains just 2 per cent below its February record high close. "Investors want to be able to look past this, and until we see reasons to believe that this is going to be a much larger regional conflict with the U.S. perhaps getting involved and a high chance of escalating, you're going to see the market want to shrug this off as much as it can,' Osman Ali, global co-head of Quantitative Investment Strategies, said at an investor conference on Wednesday.
Straits Times
an hour ago
- Straits Times
Trump hosts Pakistani army chief; disagrees with India over India-Pakistan war mediation
Pakistani armed forces chief Asim Munir (second from left) joined US President Donald Trump for lunch at the White House on June 18. PHOTO: REUTERS WASHINGTON/ISLAMABAD/NEW DELHI - US President Donald Trump on June 18 hosted Pakistan's army chief for lunch in an unprecedented White House meeting that risked worsening a disagreement with India over the Republican president's claim that he stopped the recent war between the nuclear-armed South Asian foes. It was the first time that a US president has hosted the powerful head of Pakistan's army, widely regarded as having sway over the country's national security policies, at the White House unaccompanied by senior Pakistani civilian officials. Mr Trump's lunch with Field Marshal Asim Munir represented a major boost in US-Pakistan ties, which had largely languished under Mr Trump and his predecessor, Mr Joe Biden, as both assiduously courted India as part of efforts to push back against China. Field Marshal Munir was expected to press Mr Trump not to enter Israel's war with Iran and to seek a ceasefire, Pakistani officials and experts said. A section of Pakistan's embassy in Washington represents Iran's interests in the United States, as Tehran does not have diplomatic relations with the US. Pakistan has condemned Israel's airstrikes against Iran, saying they violate international law and threaten regional stability. Asked what he wanted to achieve from the meeting, Mr Trump told reporters at the White House: 'Well, I stopped a war... I love Pakistan. I think (Indian Prime Minister Narendra) Modi is a fantastic man. I spoke to him last night. We're going to make a trade deal with Modi of India. 'But I stopped the war between Pakistan and India. This man was extremely influential in stopping it from the Pakistan side, Modi from the India side and others,' he did, referring to Field Marshal Munir. 'They were going at it - and they're both nuclear countries. I got it stopped.' No mediation Mr Trump had said in May that the nuclear-armed South Asian neighbours agreed to a ceasefire after talks mediated by the US, and that the hostilities ended after he urged the countries to focus on trade instead of war. However, Mr Modi told Mr Trump in a phone call late on June 17 that the ceasefire was achieved through talks between the Indian and Pakistani militaries and not US mediation, according to India's most senior diplomat, Foreign Secretary Vikram Misri. Pakistan has thanked Washington for playing a mediating role. However, India has repeatedly denied any third-party mediation. The June 17 phone call between Mr Modi and Mr Trump on the sidelines of the G-7 summit in Canada, which Mr Modi attended as a guest, was the two leaders' first direct exchange since the May 7-10 conflict. 'PM Modi told President Trump clearly that during this period, there was no talk at any stage on subjects like India-US trade deal or US mediation between India and Pakistan,' Mr Misri said, in a press statement. 'Talks for ceasing military action happened directly between India and Pakistan through existing military channels, and on the insistence of Pakistan. Prime Minister Modi emphasised that India has not accepted mediation in the past and will never do,' he said. Indian Prime Minister Narendra Modi attending a G-7 Leaders' Summit in Canada, on June 17. PHOTO: REUTERS Mr Misri said the two leaders had been due to meet on the sidelines of the G-7 summit but Mr Trump left a day early due to the situation in the Middle East. Mr Trump asked Mr Modi if he could stop by the US on his return from Canada, Mr Misri said, but the Indian leader expressed his inability to do so due to a pre-decided schedule. The heaviest fighting in decades between India and Pakistan was sparked by an April 22 attack in Indian Kashmir that killed 26 people, most of them tourists. New Delhi blamed the incident on 'terrorists' backed by Pakistan, a charge denied by Islamabad. Pakistan has previously said that the ceasefire happened after its military returned a call the Indian military had initiated on May 7. On May 7, Indian jets bombed what New Delhi called 'terrorist infrastructure' sites across the border, triggering tit-for-tat strikes spread over four days in which both sides used fighter jets, missiles, drones and artillery. Mr Michael Kugelman, a senior fellow at the Asia Pacific Foundation think-tank, said ties between India and the US, which have thrived in recent years, could suffer if Mr Trump continued to make remarks about a US role in the ceasefire and offered US mediation on Kashmir, a disputed Himalayan territory that India and Pakistan both claim. 'For Delhi, it all boils down to an age-old question: How much can it tolerate US-Pakistan cooperation without having it spoil US-India relations – a partnership that's thrived in recent years despite continued US-Pakistan links,' Mr Kugelman said. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
Trump tells Putin to end war in Ukraine before mediating Iran-Israel
US President Donald Trump (left) told Russian counterpart Vladimir Putin to end his war in Ukraine before trying to mediate in the Israel-Iran conflict. PHOTOS: AFP, REUTERS Trump tells Putin to end war in Ukraine before mediating Iran-Israel WASHINGTON - US President Donald Trump appeared on June 18 to rebuff Vladimir Putin's offer to mediate in the Israel-Iran conflict, saying the Russian president should end his own war in Ukraine first. 'He actually offered to help mediate. I said, 'Do me a favour, mediate your own. Let's mediate Russia first, okay?'' Mr Trump told reporters at the White House. 'I said 'Vladimir, let's mediate Russia first, you can worry about this later.'' But Kremlin spokesman Dmitry Peskov appeared to suggest the pair had not even spoken, telling Russian state news agency Tass: 'He was speaking figuratively. Life is so eventful right now that looking back a few days is like looking back to yesterday.' Later on June 18, Mr Trump said a change in Iran's government 'could happen,' and also indicated that negotiations could be in the offing, without giving details. 'They want to meet, they want to come to the White House – I may do that,' Mr Trump told reporters. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
