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IRAN-GULF: A BIGGER CRISIS MAY BE LOOMING

IAN BLACK
Over the last three months barely a day has gone by without some alarming piece of news involving ships in the Straits of Hormuz or the Gulf of Oman. Other relevant developments have been reported from Tehran, Washington or London. In one important chapter the action had taken place in faraway Gibraltar.
Britain has now agreed to join a US-led maritime task force designed to protect freedom of navigation in the Gulf – whether that sensitive waterway is described as Persian or Arabian. Previously the UK had said it wanted to join a European-led naval force to guarantee the unimpeded flow of one-fifth of global oil supplies. But Boris Johnson, the new prime minister, changed course.
That policy shift in London provides a clear hint about the future: Britain remains formally committed to the landmark 2015 nuclear agreement with Iran, along with France, Germany, Russia and China. But President Donald Trump’s controversial decision to abandon the deal least year has created a complicated and unstable new reality: his policy of “maximum pressure” on Tehran, by sanctions and other measures, has both affected ordinary Iranians and made it more difficult for supporters of the agreement to keep it alive.
Iran was especially angered by the seizure by British marines, on July 4, of the Grace I, a tanker passing through the Straits of Gibraltar. According to the UK government it was on its way to deliver oil to the Syrian port of Banias and was stopped because it was in breach of EU sanctions against Bashar al-Assad.
Tehran, however, saw it as an action taken in support of the US by the country it still sometimes refers to as the “Little Satan.” Retaliation was not long in coming. A British tanker, the Stena Impero, was diverted to Bandar Abbas by Iranian Revolutionary Guards. If the Straits of Gibraltar were not free, warned Jawad Zarif, Iran’s foreign minister, then neither would the Straits of Hormuz.
Looking back, the turning point was reached in April, when Washington terminated the waivers it had previously issued for countries wishing to buy Iranian oil. Attacks on foreign tankers in May and June – widely blamed on Iran - marked a significant escalation. Tehran had been adhering to the nuclear deal when Trump pulled out. Now it has breached it, though with carefully calibrated steps. But its other actions have raised the regional temperature – and the level of risk.
Germany has rejected the idea of taking part in a US-led naval force. France has not yet decided. China and South Korea are considering a US request. Britain’s decision was made in part because it no longer has the resources to carry out significant naval operations. It currently has just two warships in the Gulf.
Last week there was an intriguing statement from the Israeli foreign minister, Yisrael Katz: he told a parliamentary committee that his country was taking part in the US-led operation, most likely by providing intelligence. No comment was forthcoming from the US, Saudi Arabia or the UAE, probably because the Israeli minister was boasting about something that other interested parties prefer to keep secret. That provoked another warning from Iran about the destabilizing effects of foreign forces, and specifically, the unacceptable presence of the “Zionist entity” in the Gulf.
It has become increasingly clear that neither Washington nor Tehran wants all-out war. Trump has been criticized by hardline figures in his own administration for sending mixed messages to Iran – inviting Zarif for talks, and then imposing sanctions on him when he rejected the invitation. Critics also question the president’s decision not to retaliate when the Iranians shot down a US drone two months ago. But Iranian provocations and American miscalculations could still go badly wrong if they do not recognize each other’s red lines..
Iran has a long record of using allies or proxies across the Middle East, whether Hizbullah in Lebanon and Syria, the Houthis in Yemen or Shia militias in Iraq. The recent Emirati decision to scale down its forces in Yemen is seen by analysts as a grudging admission that Tehran may now be gaining the upper hand.
The larger question is whether new negotiations or conflict will follow if the 2015 deal is eventually declared dead. Iran has made clear that it will re-start its nuclear programme if that happens. It is reasonable to assume that Saudi Arabia would respond by acquiring nuclear weapons.
Israel – despite its policy of deliberate ambiguity – remains the only nuclear power in the Middle East. And it will want to preserve that monopoly. Back in 1981 it bombed the Osirak reactor Iraq and in 2007 the nuclear facility under construction at Al-Kibar in Syria. Trump’s inconsistency, Transatlantic tensions, European and Arab divisions and Iranian determination could yet produce a far bigger crisis than the current one.
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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