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Israeli strikes kill more than 270 in Lebanon, says health ministry

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Israel launched a relentless wave of air strikes against what it said were Hizbollah targets on Monday, killing almost 300 people in Lebanon’s deadliest day for decades and pushing the region closer to all-out war.

Israeli warplanes struck hundreds of targets across the country, including Beirut’s southern suburbs, as Benjamin Netanyahu’s government ramped up its assault on Hizbollah in a “new phase” to the war.

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The bombardment heightened concerns about full-scale hostilities in the Middle East and spread panic across Lebanon, sending tens of thousands fleeing targeted areas.

Monday’s death toll was the highest since Israel launched a ground offensive against Hizbollah in 2006, and came despite the US warning Israel not to escalate its military campaign against the Iranian-backed militant group.

Israel’s army said it had hit some 800 Hizbollah targets and would continue to strike buildings where it believed the militant group was storing weapons, warning civilians to evacuate.

“We are not waiting for the threat, we are pre-empting it,” Netanyahu said in a video statement, as the Israeli premier warned of “complex days” ahead.

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“We are eliminating senior figures, terrorists and missiles . . . I promised that we would change the security balance, the balance of power in the north — that is exactly what we are doing.”

The Israeli cabinet late on Monday approved a “special [emergency] situation” across the country that allows the military more latitude to restrict civilian life and activities due to the war in anticipation of a fierce Hizbollah response.

Lebanon’s health ministry said 39 women and 21 children were among the almost 300 dead, with at least 1,024 people injured. Roads in southern Lebanon were packed with cars as civilians fled north towards Beirut and schools across the country were turned into emergency shelters for the displaced.

Lebanese people flee in their cars from southern Lebanon towards Sidon and Beirut on Monday
Lebanese people flee in their cars from southern Lebanon towards Sidon and Beirut on Monday © Stringer/EPA-EFE/Shutterstock

Israel issued several warnings throughout the course of the day, urging civilians to leave any buildings where Hizbollah stored weapons, first in southern Lebanon and then in the Bekaa Valley in the country’s east. Both are areas where Hizbollah has long had a major presence.

Beirut residents told the Financial Times they received warning calls on their landlines from the Israeli military ordering inhabitants of villages in targeted areas to leave.

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In its statements, the Israel Defense Forces said people had two hours to leave any potential targets and advised them to move at least 1km away.

In response to the IDF strikes, Hizbollah said it had fired dozens of missiles at multiple targets in northern Israel including a site owned by the Rafael defence company north of Haifa. It stressed the attacks “in defence of Lebanon and its people” were focused on military targets.

Sirens sounded multiple times in northern Israel throughout the day. But fewer rockets hit population centres in Israel than on Sunday, when the militant group hit the suburbs of Haifa.

One strike on Monday hit a private home in the village of Givat Avni in the Galilee, Israeli media reported. Rockets were also intercepted over the occupied West Bank, a regional council for Israeli settlements in the area said.

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Israeli defence minister Yoav Gallant told citizens to prepare for a more intense response. “We are deepening our attacks in Lebanon, the sequence of operations continues,” he said. “Ahead of us are days when the public will have to show composure, discipline.”

The escalation has stoked fears that a full-blown land war could be imminent.

Asked about the possibility of a land incursion into southern Lebanon, Rear Admiral Daniel Hagari, an Israeli military spokesman, said the country would continue to “do whatever is needed” to prevent Hizbollah from being able to strike northern Israel and to allow local residents to return to their homes.

Iran’s president Masoud Pezeshkian said that Israel was seeking to “trap” his country in a wider war. “They are dragging us to a point where we do not wish to go,” he told reporters on Monday.

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Ziad al-Makary, Lebanon’s information minister, said on social media that a large number of residents in Beirut and other areas received “random” phone messages via their landlines telling them to evacuate their locations.

His office in Beirut received one of the calls, which he said were part of Israel’s policy of “psychological warfare”, adding that “work at the Ministry of Information continues as usual”.

The strikes prompted chaotic scenes across the country. Videos in Lebanese media showed explosions rocking villages in the Bekaa Valley, and paramedics and residents picking their way through rubble following an air strike. Schools closed across Lebanon’s southern and Bekaa regions as well as Beirut’s southern suburbs.

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The health ministry asked all hospitals in the country’s south and east to halt non-urgent surgeries to make room for those injured in the Israeli strikes. Hospitals in the north of Israel also began relocating operations further south away from the fighting.

Lebanese Prime Minister Najib Mikati said during a cabinet meeting that the Israeli attacks were a “war of extermination”. Citing UN secretary-general António Guterres, who warned on Sunday that southern Lebanon could turn into “another Gaza”, Mikati called on the international community “to pressure Israel to end its aggression”.

The hostilities follow the mass detonations of Hizbollah’s communications devices that killed 37 people and injured more than 3,000 across Lebanon, and which the militant group blamed on Israel. Israel has not directly confirmed or denied responsibility.

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Keir Starmer to argue tough decisions needed for UK ‘national renewal’

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Sir Keir Starmer will warn that difficult times lie ahead for the UK as he tries to tackle an array of deep-seated challenges facing his government, but will insist that tough decisions taken now will lead to “national renewal”. 

He will say on Tuesday there are “no easy answers” and “no false hope” as he issues a stern message in his first speech as UK prime minister to the annual Labour party conference in Liverpool. 

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Starmer will describe a country in which there are “decimated public services leaving communities held together by little more than goodwill”.

But he will argue that despite tight public finances his government can deliver a brighter future and “open the door to national renewal”, enabling the rebuilding of Britain.

Starmer has enjoyed only a brief honeymoon as the UK’s first Labour prime minister since 2010 and now faces falling poll ratings and infighting within his administration.

Last week saw damaging revelations about donations of clothing worth thousands of pounds made to Starmer, his wife, deputy leader Angela Rayner and chancellor Rachel Reeves during a cost of living crisis.

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Starmer will try to reassure delegates in Liverpool — and the wider public — that the government is already taking steps to change the country.

He will cite planning reforms, settling the doctors’ strike, new solar projects, new offshore wind farms, an end to one-word Ofsted judgments, a ban on MPs’ second jobs, a new “border security command”, a ban on no-fault evictions and legislation to nationalise the railways. “And we’re only just getting started,” he will say.

The Labour leadership is drawing up a Budget and spending review next month, which are likely to include tax rises and continuing constraints on public spending given the country’s high levels of debt.

Starmer will say that ministers will have to rely on innovative reforms rather than turning on the spending taps.

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“I have to warn you, working people do want more decisive government. They do want us to rebuild our public services and they do want that to lead to more control in their lives. But their pockets are not deep — not at all,” he will caution. “So we have to be a great reforming government.”

Keir Starmer reheares his speech sitting on steps with Labour slogans and a British flag behind him
Starmer rehearses his keynote speech. which he will deliver to the Labour party Conference on Tuesday © Stefan Rousseau/PA Wire

The Labour leadership has been walking a tightrope between warning that public finances are eye-wateringly tight while also offering a glimmer of hope for the future.

Ministers have claimed to have found a fiscal “black hole” of about £22bn that needs to be plugged — leading to predictions of tax rises and spending cuts. 

“The politics of national renewal are collective. They involve a shared struggle. A project that says, to everyone, this will be tough in the short term, but in the long term, it’s the right thing to do for our country. And we all benefit from that,” Starmer will say. 

Labour delegates will on Wednesday vote on a motion calling for the government to reverse its cuts to the winter fuel allowance, an issue that has prompted criticism from unions, charities and many of the party’s own MPs.

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The prime minister will repeat his five priorities of higher economic growth, a better NHS, stronger borders, more opportunities for children and clean energy from low-carbon sources. 

He will also touch on how he dragged the Labour party towards the political centre ground from its previous, more left-wing incarnation under former leader Jeremy Corbyn.  

“I changed the Labour party to restore it to the service of working people. And that is exactly what we will do for Britain. But I will not do it with easy answers. I will not do it with false hope,” he will say. 

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Canadian lender BMO to wind down retail auto finance business 

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Reuters was ahead in reporting that Bank of Montreal (BMO) is winding down its retail auto finance business and shifting focus to other areas in a move that will result unspecified number of job losses, Canada’s third largest bank.

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The move, applicable in Canada and the United States, comes after BMO’s bad debt provisions in retail trade surged to C$81 million ($60 million) in the quarter ended July 31 compared with a recovery of C$9 million a year ago, in a sign of growing stress consumers face from a rapid rise in borrowing costs. 

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China tells some brokerages to conduct compliance checks on bond trading 

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FILE PHOTO: A Chinese flag flutters outside the China Securities Regulatory Commission (CSRC) building on the Financial Street in Beijing, China February 8, 2024. REUTERS/Florence Lo/File Photo

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Reuters exclusively reported that China’s securities regulator has ordered some brokerages to inspect their bond trading activities as authorities seek to rein in frenzied buying of Chinese government bonds. The brokerages, all of which are domestic, have been told to conduct compliance checks on all parts of their bond trading operations. 

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Market Impact

A wobbly Chinese economy, long hobbled by a protracted property crisis, has sent investors scurrying away from the volatile stock market while banks have also continued to cut deposit rates. That’s sent investors – from large banks and insurers to mutual funds to rural financial institutions – pouring into the bond market.

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Arm aims to capture 50% of PC market in five years, CEO says 

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FILE PHOTO: ARM CEO Rene Haas makes a speech at COMPUTEX forum in Taipei, Taiwan June 3, 2024. REUTERS/Ann Wang/File Photo

Technology

Reuters exclusively reported that Arm Holdings aims to gain more than 50% of the Windows PC market in five years as Microsoft and its hardware partners prepare to launch a new batch of computers based on the British chip designer’s technology. 

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Demand for use of Arm’s technology in personal computers got a boost after Microsoft unveiled ambitious plans last month to launch a new breed of PCs with artificial intelligence features to compete with Alphabet and Apple. 

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Lebanon endures bloodiest day in decades

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The calls and texts came seemingly at random, on landlines and mobile phones across southern Lebanon and parts of Beirut. They left their recipients, ground down by almost a year of conflict, with little doubt about what to expect.

“Hizbollah is forcing the Israeli army to act against its terrorist infrastructure in your villages,” a voice in slightly accented Arabic said to the thousands of people contacted on Monday. “Residents of this area must leave your homes now . . . because we do not wish to harm you.”

The warnings from Israel had echoes of those it gave to Palestinians in Gaza ahead of new offensives, and within hours Lebanon too felt the brunt of Israel’s heaviest bombardment of the country in decades.

Israel’s military struck hundreds of targets stretching across southern and eastern Lebanon, killing 356 people and injuring more than 1,200, according to the Lebanese health ministry.

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No day had been as bloody in Lebanon since Israeli tanks rolled over its border in 2006, triggering a 34-day war with Hizbollah.

A Lebanese man in Beirut shows the warning he received by text message from Israel on Monday
A Lebanese man in Beirut shows the warning he received by text message from Israel on Monday © Joseph Eid/AFP via Getty Images

As the air strikes rolled through Monday, panic spread through swaths of Lebanon.

The country had been gripped by angst since Iran-backed Hizbollah launched rockets at Israel the day after Hamas’s deadly assault on southern Israel last October. For many, a land war felt all but inevitable.

“It’s massacre upon massacre upon massacre,” said Abboudi, an emergency responder in Nabatiyeh, southern Lebanon, who spent the day dodging air strikes and transporting victims to nearby hospitals. 

Monday’s violence hit a country still haunted by its civil war, which saw various sectarian militias brutalise one another and their respective communities from 1975 to 1990.

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When it ended, Beirut was in ruins, as was its social fabric, the ravages of war visible in every neighbourhood.

The country has been shaken by bouts of violence and instability since, not least the devastating 2006 war with Israel, and the 2020 Beirut port blast, which killed more than 200 people, injured thousands more and levelled parts of the city.

Praised for their resilience, Lebanese citizens often wonder how much more they and their small country can take.

Lebanon’s health ministry on Monday said women, children and medics were among the dead. Footage on social media showed them bloodied and broken, being pulled from rubble.

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A major traffic jam in Sidon as people try to flee
A traffic jam in the southern Lebanese coastal city of Sidon as people try to flee north © Mohammed Zaatari/AP
A boy looks out from a car window while people in heavy traffic drive north from Lebanon’s southern coastal city Sidon
Children are missing out on their education as schools close or are turned into displacement centres © Amr Abdallah Dalsh/Reuters

Tens of thousands of people fled north in a chaotic exodus, packed tightly into cars that jammed the main highway all the way to Beirut, as plumes of smoke rose behind them.

WhatsApp groups sprang up with offers of housing for the displaced, while schools were converted into emergency shelters.

“We have no idea where to go and my children are hungry,” Abu Ali Ahmad desperately asked a police man in Beirut, after arriving in a pick-up truck with his wife and four children.

Others were frantically heading to supermarkets to stock up on canned goods and fuel, running errands they thought they wouldn’t be able to once the war “really” began.

University student Abir Hammoud said she had been “paralysed with fear” waiting for her mother to pick her up after classes were cancelled.

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With traffic across the city at a standstill, she found comfort by donating blood. “I don’t know what else to do,” Hammoud said.

Monday was the culmination of a devastating week for both Lebanon and Hizbollah, its most powerful political and military force.

Mass detonations ripped through the militant group’s communications devices, killing 37 people, followed by an air strike that wiped out two senior commanders, more than a dozen elite officers and scores more civilians on Friday.

It was a stinging blow to Hizbollah that undermined its credibility in the eyes of its members and support base. Some in Beirut speculated that Monday’s warnings to residents were designed to further weaken their spirits.

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Volunteers carry an elderly man on a chair as people who fled their villages in southern Lebanon are received at an art institute transformed to a shelter for the displaced in Beirut
Volunteers carry an elderly man on a chair as people who fled their villages in southern Lebanon are taken to a shelter for the displaced in Beirut © Fadel Itani/AFP via Getty Images

With around 110,000 people already displaced along Lebanon’s southern border, it was not clear how many people would be affected by Israel’s warnings. But there were still several thousand people living within 5km of the border, according to government data.

Israel has accused Hizbollah of transforming entire communities in the south into military zones, hiding rocket launchers and other infrastructure in residential communities from which it draws support.

The Israeli warnings left open the possibility that some residents could be living in or near targeted structures, without knowing that they are at risk.

Smoke from heavy Israeli air raids billows from the southern Lebanese village of Taybeh
Smoke from heavy Israeli air raids billows from the southern Lebanese village of Taybeh © Marwan Naamani/Zuma Press/eyevine

That uncertainty was the final straw for many fleeing north on Monday.

“I stayed as long as I could, I really did,” said Nelly Abboud, who packed her car with her three kids and left Nabatiyeh to stay with relatives in Beirut. “But I couldn’t take it any more — I don’t want to die, I don’t want my kids to die.”

As she drove north, Israeli Prime Minister Benjamin Netanyahu urged the Lebanese people to “get out of harm’s way now”. “Once our operation is finished, you can come back safely to your homes,” he said.

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“How can we believe anything they say?” asked Abboud. “My parents stayed behind . . . because they know Israel wants to make them leave and seize their land. We know this has been the Israeli strategy since day one.”

Data visualisation by Steven Bernard

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Mexico’s Pemex, Vitol reach graft settlement worth more than $30 million  

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Reuters was first to report that the Mexican state energy company Pemex has received a settlement worth more than $30 million from Vitol, including a $23 million cash payment, over a graft scandal that halted deals with the Swiss-based trader, documents showed. 

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In return, Pemex has lifted its three-year ban on business with the world’s largest independent commodities trader, according to the settlement, the terms of which have not previously been reported. 

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