Gaza conflict reignites violence in Syria
4 June 2024

Since fighting began in the Gaza war in October, Syria’s civil war has been pushed even further down the regional agenda, threatening to turn a largely frozen conflict into a forgotten one.
The intensity of the fighting, which entered its 14th year in March, has atrophied into a near stalemate in recent years, with the regime of President Bashar Al Assad controlling around 70% of the country, while a medley of rebel groups, Turkish forces and Kurdish and Arab militias hold a patchwork of territories across the north and east.
However, the battle between Israel and Hamas has threatened to reignite the Syrian war in new ways.
Assad has been doing his best to avoid getting involved in any regional escalation, but that has not always been easy, with the Israeli attack on the Iranian embassy in Damascus on 1 April, in particular, raising the risk of Syria becoming a battleground.
Over the past decade, there have been numerous Israeli attacks in Syria against the Iranian Islamic Revolutionary Guards Corp’s Al Quds force as well as Tehran-backed militias, but the rate of attacks has increased since the Gaza war broke out.
Expanding violence
In March, the UN’s Independent International Commission of Inquiry on Syria issued a report which said the country has been suffering the worst wave of violence since 2020. “Since October, Syria has seen the largest escalation in fighting in four years,” said commission chairman Paulo Pinheiro at the time. “Syria … desperately needs a ceasefire.”
That analysis has been backed up by the US-based Armed Conflict Location and Event Data (ACLED) project, which recorded 201 incidents linked to Israeli attacks in Syria involving 236 deaths between October 2023 and March 2024, the highest number since it began tracking the civil war in 2017.
Assad has several reasons to want to avoid being drawn further into conflict with Israel, not least that his own forces are stretched and weakened after years of fighting.
Damascus has also not forgotten that Hamas broke ties with Assad during the Arab Spring, with the Palestinian group’s leader, Khaled Mashal, leaving Damascus in early 2012. Relations were only restored a decade later, when a Hamas delegation travelled to the Syrian capital, but they remain strained.
In contrast to the threat of escalation as a result of Gaza, the Syrian civil war itself has been largely stagnant since 2020, when Damascus abandoned its attempt to recapture the Idlib governorate in the northwest. Since then, the frontlines have stayed largely the same, but the country is far from being at peace and there is the constant threat of fresh fighting breaking out.
In October last year, a drone strike on a military graduation ceremony in the government-controlled city of Homs killed 80 people and wounded 240. In response, government forces launched an offensive against groups in the northwestern Idlib province, where Tahrir Al Sham (a militant group that emerged in 2017 out of several others) and the Turkish-backed National Liberation Front have their strongholds.
In April this year, suspected members of the Islamic State group killed 22 pro-government fighters of the Quds Brigade near the town of Sukhna in central Syria. There were similar attacks the following month.
Diplomatic overtures
Regional powers, including some in the Gulf, have urged Syria to resist being drawn into the Gaza conflict. Relations between Damascus and several Gulf capitals have been improving over the past few years, although the momentum behind that process appears to be slowing down.
Assad was in Bahrain in mid-May to attend the Arab Summit – the second such gathering he has been at since Syria was re-admitted to the organisation in 2023 following a diplomatic push by Jordan, Saudi Arabia and the UAE.
Among the other signs of diplomatic re-engagement, the UAE’s ambassador to Syria, Hassan Ahmed Al Shehi, took up his post in February, and in late May, Saudi Arabia named Faisal Al Mujfel its ambassador to Damascus – its first senior envoy there for 12 years.
The diplomatic outreach by the Gulf countries is motivated in large part by a desire to put pressure on Damascus to restrict the flow of the illegal drug Captagon into their markets, but there has been little sign to date that the Assad regime is willing to end that trade – which, by some measures, is now the largest part of the Syrian economy.
There are problems with other regional powers too, not least Turkey, which maintains control over two areas of northern Syria along their common border, from where it is trying to neutralise the threat of the People’s Defence Units (YPG), the Kurdish group at the core of the Syrian Democratic Forces now in control of some 20-25% of Syrian territory in the northeast of the country. Ankara views the YPG as a terrorist group due to its association with the Kurdistan Workers’ Party (PKK), which is banned in Turkey.
“What Damascus wants of Turkey is a full withdrawal; Turkey leaving and moving all its troops from Syria,” said Dareen Khalifa, senior adviser for dialogue promotion at the International Crisis Group, at the same Chatham House event.
“What Turkey wants of Damascus is preventing a new wave of refugees, crushing the Kurdish-led YPG forces and so on. It wants things from Damascus that Damascus can’t really deliver on. So, I think that deadlock is going to continue.”
That looks to be true of the wider civil war, too, with little sign that the Assad regime or the various rebel groups have the ability to force significant changes on the ground.
Less clear is how the situation in Gaza, and the associated Israeli attacks and provocation against Iranian groups on Syrian soil, could yet affect the ongoing conflict in Syria in less predictable ways.
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KBR re-evaluates design for Libya oil project10 July 2026

US-headquartered KBR is responsible for re-evaluating the front-end engineering and design (feed) for the project to develop the J6 North Gialo field in Libya, according to industry sources.
In June, MEED reported that Libya’s Waha Oil Company (WOC), a subsidiary of the state-owned National Oil Corporation (NOC), had launched a review into the tender process for the J6 North Gialo oil field development project, and that this would include re-evaluating the feed work.
The Waha concessions are held by a consortium of Libya’s NOC, which holds 59.16%; TotalEnergies, holding 20.42%; and US-based ConocoPhillips, with 20.42%.
They are operated by WOC, which is 100% owned by NOC.
KBR has previously provided engineering services for major national projects in Libya, such as the Great Man-Made River project, which is widely recognised as the largest irrigation project in the world.
In March, KBR was awarded a contract by Zallaf Exploration, Production & Refining of Oil & Gas Company to provide project management and technical services for the South Refinery project in Libya’s southern city of Ubari.
Under the terms of the contract, KBR will provide contract management, project management and supporting technical services throughout the engineering, procurement and construction (EPC) phases of the project.
The EPC work is expected to be executed over a 50-month period.
In its statement, KBR said that the project is aligned with its “long-standing commitment to advancing vital oil and gas infrastructure in Libya”.
In March, MEED reported that South Korea’s Daewoo had pulled out of the tender process for Libya’s J6 North Gialo oil field development project.
Daewoo had formed a partnership with Egypt’s Petrojet to participate in the tender process.
The only other company to submit a bid for the project was UK-based Petrofac, which filed for administration in October last year.
In January, TotalEnergies signed an agreement extending the Waha concessions agreement up to 31 December 2050.
This agreement set new fiscal terms, allowing an increase in the production of these concessions that were, at the time, producing about 370,000 barrels of oil equivalent a day (boe/d).
In January, TotalEnergies said that the deal paved the way for “a new phase of investments, including the development of the North Gialo field, which is expected to add 100,000 boe/d of production”.
The J6 North Gialo project is the first of three field development projects that WOC has prioritised.
The other two are known as NC98 and Gialo 3.
Together, the three projects are expected to double Waha’s production from about 300,000 barrels a day (b/d) of oil to 600,000 b/d.
The Waha concession covers 13 million acres.
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Qiddiya to tender high-speed rail in September10 July 2026

Saudi Arabia’s Royal Commission for Riyadh City, in collaboration with Qiddiya Investment Company and the National Centre for Privatisation & PPP, are expected to float the tender in September for the Qiddiya high-speed rail project in Riyadh.
MEED understands that the clarification process is ongoing for the engineering, procurement, construction and financing (EPCF), as well as the public-private partnership (PPP) packages.
The Qiddiya high-speed rail project, also known as Q-Express, will cover 84 kilometres, connecting King Salman International airport and King Abdullah Financial District with Qiddiya City.
In April, MEED exclusively reported that the clients had received prequalification statements from firms for the EPCF package of the project.
MEED also reported in May that firms were forming joint ventures for the PPP package of the project.
The line will operate at speeds of up to 250 kilometres an hour, reaching Qiddiya in 30 minutes.
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Middle East construction cost inflation to hit 5.1% by 20279 July 2026
Construction cost inflation in the Middle East is forecast to reach 5.1% in 2027, the second-highest of any region worldwide, as global demand for data centres tightens contractor capacity and deepens shortages of skilled labour.
The projection comes from the Global Construction Market Intelligence report, published by UK programme manager Turner & Townsend. The report draws on data from 112 markets across 44 countries, gathered between 2 March and 20 March 2026.
Only Africa is expected to see steeper cost escalation, at 7%. Australia and New Zealand follow the Middle East at 4.9%, while the EU records the lowest figure at 2.8%. Globally, construction cost inflation is set to rise from 4.2% in 2025 to 4.5% in 2026 before flattening in 2027.
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Skills shortage
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Turner & Townsend says that construction input costs have stabilised over the past year, with supply chain resilience built since the pandemic limiting the impact of recent volatility. Cost drivers are becoming more localised and sector-specific rather than the product of international shocks.
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Conflict assumptions
The baseline scenario assumes a relatively short-lived conflict in the Middle East and a moderate rise in energy commodity prices in 2026. A prolonged or escalating conflict would produce more pronounced effects on inflation, supply chains and construction costs.
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Contractor appointed for Dubai’s One B Tower9 July 2026

Dubai-based construction firm Naresco Contracting has been awarded a contract to build One B Tower, located on Dubai's Sheikh Zayed Road.
Local real estate developer Wasl Group awarded the contract.
It covers a 47-storey high-rise tower offering a mix of one- to four-bedroom residential units.
The project is also known as One Billion Meals Endowment Tower.
The enabling works were undertaken by local firm APCC Building Contracting.
Netherlands-headquartered UN Studio is the project architect.
Dubai-based firm Studio International Engineering Consultants is the project consultant.
The project is slated for completion by 2028.
This is the second major contract to have been awarded by Wasl Group this year for a residential development.
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Iran and US break peace deal and resume Gulf attacks9 July 2026
Iran and the US have once again traded attacks in the Gulf region, in the worst exchange of fire since the two nations signed an interim peace deal in June.
US Central Command (CentCom) said on 7 July that it had launched strikes in response to attacks on three oil tankers in the Strait of Hormuz, hitting more than 80 targets including air defence systems, coastal radar and fast boats.
In retaliatory attacks on 8 July, Iran said it had targeted US military sites in Bahrain and Kuwait.
Oil prices have spiked following the strikes, with global benchmark Brent crude trading at $77.32 a barrel as of 1pm Gulf Standard Time.
UK Maritime Trade Operations (UKMTO) said a tanker travelling through the strait had reported a fire after an unknown projectile hit an engine room on 6 July.
In two separate incidents on 7 July, a tanker reported it had been hit as it exited the strait but was able to proceed to its next port of call, while another tanker reported sustaining minor structural damage after being struck, UKMTO said.
Qatar and Saudi Arabia have denounced the attacks, each saying a tanker from its country had been hit while transiting in or near the strait, and blaming Iran.
A spokesperson for Qatar's foreign ministry, Majed Al-Ansari, said it held Iran fully responsible for an apparently targeted attack on a vessel called Al-Rekayyat as it transited near the Strait of Hormuz.
Saudi Arabia's foreign ministry said Iran had targeted the Saudi tanker Wedyan as it crossed the strait. The owner of the very large crude carrier, the kingdom’s national shipping company Bahri, confirmed the attack on the vessel in a statement on 7 July, adding that “all crew members are safe and accounted for, and the cargo remains secure”.
“The vessel remains in a seaworthy condition. The company promptly informed all relevant authorities and continues to work closely with them and other maritime stakeholders, while maintaining continuous communication with the vessel's crew and closely monitoring the situation,” Bahri said.
“Bahri continues to closely monitor developments in the region and has implemented appropriate precautionary measures to support the safety of its people, vessels and operations,” it added.
Breakdown of peace deal
Separately, the US also said it had revoked its temporary suspension of sanctions on Iranian oil sales. Iran's speaker Mohammad Bagher Ghalibaf accused the US of breaching their memorandum of understanding (MoU) on this issue, and others, including the attacks in southern Iran and "violating Iranian adjustments in the strait".
Missiles and drones were launched at "85 key US military facilities", including a US Navy headquarters and an air base in Kuwait, the Islamic Revolutionary Guard Corps (IRGC) said.
Iranian state media agency Irna also reported the death of an IRGC guard in the US strikes, “after being struck by shrapnel from a projectile".
Kuwait has responded to the Iranian strikes on its country, lambasting the "repeated attacks".
Talks on reaching a permanent peace deal have been on hold due to the state funeral in Iran for the late Supreme Leader Ayatollah Ali Khamenei, who was killed on 28 February – the first day of US-Israeli strikes on Iran.
Early on 7 July, Iran's deputy foreign minister described the US attacks as a violation of the US-Iran MoU signed on 14 June, and warned Tehran would "take decisive measures".
The US had said there would be consequences for what it called the "wholly unacceptable" attacks on the three tankers.
CentCom said that in addition to 60 small boats, it had struck Iranian missile launch sites and command centres. It did not give the locations of its targets.
It said the strikes were "to impose heavy costs for targeting and attacking commercial shipping crewed by innocent individuals in an international waterway".
Before the strikes, the US Treasury revoked a waiver that had temporarily lifted oil sanctions on Iran and was part of the MoU signed by Washington and Tehran in June.
Iran's foreign ministry called the move a breach of the MoU and said it proved the "bad faith, inconsistency and unreliability" of the US government.
It added that Tehran "will take whatever measures it considers necessary to safeguard its national interests and national security".
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