Category: Azer News

US President Donald Trump has reportedly abandoned plans to significantly expand the American military campaign against Iran after senior military officials warned that US air defense systems deployed across the Middle East could face shortages of interceptor missiles if the conflict escalates, AzerNEWS reports.

According to The New York Times, citing White House sources, the decision followed consultations with members of Trump’s Cabinet and senior national security advisers.

During the discussions, Chairman of the Joint Chiefs of Staff Gen. Dan Kaine reportedly warned the president that a larger-scale US offensive could trigger a broader Iranian response, requiring extensive use of Patriot and other air defense systems to protect American military installations in Jordan, Kuwait, Bahrain, and the United Arab Emirates.

Officials familiar with the deliberations told the newspaper that the administration is increasingly concerned that a wider conflict could draw in US partners across the Persian Gulf, drive global energy prices higher, deepen economic instability, and intensify migration pressures.

According to the report, many US officials also question whether additional military strikes would succeed in bringing Tehran back to the negotiating table, arguing instead that further escalation could strengthen political unity within Iran’s leadership.

Despite Trump’s recent public statements indicating he remains prepared to authorize additional military action if necessary, The New York Times reported that the White House is now actively considering alternative approaches.

The report said a number of Trump’s advisers, including Jared Kushner, support a strategy focused on continuing negotiations with Tehran while increasing economic pressure through tighter sanctions rather than expanding military operations.

The European Bank for Reconstruction and Development (EBRD) has reported that its active project portfolio in Azerbaijan stood at pound 892 million at the end of June 2026, spanning 36 projects across key sectors of the economy, AzerNEWS reports.

According to the bank’s latest update, the value of its operating assets in the country totals pound 721 million, while the EBRD’s participation in the current portfolio is estimated at 1%.

Sustainable infrastructure remains the dominant area of investment, accounting for 90% of the portfolio. Financial institutions represent 7%, while the corporate sector makes up the remaining 3%. The private sector accounts for 41% of the portfolio’s total value.

Since launching operations in Azerbaijan, the EBRD has invested pound 3.748 billion in the country’s economy, with pound 3.527 billion already disbursed across 202 projects.

One of the bank’s key priorities remains supporting Azerbaijan’s transition to a low-carbon economy through renewable energy development and green infrastructure.

Speaking in a recent interview with Trend, Maya Hennerkes, Managing Director of the EBRD’s Environment and Sustainable Development Department, said Azerbaijan possesses significant untapped potential for green transformation.

According to Hennerkes, the EBRD has already financed renewable energy projects with a combined generation capacity of approximately 1.2 gigawatts (GW).

“We expect that these investments will reduce carbon emissions by approximately 600,000 tonnes per year. In addition, the electricity generated will provide around 300,000 households with clean energy. Replacing diesel generators with renewable energy sources has a positive impact on people’s health and the social sphere in general,” she said.

Hennerkes also highlighted the EBRD’s role in helping Azerbaijan establish a competitive auction system for utility-scale renewable energy projects.

“We have participated in all utility-scale green energy projects and assisted the government in establishing an auction system for these projects. This increases transparency and creates conditions for attracting new investors who feel more confident investing in Azerbaijan’s energy sector,” she added.

The EBRD has identified support for renewable energy, sustainable infrastructure and private sector development as central pillars of its long-term strategy in Azerbaijan, in line with the country’s broader efforts to diversify its economy and expand clean energy generation.

Dusty weather conditions are being observed in Baku and the Absheron Peninsula, according to data obtained from automatic monitoring stations, AzerNEWS reports citing the National Hydrometeorological Service.

The amount of dust in the air is currently 1.4-1.7 times higher than the normal level, spokesperson for the National Hydrometeorological Service Gulnara Abbasova said.

She noted that the dust observed in the atmosphere is local in nature and related to meteorological conditions.

The situation was caused by strong northwesterly winds that began in the morning and spread dust masses formed on the dry surface of the ground to surrounding areas.

The dusty weather conditions are expected to continue until tomorrow afternoon due to the prevailing synoptic conditions.

Narmina Mustafayeva, Consul General of Azerbaijan in Istanbul, Trkiye, has been recalled from her post, AzerNEWS reports.

President of the Republic of Azerbaijan Ilham Aliyev has signed the relevant decree.

According to the decree, Mustafayeva has been recalled from her post as Consul General of Azerbaijan in Istanbul, and also as Permanent Representative of Azerbaijan to the Black Sea Economic Cooperation Organization.

President Ilham Aliyev has signed a decree on measures related to hosting the inaugural FIFA U-15 World Cup and Festival in Azerbaijan in 2026, AzerNEWS reports.

The document text was published on the official website of the President of Azerbaijan.

According to the decree, the Organizing Committee established under the presidential order of Dec. 15, 2025, on preparations for the 2027 FIFA U-20 World Cup in Azerbaijan has been tasked with coordinating the relevant measures and resolving issues necessary to ensure the successful organization of the tournament.

The Cabinet of Ministers has been instructed to address all matters arising from the implementation of the decree.

On June 25, 2026, the Bureau of the FIFA Council decided to stage the inaugural FIFA U-15 World Cup and Festival in Azerbaijan from Oct. 22 to 31.

Hosting the FIFA U-15 World Cup and Festival-the first event of its kind in football-will further strengthen Azerbaijan’s standing in international sport, contribute to the development of football in the country, and enhance its experience in organizing major international sporting events.

On July 27, the Baku Court of Appeal continued hearings on the appeals filed by citizens of the Republic of Armenia – Arayik Harutyunyan, Arkadi Ghukasyan, Bako Sahakyan, Davit Ishkhanyan, David Babayan, Levon Mnatsakanyan, and others – who were convicted by the Baku Military Court of crimes against peace and humanity, war crimes, including the preparation and conduct of aggressive war, genocide, violations of the laws and customs of war, terrorism, financing of terrorism, forcible seizure of power, and numerous other crimes resulting from Armenia’s military aggression against Azerbaijan.

The court session was presided over by Judge Elmar Rahimov, with Judges Emin Mehdiyev and Mehriban Garayeva participating in the panel, while Judge Ali Mammadov served as the reserve judge. The court ensured that the appellants were provided with interpreters in the languages they understand – Armenian and Russian – as well as legal counsel to guarantee their right to defense.

The hearing was also attended by representatives of the victims and prosecutors representing the state prosecution, including Abbas Abbasli, Head of the Department for the Maintenance of Public Prosecution in the Courts of Appeal at the Prosecutor General’s Office, along with prosecutors of the department Anar Alakbarov and Sevinj Gasimova.

The court session continued with statements by prosecutors defending the public prosecution.

Prosecutors defending the public prosecution – Abbas Abbasli, Anar Alakbarov and Sevinj Gasimova – noted that, like other defendants charged in the criminal case, Bako Sahakyan, David Manukyan, David Babayan, Davit Ishkhanyan, Levon Mnatsakanyan, Madat Babayan and Melikset Pashayan’s involvement in the aggressive war against the Republic of Azerbaijan by Armenia and the activities of the criminal organization were confirmed by the evidence examined in the first-instance trial.

Public prosecutors stated that the accused individuals are convicted of crimes against peace and humanity, war crimes, including the occupation of Azerbaijan’s sovereign territories, the organization and provision of armed formations, incitement to hostile activity against Azerbaijan, terrorism, mine explosions, various crimes against civilians, and other illegal acts.

It was also mentioned that the charges brought against the accused were confirmed by witness statements, the opinions of forensic experts, testimonies, numerous protocols of investigative actions, documents and other evidence collected during the preliminary investigation of the criminal case, as well as presented and examined during the trial.

The next court hearing is scheduled for July 28.

According to the verdict issued by the Baku Military Court on February 5, 2026, Arayik Harutyunyan, Levon Mnatsakanyan, David Manukyan, Davit Ishkhanyan, and David Babayan were sentenced to life imprisonment. Arkadi Ghukasyan and Bako Sahakyan were sentenced to 20 years in prison; Madat Babayan and Melikset Pashayan to 19 years; Garik Martirosyan to 18 years; Davit Allahverdiyan and Levon Balayan to 16 years; and Vasili Beglaryan, Gurgen Stepanyan, and Erik Ghazaryan to 15 years in prison.

The State Examination Center (SEC) is conducting test examinations in music theory subjects for applicants pursuing studies in the field of music, AzerNEWS reports.

The exams are being held electronically in Baku, Ganja, and Nakhchivan.

The first exam session, covering commissions 21, 25, 26, 28, 32, 33, and 36, began at 10:00 and lasted for one hour.

The second session, for commissions 20, 24, 27, 29, 30, 69, 73, and 75, is scheduled to begin at 14:00.

The SEC noted that the examinations are administered by computer.

Candidates can view their results immediately after completing the test or once the allotted examination time expires.

The results will also be published later on the SEC’s official website.

The Appeals Commission will review examination results on July 27 and 28, from 14:00 to 17:00, at the SEC’s main administrative building.

Appeals will be accepted at 299 Hasan Aliyev Street, Nasimi District, Baku.

Over 250,000 people were evacuated across France due to wildfires, AzerNEWS reports.

The country’s Var prefecture said on Sunday that three new fires in the south of France were caused by “deliberate arson attacks.”

Meanwhile, in Spain, over 116,000 people have been evacuated over the past week, the report added.

Drive through Iowa or Kansas this summer, and conversations are as likely to revolve around diesel prices as the weather. That is unusual in America’s farm belt, where droughts, floods and hail have traditionally dominated discussions over coffee. Yet the pressures confronting U.S. agriculture today stem as much from volatile energy markets as from the climate. Escalating tensions in the Middle East have exposed a structural reality that often goes unnoticed: modern American agriculture is deeply dependent on fossil fuels, making every shock in global energy markets a shock to food production as well.

Diesel powers tractors, combines and irrigation systems. Natural gas provides the feedstock for nitrogen fertilizers. Petroleum is embedded in pesticides, plastics, packaging and the transportation networks that move grain from farms to domestic markets and overseas ports. For decades, inexpensive and abundant energy enabled remarkable gains in agricultural productivity. Today, however, that dependence has become a vulnerability.

The relationship between energy and agriculture has grown even more complex because American farms no longer produce food alone-they also produce fuel. Nearly half of the U.S. corn harvest is processed into ethanol, while almost half of American soybean oil is used in biodiesel and renewable diesel. Biofuel policies were designed to strengthen energy security, reduce dependence on imported oil and support rural economies. They have succeeded in creating new markets for farmers, but they have also tied agricultural profitability to fluctuations in oil prices.

When crude oil prices rise, demand for ethanol and biodiesel often follows, offering higher returns for some producers. Washington has attempted to capitalize on this by expanding access to E15 gasoline, a blend containing 15 percent ethanol, with proposals to allow year-round sales. For corn growers, these measures promise additional demand and stronger prices.

Yet higher biofuel demand offers only partial relief because the same forces that increase energy prices simultaneously raise production costs. Fertilizer, fuel, electricity and transportation have all become significantly more expensive. Nitrogen fertilizer, produced primarily from natural gas, has experienced repeated price increases following disruptions in global energy markets. Farmers therefore find themselves trapped between rising input costs and uncertain commodity prices. Higher revenues from biofuels rarely compensate for the broader escalation in expenses.

This pressure has altered planting decisions across the Midwest. Corn requires substantially more nitrogen fertilizer than soybeans, prompting many growers to shift acreage toward soybeans whenever fertilizer prices surge. Such decisions reflect rational risk management rather than confidence in market conditions. Farmers increasingly make planting choices not according to soil or long-term strategy, but according to the latest movements in energy and fertilizer markets.

Wheat producers face an equally difficult reality. Higher production costs, adverse weather and disease have reduced profitability even when harvests decline. Lower domestic output eventually filters through the economy in the form of more expensive flour, bread and livestock feed. At the same time, elevated feed costs contribute to higher prices for beef, poultry and dairy products, placing additional pressure on household budgets already strained by inflation.

Transportation has become another casualty of geopolitical instability. Higher marine fuel costs and congestion in major shipping routes have increased freight expenses and reduced the competitiveness of American agricultural exports. Every additional dollar spent transporting grain erodes margins for producers already operating under tight financial conditions.

The challenges confronting soybean growers illustrate the broader predicament. Earlier trade tensions encouraged many farmers to increase corn production, only for soaring fertilizer prices to reverse those decisions. Now many producers face a combination of higher input costs, uncertain export demand and commodity prices that have failed to keep pace with inflation. For many family farms, financial resilience has become increasingly difficult to maintain.

Political consequences are emerging alongside economic pressures. Rural communities have become increasingly vocal about rising production costs, trade uncertainty and the growing financial burden on family farms. Federal policymakers have responded through expanded farm assistance, investments in domestic fertilizer production and efforts to strengthen competition within agricultural input markets. While these measures may ease immediate pressures, they do little to address the underlying problem: American agriculture remains highly exposed to global energy volatility.

The current crisis also raises broader questions about the balance between food and fuel. Biofuel production has undoubtedly strengthened rural economies and diversified energy supplies. However, diverting large shares of corn and soybean production toward fuel inevitably influences food prices, livestock feed costs and export markets. As energy prices fluctuate, policymakers must continually balance environmental objectives, energy security and food affordability-an increasingly difficult task in an uncertain geopolitical environment.

There are reasons for cautious optimism. American farmers have repeatedly demonstrated remarkable resilience through technological innovation, precision agriculture and improved resource management. Advances in fertilizer efficiency, alternative energy, biological crop protection and digital farming offer opportunities to reduce dependence on volatile fossil fuel markets over the long term. Continued investment in agricultural research and infrastructure could strengthen resilience while preserving productivity.

Trade policy will also remain critical. Stable commercial relationships with major importers provide farmers with predictable demand, while affordable access to fertilizers, pesticides and farm equipment helps contain production costs. Agricultural competitiveness depends not only on what happens inside the farm gate but also on predictable international markets and reliable supply chains.

The lesson extends well beyond the United States. Energy security and food security have become inseparable. Geopolitical conflicts that disrupt oil and gas markets now reverberate through global agricultural systems, affecting producers and consumers alike. Countries dependent on imported food or agricultural inputs have every reason to diversify supply chains, invest in sustainable farming practices, and strengthen international cooperation rather than deepen economic fragmentation.

America’s farms remain among the most productive in the world, but they now operate within an economic landscape where energy markets shape agricultural fortunes as profoundly as rainfall and soil conditions. The challenge ahead is not merely producing more food; it is building an agricultural system resilient enough to withstand the energy shocks of an increasingly uncertain world. In an era of geopolitical instability, the future of farming will depend as much on energy policy as on agricultural policy, and recognizing that reality is the first step toward safeguarding both rural livelihoods and global food security.

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Qaiser Nawab is Chairman of the Belt and Road Initiative for Sustainable Development (BRISD), an international platform fostering cooperation and innovation across Asia, Africa, and Latin America.

Last week, Azerbaijan’s sovereign wealth fund SOFAZ released one of its traditional monthly reports. Despite the previous increases in its statistics, this time, however, the revenue has dropped slightly, raising the question of whether this signals a risk warning or simply a recalibration. Well, the mathematics of Azerbaijan’s State Oil Fund in the first six months of 2026 looks promising, at least at face value. Its total assets were $72.6 billion in July, representing a 9.1% rise from last year and an easy beat of the $64.8 billion that SOFAZ’s own investment strategy had estimated as its weighted-average asset size in 2026. SOFAZ’s portfolio of investments has indeed expanded. Its equity exposure is up. It has invested in Italian solar plants, UK airports, and private equity firms based in Dubai. The numbers, to sum it all up, look good. Dig a little deeper into the issue, and one gets an even more revealing picture.

During the first six months of the year, real income of SOFAZ was less than its expenses; the difference was 1.5 billion manats (approximately $882.4 million), to be exact. And the deficit had to be covered by spending the existing reserves. The off-budget deficit of the fund was about 3.7 billion manats (approximately $2.18 billion), mainly due to changes in exchange rates and due to the decline in gold prices during the first quarter (which resulted in the loss of value of significant gold reserves held by the fund). About 22 tonnes of gold were officially sold by the fund during the first quarter to balance the portfolio within legal limits; however, according to analysts, it is a coincidence that this occurred during January-February, when oil prices were at their lowest.

SOFAZ Overview in exact numbers for H1 2026 are like this:

$72.6 billion – Total assets as of July 1, 2026, reflecting a 9.1% increase year-on-year.

178.1 tonnes – Gold reserves remain at 178.1 tonnes, unchanged since the end of Q1, despite a 22-tonne sale in January-February.

28.1% – The equities share of the portfolio has risen by 2.4 percentage points year-on-year, now constituting 28.1%.

$109 – The current Azerbaijani crude oil price has increased to $109, driven by disruptions from the US-Iran conflict.

All of this is not a warning, but it is an interesting development in itself, a sovereign wealth fund approaching the transition point that all energy-based institutions eventually reach, the point where the energy sector that created the fund begins to decline structurally and inevitably. The production at the Azeri-Chirag-Gunashli group, the offshore Caspian cluster that has been the source of income for SOFAZ since the signing of the ‘Contract of the Century’ in 1994, amounted to 7.9 million tonnes of oil in the first six months of 2026. The production is declining, and it will continue to do so. The revenue of the fund from the ACG for the first six months of 2026 was 1.2 per cent down compared to the same period last year, a slight drop, yet a much bigger one could have happened due to the US-Iran crisis making the price of Azerbaijani oil $109 per barrel.

Fund’s diversification imperative

SOFAZ understands this development well, and has been responding to it, slowly at first, and now more purposefully. Its usual asset allocation was dominated by fixed income instruments, such as US Treasuries, European government securities and investment grade debt. It was safe, liquid and fitting for a stabilization fund that had one core task: to become available whenever it was needed by the government. This allocation has been decreasing. The proportion of bonds and money market instruments dropped 5.1 percentage points annually to 33.8 per cent. Equities, 28.1 per cent of total assets, are growing, while real estate, 6.7 per cent, is steady. And SOFAZ has been making a number of alternative investments, which signify a fundamental change in its investment strategy.

Let us take a look at the track record. As of July 2025, SOFAZ purchased a 49 percent stake in 14 solar power stations in Italy owned by Enfinity Global, which had a total installed capacity of 402 megawatts, all of which were working under the terms of long-term power purchase agreements. Also, in October 2025, the fund participated in an investment of £50 million in London Gatwick Airport in collaboration with Global Infrastructure Partners, which in turn belongs to BlackRock. In the earlier period of 2025, the fund invested in Italian rail operator Italo via the GIP entity and invested pound 20 million in a private equity fund domiciled in Dubai.

There has also been a shift in the geographical breakdown of the portfolio. North America currently forms 27.5 percent of the investment portfolio, which is an increase by 2.2 percentage points from the previous year, whereas Europe now forms 27 percent, down by 4.4 percentage points. Asia has increased to 9.9 percent. The fund has been increasing its investments in China and Gulf countries, and its chief investment officer has commented that the geographical diversification strategy was designed to de-risk the portfolio and take advantage of high-growth economies. SOFAZ has partnerships with BlackRock, Brookfield, JP Morgan, Franklin Templeton, Blackstone, Neuberger Berman and KKR as its external managers.

‘Famous gold question’ and the long horizon

The gold question is particularly telling in regard to the problems currently faced by SOFAZ. The fund has been increasing its positions in gold in recent years up to 26 per cent of the portfolio and nearly $16 billion worth of gold, as its chief investment officer called it, a strategic decision to increase Azerbaijan’s gold reserves within its reserve management policy. This decision is quite logical, as gold helps to diversify against a slightly weakening dollar, is a hedge on geopolitics, and has risen substantially during the last three years due to central banks’ purchases. Yet the US-Iran conflict has brought an unforeseen twist. Gold provided a negative contribution to the total AUM in Q1, at the same time as the oil revenues were at the lowest level possible. Two hedges worked against each other.

The decision of the fund not to sell any of its gold in Q2 and keep its holdings stable at 178.1 tonnes can be taken as either a sign of confidence about the continued strength of the strategy, or the unwillingness to lock in losses at this time. The ratio of gold in the overall portfolio has fallen to 31.4 per cent, compared to 35.6 per cent as of April, mainly because the gold price has come down. Whether this is a temporary correction, or the start of a more permanent move out of precious metals into other assets, is something that SOFAZ’s next investment policy will have to consider.

The most critical aspect of the fund, and the one that sets it apart from simply being a stabilisation buffer, is that the fund has been set up for generations to come. Since inception, SOFAZ has channelled over $135 billion into the state budget, which is quite an impressive amount for a nation of just 10 million people, while at the same time creating an investment portfolio that should produce gains even when the ACG stops producing. It is precisely the balancing act between these two aspects that is the key challenge of today. When oil revenue is high, the fund can provide generous budget support and continue growing. When production falls and oil prices are volatile, where does the budget receive the funds? The fund typically addresses this question by pursuing greater diversification as much as possible, at least to a certain extent.

With the price of crude standing at $109 per barrel, Azerbaijan is content for the moment. But the dispute between the US and Iran has, strangely enough, allowed the fund to enjoy a period of high income and take steps towards diversifying that will make that income irrelevant in time. Whether SOFAZ takes advantage of that opportunity by expanding its infrastructure and alternative investments, lessening its reliance on oil prices, and constructing an investment portfolio that earns independently of Caspian crude is the issue that outweighs any half-yearly report. The bottom line is good; the job is tough, and it has only just started.