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Economy May 21, 2026

The Economics of Hormuz: Calculating the Cost of Iran's Transit Toll

As the Strait of Hormuz remains closed eleven weeks into the Iran war, this analysis examines wheth…
The LeadEleven weeks after the start of the Iran war, the Strait of Hormuz has remained closed to naval traffic, bleeding the global economy far beyond the Gulf. Iran's Islamic Revolutionary Guard Corps (IRGC) maintains an iron grip over this narrow, strategic waterway, while a corresponding United States naval blockade on Iranian ports has failed to reopen it.Before the war began, between 120 and 140 ships travelled through the strait each day, about half of them oil tankers carrying some 20 million barrels of oil between them. Now, only a few vessels whose owners have negotiated with the IRGC are permitted to pass.The Strategic Control of HormuzOn Wednesday, Iran said it coordinated the transit of 26 vessels through the Strait of Hormuz in 24 hours, two days after announcing the formation of the Persian Gulf Strait Authority (PGSA), a new body to provide "real-time updates" on operations in the strait.Since the announcement of a temporary ceasefire between the US and Iran in April, Iran has been working on formalising a mechanism to charge a transit fee from ships crossing the critical chokepoint, through which 20 percent of the world's oil and liquefied natural gas (LNG) are shipped during peacetime.Tehran has reportedly already charged fees as high as $2m per ship for transit since the war started. Even though countries opposing Tehran say this is illegal, it may still be less expensive than the overall cost of the closure of the strait each day.The Economic Cost of BlockadeNearly one-fifth of global oil and LNG exports were shipped by Gulf producers through the Strait of Hormuz before the US and Israel bombed Iran on February 28, triggering the Iranian closure of the waterway. The strait is the only waterway linking Gulf producers to the open ocean – there is no other route through which they can ship exports.About 20.3 million barrels per day of oil passed through the Strait of Hormuz in peacetime – nearly 27 percent of global maritime oil trade. The lion's share of that crude went to Asian markets.Global LNG trade has been similarly hard hit. On the day before the war broke out, Brent crude – the global benchmark for oil prices – closed at $72.48 per barrel. After Iran closed the waterway on March 4 and began attacks on vessels attempting to sail through, traffic came to a standstill, stranding about 2,000 ships on either side of the strait.In terms of lost oil revenues, this amounts to $114.8bn of losses per day. About 10 billion cubic feet of LNG per day also used to pass through the strait, worth a further $7.8bn.The Cost-Benefit Analysis of Transit FeesFor hundreds of ships stranded in the Gulf with thousands of sailors on board, the cost of remaining anchored is steep, including crew wages, loan repayments, repair and management, coupled with inflated war risk premiums.In turn, Iran has reportedly been charging up to $2m for authorisation to pass. Experts say many will see this as worthwhile purely in terms of monetary cost."There is no doubt that paying Iran is cheaper than a continuous blockade because a sitting tanker bleeds money," said Nader Habibi, an Iranian American economist."It makes sense from an economic point of view, but it is not politically feasible," he added. "The companies are under pressure from the US sanctions and not to make arrangements with Iran. This is not just a purely economic cost-benefit analysis, but long-term considerations that are taken into account."International Legal PerspectivesInternational law protects free transit through strategic waters such as natural straits like Hormuz, barring countries from imposing passage tolls even where the waterways fall entirely into territorial waters, like in the case of Hormuz.However, services such as security controls, inspections and insurance regimes can be charged for. Chargeable fees also partly depend on whether a waterway is a man-made passageway or a natural one.These are three different precedents in maritime traffic flow:Panama Canal: An artificial waterway connecting the Atlantic and Pacific oceans. Vessels pass through a unique system of locks that raise and lower vessels across elevated terrain. Since Panama built, maintains and operates the canal, it can charge transit fees based on vessel size, cargo capacity and booking priority. These range from several hundred thousand dollars per transit to some slots sold for millions of dollars.Suez Canal: Another artificial canal, linking the Mediterranean and Red seas. Egypt charges transit fees for the use of canal infrastructure, maintenance and traffic management services through the narrow waterway. Container ships and oil tankers pay from several hundred thousand dollars to more than one million dollars per voyage.Turkiye's Bosporus Strait and Dardanelles: These are different because they are natural straits, rather than man-made canals. Turkiye charges for navigation-related services such as lighthouse operations, rescue readiness, medical support and traffic management – and tightly controls ship scheduling and navigation.Regional Cooperation PossibilitiesIran's newly-formed PGSA published a new map of Hormuz, stretching from Kuh-e Mubarak in Iran to south of Fujairah, in the UAE, at the eastern entrance of the strait, and from the tip of Qeshm Island to Umm al-Quwain at the western entrance.Given how the Iran war has spilled over into the Gulf region – with the UAE taking the brunt of Iranian strikes – economist Mohammad Reza Farzanegan said "regional cooperation with Iran is the most realistic path to stable transit through the Strait of Hormuz."The UAE, Oman, Qatar and Iran will have to work together because their economies require it, he argued. A workable arrangement could include a joint maritime authority, shared monitoring, emergency coordination, environmental protection and service-based contributions for maintaining safe passage."This would give Iran a recognised role in the security of the waterway while giving Persian Gulf economies more predictability," Farzanegan added. "Such a framework is also more realistic than relying on external military enforcement, which has been more a source of trouble for these states."The Future OutlookWhile it may seem that the economics of the closure of the strait are currently skewed towards Iran, Aniseh Tabrizi, an associate fellow on the Middle East and North Africa Programme at think tank Chatham House, noted that "the economics by itself is not going to be the driver to change calculation or move from the current standpoint."She emphasized that Iran and the US need to reach a "diplomatic compromise, with other calculations linked in to the economic factor", before there can be an end to the energy supply crisis.Farzanegan added that if the world expects stable access to the Strait of Hormuz, then paying Iran could well be accepted as the price of keeping the vital waterway predictable. "From an economic perspective, a negotiated transit arrangement [with Iran] now makes more sense than continued closure," he concluded.
#Iran #Strait of Hormuz #Oil Prices
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Health May 21, 2026

Air France Flight Diverted to Canada Over Ebola Travel Ban Error

An Air France flight bound for Detroit was forced to land in Montreal after a passenger from the De…
Air France Flight Diverted Over Ebola Entry BanU.S. Customs and Border Protection halted an Air France flight headed to Detroit when it was discovered that a passenger from the Democratic Republic of Congo had boarded "in error" amid newly imposed Ebola travel restrictions. The aircraft was redirected to Montreal, Canada to prevent a potential public‑health breach.Passenger Boarding Error Triggers Canada DiversionThe CBP spokesperson explained that the traveler should not have been allowed on the plane because of entry limits designed to curb the spread of the Ebola virus. Coordination with the CDC led to the decisive action of diverting the flight rather than allowing it to land at Detroit Metropolitan Wayne County Airport.Key Ebola Statistics and Restriction Timelines600 suspected Ebola cases reported across the region.139 suspected deaths associated with the outbreak.51 confirmed cases in the DRC and 2 confirmed cases in Uganda.Travel restrictions apply to non‑U.S. passport holders who have been in Uganda, DRC or South Sudan within the previous 21 days.The emergency order is effective for 30 days, with additional measures slated to begin on Thursday.Broader Impact on International Travel and Public Health PolicyThe diversion highlights how rapidly evolving health crises can reshape aviation protocols. Flights carrying travelers from affected countries will now be required to land at Washington‑Dulles International Airport, where enhanced screening and quarantine resources are concentrated. This approach aims to balance disease containment with the rights of travelers and the operational continuity of airlines.Outlook: Potential Future Travel RestrictionsHealth officials warn that case numbers are expected to rise, suggesting that stricter entry bans or longer diversion requirements could become standard for flights from the central African region. Airlines may need to implement more rigorous passenger verification processes to avoid similar incidents, and governments could extend the 21‑day travel‑history window or broaden the list of restricted nations.
#Air France #Democratic Republic of Congo #Ebola
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Tech May 21, 2026

Google pitches AI agent ecosystem at I/O, but consumer appeal remains unclear

Google unveiled a family of AI agents at its 2026 I/O conference, promising 24/7 background assista…
At its 2026 I/O developer conference, Google introduced a suite of AI‑driven agents – Information agents, Spark, Android Halo and Daily Brief – designed to automate everyday information tasks. While the technology showcases deep integration across Gmail, Docs and Chrome, the initial rollout is restricted to paid Gemini Ultra subscribers, raising questions about mass‑market adoption. New AI Agent Products: Information Agents, Spark, Halo, and Daily Brief Information agents: A modern take on Google Alerts that runs continuously, surfacing market trends, price changes or weather alerts. Google Spark: A personal assistant that taps into Gmail, Google Docs and Workspace to summarize newsletters, track home inventory, restock items and coordinate group trips. Android Halo: The branding for Spark‑derived notifications on Android devices, slated for a later‑year release. Daily Brief: An AI‑generated digest that pulls data from a user’s inbox, calendar and tasks, currently rolling out to Ultra, Pro and Plus subscribers in the U.S. Pricing Model and Early Access: Gemini Ultra’s $100‑per‑month Plan Gemini Ultra subscription: $100 per month, targeting heavy‑use “AI‑pilled” customers. Information agents become available to Pro and Ultra users in the U.S. this summer. Spark will reach Ultra subscribers “soon,” with broader availability hinted for the future. Halo is promised for Android users “later this year,” while Daily Brief is already live for qualifying subscribers. Potential Consumer Friction and Market Implications The announcement generated confusion due to the proliferation of brand names—Information agents, Spark, Halo, Daily Brief—and the fact that most features remain behind a paywall. Average users, who still associate Google’s AI efforts with chat‑based search enhancements, may find the ecosystem overly complex and inaccessible. This strategy risks widening the gap between “AI‑subscribed” power users and the broader free‑tool audience, potentially ceding ground to messaging‑first AI startups such as Poke, Poppy, RPLY and Wingman that already offer free, text‑based agent interactions. Outlook: Path to Wider Availability and Competitive Landscape Google has signaled that the agentic features will eventually reach free users “when the time is right,” but no concrete timeline was provided. If the company can demonstrate clear, everyday problem‑solving use cases—such as reducing screen time or automating routine chores—consumer uptake could improve. Meanwhile, competitors are positioning themselves as more approachable alternatives, emphasizing seamless messaging integration. The success of Google’s AI agents will hinge on moving beyond developer‑centric demos to tangible benefits for the average consumer.
#Google #Gemini #Spark
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Politics May 21, 2026

What’s Trump’s ‘anti‑weaponisation fund’ and why legal experts are alarmed

The Justice Department has created a $1.8 billion “anti‑weaponisation” fund to compensate people wh…
Executive Summary: DOJ Launches $1.8 B “Anti‑Weaponisation” Compensation FundThe U.S. Department of Justice announced a new anti‑weaponisation fund worth just under $1.8 billion, designed to compensate individuals who allege they were victimised by federal legal actions. The fund is part of a settlement in former President Donald Trump's $10 billion lawsuit against the IRS over leaked tax returns.Mechanics of the New Fund and Its Legal OriginsThe fund originates from a “judgement fund,” a standing government account used for legal settlements without needing fresh congressional legislation. Key operational details include:Claims can be filed by anyone who believes they suffered from unlawful government‑initiated legal action.Every three months the fund must report recipients, payment types (cash, debt relief, etc.) to the Attorney General.A five‑person oversight panel, appointed by the Attorney General with one member selected in consultation with congressional leaders, will manage the fund.The fund will stop accepting new claims after December 1 2028, after which any remaining balance reverts to the federal treasury.Financial Scale: $1.8 B Allocation and Settlement ContextThe allocation is comparable to the annual policing or school budget of a midsized U.S. city, far exceeding the typical size of a single‑lawsuit settlement. It stems from the settlement of Trump’s lawsuit alleging the IRS leaked his tax information between 2018‑2020. The settlement was approved by a federal judge, meaning no additional legislative action is required to activate the fund.Political Fallout: Why Democrats and Legal Scholars Decry a Slush FundCritics, including more than 90 House Democrats and senators such as Elizabeth Warren and Ron Wyden, argue the fund:Pushes the limits of executive authority by creating a large compensation scheme without congressional oversight.Could be used to reward supporters of the January 6, 2021 Capitol riot, many of whom were pardoned by Trump.Represents a “slush fund” that may funnel taxpayer money to politically aligned individuals, echoing past concerns about “lawfare.”The Cato Institute and other think tanks have published analyses labeling the fund as an unprecedented bypass of normal appropriations processes.Looking Ahead: Congressional Pushback and Potential Fund FateDemocratic lawmakers are preparing legal challenges and may seek to block the fund through congressional action or a court injunction. The Justice Department has indicated that any unspent money after the fund’s termination will be returned to the Treasury, but the debate centers on whether the fund should have been created at all. If Congress intervenes, the fund could be restructured, placed under stricter oversight, or dissolved entirely, setting a precedent for future executive‑legislative financial arrangements.
#Donald Trump #Todd Blanche #IRS
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World Wide May 21, 2026

Ebola Spreads to Conflict Zones: The Postponement of the India-Africa Forum Summit

The Indian government and the African Union have postponed the upcoming India-Africa Forum Summit d…
The upcoming India-Africa Forum Summit has been officially postponed by the African Union and India, marking a significant shift in diplomatic priorities as the Democratic Republic of the Congo battles a resurgence of the Ebola virus.Conflict Zones Complicate the Ebola ResponseThe outbreak has reached South Kivu province, a region currently under the control of the M23 rebels. This development is critical because the area, including the provincial capital Bukavu, is densely populated and difficult to access due to ongoing military conflict. The M23 group, backed by Rwanda, has stated their commitment to working with international partners, yet the presence of the virus in their territory poses a severe logistical challenge for health workers.Alarming Statistics from the WHOAccording to the World Health Organization, this is the 17th outbreak in the DRC. Current figures indicate 600 suspected cases and 139 deaths. The virus has also crossed borders into Uganda, raising the stakes for regional containment. The WHO has declared this an international emergency, signaling that the virus is no longer just a local health crisis but a global threat.Geopolitical Fallout and Aid ShortagesThe postponement highlights the fragility of international cooperation when health crises intersect with political instability. Furthermore, the response is hampered by a sharp decline in foreign aid, particularly from the United States, which has led to shortages of essential supplies for first responders. The decision to delay the summit reflects a recognition that diplomatic engagement is less effective when the health security of the participating nations is compromised.A Long Road to ContainmentThe presence of the virus in rebel-controlled territories suggests that the outbreak will be difficult to contain without a ceasefire. The rescheduling of the India-Africa Summit underscores that public health emergencies often supersede diplomatic agendas, potentially delaying economic cooperation until the crisis stabilizes.
#India #Africa #Ebola
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Business May 21, 2026

Air France and Airbus Convicted of Corporate Manslaughter Over 2009 AF447 Crash

A Paris appeals court found Airbus and Air France guilty of corporate manslaughter for the 2009 AF4…
The Paris Court of Appeal has delivered a landmark verdict, convicting Airbus and Air France of corporate manslaughter for the 2009 Atlantic crash of flight AF447 that claimed 228 lives. The ruling imposes the maximum fine of €225,000 per company and revives a decade‑long legal battle for victims’ families.Paris Appeals Court Convicts Airbus and Air FranceThe court concluded that systemic negligence within both the planemaker and the airline contributed to the fatal stall of the A330 during a storm on 1 June 2009. Prosecutors demonstrated that inadequate training, poor sensor‑icing procedures, and failure to act on prior incidents met the legal threshold for corporate manslaughter under French law.Financial Penalties and Their ScaleMaximum corporate manslaughter fine: €225,000 per company (≈£194,500).Fine represents only a few minutes of annual revenue for each firm.Previous lower‑court ruling in 2023 had cleared both firms.Legal Precedent and Industry RepercussionsThe conviction marks the first time French courts have applied corporate manslaughter to major aerospace entities, signalling heightened accountability for safety culture. Aviation regulators may face pressure to tighten oversight of training protocols and sensor‑icing mitigation, while shareholders watch potential reputational fallout.Potential Appeals and Long‑Term OutlookFrench lawyers for the defendants have signalled intent to appeal to the Cour de Cassation, which could extend litigation for years. A successful appeal would reset the legal narrative, but even a upheld verdict could embolden victims’ groups worldwide to pursue similar actions against airlines and manufacturers.
#Air France #Airbus #AF447
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Sports May 21, 2026

Thunder's Gilgeous-Alexander Powers Comeback as Oklahoma City Evens Series with Spurs

Shai Gilgeous-Alexander bounced back with 30 points to lead the Oklahoma City Thunder to a 122-113 …
Thunder Even Series Behind MVP's Strong PerformanceShai Gilgeous-Alexander bounced back from a subpar series opener to score 30 points, Alex Caruso added 17 off the bench and the host Oklahoma City Thunder beat the San Antonio Spurs 122-113 on Wednesday night in Game 2 of the Western Conference finals. The victory evens the series at 1-1 as it shifts to San Antonio for Game 3 on Friday.Thunder's Adjusted Defense Contains WembanyamaThe Thunder playbook in Game 2 was about making life as difficult as possible for Victor Wembanyama, hoping to prevent outbursts like the 41-point, 24-rebound gem he put together in San Antonio's 122-115 win in Game 1. Coach Mark Daigneault adjusted his defensive strategy after the first game, implementing a more varied approach to contain the Spurs' star."Every good player, they have to feel the defense," Gilgeous-Alexander said. "It's tough. He's very different to scout. You've got to try to mix things up, you've got try different things. And that's just what we did. Coach tried something in the first game, didn't like it, tried something else. That's what it's about."Bench Depth and Turnovers Prove DecisiveThe Thunder finished with a 57-25 edge in bench scoring, plus a 27-10 advantage in points off turnovers. Chet Holmgren scored 13 points and reserves Jared McCain and Cason Wallace each had 12 for Oklahoma City, demonstrating the team's depth beyond their star players."I thought we all played better," Thunder coach Mark Daigneault said. "I had a quiet confidence about that. I didn't know if we'd win or lose the game, but I was pretty sure after watching Game 1 and knowing our team that we were going to come out and play better tonight."Injuries Mount as Series Shifts to San AntonioThe win was not without cost for the Thunder, who lost guard Jalen Williams in the first half with a recurrence of a hamstring issue. He had already missed six games in these playoffs with a left hamstring strain, putting his availability for Friday into doubt.The Spurs also got banged up. Already without All-Star guard De'Aaron Fox because of ankle soreness, San Antonio lost his replacement in the starting lineup, Dylan Harper, to a right leg injury after he took a couple of awkward falls in the third quarter."Obviously this team is as good as anybody at turning you over, so when you're down some of your primary creators and initiators it causes a little bit of an extra strain, whether that's who to play, what to play, what to run, etc, etc," Spurs coach Mitch Johnson said. "We'll just have to be sharper in that area because it's tough fully loaded against these guys."Series Outlook Shifts After Thunder's ResponseWith the series now tied and heading to San Antonio, both teams face questions about health and adjustments. The Thunder showed their ability to respond after a poor Game 1 performance, while the Spurs must determine how to compensate for their growing list of injuries."The guys brought it tonight," said Gilgeous-Alexander, who was recently named the league MVP for the second straight season. "Knowing what it would have meant if we lost this one, we brought the energy from the jump." The series now becomes a best-of-three with Game 3 set for Friday in San Antonio.
#Shai Gilgeous-Alexander #Oklahoma City Thunder #San Antonio Spurs
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Politics May 21, 2026

Ben-Gvir's Flotilla Video Destroys Israel's Multimillion-Dollar 'Hasbara' Campaign

A video posted by Israel's far-right National Security Minister Itamar Ben-Gvir, taunting abducted …
The Lead A video posted by Israel's far-right National Security Minister Itamar Ben-Gvir, in which he is seen taunting abducted flotilla activists who sought to break the siege on Gaza, has triggered a backlash and dealt a huge blow to Israel's multimillion-dollar public relations campaign, known as 'Hasbara'. The Event Details The footage, posted on the social media platform X, showed Ben-Gvir gloating as activists from the Global Sumud Flotilla knelt on the floor, blindfolded, with their hands bound at the Port of Ashdod. Israeli naval forces had intercepted the flotilla's vessels in international waters off the coast of Cyprus, illegally abducting 430 participants. Among them, at least 87 have launched a hunger strike in solidarity with the more than 9,500 Palestinian prisoners held in Israeli jails. The Diplomatic Fallout The images of activists being dragged across the floor prompted several countries – including Italy, France, the Netherlands, Canada, and Spain – to summon Israeli ambassadors, condemning the 'unacceptable' treatment and violation of human dignity. The Collapse of the 'Hasbara' Illusion Experts argue that the frantic damage control by Israeli officials, including Prime Minister Benjamin Netanyahu, who ordered the rapid deportation of the activists, stems not from moral outrage over the abuses, but from the catastrophic damage done to Israel's global image. For decades, Israel has relied on 'Hasbara' – a Hebrew term translating to 'explanation' – a propaganda campaign to justify its policies and military actions against Palestinians to the international community. US Double Standards and 'Pro-Terror' Sanctions The diplomatic fallout also laid bare the glaring contradictions in United States policy. Following the video's release, US ambassador to Israel Mike Huckabee criticised Ben-Gvir, stating the minister had 'betrayed the dignity of his nation'. However, critics were quick to point out that Huckabee's condemnation rang hollow, as it focused entirely on the indignity of the broadcast rather than the human rights violations committed. A Microcosm of Palestinian Suffering For Palestinians, the humiliation endured by the European and international activists is merely a glimpse into a much darker, systemic reality. Mustafa Barghouti, secretary-general of the Palestinian National Initiative, said the bound and blindfolded activists represent a 'microcosm' of what Palestinian prisoners endure daily. The Hammer and the Flotillas Despite the military interceptions and the US sanctions, activists and analysts agree that the flotilla campaigns, which began in 2009 in response to Israeli land, sea and air blockades, have succeeded in exposing the limits of Israeli force.
#Itamar Ben-Gvir #Israel #Gaza Flotilla
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Politics May 21, 2026

Israel's Ben-Gvir Publishes Video Taunting Detained Flotilla Activists

Israeli Minister Itamar Ben-Gvir has published a video taunting detained flotilla activists, sparki…
The Lead: Ben-Gvir's Provocative VideoIsraeli Minister Itamar Ben-Gvir has published a video taunting detained flotilla activists, marking a significant escalation in tensions surrounding the maritime operation. The video, which has gone viral on social media platforms, shows Ben-Gvir making provocative gestures and statements toward the activists who were detained during an Israeli naval operation.The Event Details: Flotilla Confrontation and AftermathThe incident stems from a flotilla that attempted to breach Israeli naval blockades in the region. Israeli authorities detained the activists, citing security concerns. Ben-Gvir's video appears to be filmed at the detention facility, where he is seen addressing the detainees with what critics describe as humiliating and degrading language. The minister has defended the video as a necessary response to what he calls "provocative actions" by the flotilla participants.The Data Analysis: Social Media Impact and Public ReactionThe video has garnered significant attention across social media platforms, with millions of views within hours of publication. Public reaction in Israel has been divided, with supporters of Ben-Gvir praising his stance against what they perceive as hostile provocations, while critics condemn the video as inappropriate and damaging to Israel's international image. The incident has also trended globally, with hashtags related to the controversy gaining traction.The Impact Analysis: Diplomatic RamificationsThis incident has significant diplomatic implications for Israel. The video has drawn condemnation from several international organizations and foreign governments, potentially straining already fragile diplomatic relations. Human rights groups have called for investigations into the treatment of the detainees, while some neighboring countries have used the incident to criticize Israeli policies. The timing of the release, amid ongoing peace negotiations, adds another layer of complexity to the region's already tense political landscape.The Prediction: Future Consequences and Political FalloutLooking ahead, this incident is likely to have lasting consequences for both domestic Israeli politics and international relations. Ben-Gvir's actions may strengthen his political base but could further isolate Israel on the global stage. The detained activists may pursue legal action, and the video could become evidence in potential human rights cases. Additionally, this incident may embolden other right-wing figures to take similar provocative stances, potentially leading to a more confrontational approach in Israeli foreign policy.
#Ben-Gvir #Israel #Flotilla activists
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