What’s the latest?
May summons Cabinet to discuss Syria military strike
British Prime Minister Theresa May summoned her Cabinet back from vacation yesterday to discuss military action against Syria over an alleged chemical weapons attack.
May has indicated she wants Britain to join in any US-led strikes in response to the attack in Douma. Britain’s Ministry of Defence refused to comment on reports that Royal Navy submarines armed with cruise missiles have been dispatched into range of Syria. British opposition lawmakers are calling for Parliament to be given a vote before any military action.
May isn’t legally required to do that, though it is conventional for lawmakers to be given the chance to vote. Parliament is in recess until Monday, though it could be called back early for an emergency debate.
Macron says France has proof Syrian regime behind gas attacks
President Emmanuel Macron says France has proof that the Syrian government launched chlorine gas attacks. Macron said yesterday that France would not tolerate “regimes that think everything is permitted.” He did not say whether France is planning military action.
Macron said he has been talking regularly this week with US President Donald Trump about the most effective response but insisted that “France will not allow an escalation or something that could damage the stability” of the region. On Tuesday, Macron said any French action would target Syria’s chemical weapons abilities.
Earlier French foreign minister Jean-Yves Le Drian said France would decide “within days” if it planned to attack.
Kuwait Airways halts Beirut flights
Kuwait’s national carrier halted flights to Beirut yesterday citing security concerns, after an air safety watchdog warned of potential military strikes on Syria in the coming days.
Kuwait Airways said that it took the decision “on the basis of credible security warnings received from the Cypriot authorities regarding the danger of flying over Lebanon’s airspace”.
The changes would stand “until further notice”, the airline said on Twitter.
The move came after the European Aviation Safety Agency alerted airlines on Tuesday of the possible launch of “airto-ground and/or cruise missiles within the next 72 hours”, urging them to take precautionary measures.
Other international carriers including Air France and Lebanon’s Middle East Airlines have also modified their flight plans.
US stocks rise
US stocks rose and Treasuries retreated as investors speculated that Middle East tensions won’t erupt into a destabilising conflict.
All major benchmarks were were higher following hints from Trump that military action in Syria may not be imminent, while Russia toned down its own war rhetoric.
Threats of a strike weighed on investor sentiment for riskier assets, with MSCI’s benchmark emerging stocks index down 0.15 per cent.
Russian stocks fell 0.3 per cent and Turkish stocks 0.5 per cent.
Jakob Christensen, head of emerging markets research at Danske Bank, said the door was open for further weakening of the rouble given the geopolitical situation.