Middle East

• Hezbollah's deputy leader, Naim Qassem, expressed support for a ceasefire during a televised address yesterday. He didn't mention any conditions - not even the group's longstanding demand for an end to the Gaza war as a precondition for a detente (though Qassem did vaguely vow to continue to stand with Hamas and Palestinians against Israel).
• U.S. officials assessed that Qassem's eagerness for a truce shows that Hezbollah is "getting battered" and considering acknowledging defeat.
• Separately, Israel targeted a Hezbollah weapons smuggler with an airstrike on a residential building in Damascus's embassy district, killing seven (it's not clear if the target was among those killed).
• Israel is still contemplating its options for responding to Iran's (largely-ineffective) ballistic missile strikes last week. PM Netanyahu will speak with Pres. Biden by phone today to discuss Israel's plans.
• Iran is girding for a harsh response. Its diplomats have been warning Gulf countries against letting their airspace or military bases be used in an attack on Iran.

• Mexico's new president, AMLO protege Claudia Sheinbaum, unveiled her plan to combat worsening cartel violence yesterday, and analysts were unimpressed. Critics of the plan say it's only a continuation of AMLO's "hugs not bullets" approach that failed to reverse the rise in violence.

• It's not just U.S. elections that Russia is seeking to disrupt: the head of the UK's domestic security service (MI5), Ken McCallum, said Russian spies are also trying to "generate mayhem on British and European streets" with acts of "arson, sabotage, and more."
• McCallum said over 750 Russian diplomats - "the great majority of them spies" - have been booted from Europe since Russia invaded Ukraine. With its professional troublemakers benched, Moscow then resorted to hiring private operatives and common criminals for its EU missions, McCallum added. He blamed their work for driving a 48% rise in MI5 investigations into state-sponsored operations against the UK in 2023.
• McCallum noted that Iran and China are also actively supporting plots in the UK, but not as vigorously as Russia is - and China's operations are primarily focused on targeting dissidents abroad.

• China announced new penalties on European brandy in response to tariffs on Chinese electric vehicles (EVs) that the EU approved last week.
• Beijing argues that EU brandy producers are dumping their tipples in the Chinese market at below-market prices - akin to how China is dumping cheap EVs in the European market at prices lower prices than domestic EV makers can tolerate.
• China's new measures are structured in a way that gives the EU a chance to back down on its EV tariffs first: the Ministry of Commerce will temporarily collect deposits of up to 39% on EU brandy imports, but if it makes the penalties permanent then those deposits will be forfeited, effectively becoming tariff payments.
• The European Commission plans to challenge China's retaliatory measures at the World Trade Organization.

• Pyongyang announced plans to "permanently" sever road and rail links with South Korea and fortify its border regions.
• Road and rail travel between the two Koreas has been cut off for years, so the North's gesture is largely a symbolic indicator that strengthening U.S.-South Korea military collaboration is raising Kim Jong Un's blood pressure.
• Separately, Ukrainian media reported that six North Korean soldiers fighting for Russia were killed in a Ukrainian missile strike near Donetsk last week.
• South Korea's Defense Minister told parliament that it's "highly likely" that North Korean soldiers are indeed fighting on Russia's side in Ukraine under the mutual defense pact Russia and North Korea signed - though this is still unconfirmed.