Radio Briefing - September 18, 2025

Urban combat, legal-turned-trade pressure, a monetary pivot, and new security alignments defined the day. Israel’s push into Gaza City entered a second day with heavy strikes, a time‑limited evacuation corridor, a communications blackout and reported damage to a children’s hospital. Brussels advanced the most far‑reaching EU measures yet against Israel’s government and trade preferences. The U.S. Federal Reserve cut rates for the first time since December, citing rising job risks and tariff‑linked goods inflation. Saudi Arabia and Pakistan signed a mutual‑defense pact that explicitly links Gulf and South Asian security. And Kyiv said a new NATO‑led mechanism is now moving U.S. air‑defense missiles to Ukraine via allies.
  • Gaza City: 150+ targets struck; 48‑hour escape route; hospitals and communications under strain.
  • EU–Israel: Commission proposes suspending trade preferences and sanctioning cabinet ministers; Israel warns of retaliation.
  • Fed: 25 bps cut to 4.00–4.25% framed as “risk‑management” amid softer jobs and tariff headwinds.
  • Riyadh–Islamabad: Mutual‑defense pact declares an attack on one is an attack on both.
  • Ukraine: NATO‑funded channel launches to route U.S. systems via allies; first packages include Patriot missiles.
  • Israel pushes into Gaza City; 48‑hour evacuation route opens as strikes intensify, comms go dark, and a children’s hospital is hit ()

    Israel’s ground operation in Gaza City entered a second day marked by heavy air and artillery strikes, acute displacement pressure, and a precarious medical and communications situation. The army said the campaign is aimed at seizing Gaza’s largest city; the UN called conditions “intolerable.”

    "the Israeli army says it struck more than 150 targets in Gaza City since launching a major new ground offensive there 24 hours ago."

    Palestinian authorities reported dozens of deaths in a single day, as Israel opened a second, time‑limited corridor to move people south along Salah al‑Din Street.

    "« Les bombardements ont fait au moins 100 morts pour la seule journée d'hier, selon les autorités palestiniennes. Ce matin, Israël a ouvert un nouvel axe pour accélérer la fuite des habitants de Gaza-ville vers le sud, au Marouamane. »" "‘The bombardments caused at least 100 deaths in just one day, according to the Palestinian authorities. This morning, Israel opened a new route to speed the flight of Gaza City residents to the south, to Marouamane.’"
    "Elle annonce ce matin aux habitants qu'elle ouvre une deuxième route d'évacuation pour 48 heures le long de la rue Salah el-Din." "‘This morning it announced to residents that it is opening a second evacuation route for 48 hours along Salah al‑Din Street.’"
    "« l'armée israélienne a ouvert un autre passage, la route Salah al-Din ... Ce nouvel itinéraire d'évacuation n'est ouvert que pendant 48 heures, jusqu'à vendredi midi. »" "‘the Israeli army has opened another passage, Salah al‑Din Road ... This new evacuation route is open only for 48 hours, until Friday noon.’"

    On the roads, witnesses described a chaotic exodus; the IDF says hundreds of thousands have already left, but many remain.

    "The city is jammed. Vehicles are overloaded. They're sharing the roadway with bicycles and people pushing carts packed with belongings."
    "The Israeli military estimates 350,000 Palestinians have left the city. An estimated 1 million people were living there. Israel has temporarily opened another evacuation corridor."
    "the military estimates there are thousands of Hamas fighters in Gaza City and that about 600,000 civilians have yet to be evacuated."

    Doctors told the BBC Gaza’s only specialist children’s hospital was struck overnight, forcing evacuations; Israel said it was looking into the incident. Communications blacked out across swathes of the city, and the health sector warned fuel access was being blocked.

    "Doctors say overnight Israel bombed Gaza's only specialist children's hospital, damaging the upper floors and forcing sick and injured patients to flee. Israel's military, which says it's targeting Hamas, says it's looking into the incident."
    "انقطاع الاتصالات والإنترنت عن أنحاء واسعة من مدينة غزة." "‘Communications and internet have been cut off from large parts of Gaza City.’"
    "الاحتلال الإسرائيلي عمد إلى عرقلة جهود منظمة الصحة العالمية لإدخال الوقود إلى مستشفيات محافظة غزة..." "‘The Israeli occupation deliberately obstructed World Health Organization efforts to bring fuel into Gaza governorate hospitals…’"

    UN leadership escalated warnings about the human toll.

    "« «Intolérable», a déclaré le secrétaire général des Nations unies, Antonio Guterres ... »" "‘“Intolerable,” said UN Secretary‑General Antonio Guterres …’"

    EU proposes suspending Israel’s trade preferences and sanctioning cabinet ministers; Israel vows to “respond appropriately” ()

    The European Commission unveiled an unprecedented package linking trade and targeted listings to the Gaza war, proposing to strip a third of Israeli exports of preferential access and to sanction extremist ministers and violent settlers. The plan now goes to member states, where a qualified‑majority vote will be needed amid visible splits.

    "The European Commission has adopted a proposal to suspend its trade agreement with Israel and to impose sanctions on violent settlers and extremist members of the government."
    "La Comisión Europea ha concretado las medidas... Propone imponer 227 millones de euros en aranceles a las exportaciones israelíes, pero es lo más lejos que ha ido el Ejecutivo comunitario." "‘The European Commission has detailed the measures… It proposes imposing €227 million in tariffs on Israeli exports, but that is as far as the Commission has gone.’"
    "Se propone eliminar los beneficios comerciales que ahora disfrutan un tercio de los productos que Israel exporta a la Unión Europea..." "‘It proposes removing the trade benefits that a third of the products Israel exports to the European Union now enjoy…’"
    "Gegen zwei Minister der Regierung Netanjahu – Finanzminister Bezalel Smotrich und den Minister für Nationale Sicherheit Itamar Ben-Gvir – sowie gegen drei Siedler und sechs Organisationen sollen Maßnahmen verhängt werden." "‘Measures are to be imposed against two ministers in Netanyahu’s government—Finance Minister Bezalel Smotrich and National Security Minister Itamar Ben‑Gvir—as well as three settlers and six organizations.’"
    "die bilateralen Zahlungen an Israel einzustellen. Das betrifft jährlich etwa 6 Millionen Euro; weitere rund 14 Millionen Euro für laufende Projekte würden zudem zurückgestellt." "‘to stop bilateral payments to Israel. This concerns about €6 million annually; a further roughly €14 million for ongoing projects would also be put on hold.’"

    Politically, the hurdle is steep but not insurmountable.

    "Unter den EU-Mitgliedsländern braucht es eine qualifizierte Mehrheit." "‘Among EU member countries, a qualified majority is needed.’"
    "Vor allem Italien und Deutschland, zusammen mit kleineren Staaten wie Ungarn, Österreich und Tschechien, stellen sich dagegen." "‘Above all Italy and Germany, together with smaller states such as Hungary, Austria and Czechia, are opposed.’"

    Jerusalem warned of retaliation.

    "Israël a réagi par la voix de son ministre des Affaires étrangères : “Toute sanction à l'encontre d'Israël recevra une réponse appropriée.”" "‘Israel responded via its foreign minister: “Any sanctions against Israel will receive an appropriate response.”’"

    Fed cuts rates 25 bps to 4.00–4.25%, citing softer jobs and tariff pressures; split vote and “risk‑management” stance ()

    The Federal Reserve delivered its first rate cut since December, lowering the target range for the federal funds rate and keeping balance‑sheet runoff in place. Chair Jerome Powell framed the move as risk management amid a cooling labor market and goods inflation buffeted by tariffs; the decision was not unanimous.

    "At today's meeting, the committee decided to lower the target range for the federal funds rate by a quarter percentage point to 4.00–4.25% and to continue reducing the size of our balance sheet."
    "the unemployment rate edged up to 4.3% in August" "Payroll job gains have slowed significantly to a pace of just 29,000 per month."
    "total PCE prices rose 2.7% ... and ... core PCE prices rose 2.9%,"
    "Higher tariffs have begun to push up prices in some categories of goods,"
    "When our goals are in tension like this, a more neutral policy stance is appropriate."
    "you could think of this ... as a risk-management cut."

    Powell said the path remains data‑dependent and the median forecast for the policy rate edged lower; a new governor favored a larger move.

    "the median participant projects the level of the federal funds rate will be 3.6% at the end of this year, 3.4% at the end of 2026, and 3.1% at the end of 2027."
    "The New York Times reported the vote was not unanimous, with newly appointed Fed Governor Stephen Miron supporting a steeper rate cut of half a percentage point."

    Saudi Arabia and Pakistan sign mutual‑defense pact: an attack on one is an attack on both ()

    Riyadh and Islamabad announced a Strategic Mutual Defence Agreement during the Pakistani prime minister’s visit, explicitly linking their security and deterrence. Both governments framed the pact around solidarity and shared interests.

    "Pakistan and Saudi Arabia have announced a defence pact under which any aggression against either country should be considered an act of aggression against both. The Strategic Mutual Defence Agreement was signed during a visit to Riyadh by the Pakistani Prime Minister, Shahbaz Sharif."
    "Pakistan and Saudi Arabia have announced a defence pact under which any aggression against either country should be considered an act of aggression against both."
    "أعلنت السعودية وباكستان في بيان مشترك توقيع اتفاقية دفاع استراتيجي مشتركة لتعزيز التعاون الدفاعي بين البلدين وتعزيز الردع المشترك ضد أي اعتداء." "‘Saudi Arabia and Pakistan announced in a joint statement the signing of a joint strategic defense agreement to strengthen defense cooperation between the two countries and enhance joint deterrence against any aggression.’"
    "وتنص الاتفاقية على أن أي اعتداء على أي من البلدين هو اعتداء على كليهما، حسب البيان." "‘The agreement stipulates that any attack on either country is an attack on both, according to the statement.’"

    Kyiv: NATO‑led channel to route U.S. weapons via allies is live; first packages include Patriot missiles ()

    Ukraine said a new NATO‑led funding and delivery mechanism is now operating to move U.S. systems through allied governments to Kyiv, with the first batches comprising Patriot air‑defense missiles. The announcement follows Russia’s largest recent wave of missile and drone attacks.

    "The Ukrainian government says a new NATO-led funding mechanism is up and running to send military aid from the U.S. to Ukraine."
    "Under the new framework, U.S. weaponry will be purchased by NATO allies and then transferred to Ukraine. The Ukrainian foreign ministry said on Wednesday that it hopes for continued support by the transatlantic alliance."
    "Ukrainian President Volodymyr Zelenskyy confirmed that the first NATO-funded aid packages will include Patriot missiles."
    "Earlier this month, Russia unleashed its largest wave of missile and drone attacks on Ukraine since the start of the invasion, killing civilians."

    Watch five pressure points. In Gaza, the combination of urban combat, a time‑boxed evacuation route, a children’s hospital hit, and a communications blackout will amplify humanitarian peril and diplomatic fallout. In Brussels, whether a qualified majority coalesces around suspending Israel’s trade preferences and sanctioning ministers will define the EU’s leverage—and Israel’s response. The Fed’s shift toward a more neutral stance could ease global financial conditions, but tariff pass‑through bears watching. The Saudi–Pakistani mutual‑defense pact links security theaters from the Gulf to South Asia, raising the stakes of any crisis involving either country. And in Europe’s war, a NATO‑facilitated pipeline for U.S. weapons—starting with Patriot missiles—could stiffen Ukraine’s air defenses as Russia escalates strikes.