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Paraguay’s election has implications for its Israeli embassy — and its relationship with Jerusalem
(JTA) — The question of where countries keep their embassies in Israel has become a debate that perpetually attracts controversy around the globe. In Paraguay, ahead of a national election on Sunday, the question is far from decided.
Since former President Donald Trump moved the U.S. embassy in Israel from Tel Aviv to Jerusalem in 2018, a few other countries have followed suit, agreeing with much of Israel’s political establishment that the latter city, despite international and Palestinian opposition, is Israel’s sole capital. Israeli conservatives, such as those currently in power, have looked to court more countries to move their embassies and have counted each example as a historic victory.
The government of Paraguay, a country of around seven million people sandwiched in between Brazil and Argentina, has been back and forth on the Israel embassy issue. Shortly after Trump’s move, Paraguay’s president at the time, Horacio Cartes, moved his embassy as well. That year Guatemala did the same, and a few years later, Honduras and Kosovo followed suit.
But only one month after being elected, in September 2018, Cartes’ successor Mario Abdo announced he would be moving the country’s embassy back to Tel Aviv. Despite being a member of the same conservative party as Cartes, Abdo felt that for “broad, lasting and just peace” among Israelis and Palestinians, Paraguay’s embassy should be in Tel Aviv. Critics of Trump’s decision say declaring Jerusalem as Israel’s sole capital hurts the chances of a two-state solution, as the Palestinians would look to claim part of Jerusalem as their future state capital.
Abdo’s move quickly resulted in pushback. In Paraguay, pro-Israel protesters demonstrated outside the president’s residence in Asuncion. Former U.S. Vice President Mike Pence “strongly encouraged” Abdo to reconsider his decision, and Israeli Prime Minister Netanyahu went beyond rhetoric: he closed Israel’s embassy in Paraguay. It hasn’t reopened since.
Election day on Sunday could bring the debate back to the fore.
One of the two leading presidential candidates is 44-year-old economist Santiago Peña of the Colorado Party, Paraguay’s right-wing political party which has ruled the country for nearly 80 consecutive years (save for the period between 2008 and 2013). The party has been plagued by corruption allegations, and Peña has been tied to these scandals: he was finance minister under Cartes, who was recently sanctioned by the United States for undermining Paraguay’s democracy by “making cash payments to officials in exchange for their loyalty and support.”
Thanks in part to those corruption allegations, a non-Colorado candidate now has a serious shot of winning the presidency this year. Efraín Alegre is a more centrist candidate from Concertación, a coalition of political parties who came together to oppose Colorado’s domination. Earlier this month, polling from Encuesta Atlas had Alegre leading by a few percentage points, though other polling has found Peña in the lead.
In March, in a meeting with the Paraguayan-Israeli chamber of commerce, Peña announced that if he wins the election, one of his first actions as president will be to order the move of the Paraguayan embassy to Jerusalem. He said that Paraguay “recognizes that city as the capital of the State of Israel.”
Efraín Alegre’s last statement on the issue of Paraguay’s embassy came in 2018, shortly after Paraguay initially moved its embassy to Jerusalem. Alegre argued that the move would fuel the conflict.
In a statement provided exclusively to the Jewish Telegraphic Agency, Alegre confirmed that he would keep Paraguay’s embassy in Tel Aviv.
“Fundamentally, Paraguay is a country that respects international law. In its resolutions 181 of 1947, 478 of 1980, and 2334 of 2016, the United Nations Security Council has made clear the status of Jerusalem, not accepting its annexation or its declaration as the capital of Israel. This position is shared by all nations with only a few exceptions,” he wrote. “There is great potential for exchange and cooperation between Paraguay and Israel, and Paraguay will continue to defend Israel’s right to a peaceful existence. In fact, there is a long relationship of friendship between our nations. Paraguay’s vote at the United Nations in 1947 was the one that gave the majority for the recognition of Israel as an independent state. These close ties were not, nor are they now, subject to the status of Jerusalem.”
The Comunidad Judía del Paraguay, an organization which encompasses all the Jewish institutions in the country , remains apolitical but fervently Zionist, similar to Jewish organizations in other Latin American countries. The community of around 1,000 Jews is mostly affiliated with the Conservative movement and is concentrated in Paraguay’s capital of Asuncion. The city contains a local chapter of the Chabad-Lubavitch Hasidic movement, a Jewish day school and a Hebrew Union that organizes religious and athletic activities.
“We as a community have maintained very good relations with all governments and we will continue to work with whoever is elected,” said Mariano Mirelman, executive director of the Comunidad Judía del Paraguay.
But it is possible that if Peña is elected and moves the embassy, the topic of the Israeli-Palestinian conflict will re-enter public discourse in Paraguay. And this has the potential to fuel antisemitic attitudes, according to research by the Latin American Jewish Congress (or LAJC), an arm of the World Jewish Congress.
In Paraguay, serious antisemitism incidents are rare, but according to the LAJC, antisemitism in Paraguay does appear online, especially related to the Israeli-Palestinian conflict.
In a yet-to-be- released 2022 study by the LAJC’s Observatorio Web program of more than 42,000 tweets in Paraguay related to Jews, Israel or the Holocaust, 6.45% of them were antisemitic and included making comparisons between Israel and Nazi Germany, which constitutes antisemitism according to the LAJC.
If Paraguay’s embassy does move back to Jerusalem, that would mean that more than half of the embassies in Jerusalem are from Latin America, joining Honduras and Guatemala.
According to Bishara Bahbah, author of “Israel and Latin America: The Military Connection,” it’s not an accident that the majority of these countries are from Central and South America. Although ideologically they may not feel strongly about the embassy issue, they know they can curry favor with the United States by strongly supporting Israel.
“Latin American countries view Israel’s special relationship with the United States as a critical element of their relationship with Israel,” Bahbah tells JTA. “Because if they are in need of U.S. support in one or two or three areas, they tend to lean on Israel to convince the U.S. government to provide them whatever they are seeking.”
Due to its size and lack of regional power, Paraguay’s potential decision to move its embassy to Jerusalem will likely not have a domino effect, Bahbah said. Further, although the Biden administration has left the U.S. embassy in Jerusalem, it has shown no signs of pressuring Latin American countries to move their embassies the way the Trump administration did.
Regardless of what happens with Paraguay, Netanyahu has not given up in his fight to have Jerusalem recognized as Israel’s capital worldwide. As he said while visiting Italy last month: “I believe the time has come for Rome to recognize Jerusalem as the ancestral capital of the Jewish people for three thousand years, as the United States did with a gesture of great friendship.”
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Spanish PM Sanchez Says US Invasion of Greenland ‘Would Make Putin Happiest Man on Earth’
Russian President Vladimir Putin welcomes US President Donald Trump’s envoy Steve Witkoff during a meeting in Moscow, Russia, Aug. 6, 2025. Photo: Sputnik/Gavriil Grigorov/Pool via REUTERS
Spanish Prime Minister Pedro Sanchez said a US invasion of Greenland “would make Putin the happiest man on earth” in a newspaper interview published on Sunday.
Sanchez said any military action by the US against Denmark’s vast Arctic island would damage NATO and legitimize the invasion of Ukraine by Russia.
“If we focus on Greenland, I have to say that a US invasion of that territory would make Vladimir Putin the happiest man in the world. Why? Because it would legitimize his attempted invasion of Ukraine,” he said in an interview in La Vanguardia newspaper.
“If the United States were to use force, it would be the death knell for NATO. Putin would be doubly happy.”
President Donald Trump on Saturday appeared to change tack over Greenland by vowing to implement a wave of increasing tariffs on European allies until the United States is allowed to buy Greenland.
In a post on Truth Social, Trump said additional 10 percent import tariffs would take effect on February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Great Britain — all already subject to tariffs imposed by Trump.
Those tariffs would increase to 25 percent on June 1 and would continue until a deal was reached for the US to purchase Greenland, Trump wrote.
Trump has repeatedly insisted he will settle for nothing less than ownership of Greenland, an autonomous territory of Denmark. Leaders of both Denmark and Greenland have insisted the island is not for sale and does not want to be part of the United States.
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Damascus and Kurdish Forces Agree to Immediate Ceasefire
Syria’s interim President Ahmed al-Sharaa speaks during a Ministerial formation of the government of the Syrian Arab Republic, in Damascus, Syria, March 29, 2025. Photo: REUTERS/Khalil Ashawi
i24 News – Syrian state media reported on Sunday that the Syrian government and the US-backed Syrian Democratic Forces (SDF) have reached an immediate ceasefire after days of clashes in Kurdish-held areas of the northeast.
The agreement, announced electronically by Damascus, marks a major shift in Syria’s ongoing efforts to reassert control over its Kurdish-majority regions.
According to the Syrian presidency, the deal, signed by President Ahmed al-Sharaa and SDF commander Mazloum Abdi, calls for a full halt to combat operations on all fronts, the withdrawal of SDF-affiliated forces to the east of the Euphrates, and the integration of SDF fighters into Syria’s defense and interior ministries on an individual basis.
The agreement also stipulates that the Syrian government will assume military and administrative control over Deir al-Zor and Raqqa, take over all oil and gas fields, and assume responsibility for prisons and camps holding ISIS members and their families. The SDF has committed to evacuating all non-Syrian PKK-affiliated personnel from the country.
“All lingering files with the SDF will be resolved,” Sharaa said, adding that he is scheduled to meet Abdi on Monday to continue discussions. The ceasefire is intended to open safe corridors for civilians to return to their areas and allow state institutions to resume their duties.
US Special Envoy Tom Barrack praised the agreement, describing it as a “pivotal inflection point” that brings former adversaries together and advances Syria toward national unity. Barrack noted that the deal facilitates the continued fight against ISIS while integrating Kurdish forces into the broader Syrian state.
The ceasefire comes after days of heavy fighting in northeastern Syria, highlighting both the fragility and potential of Damascus’ reconciliation efforts with Kurdish forces.
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World Markets Jolted, Euro Softens, as Trump Vows Tariffs on Europe over Greenland
A person walks along a street on the day of the meeting between top US officials and the foreign ministers of Denmark and Greenland, in Nuuk, Greenland, January 14, 2026. Photo: REUTERS/Marko Djurica/File Photo
Global markets are facing volatility after President Donald Trump vowed to slap tariffs on eight European nations until the US is allowed to buy Greenland, news that pushed the euro to a seven-week low in late Sunday trading.
Trump said he would impose an additional 10 percent import tariff from February 1 on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain, which will rise to 25 percent on June 1 if no deal is reached.
Major European Union states decried the tariff threats over Greenland as blackmail on Sunday. France proposed responding with a range of previously untested economic countermeasures.
As early trade kicked off in Asia-Pacific, the euro fell 0.2 percent to around $1.1572, its lowest since November. Sterling also dipped, while the yen firmed against the dollar.
“Hopes that the tariff situation has calmed down for this year have been dashed for now – and we find ourselves in the same situation as last spring,” said Berenberg chief economist Holger Schmieding.
Trump‘s sweeping “Liberation Day” tariffs in April 2025 sent shockwaves through markets. Investors then largely looked past US trade threats in the second half of the year, viewing them as noise and responding with relief as Trump made deals with Britain, the EU and others.
While that lull might be over, market moves on Monday could be dampened by the experience that investor sentiment had been more resilient than expected in 2025 and global economic growth stayed on track.
US markets are closed on Monday for Martin Luther King Jr. Day, which means a delayed reaction on Wall Street.
The implications for the dollar were less clear. It remains a safe haven, but could also feel the impact of Washington being at the center of geopolitical ruptures, as it did last April.
Bitcoin, a liquid proxy for risk that is open to trade at the weekend, was steady, last trading at $95,330.
Capital Economics said countries most exposed to increased U.S. tariffs were the UK and Germany, estimating that a 10 percent tariff could reduce GDP in those economies by around 0.1 percent, while a 25 percent tariff could knock 0.2–0.3 percent off output.
European stocks are near record highs. Germany’s DAX and London’s FTSE index are up more than 3 percent this month, outperforming the S&P 500, which is up 1.3 percent.
European defense shares will likely continue to benefit from geopolitical tensions. Defense stocks have jumped almost 15 percent this month, as the US seizure of Venezuela’s Nicolas Maduro fueled concerns about Greenland.
Denmark’s closely managed crown will also likely be in focus. It has weakened, but rate differentials are a major factor and it remains close to the central rate at which it is pegged to the euro, and not far from six-year lows.
“The US-EU trade war is back on,” said Tina Fordham, geopolitical strategist and founder of Fordham Global Foresight.
Trump‘s latest move came as top officials from the EU and South American bloc Mercosur signed a free trade agreement.
HOT SPOTS EVERYWHERE
The dispute over Greenland is just one hot spot.
Trump has also weighed intervening in unrest in Iran, while a threat to indict Federal Reserve Chair Jerome Powell has reignited concerns about the US central bank’s independence.
Against this backdrop, safe-haven gold remained near record highs.
Given Trump’s recent Fed attacks, an escalation with Europe could pile pressure on the dollar if it adds to worries that US policy credibility is becoming critically impaired, said Peel Hunt chief economist Kallum Pickering.
“(This) could be amplified by a desire, especially among Europeans, to repatriate capital and shun US assets, which may also pose downside risks to lofty US tech valuations,” he added.
The World Economic Forum’s annual risk perception survey, released before its annual meeting in Davos next week, which will be attended by Trump, identified economic confrontation between nations as the number one concern replacing armed conflict.
A source close to French President Emmanuel Macron said he was pushing for activation of the “Anti-Coercion Instrument,” which could limit access to public tenders, investments or banking activity or restrict trade in services, in which the US has a surplus with the bloc, including digital services.
“With the US net international investment position at record negative extremes, the mutual inter-dependence of European-US financial markets has never been higher,” said Deutsche Bank’s global head of FX research George Saravelos in a note.
“It is a weaponization of capital rather than trade flows that would by far be the most disruptive to markets.”