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Speaking to Israel’s Knesset, Kevin McCarthy demurs on judicial overhaul and warns against China
(JTA) — In a landmark speech to Israel’s parliament, the Knesset, on Monday, U.S. House Speaker Kevin McCarthy didn’t mention the judicial reform legislation dividing Israel, instead focusing on what he said was the significant threat from business dealings with China.
McCarthy’s speech and comments took place on the opening day of the Knesset’s summer session, days after the country celebrated its 75th birthday and during considerable strife in the country over Israeli Prime Minister Benjamin Netanyahu’s far-reaching proposals to weaken Israel’s court system. Netanyahu had suspended the advance of the reforms amid sweeping protests against them, in a pause that was due to end on Monday.
During a press conference after his speech, McCarthy offered a nod toward critics of the proposed legislation who seek to preserve the courts’ independence.
“Israel is their own nation. Israel can decide what they want to do,” McCarthy said. “But I mean, having democracy — you want to have a check and balance, you want to have separation of powers.”
The speech by McCarthy, a Republican, came as he leads a bipartisan delegation to the country days after it celebrated its 75th Independence Day. It also came amid tensions between Netanyahu and Biden, a Democrat, who has not yet invited Netanyahu to the White House.
In an interview with the Israeli newspaper Israel Hayom ahead of the speech, McCarthy chastised Biden for not inviting Netanyahu and said he would invite the prime minister to Washington if Biden did not.
But McCarthy was not at all partisan during his speech or afterwards, pointedly bringing the delegation of Democrats and Republicans into every photo-op. McCarthy spent more time discussing Chinese-Israeli relations, bringing tensions between Israel and the United States on the issue into public view.
“I strongly encourage Israel to further strengthen its oversight of foreign investment, particularly Chinese investment, building on the steps that you first took in 2019,” McCarthy said in his speech Monday, referring to an investment review board Israel launched that year under pressure from the Trump administration. “If we cooperate, then I’m confident we will meet the challenge and ensure a brighter future for both of our nations.”
McCarthy’s speech, the second ever by a U.S. House speaker to the Knesset, contained few surprises. He noted that Israeli pilots trained in his hometown of Bakersfield, California, before the country’s 1948 War of Independence. And he presented the Knesset with a copy of a House resolution passed overwhelmingly last week marking Israel’s 75th birthday. References to the establishment of a Palestinian state, which Netanyahu’s government opposes, were stripped out of the resolution, spurring criticism from Democrats who nonetheless voted for it.
The speaker also recommitted to fully funding current levels of defense assistance to Israel, assuaging concerns that across-the-board spending cuts passed by the House last week could affect the country.
“As long as I am speaker, America will continue to support full funding for security assistance in Israel,” he said.
And McCarthy also rejected attempts to isolate or boycott Israel, promoted peace with Israel’s Arab neighbors and called out shared rivals and enemies, especially Iran.
“We must always remain resolute in our commitment that Iran will never acquire a nuclear weapon,” McCarthy said.
Netanyahu, speaking before McCarthy, also noted the Iran threat and took care to say it was a concern shared by both Republicans and Democrats.
“The first and most urgent challenge is the joint effort by Israel and the U.S. to prevent Iran from obtaining nuclear weapons,” he said. Then, referring to the Israel Defense Forces, he added, “The IDF and the U.S. Armed Forces recently completed the largest military exercise in the history of Israel and for this I would like to thank the Biden administration.”
Another issue of bipartisan concern is Israel’s growing relationship to China. McCarthy inserted his warning about Israeli-Chinese ties into the portion of his speech praising U.S.-Israel technological cooperation, an endeavor that Israel considers critical to its security infrastructure.
Israel and Netanyahu particularly have cultivated ties with China and its massive market to advance sales of Israeli technology, and to invite Chinese investment in Israeli sectors. Netanyahu has in the past highlighted his efforts to bring China and Israel into each other’s orbit.
Those efforts have appalled leaders of both parties. One of the areas of consistency between the Trump and Biden administration has been a policy of constraining Chinese influence outside of Asia, as the country seeks inroads into Africa, the Middle East and Latin America. China concerns have been exacerbated in the United States in recent months by perceptions that China is cozying up to Russia in its war against Ukraine, and fears that China may be planning a similar action against Taiwan.
“We’ve seen successes of technological cooperation in so many areas,” McCarthy said. “Today, however, our innovation is at risk from a new threat: The Chinese Communist Party. While the CCP may disguise itself as promoters of innovation, in truth they act like thieves. We must not allow them to steal our technology.”
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Rights Groups Say at Least 16 Dead in Iran During Week of Protests
People walk past closed shops following protests over a plunge in the currency’s value, in the Tehran Grand Bazaar in Tehran, Iran, December 30, 2025. Photo: Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
At least 16 people have been killed during a week of unrest in Iran, rights groups said on Sunday, as protests over soaring inflation spread across the country, sparking violent clashes between demonstrators and security forces.
Deaths and arrests have been reported through the week both by state media and rights groups, though the figures differ. Reuters has not been able to independently verify the numbers.
The protests are the biggest in three years. Senior figures have struck a softer tone than in some previous bouts of unrest, at a moment of vulnerability for the Islamic Republic with the economy in tatters and international pressure building.
SUPREME LEADER SAYS IRAN WILL NOT YIELD TO ENEMY
President Masoud Pezeshkian told the Interior Ministry to take a “kind and responsible” approach toward protesters, according to remarks published by state media, saying “society cannot be convinced or calmed by forceful approaches.”
That language is the most conciliatory yet adopted by Iranian authorities, who have this week acknowledged economic pain and promised dialogue even as security forces cracked down on public dissent in the streets.
US President Donald Trump has threatened to come to the protesters’ aid if they face violence, saying on Friday “we are locked and loaded and ready to go,” without specifying what actions he was considering.
That warning prompted threats of retaliation against US forces in the region from senior Iranian officials. Supreme Leader Ayatollah Ali Khamenei said Iran “will not yield to the enemy.”
Kurdish rights group Hengaw reported that at least 17 people had been killed since the start of the protests. HRANA, a network of rights activists, said at least 16 people had been killed and 582 arrested.
Iran’s police chief Ahmad-Reza Radan told state media that security forces had been targeting protest leaders for arrest over the previous two days, saying “a big number of leaders on the virtual space have been detained.”
Police said 40 people had been arrested in the capital Tehran alone over what they called “fake posts” on protests aimed at disturbing public opinion.
The most intense clashes have been reported in western parts of Iran but there have also been protests and clashes between demonstrators and police in Tehran, in central areas, and in the southern Baluchistan province.
Late on Saturday, the governor of Qom, the conservative centre of Iran’s Shi’ite Muslim clerical establishment, said two people had been killed there in unrest, adding that one of them had died when an explosive device he made blew up prematurely.
HRANA and the state-affiliated Tasnim news agency reported that authorities had detained the administrator of online accounts urging protests.
CURRENCY LOST AROUND HALF ITS VALUE
Protests began a week ago among bazaar traders and shopkeepers before spreading to university students and then provincial cities, where some protesters have been chanting against Iran’s clerical rulers.
Iran has faced inflation above 36 percent since the start of its year in March and the rial currency has lost around half its value against the dollar, causing hardship for many people.
International sanctions over Iran’s nuclear program have been reimposed, the government has struggled to provide water and electricity across the country through the year, and global financial bodies predict a recession in 2026.
Khamenei said on Saturday that although authorities would talk to protesters, “rioters should be put in their place.”
Speaking on Sunday, Vice President Mohammadreza Aref said the government acknowledged the country faced shortcomings while warning that some people were seeking to exploit the protests.
“We expect the youth not to fall into the trap of the enemies,” Aref said in comments carried by state media.
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Antisemitic Graffiti Painted on the Facade of Canada Synagogue
Antisemitic graffiti on a synagogue in Winnipeg, Canada. Photo: CIJA, via i24.
i24 News – The Winnipeg police in central Canada have opened a hate crime investigation after the discovery of swastikas and antisemitic messages spray-painted on the exterior of the Shaarey Zedek synagogue, one of the city’s main Jewish congregations. The graffiti is believed to have been done during the night from Saturday to Sunday.
The acts of vandalism were discovered early in the morning. Several hateful symbols were visible on exterior parts of the building. No injuries were reported. Officers went to the scene to assess the damage and secure the premises. The police are currently reviewing surveillance footage from the area and are asking anyone with information to come forward.
The incident has drawn strong condemnation from national and local Jewish organizations. The Centre for Israel and Jewish Affairs (CIJA) denounced these acts, stressing that the desecration of Jewish institutions with Nazi symbols requires a firm response from municipal and police authorities.
The Jewish Federation of Winnipeg has also condemned what it calls “pure hatred,” warning that the repeated targeting of Jewish institutions poses a serious threat to the community’s safety. It has once again encouraged citizens to promptly report any hate-related incident to enable investigators to gather the necessary evidence.
These graffiti have appeared in a context of rising antisemitic incidents across the country. Community organizations note that synagogues, schools, and Jewish centers are increasingly being targeted, particularly during times of international tension, even when they have no direct connection to those events.
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Oil Prices Likely to Move Higher on Venezuelan Turmoil, Ample Supply to Cap Gains
FILE PHOTO: The Guinea-flagged oil tanker MT Bandra, which is under sanctions, is partially seen alongside another vessel at El Palito terminal, near Puerto Cabello, Venezuela December 29, 2025. Photo: REUTERS/Juan Carlos Hernandez/File Photo
Oil prices are likely to move higher when benchmark futures resume trading later on Sunday on concern that supply may be disrupted after the United States snatched Venezuelan President Nicolas Maduro from Caracas at the weekend and President Donald Trump said Washington would take control of the oil-producing nation.
There is plentiful oil supply in global markets, meaning any further disruption to Venezuela’s exports would have little immediate impact on prices, analysts said.
The US strike on Venezuela to extract the country’s president inflicted no damage on the country’s oil production and refining industry, two sources with knowledge of operations at state oil company PDVSA said at the weekend.
Since Trump imposed a blockade of sanctioned oil tankers entering or leaving Venezuelan waters and seized two cargoes last month, exports have fallen and have been completely paralysed since January 1.
That has left millions of barrels stuck on loaded tankers in Venezuelan waters and led to millions more barrels going into Venezuelan oil storage.
The OPEC member’s exports fell to around 500,000 barrels per day in December, around half of what they were in November. Most of the December exports took place before the embargo. Since then, only exports from Chevron of around 100,000 bpd have continued to leave Venezuela. The global oil major has US authorization to produce and export from Venezuela despite sanctions.
The embargo prompted PDVSA to begin cutting oil output, three sources close to the decision said on Sunday, because Venezuela is running out of storage capacity for the oil that it cannot export. PDVSA has asked some of the joint ventures that are operating in the country to cut back production, the sources said. They would need to shut down oilfields or well clusters.
Trump said on Saturday that the oil embargo on Venezuelan exports remained in full effect. If the US government loosens the embargo and allows more Venezuelan crude exports to the US Gulf, there are refiners there that previously processed the country’s oil.
The weekend’s events were unlikely to materially alter global oil markets or the global economy given the US strikes avoided Venezuela’s oil infrastructure, said Neil Shearing, group chief economist at Capital Economics.
“In any case, any short-term disruption to Venezuelan output can easily be offset by increased production elsewhere. And any medium-term recovery in Venezuelan supply would be dwarfed by shifts among the major producers,” he said in a note.
Trump also threatened on Friday to intervene in a crackdown on protests in Iran, another OPEC producer, ratcheting up geopolitical tensions. Trump on Friday said “we are locked and loaded and ready to go,” without specifying what actions he was considering against Tehran, which has seen a week of unrest as protests over soaring inflation spread across the country.
“Prices may see modest upside on heightened geopolitical tensions and disruption risks linked to Venezuela and Iran, but ample global supply should continue to cap those risks for now,” said Ole Hansen, head of commodities research at Saxo Bank.
On Sunday, the Organization of the Petroleum Exporting Countries and their allies agreed to maintain steady oil output in the first quarter, OPEC+ said in a statement. Both Venezuela and Iran are members of OPEC. Several other members of OPEC+ are also embroiled in conflict and political crises.
The producer group has put increases in production on pause for the first quarter after raising output targets by around 2.9 million barrels per day from April to December 2025, equal to almost 3% of world oil demand.
Brent and US crude futures settled lower on Friday, the first day of trading of 2026, as investors weighed oversupply concerns against geopolitical risks. Both contracts closed 2025 with their biggest annual loss since 2020 marked by wars, higher tariffs, increased OPEC+ output and sanctions on Russia, Iran and Venezuela.
VENEZUELA
“The political transition in Venezuela adds another major layer of uncertainty, with elevated risks of civil unrest and near-term supply disruptions,” said Jorge Leon, head of geopolitical analysis at consultancy Rystad Energy and a former OPEC official.
“In an environment this fragile, OPEC+ is choosing caution, preserving flexibility rather than introducing new uncertainty into an already volatile market.”
Trump said on Saturday that the US would control the country until it could make an orderly transition, but an interim government led by vice president and oil minister Delcy Rodriguez remains in control of the country’s institutions, including state energy company PDVSA, with the blessing of Venezuela’s top court.
A top Venezuelan official said on Sunday that the country’s government would stay unified behind Maduro amid deep uncertainty about what is next for the Latin American country.
Trump said that American oil companies were prepared to reenter Venezuela and invest billions of dollars to restore production there.
Venezuela is unlikely to see any meaningful boost to crude output for years even if US oil majors do invest the billions of dollars in the country that Trump has promised, analysts said.
“We continue to caution market observers that it will be a long road back for the country, given its decades-long decline under the Chávez and Maduro regimes, as well as the fact that the US regime change track record is not one of unambiguous success,” Helima Croft, RBC Capital’s head of commodities research, said in a note.