The Labour Party (LP), the Peoples Democratic Party (PDP) caucus in the House of Representatives, and the Pan-Yoruba socio-political organization, Afenifere, have raised concerns about the Lagos-Calabar Coastal Highway project. This comes as Works Minister, David Umahi, engages in a verbal spat with former Vice President, Atiku Abubakar, over the project.

The LP called for transparency from President Bola Tinubu and the ruling All Progressives Congress (APC) regarding the motives behind the project. Afenifere urged a halt and review of the project to ensure adherence to due process.

Umahi accused Atiku of promoting politically motivated falsehoods to discredit the procurement process for the project. He dismissed Atiku's criticisms as hypocritical and politically driven.

According to Umahi's spokesperson, Orji Uchenna Orji, Atiku's claims regarding the project's award, cost, and choice of contractor are baseless and politically motivated. He defended the procurement process, stating that it complied with all legal requirements and was awarded transparently.

The LP demanded explanations from the APC-led administration regarding allegations of impropriety surrounding the project. PDP criticized what it called lies propagated by the APC government to promote the project, expressing suspicion over its design and cost.

Afenifere called for a halt to the project, citing concerns over its environmental and economic impact. The organization emphasized the need for an Environmental Impact Assessment (EIA) and adherence to relevant regulations before proceeding with the project.

As tensions rise over the Lagos-Calabar Coastal Highway project, stakeholders continue to demand transparency, accountability, and adherence to due process.

On Wednesday, the naira experienced a decline to N1,450 at the parallel segment of the foreign exchange (FX) market. This current rate indicates a 1.4 percent depreciation compared to the N1,430 rate observed on May 6. Currency traders, commonly referred to as bureau de change (BDC) operators, set the buying rate of the dollar at N1,410 and the selling price at N1,450, yielding a profit margin of N40.

Meanwhile, at the official window, the local currency depreciated by 1.98 percent to N1,421.06 on May 8, down from N1,416.57 on May 7. During trading, the dollar fluctuated between a high of N1,440 and a low of N1,335, as reported by data from FMDQ Exchange, the platform overseeing FX trading in Nigeria.

The Central Bank of Nigeria (CBN) revised its directive on the repatriation of export proceeds by international oil companies (IOCs) on May 7. In February, the CBN had imposed limits on the transfer of proceeds from crude exports by IOCs to offshore parent company accounts, as part of measures to stabilize the FX market.

The CBN expressed concern over the impact of these fund transfers on liquidity in the domestic FX market, prompting the need for policy adjustments. As per the updated directive, the initial 50% of repatriated proceeds can be pooled immediately or at a later date as required. Banks are instructed to submit requests for cash pooling, supported by necessary documentation, for approval by the CBN.

Moreover, the remaining 50% balance of repatriated export proceeds can be utilized by IOCs for various financial obligations within Nigeria, including cash calls, domestic loan repayments, and transaction taxes such as the Nigerian Content Development (NCD) levy and education tax. Additionally, IOCs are permitted to sell forex at the FX market using this balance, as outlined by the apex bank.

Nigerian authorities have refuted claims made by Binance's CEO regarding solicitation of bribes, labeling the accusations as a "diversionary tactic" and an "act of blackmail" aimed at undermining ongoing criminal proceedings against the company.

Binance, recognized as the world's largest cryptocurrency exchange, along with two of its executives, faces separate trials on charges of tax evasion and laundering exceeding $35 million, which the company vehemently contests. While Tigran Gambaryan, Binance's head of financial crime compliance and a U.S. citizen, remains in custody, British-Kenyan Nadeem Anjarwalla has fled the country.

CEO Richard Teng, in a blog post, pointed fingers at unidentified Nigerian officials, alleging their demand for a $150 million cryptocurrency bribe to halt investigations.

However, Nigeria's Information Ministry spokesperson Rabiu Ibrahim dismissed these claims on Wednesday, asserting that they "lack any iota of substance." Ibrahim accused Binance of attempting to undermine Nigeria's legal proceedings, labeling the allegations as a diversionary tactic and an act of blackmail.

He reiterated Nigeria's stance, emphasizing that Binance is under investigation for purportedly enabling its platform to facilitate money laundering, terrorism financing, and foreign exchange manipulation through illicit trading. Nigerian authorities view the bribery allegations as part of a broader campaign by Binance to discredit ongoing investigations, referencing similar legal challenges faced by the company in the United States.

While Binance refrained from immediate comment, a previous statement accused Nigeria of establishing a dangerous precedent, following the detention of its executives during what was purportedly a dialogue and subsequent crackdown on the cryptocurrency industry.

The blog post authored by Teng represents the latest development in an escalating dispute that led to Binance suspending operations in Nigeria. Nigeria has previously pointed fingers at Binance for exacerbating its currency woes, particularly as cryptocurrency platforms emerged as preferred avenues for trading the Nigerian naira amidst chronic dollar shortages. Binance announced in early March its decision to cease all transactions and trading involving the naira.

Netanyahu weighs risks of Rafah assault as hostage dilemma divides Israelis

Prime Minister Benjamin Netanyahu faces competing pressures at home and abroad when he weighs how far to push the operation to defeat Hamas in Rafah that complicates hopes of bringing Israeli hostages home.

Street demonstrations against the government by families and supporters of some of the more than 130 hostages still held in Gaza have become a constant fixture, with protestors demanding a ceasefire deal with Hamas to get them back.

Others are demanding the government and the Israeli Defence Forces press ahead with the Rafah operation against the remaining Hamas formations holding out around the city which began this week with air strikes and battles on the outskirts.

"We applaud the Israeli government and the IDF for going into Rafah," said Mirit Hoffman, a spokesperson for Mothers of IDF Soldiers, a group representing families of serving military personnel, which wants an uncompromising line to pressure Hamas into surrender.

"We think that this is how negotiations are done in the Middle East."

The opposing pressures mirror divisions in Netanyahu's cabinet between centrist ministers concerned at alienating Washington, Israel's most vital ally and supplier of arms, and religious nationalist hardliners determined to clear Hamas out of the Gaza Strip.

Hamas handed Netanyahu a dilemma this week when it declared it had accepted a ceasefire proposal brokered by Egypt for a halt to fighting in return for an exchange of hostages for Palestinian prisoners. Israeli officials rejected the offer, accusing Hamas of altering the terms of the deal. But it did not break off negotiations and shuttle diplomacy continues, with CIA chief Bill Burns in Israel on Wednesday to meet Netanyahu.

Internationally, protests have spread against Israel's campaign in Gaza, which has so far killed more than 34,000 Palestinians, according to local health authorities, and spread malnutrion and disease in the enclave.

Seven months into the war, surveys show opinion in Israel has become increasingly divided since Netanyahu first vowed to crush Hamas in retaliation for the Oct. 7 attack that killed some 1,200 people, according to Israeli tallies, took more than 250 hostage, and triggered the campaign in Gaza.

"I understand that it's necessary to defeat Hamas but I think that can wait, and the hostages cannot wait," said Elisheva Leibler, 52, from Jerusalem. "Every second they're there poses immediate danger to their lives."

For the moment, Netanyahu has kept the cabinet together, rejecting the latest Hamas proposal for a ceasefire but keeping the negotiations alive by dispatching mid-ranking officials to Cairo, where Egyptian mediators are overseeing the process.

But the risks he faces by holding out against a deal, as his hard-right partners wish, were highlighted on Tuesday when Washington paused a shipment of weapons to signal its opposition to the long-promised Rafah assault.

DIVIDED OPINION

Despite his image as a security hawk, Netanyahu, Israel's longest serving prime minister, has struggled with a widespread perception that he was to blame for the security failures that allowed Hamas to overwhelm Israel's defences around Gaza.

That has fed a mood of distrust among many Israelis who otherwise support strong action against Hamas.

A survey published on Wednesday for Channel 13 suggested that 56% of Israelis thought Netanyahu's chief consideration was his own political survival against only 30% who thought it was freeing the hostages.

A survey by the Israel Democracy Institute found just over half the population believed a deal to rescue the hostages should be the top government priority, over the aim of destroying the remaining Hamas formations.

But a separate poll by the Jewish People's Policy Institute (JPPI) found 61% thought the military must operate in Rafah no matter what. The Channel 13 poll found 41% in favour of accepting the deal and 44% opposed.

"I don't trust Hamas at all," said 81 year-old David Taub, from Jerusalem. "The only solution is to conquer Rafah, and then maybe, we hope, we pray, the hostages will come back to us."

For the moment, Netanyahu depends on the two hardliners from the nationalist religious bloc, Finance Minister Bezalel Smotrich and Security Minister Itamar Ben-Gvir, both of whom reject any suggestion of compromise.

Both have clashed repeatedly with Benny Gantz, the centrist former army general who joined the emergency wartime cabinet in the wake of Oct 7, and who is the leading contender to replace Netanyahu after new elections.

Gantz and his ally Gadi Eisenkot, another former army chief, are both sworn enemies of Hamas but both have been alarmed at the deterioration in relations with the United States.

For the increasingly desperate hostage families, a mood of deepening exhaustion at the endless uncertainty has settled in, with hopes of a safe return overcoming any other consideration.

Niva Wenkert, mother of 22-year-old hostage Omer Wenkert, said she had no choice but to trust Israeli leaders but that not enough had been done.

"The hostages are still in Gaza, the military actions almost stopped and the feelings are very, very bad. I want Omer back."

Reuters

RUSSIAN PERSPECTIVE

What is known about string of blasts at Ukraine’s power facilities

Russia’s Armed Forces have struck Ukraine’s energy sector and military-industrial complex in response to Kiev’s attempts to attack Russian power facilities, the Russian Defense Ministry told reporters.

According to the ministry, the strikes were carried out with drones as well as sea-and air-launched precision weapons, including Kinzhal hypersonic ballistic missiles.

In the early hours of Wednesday, explosions occurred at fuel and energy facilities in Kiev as well as in several other Ukrainian regions. Power outages were reported in some Ukrainian cities and districts. The authorities urged citizens to reduce energy consumption and warned of possible rolling blackouts in the evening hours.

TASS has compiled the key information about the situation.

Air raid warnings

Air raid warnings were issued throughout Ukraine at about 4:00 a.m. Moscow time (1:00 a.m. GMT) and were in effect for more than two hours.

The second nationwide air raid alert was issued at about 6:30 a.m. Moscow time (3:30 a.m. GMT), just 20 minutes after the previous one was canceled. The second alert was lifted at about 7:00 a.m. Moscow time (4:00 a.m. GMT).

The alert was in effect much longer in a number of regions: for more than three hours in Kiev, for five hours in the Nikolayev Region and for seven hours in the Kharkov Region.

On Wednesday morning and afternoon, air raid sirens sounded again but were later canceled in some regions, including the Kharkov, Poltava and Sumy ones.

Aftermath

On Wednesday night, morning and afternoon, explosions were heard in the cities of Kiev and Kharkov, in the Ivano-Frankovsk, Lvov and Poltava Regions, as well as in the Kiev-controlled areas of the Zaporozhye and Kherson Regions.

Electricity generation and transmission facilities were damaged in the Vinnitsa, Ivano-Frankovsk, Kirovograd, Lvov and Poltava Regions, as well as in the Kiev-controlled areas of the Zaporozhye Region, Ukrainian Energy Minister German Galushchenko said.

Ukraine’s National Energy Company Ukrenergo said that equipment at one of its power facilities in central Ukraine was damaged, whereas the DTEK energy holding said that three of its thermal power plants had been severely damaged.

Following the explosions, power and water outages were reported in the city of Zaporozhye. A partial blackout was also reported in the city of Kherson (both are under Kiev’s control).

Power supply restrictions

Ukraine’s Energy Ministry has urged the country’s residents to reduce electricity consumption during peak hours (from 7:00 p.m. to 10:00 p.m. Moscow time, that is from 4:00 p.m. to 7:00 p.m. GMT) due to considerable damage caused to infrastructure in a wide range of regions.

Ukrenergo warned about possible rolling blackouts across Ukraine from 6:00 p.m. to 11:00 p.m. Moscow time (from 3:00 p.m. to 8:00 p.m. GMT). Kiev has asked EU countries for emergency aid.

Fires at power facilities in western Ukraine

A fire has broken out at an energy facility in the Ivano-Frankovsk Region, where explosions were heard earlier in the day.

In the Lvov Region, a natural gas facility in the Stryi district and a thermal power plant in the Chervonograd district were damaged as a result of the explosions, the regional head, Maksim Kozitsky, said.

Poland’s response

Poland and its allied forces scrambled warplanes due to what Warsaw saw as active operation of Russian aircraft.

Russian Defense Ministry’s comments

Later, the Russian Defense Ministry informed about "a combined strike" on Ukraine’s energy and military-industrial enterprises. The ministry explained that the strike was delivered "in retaliation to the Kiev regime’s attempts to inflict damage on Russia’s energy facilities."

The goals of the strike were achieved, the ministry said. According to its data, "the strike substantially degraded Ukraine’s capabilities for rolling out military products and deploying Western-made armaments and military equipment to the line of combat engagement.".

WESTERN PERSPECTIVE

Ukrainian drones strike Russian fuel depot, officials say

A Ukrainian drone attack sparked a fire and damaged several storage tanks at a fuel depot in Russia's Krasnodar region, the region's crisis administration said on Thursday.

About six drones were destroyed and debris fell on the refinery near the village of Yurovka, the administration said on the Telegram messaging app.

"Several tanks were damaged," the administration said, adding no one was injured in the attack.

Drone attacks on energy facilities inside Russia's territory have become more frequent in the past few months. Kyiv officials say that they conduct the attacks to undermine Russia's war effort and respond to Moscow's strikes on Ukrainian energy infrastructure.

The oil depot was last attacked on May 2, according to Russian state media.

Nigeria, once brimming with promise and potential, has tragically veered off course in its pursuit of good governance. The fundamental principles of effective government and governance have been sidelined amidst a self-serving political elite.

Government, the apparatus responsible for creating and enforcing laws, comprises three branches: legislative, executive, and judicial. However, governance transcends these formal structures, encompassing the broader processes and systems that shape decision-making and policy implementation.

While government focuses on institutions and power holders, governance emphasizes citizen participation, transparency, accountability, and responsiveness to societal needs.

In Nigeria, corruption, nepotism, and mismanagement have become endemic, with political opportunists prioritizing personal gain over public service. Basic amenities like healthcare and education are neglected while resources are squandered on lavish projects.

Political leaders, detached from the realities of everyday Nigerians, prioritize maintaining power over serving the populace. Recent actions, such as the demolition of vital infrastructure and arbitrary taxation, further exacerbate the plight of citizens already grappling with economic hardship.

Institutional decay, fueled by political interference and corruption, has eroded public trust in key agencies, including the judiciary.

Reclaiming the concept of good government necessitates radical transformation, with leadership committed to transparency, accountability, and citizen engagement. Institutional and electoral reforms, coupled with anti-corruption measures, are imperative steps towards restoring faith in governance.

Citizen participation and activism are equally vital, as Nigerians must demand accountability from their leaders and actively participate in the democratic process.

While the path to good government may be challenging, it is not insurmountable. Nigeria has the potential to unlock a brighter future for its citizens through collective effort and a steadfast commitment to reform.

** Dayo DaSilva, a Media Consultant and Publisher, writes from Ogun State.

Contact: This email address is being protected from spambots. You need JavaScript enabled to view it.

Larry David

For those who prioritize some standard of decorum, conventional or nontraditional social norms and expectations, here are three valuable lessons about unwritten rules that every business stakeholder can glean, especially if their aim is to build meaningful connections. 

Unwritten rules serve several important functions in society and business – they keep things running smoothly by guiding how we interact with one another and avoid unnecessary drama.

 Basically, they're like the invisible hand that keeps things in check without needing to call in the big guns of formal rules and regulations or, dare I say, HR.

1. Be fair

In "The Hot Towel" (season 7, episode 4), when David explained the social etiquette surrounding the overconsumption of hors d'oeuvres at a party to actor Christian Slater, I would bet that David was unaware of Nobel laureate Elinor Ostrom's groundbreaking research demonstrating that ordinary people are capable of creating rules and institutions that allow for the sustainable and equitable management of shared resources.

Colleagues and employees expect fairness in the distribution of resources, opportunities and recognition for contributions. If resources aren't shared fairly, it can really mess with how happy people are at work, how well teams get along and even how a company performs overall.

Leaders need to make sure they're being fair and up front about who gets what to keep everyone feeling good and included.

Individuals who perceive unfair treatment in opportunities and resource allocation may experience a loss of motivation, which can lead to decreased productivity or subpar performance outcomes.

I've witnessed this firsthand. Furthermore, inequities have the potential to foster resentment and conflict among team members.

Unequally distributing resources undermines the trust of the workforce, leading them to view such behavior as favoritism or bias.

2. Respect personal space

Although it may not be explicitly outlined in company policy, adhering to colleagues' personal space boundaries is widely regarded as a fundamental aspect of workplace decorum.

If you've ever experienced a co-worker invading your personal space by standing too close, engaging in unwelcome physical contact or making inappropriate requests such as touching your hair, you can appreciate the importance of respecting boundaries in workplace interactions.

Violating personal space norms can stir up discomfort and perhaps even spark drama at work. That's why giving people their space is key to keeping things chill and friendly in the office.

3. Gain insight

In Curb Your Enthusiasm, David challenges our understanding of social behavior, showcasing both appropriate and subpar conduct, along with cautionary tales, all the while defining the limits of acceptable interaction.

Being unaware of others' perspectives, backgrounds, feelings and behaviors doesn't cut it. Ignorance or lack of awareness in various life contexts, including workplace interactions, can lead to negative outcomes, whether acknowledged or not.

It's essential for individuals to be attentive to and understand those around them to navigate social situations adeptly and cultivate positive relationships. Insensitivity or offensiveness will not sway people positively.

As we bid farewell to David, an ironic purveyor of manners, and his humorous and irreverent examination of human behavior, we can embrace the overarching concept of unwritten rules.

By employing principles of equitable management, respecting personal space and fostering awareness of others' perspectives, businesses can cultivate a positive work environment.

In the series finale, the contrarian David, uninterested in engaging in a teachable moment, tells a child, "I'm 76 years old, and I've never learned a lesson in my entire life."

While Curb Your Enthusiasm may not appeal to everyone, its candidness and perhaps excessive bluntness provide valuable lessons on the intricacies of just getting along. 

Inc

The introduction of the 0.5 per cent cybersecurity levy on all banking transactions has sparked widespread discontent among Nigerians.

On Monday, the Central Bank of Nigeria(CBN) issued a circular to various financial institutions, including commercial, merchant, non-interest, and payment service banks, indicating that the levy would come into effect two weeks from 6 May.

“The levy shall be applied at the point of electronic transfer origination, then deducted and remitted by the financial institution. The deducted amount shall be reflected in the customer’s account with the narration, ‘Cybersecurity Levy’.”

“Deductions shall commence within two weeks from the date of this circular for all financial institutions and the monthly remittance of the levies collected in bulk to the NCF account domiciled at the CBN by the fifth business day of every subsequent month,” the directive read in part.

The new provision requires “a levy of 0.5% (0.005) equivalent to a half percent of all electronic transactions value” to be made by “the business specified in the Second Schedule to this Act”.

In essence, the act, which previously stated only the decimal value of the levy (0.005), introduced the percentage equivalent (0.5 percent) of the levy.

For instance, if a sender intends to send N50,000 to a recipient, 0.5 percent of the amount would amount to N250.

Similarly, multiplying N50,000 by 0.005 equals to N250. 

Consequently, it is important to note that 0.005 is 0.5 percent.

Reactions

Nigerians nationwide are expressing their dissatisfaction, highlighting that banking transactions are becoming increasingly costly due to numerous charges.

A user on the X microblogging platform, Sarki, wrote: “In a country plagued by hardship, poverty, & unemployment, the Federal government has introduced new cyber security levies”.

Lola Okunrin, another user, noted that “Cybersecurity Levy in a country where it’s looking like bank staff are giving out our banking details to scammers. Our cyberspace is not secure at all and we are getting charged for it,”

Yet another user, @seyilaw1 says: “Cybersecurity level, according to the act, is 0.005%, and different figures from 0.5% to 3% are being thrown around.

A 0.5% charge in the Nigeria of today is in itself too much punishment on Nigerians. Are we trying to discourage banking transactions again and encourage cash keeping? @cenbank should revisit this abeg. Stamp duty is something, and now this. It is unacceptable. @NGRPresident @officialABAT, let the poor breathe.”

In its intervention, the Socio-Economic Rights and Accountability Project (SERAP) and the Nigeria Labour Congress have called for the withdrawal of the directive.

In a statement issued by Kolawole Oluwadare, Deputy Director of SERAP, the organisation called on President Bola Tinubu’s administration to retract the “arbitrary and illegal directive” issued by the CBN within 48 hours.

SERAP also urged the administration to halt Nuhu Ribadu and the Office of the National Security Adviser (NSA) from enforcing section 44 and other oppressive clauses of the Cybercrimes Act 2024.

These measures blatantly contravene the Nigerian Constitution, the African Charter on Human and Peoples’ Rights, and the International Covenant on Civil and Political Rights, all of which Nigeria is a signatory to, the organisation said.

“If the unlawful CBN directive is not withdrawn and appropriate steps are not taken to amend the repressive provisions of the Cybercrimes Act within 48 hours, SERAP shall consider appropriate legal actions to compel the Tinubu administration to comply with our request in the public interest.

“Withdrawing the unlawful CBN directive and repealing the repressive provisions of the Cybercrimes Act 2024 will be entirely consistent with Tinubu’s constitutional oath of office requires public officials to uphold the provisions of the constitution, and the rule of law and abstain from all improper acts,” the statement read in parts.

The National Association of Nigerian Students (NANS) has bemoaned the newly introduced 0.5 per cent cybersecurity levy to be charged on all bank transactions.

In a communiqué issued by NANS President, Pedro Obi, the union expressed deep concerns over the introduction of another policy that “burdens the already-strained populace, especially amidst prevailing economic challenges.”

NANS firmly denounced the CBN’s new directive, labeling it as an undue strain on hardworking Nigerians.

“While purportedly aimed at enhancing cybersecurity frameworks, NANS emphasizes that this levy only adds to the financial pressures faced by individuals and businesses across the nation.

The NLC raised concerns over the imposition of a levy on electronic transactions, arguing that it burdens workers and vulnerable groups.

The union said it recognizes the importance of cybersecurity in today’s digital age but imposing such a levy on electronic transactions, without due consideration for its implications on workers and the vulnerable segments of society, is unjustifiable.

This levy stands as another tax too much for Nigerians, burdening them with additional financial responsibilities, a press statement signed by its president, Joe Ajaero, said.

“We see in this levy another gang up by the ruling elite to continue its extortion and exploitation of hapless and helpless workers and the masses so that their cronies in various financial centres can continue wallowing in unbridled consumption. During our last May day speech we called on the government to prioritize the welfare of Nigerian workers and masses in their policy directions and actions instead of profit-seeking that unleashes more pressure on the people.

“We wonder when it has become a crime for the people to save their meagre incomes in the Banks and whether the government intends to encourage people to resort once again to keeping cash and using cash transactions instead of electronic transfers which seem to have become an undoing for the people?

“While the CBN has exempted interbank transfers and loan transactions from this levy, the broader impact on everyday transactions cannot be overlooked. Such deductions directly affect the disposable income of workers and further diminish the purchasing power of the common citizen,” the statement said.

PT/Daily Trust/The Cable

Richard Teng, the CEO of Binance, a leading cryptocurrency trading platform, has alleged that unidentified individuals demanded cryptocurrency as a bribe from its executives, Tigran Gambaryan and Nadeem Anjarwalla, prior to their detention on February 28, 2024.

In a blog post released on Tuesday on Binance’s website, Teng outlined the sequence of events, including a January 8 meeting in Abuja with Nigerian authorities, where the executives were accused of criminal activities. Despite the seriousness of the meeting, which involved around 30 government agencies, it was revealed that the committee lacked the authority to issue arrest warrants. Following this, Gambaryan received a message during a trip to Nigeria in January, interpreted as a request for a $150 million cryptocurrency bribe.

The situation escalated further when Anjarwalla was detained on the orders of the National Security Adviser, leading to his subsequent escape and relocation to Kenya. Gambaryan, on the other hand, has been held in Kuje Correctional Facility, facing charges of tax evasion and money laundering alongside Binance.

Despite a demand for cryptocurrency payment within 48 hours to resolve the issues, Binance declined the request via their legal counsel, citing its lack of legitimacy.

The Federal Government of Nigeria has confirmed discussions with Interpol to secure an international arrest warrant for Anjarwalla and his extradition to Nigeria.

Israel seizes Gaza's vital Rafah crossing, but the US says it isn't the full invasion many fear

Israeli troops seized control of Gaza’s vital Rafah border crossing on Tuesday in what the White House described as a limited operation, as fears mount of a full-scale invasion of the southern city and talks with Hamas over a cease-fire and hostage release remain on a knife’s edge.

The U.N. warned of a potential collapse of the flow of aid to Palestinians from the closure the Rafah crossing from Egypt and the other main crossing into Gaza, Kerem Shalom, from Israel, at a time when U.N. officials say northern Gaza is experiencing “full-blown famine.”

The Israeli foray came after hours of whiplash in the now 7-month-old Israel-Hamas war, with the militant group saying Monday it accepted a cease-fire proposal that Israel insisted fell short of its own core demands.

The high-stakes diplomatic moves and military brinkmanship left a glimmer of hope for a deal to bring at least a pause in the war, which has killed more than 34,700 Palestinians, according to local health officials, and has devastated the Gaza Strip.

The Rafah and Kerem Shalom crossings are critical entry points for food, medicine and other supplies for Gaza’s 2.3 million people. They have been closed for at least two days, though the smaller Erez crossing between Israel and northern Gaza remains open.

By capturing the Rafah crossing, Israel gained full control over the entry and exit of people and goods for the first time since it withdrew soldiers and settlers from Gaza in 2005, though it has long maintained a blockade of the coastal enclave in cooperation with Egypt.

Israeli Prime Minister Benjamin Netanyahu called the capture of the crossing an “important step” toward dismantling Hamas’ military and governing capabilities, and Defense Minister Yoav Gallant said Israel would “deepen” the Rafah operation if talks on the hostage deal failed.

Osama Hamdan, a Hamas official based in Beirut, said the militant group would not respond to military pressure or threats and would not accept any “occupying force” at the Rafah crossing.

White House National Security Council spokesman John Kirby said the operation along the Gaza-Egypt border in eastern Rafah was not a full-on Israeli invasion of the city that President Joe Biden has repeatedly warned against on humanitarian grounds. Kirby said Israel described it as “an operation of limited scale and duration” aimed at cutting off Hamas arms smuggling.

Kirby expressed optimism about the cease-fire negotiations, saying Israel and Hamas “should be able to close the remaining gaps” to complete an agreement. He said CIA chief William Burns will attend further talks in Cairo with representatives from Israel, Egypt and Qatar. Hamas also sent a delegation to Cairo, which will meet separately with the Arab mediators.

“Everybody is coming to the table,” Kirby said.

Fighting forced the evacuation of the Abu Youssef al-Najjar Hospital, one of the main medical centers receiving people wounded in airstrikes on Rafah in recent weeks. It was not immediately clear how many patients were moved to other facilities.

The looming operation threatens to widen a rift between Israel and its main backer, the United States, which says it is concerned over the fate of around 1.3 million Palestinians crammed into Rafah, most of whom fled fighting elsewhere.

Biden warned Netanyahu again Monday against launching an invasion of the city after Israel ordered 100,000 Palestinians to evacuate parts of Rafah. But Netanyahu’s far-right coalition partners have threatened to bring down his government if he calls off an offensive or makes too many concessions in cease-fire talks.

A senior Biden administration official said late Tuesday that the U.S. had paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on Rafah against U.S. wishes.

The U.S. has historically provided Israel enormous amounts of military aid, which has only accelerated since Hamas’ Oct. 7 attack that ignited the war. The paused shipment was supposed to consist of 1,800 2,000-pound (900-kilogram) bombs and 1,700 smaller ones, with the U.S. concern focused on how the larger bombs could be used in a dense urban setting, according to the official, who spoke on the condition of anonymity to discuss the sensitive matter. The official said no final decision had been made yet on proceeding with the shipment later.

Palestinians’ cheers of joy over Hamas’acceptance of the cease-fire deal turned to fear Tuesday.

Families fled Rafah’s eastern neighborhoods on foot or in vehicles and donkey carts piled with mattresses and supplies. Children watched as parents disassembled tents in the sprawling camps that have filled Rafah for months to move to their next destination — which for many remained uncertain.

“Netanyahu only cares about coming out on top. He doesn’t care about children. I don’t think he’ll agree” to a deal, said Najwa al-Saksuk as her family packed up while Israeli strikes rang out amid plumes of black smoke.

Families of the Israeli hostages also saw their hope turn to despair. Rotem Cooper, whose 85-year-old father, Amiram, was among scores abducted during Hamas’ Oct. 7 attack, slammed what he said was the government’s inaction on a deal.

“We see all sorts of explanations — ‘This isn’t the deal that we gave them, Hamas changed it without saying something,’” Cooper said at a parliamentary hearing Tuesday. He questioned whether military pressure was an effective bargaining tactic.

Israel’s 401st Brigade took “operational control” of the Gaza side of the Rafah crossing early Tuesday, the military said. Military footage showed Israeli flags flying from tanks in the area. It also said troops and airstrikes targeted suspected Hamas positions in Rafah.

The military claimed it had intelligence the crossing was “being used for terrorist purposes,” though it did not immediately provide evidence. It said Hamas fighters near the crossing launched a mortar attack that killed four Israeli troops near Kerem Shalom on Sunday and that more mortars and rockets were fired from the area Tuesday.

Israeli authorities denied the U.N. humanitarian affairs office access to the Rafah crossing Tuesday, said its spokesman, Jens Laerke. All fuel for aid trucks and generators comes through Rafah, and Laerke said there was a “very, very short buffer of about one day of fuel.”

Israeli strikes and bombardment across Rafah overnight killed at least 23 Palestinians, including at least six women and five children, according to hospital records.

Mohamed Abu Amra said his wife, two brothers, sister and niece were killed when a strike flattened their home as they slept. “We did nothing. ... We don’t have Hamas,” he said.

Egypt’s Foreign Ministry condemned the seizure of the Rafah crossing, calling it “a dangerous escalation.”

It has previously warned that any occupation of Rafah — which is supposed to be part of a demilitarized border zone — or an attack that forces Palestinians to flee into Egypt would threaten the 1979 peace treaty with Israel that’s been a linchpin for regional security.

Netanyahu has said an offensive to take Rafah — which Israel calls Hamas’ last major stronghold in Gaza — is crucial to destroying Hamas after its Oct. 7 attack in Israel when the militants killed some 1,200 people, mostly civilians, and took around 250 hostages.

The United States, Egypt and Qatar have spent months trying to broker a cease-fire agreement and the release of the estimated 100 hostages and remains of 30 others still held by Hamas, which insists it will not release them unless Israel ends the war and withdraws from Gaza.

Netanyahu and other top officials have publicly rejected those demands, saying they plan to launch the offensive after any hostage release and continue until Hamas is destroyed. For now, the hostages serve as Hamas’ strongest bargaining chip and potential human shields for its leaders.

An Egyptian official and a Western diplomat said the draft Hamas accepted had only minor changes in wording from a version the U.S. had earlier pushed for with Israeli approval. The changes were made in consultation with the CIA chief, who embraced the draft before sending it to Hamas, they said, speaking on condition of anonymity to discuss the deliberations.

According to a copy released by Hamas, the proposal outlines a phased release of hostages alongside gradual withdrawal of Israeli troops from Gaza and ending with a “sustainable calm,” defined as a “permanent cessation of military and hostile operations.”

AP