Showing posts with label Middle East. Show all posts
Showing posts with label Middle East. Show all posts

Friday 19 April 2024

Pakistan: Likely impact of Middle East conflict

Iran’s unprecedented drone/missile attacks on Israel on April 13 has raised the risk of a wider regional conflict in the Middle East. The attacks by Iran were largely intercepted by Israel. Still, any further retaliatory exchanges between the two countries could worsen the disruption of shipping routes through the region and thus lift global freights – in turn leading to higher commodity prices in the coming months. The escalation is likely to affect Pakistan in multiple ways.

From the Pakistan market’s standpoint any escalation will test two key expectations that have driven the YTD rally at Pakistan Stock Exchange, monetary easing and Pakistan’s negotiation with the IMF for another program.

On the flipside, the market will draw comfort from the prospect of fresh bilateral assistance and investments from Saudi Arabia and the release of final tranche of US$1.1 billion by end April.

Global shipping costs and commodity prices are likely to rise. Even in case of a de-escalation of the conflict, it threatens to worsen the disruption of shipping routes through the region, similar to that through the Red Sea. There is an increased risk of the following in the near term:

Surge in global oil prices toward US$100/bbl: The Red Sea disruption since November 2023, along with the extension of OPEC Plus supply cuts, has lifted Brent from US$78/bbl at the start of 2024 to nearly US$90/bbl, despite a weak global economic recovery.

Surge in the global shipping costs, through elevated insurance premiums on shipments through the region.

Global food prices could also rise, because of the rise in shipping costs and higher fertilizer prices, which the region exports. Food exports from South Asia, such as rice from India and Pakistan, to the rest of the world could be disrupted as well.

Potential delay in the start of interest rate cuts: An escalated conflict will have negative implications for Pakistan’s CA balance and inflation. In a scenario where global prices of crude oil, chemicals and food commodities rise by 10% in the coming months, Pakistan’s trade and CA deficit could expand up to US$300 million per month.

It is also likely that, in an escalated conflict, Pakistan’s exports and remittances may shrink, due to a disruption in shipping routes and economic concerns in the GCC, respectively.

Together these could spell a reversal in the exchange rate parity which has been stable around 280 since the start of year 2024. Note that, as per the SBP, Pakistan has a funding gap of around US$3 billion until June 2024, excluding the US$1 billion Eurobond repaid on April 12, 2024.

Friday 12 April 2024

Biden moving in wrong direction

"The United States ought to be distancing itself from Israel's illegal attack, but instead the Biden administration is moving to shield Israel from the consequences of its own actions," Daniel Larison wrote.

Israeli appears to want to goad Iran into a military response to divert attention from the slaughter and famine in Gaza and to trap the US into joining the fight. Biden has made it that much easier for Israeli Prime Minister Benjamin Netanyahu by volunteering to walk into the trap.

Israeli forces have routinely struck Iranian and other targets in Syria for more than a decade, but the attack on the consulate in Damascus was a major escalation both in terms of the location and the rank of the Iranian officers that were killed.

An imminent Iranian response to Israel's deadly bombing of Tehran's consulate in the Syrian capital earlier this month is heightening fears of a devastating regional conflict in which the United States—Israel's top ally and arms supplier—could become directly involved.

The US embassy in Jerusalem issued a security warning on Thursday and restricted its employees' travel ahead of a possible Iranian response as soon as Friday. US officials, according to Politico, have assessed that Iran is calibrating its plans for a major retaliatory strike against Israel to send a message—but not spark a regional war that compels Washington to respond.

US President Joe Biden and top administration officials have in recent days stressed their "ironclad" commitment to defending Israel in the case of an Iranian reprisal, despite widespread condemnation of Israel's consulate attack as a significant escalation and flagrant violation of international law.

"When the Israeli regime completely violates the immunity of individuals and diplomatic places in violation of international law and the Vienna Conventions, legitimate defense is a necessity," Iranian Foreign Minister Hossein Amir-Abdollahian said in a statement Thursday.

Two unnamed US officials told CBS News that Iran's response could include more than 100 drones and dozens of missiles aimed at military targets inside the country." Biden administration officials have asked China and other nations to urge Iran not to respond to the consulate attack.

The Israeli government, which is currently waging a catastrophic war on the Gaza Strip, signaled it would respond forcefully to any Iranian retaliation, raising the possibility of direct US involvement.

Axios reported that the senior US military commander in charge of the Middle East visited Israel Thursday to coordinate around a possible attack on Israel by Iran and its proxies.

While war hawks in the US have used the surge in tensions to agitate for a direct American-Israeli attack on Iran, advocacy groups and anti-war commentators have warned against any additional escalation, fearing the eruption of all-out military conflict in the Middle East.

"A regional war involving the US, Israel, and Iran would be disastrous for US interests, the people of Iran, and the security of the region as a whole," the National Iranian American Council (NIAC) said earlier this week.

Responsible Statecraft columnist Daniel Larison wrote Friday that with its unwavering support for the Netanyahu government, the Biden administration is moving in the wrong direction.

 


Tuesday 30 January 2024

Israel pushing United States into a full-fledged war in Middle East

President Joe Biden’s unwavering, unjustified, and blind support for Israel’s carnage in the Gaza Strip is pushing the region into a wider conflict.

The United States is already caught in a conflict with Yemen’s Ansarullah and the Islamic Resistance in Iraq, which has claimed responsibility for the Sunday drone attack on a US base in Jordan near the border with Syria that left three US three service members dead. 

Hamas reacted to the drone attack, saying it was a message to the American administration and that the American-Zionist aggression on Gaza risks a regional explosion.

Biden has been opposing a ceasefire in Israel’s war in Gaza, shipping weapons to Israel, and vetoing UN Security Council resolutions calling for a ceasefire in Gaza.

Moreover, the shadow of a full-fledged war between Israel and Hezbollah is looming.

While the scandalous US exit from Afghanistan in August of 2021 is still fresh in minds, the US is inadvertently but foolishly being dragged into another war in the region.

Ansarullah started attacking American vessels and warships in the Red Sea and the Gulf of Aden just because the United States and Britain have so far launched a series of attacks on sites inside Yemen in response to Ansarullah’s attacks on Israeli vessels and those destined to and from Israel’s ports.

Ansarullah had said if Israel allowed humanitarian aid into Gaza and stopped the war on the besieged enclave it would have ceased attacks on Israeli-linked vessels.

However, Biden, instead of pressing Israel to end its savage war in Gaza, decided to launch attacks on Yemen.

In a commentary immediately after the attacks on US troops in Jordan, the Qunicy Institute said, “They (three service members) didn’t die defending US interests, they died defending Biden’s refusal to press Israel for a ceasefire. Their lives were put at risk by Biden to defend Israel’s ability to continue its carnage in Gaza.” 

Given the United States’ bitter wars in Afghanistan and Iraq, it was expected that Biden and his national security team would deal with the Gaza war circumspectly, especially as many countries, politicians, analysts and international bodies have been warning about the spread of the war in the region.

The Biden administration has been claiming that it opposes the spread of war but in practice it is adding fuel to the fire by backing criminals in Tel Aviv whose thirst for blood is unquenchable.

Now the feeling to respond to those who killed American troops in Jordan’s border with Syria is boiling. This feeling is being fanned by Republican hardliners.

With each passing day, the US is getting closer to a new bloody, endless, foolish, and guerrilla warfare in the Middle East. Since the attack by Hamas on Israel on October 07, former and current officials in Israel have been earnestly working to push the US toward a war in the region.

It seems that they are succeeding in their plot and the region is entering a highly dangerous situation.

Former Israeli Prime Minister Naftali Bennett wrote an op-ed in the Wall Street Journal on December 28 headlined “The US and Israel need to take Iran on directly”.

We hope that the United States under the Biden administration will come to its senses and stop sacrificing the US interests for Israel.

Courtesy: Tehran Times

Tuesday 2 January 2024

Iran stations warship in Red Sea as US aircraft carrier leaves

Iran's Alborz warship has passed through the Bab al-Mandab Strait and entered the Red Sea, the country's semi-official Tasnim news agency reported on Monday. Iranian warships have been operating in the region to secure shipping lanes since 2009, Tasnim said.

Iranian-backed groups have not reduced their attacks in the Middle East. On the opposite, pro-Iranian media sought to highlight how the attacks are increasing. Al-Mayadeen media, which is pro-Iran, claimed that there were attacks targeting Al-Asad based in Iraq and Shaddadi in Syria, two places where US forces are located. The US is in Syria and Iraq to help defeat ISIS.

Reports on December 31, 2023 said that the USS Gerald Ford aircraft carrier is heading out of the Mediterranean is also raising eyebrows in Iran and the region. While Gaza fighting appears to be reduced slightly, Iran continues to want to manage the conflict against Israel. Iranian Tasnim ran a long interview about the role of Qasem Soleimani in the region. Although the interview is ostensibly about Soleimani, who was killed in January 2020 by the US, the report examines recent details about the Iran-backed Houthis in Yemen targeting ships and Palestinian terror groups targeting Israel.

The article raises questions about presence of US aircraft carriers in the region. There were two carriers in the region, the Eisenhower and Ford.

The US had sent the second carrier after the October 07, 2023 attack to deter Hezbollah and others from escalating attacks.

The Iranian regime's view is that these naval assets have not been able to prevent the Houthis in Yemen from continuing attacks on ships. However, a US helicopter destroyed three small Houthi boats over the weekend, indicating that the Houthis are taking losses.

The story about the US carrier leaving the region was covered in Al-Mayadeen media, which is pro-Iran, showing that pro-Iran figures in the region are watching this development closely.

Thursday 9 November 2023

Save Lives - Ceasefire Now

The October 07 Hamas attacks and Israel's subsequent ground invasion of Gaza threaten to plunge an already volatile Middle East into a new era of never ending conflict.

This violence isn’t going to bring safety or liberation to anyone ‑ it’ll only breed more fear, hatred, and trauma. That’s why we continue to call for a ceasefire.

A ceasefire can save lives in Gaza by stopping the bombing and allowing opportunities for critically needed humanitarian relief. It can help ensure hostages can be reunited with their loved ones.

When we demand that the US government agitate for one, it is us saying that everyday people in Gaza deserve dignity ‑ and their horrific treatment has no justification or excuse.

A ceasefire can provide safety for people in Israel. Violence begets violence. Every moment this conflict continues puts people in Israel in danger.

A ceasefire can make a massive and immediate positive difference in people’s lives. And that’s why we need every member of Congress speaking out in support of this simple demand now.

This is the moment to keep pushing to both protect people across Israel and Palestine, while preventing a catastrophic regional war from breaking out.

We need more voices to join the call - and that’s where you come in. 

Support a simple demand, Save Lives, Ceasefire Now.

 

Monday 6 November 2023

Netanyahu has killed more than ten thousand people in Gaza

Israeli forces pounded northern Gaza with intense airstrikes overnight into Monday night as the Palestinian death toll from a month of fighting exceeded 10,000.

As Israeli troops have pushed into the dense confines of Gaza, an even bloodier phase is expected.

According to Gaza’s Health Ministry, around 10,022 Palestinians have been martyred so far.

Child casualties crossed 4,000 as Israeli raids expanded, Al Jazeera reported.

The Israeli military said late Sunday that it had cut off northern Gaza from the south, calling it a significant stage in the war. On Monday, it said that aircraft struck 450 targets overnight and ground troops took over a Hamas compound, ABC News reported. 

On Sunday afternoon, an Israeli air strike hit several houses near a school at the Bureji refugee camp in central Gaza, killing at least 13 people, according to officials at Al-Aqsa Hospital. 

It was the third refugee camp to be hit by Israeli air strikes in the past 24 hours. More than 50 Palestinians were killed in attacks on Gaza’s al-Maghazi and Jabalia refugee camps, Al Jazeera said.

Arafat Abu Mashaia, a resident of the al-Maghazi camp, said the Israeli air strike flattened several multi-story homes where people forced out of other parts of Gaza were sheltering.

“It was a true massacre,” he said early on Sunday as he stood on the wreckage of destroyed homes. “All here are peaceful people. I challenge anyone who says there were resistance (fighters) here.”

The camp, a built-up residential area, was located in the evacuation zone.

“These repeated air strikes on refugee camps in central and southern Gaza are the reason why people are not taking the Israeli announcement of guaranteeing safe corridors to travel to the south seriously,” Al Jazeera’s Hani Mahmoud said.

According to the United Nations, 1.5 million people are now internally displaced in Gaza out of a population of 2.3 million.

Food, medicine, fuel, and water are running low, and UN-run schools that have been turned into shelters, are beyond capacity, with many Palestinians sleeping on the streets outside. 

Meanwhile, Israeli Prime Minister Benjamin Netanyahu again rejected the idea of halting the offensive, ignoring appeals and protests across the world.

“There will be no ceasefire without the return of our hostages; we say this to both our enemies and our friends. We will continue until we beat them,” Netanyahu told air and ground crews at the Ramon Air Force Base in southern Israel on Sunday.

Israel says it is targeting Hamas fighters and assets, accusing the group of using civilians as human shields. Critics say Israel’s strikes are disproportionate, considering the large number of civilians killed.

This is while UN leaders are saying "enough is enough" and demanded a humanitarian ceasefire on Monday nearly a month into the war, as the enclave's health authorities said dozens more people were killed in overnight attacks by Israeli fighter jets and troops, Reuters reported.

 

Saturday 30 September 2023

Climate change and its impact on Arabian Sea

In the summer of 2022, flash flooding due to heavy monsoon rains in Pakistan, Oman, the United Arab Emirates, and southeast Iran killed over 1,000 people. In this part of the world, the extreme shifts in weather between monsoon and dry season dictate subsistence cycles and financial livelihood, with accompanying risks to life and property. Shifting global precipitation patterns due to climate change, however, are altering the timing and magnitude of these events.

In the Middle East and North Africa region, the Arabian Sea plays a major part in both South Asian and African monsoons, providing a source of moisture. Temperature and vapor pressure in the northern Arabian Sea have been steadily increasing since the 1980s and regional sea surface temperatures have seen a steady rise since 2003. Combined, these phenomena are a recipe for disaster.

The warmer average air mass above the sea has an increased capacity to hold water and will take longer to saturate as a result. This lengthens the average time between precipitation events, but is also more likely to produce catastrophically high precipitation when it does.

What can be done to adapt to this new reality? Can infrastructure be adapted, optimized, or possibly even re-imagined to take advantage of such events?

Infrastructure for the capture, transport, and treatment of surface water will need to adapt to the new realities of climate change, in MENA perhaps quicker than anywhere else. Correlation between historically extreme events and the “new normal” could serve to guide the retrofitting of pre-existing infrastructure as well as updated requirements for the construction of new infrastructure. This should be based on sound statistics and up-to-date flood frequency analysis.

If it is determined, for example, that floods that previously qualified as a “500-year event” are now a “100-year event,” then catchment areas, spillway designs, and dam heights should be adjusted to reflect this new reality.

Beyond exposed impoundments and flood control structures, innovative solutions for storage, conveyance, and treatment of water harvested from these extreme events should be considered if the intended end use is municipal or industrial.

Since large swaths of the MENA countries within the Arabian Sea zone are sparsely populated, adaptations that emphasize efficiency and flexibility in capture or conveyance across vast, often arid regions would be essential.

These might include groundwater infiltration basins located in regions statistically determined to be visited by cyclones with increased frequency, covered tanks (to reduce evaporative losses), and pipelines from these areas to strategic transfer points in regional infrastructure. Incorporating passive treatment of captured water, solar, or even small-scale hydroelectric generation into these designs can augment water and power security.

Source type is also important. Smaller countries or those with more homogenous landscapes (such as Bahrain or Qatar) only need to focus on adaptations to the particular type of extreme event they most often experience. Infrastructure in Arabian Sea zone countries with diverse geography such as Oman, however, may be adapted to capitalize on episodic heavy rainfall or, more rarely, heavy snowfall events and the differences in timing of arrival of water from each.

Monsoon rains are highly localized, and some of the countries that border the Arabian Sea, like Oman, are uniquely positioned to take advantage not just of “Khareef season” but of its reversal as well.

Between the months of June and September, the Salalah region in southern Oman will experience rain from the prevailing south west relies that set up along the southern coast as warm, moist air from the Arabian Sea sweeps toward the Indian Subcontinent.

Toward the end of the Northern Hemisphere summer, this pattern reverses as East Africa heats up, driving winds from the Gulf of Oman to drop rain and, sometimes, snow on the Hajar Mountains.

By contrast, cyclones may affect large areas, and are an increasingly common occurrence in the Arabian Sea, bringing significant rainfall, storm surge, and high winds. With the aid of advanced sitting tools (a combination of geographical information system, artificial intelligence, or updated global circulation models, for example) key regions of the landscape could be engineered or enhanced to take advantage of such events by acting as large-scale catchment facilities, capturing precious runoff, wave energy, or controlling sediment transport. Maximizing the local use of such resources — for small-scale power, landscape irrigation, or environmental flows — would remove the need for both conveyance and treatment.

If it sounds as though the line between landscape and infrastructure has blurred, perhaps it should. If buildings and roadways are engineered to withstand the impacts of “extreme” climatic events, why not re-imagine the environment to dovetail with adapted power and water supply infrastructure and take advantage of the potential windfall? Hurricane Harvey dumped more than 20x1012 gallons of water on the US Gulf Coast in the summer of 2017. Had the storm stalled over the US Southwest, 17 years of drought would have been undone and surface system reservoirs would have been filled within the space of one week.

The blueprint for transforming events such as these from liability into potential windfall already exists, albeit on a smaller scale. Many city and regional-level utilities outside MENA incentivize simultaneous compliance with safety and environmental standards prior to approving new infrastructure. Scaling up such an approach would require a similar leap up in planning and regulatory perspective. Urban planning would become regional planning, with the coordination between civil, geotechnical, and environmental engineering taken to new levels.

Funding options for such projects would need to evolve alongside the rising threats posed by climate change. Options for build-operate-own scenarios under public-private partnerships could be negotiated through non-governmental, UN, or World Bank-affiliated organizations, such as the Green Climate Fund or the Global Adaptation Fund, if government funding for affected countries in the MENA region were limited. Rates for water could be structured according to the ephemeral nature of the resource.

The degree of difficulty with which the resource is captured and conveyed could be incorporated, with the associated costs wrapped into current operations and management. The money saved by not having to pump and treat an equivalent volume of this “free water” could be used to further stretch the resource by being funneled back into reuse-recycling programs, for example.

The details of such programs are, at this stage, less important than a broader array of strategies for taking advantage of potential opportunities to mitigate the damage caused by climate change.

Rather than planning for climate conditions just based on the status quo of risk management, consider that, if the scale and robustness of infrastructure are being tested at a level never before experienced in modern times due to the amplification of climate change impacts, perhaps it is time for a similar quantum leap of thought on how we approach these challenges by viewing these climate risks as opportunities.

The MENA countries within the climate influence of the Arabian Sea will certainly need to buffer against the adverse impacts of extreme weather but may also look toward finding innovative benefits from experiencing this level of climate vulnerability.

Courtesy: Middle East Institute

Sunday 14 May 2023

Iran-Saudi Arabia to boost economic co-op

During a meeting between Iran’s Finance and Economic Affairs Minister Ehsan Khandouzi and Saudi Arabia’s Finance Minister Mohammed Al-Jadaan, the two sides discussed the ways to expand economic cooperation and remove the barriers in the way of trade between the two countries.

In the meeting, which was held on the sidelines of the annual meeting of the board of executive directors of the Islamic Development Bank (IsDB) in Jeddah, the Saudi Arabian minister expressed satisfaction with the re-establishment of relations between Iran and Saudi Arabia and said, “We hope that quick steps will be taken in relations with Iran.”

“In this regard, it is necessary to remove the economic and trade barriers against the two countries”, he stressed.

Referring to the great opportunities for interaction and cooperation between the two countries, Al-Jadaan expressed hope that he will soon meet the Iranian finance and economic affairs minister in Riyadh.

The Iranian minister welcomed the progress of economic relations between the two countries and stated that the development of relations is important not only for Iran and Saudi Arabia but also for all countries in the region.

Khandouzi said these bilateral relations are very important not only from an economic point of view but also in the political and security fields.

Explaining Iran's program in the field of economic relations with Saudi Arabia, Khandouzi said, “At the government level, Iran and Saudi Arabia have not finalized any basic agreement in the field of investment, customs, and trade. In this regard, it is necessary to draw up and sign MoUs between the parties.”

The Saudi Arabian side, while agreeing to cooperate in the three fields of customs, trade, and investment, expressed hope that with the assistance of his country’s ministries, cooperation in the mentioned fields will be followed up.

 

Thursday 11 May 2023

Iran and Russia to facilitate Turkey and Syria in deescalating tension

After years of tensions, the foreign ministers of Turkey and Syria sat at the same table to discuss ways to deescalate tensions with help from Iran and Russia.

On Wednesday, Russia hosted an important quadrilateral meeting between Iran, Syria, Russia, and Turkey at the level of foreign ministers. The meeting was a giant step forward in terms of putting an end to differences between Turkey and Syria, which have been at loggerheads over the last decade. 

While some international issues have also been on the agenda, the Moscow meeting was primarily focused on the normalization of relations between Ankara and Damascus. The diametrically opposed positions of Syria and Turkey since the outbreak of the Syrian crisis in 2011 seriously have damaged their relations. With the Syrian government regaining control of much of its lost territory, Turkey moved to patch up relations with Syria with mediation and facilitation by Iran and Russia.

In the Wednesday meeting, this featured high on the agenda. The Russian foreign ministry said in a statement that the foreign ministers of the four countries held a substantive and frank discussion on issues related to resuming the interstate relations between Syria and Turkey in various aspects.

The Moscow meeting is another indication that Syria moving past crisis and war, a trend that prompted Turkey and many Arab states to restore ties with Damascus. Earlier this week, Syria was readmitted to the Arab League and Saudi Arabia reopened its diplomatic missions in Damascus. Currently, there are speculations that Syrian President Bashar Assad could take part in the upcoming summit of the Arab League in Saudi Arabia, which has already officially extended an invitation to Assad to participate in the summit. 

Turkey appears to be willing to keep up with this reconciliatory trend. In their meeting, the foreign ministers agreed to task the deputy foreign ministers to prepare a road map to advance the relations between Turkey and Syria in coordination with the work of the ministries of defense and special services of the four countries, according to the Russian statement. 

The statement added that the ministers noted a positive and constructive atmosphere of their exchange during the meeting and agreed to further maintain high-level contacts and technical talks in this quadripartite format in the upcoming period.

The Moscow meeting also provided a convivial atmosphere for the foreign ministers to hold bilateral meetings. The Iranian foreign minister, Hossein Amir Abdollahian held separate meetings with his Syria, Russian, and Turkish counterparts. 

In his meeting with Syrian Foreign Minister Faisal Mekdad, Amir Abdollahian congratulated him on Syria’s readmission to the Arab League and expressed Iran’s support for the Turkish-Syrian normalization. 

Amir Abdollahian described the Moscow meeting as a step forward in his meeting with Turkish Foreign Minister Mevlut Cavusoglu. The Turkish foreign minister, for his part, pointed to Iran’s important role in facilitating the quadrilateral meeting. 

As things stand, Turkey and Syria are making strides in restoring their ties. The full resumption of ties, however, is hindered by the fact that Turkish troops are illegally present in Syrian territory, thus contravening the Arab country’s territorial integrity. This point was raised in Moscow. 

In his speech at the joint meeting, Amir Abdollahian underlined that any political resolution to the Syrian issues must ensure Syria’s sovereignty over its entire territory, according to IRNA. 

Amir Abdollahian suggested that deployment of Syrian troops at the border regions can alleviate security concerns of Turkey and other neighboring countries, prevent terrorist and separatist activities, and set the stage for the withdrawal of Turkish military forces from the common border areas.

“We believe that a strong and independent Syria can overcome terrorism, separatism, occupation of American forces, and theft of the country's national resources,” he noted.

Iran’s top diplomat also stressed the need for joint efforts by regional countries and the rest of the international community to reconstruct Syria and prepare the ground for Syrian refugees to return to their homeland.

“Of course, any political precondition and double standards on this issue not only will not help solve this humanitarian issue but will also add to its complexity,” he pointed out.

The Iranian foreign minister pointed out that the beginning of talks between Syria and Turkey will benefit the people of the two countries and the security of the region.

“We deeply believe that these two countries can put the past behind them and resolve the bilateral issues through dialogue and deepening cooperation based on good neighborliness,” Amir Abdollahian said.

He also noted that the meeting in Moscow would have a strong message of peace and sustainable security in the region and strengthening of good neighborliness between Turkey and Syria.

 

Saturday 29 April 2023

Even one American in Iraq is too many, says Iranian President

The United States is an unreliable friend, and Iraq should not allow any US troops on its territory, Iran's Supreme leader Ayatollah Ali Khamenei told visiting Iraqi President Abdul Latif Rashid on Saturday.

Iran, which has strong ties with Iraq, opposes the US military presence on its borders in Iraq and the Gulf, saying Western military intervention is the root of insecurity in the region.

"Americans are not friends of Iraq. Americans are not friends with anyone and are not even loyal to their European friends," state media quoted Khamenei as saying.

US national security agencies are investigating after a leak of classified documents has suggested the United States spied on allies including Ukraine.

"Even the presence of one American in Iraq is too much," Khamenei told Rashid, who was in Tehran with a delegation to boost ties between the two neighbours.

The United States has some 2,500 troops in Iraq to help advice and assist local troops in combating Islamic State, which in 2014 seized territory in the country.

"Iraq's main effort is to deepen relations with Iran and resolve certain remaining issues between the two countries," Rashid was quoted as saying, without referring to Iraq's ties with the United States.

Saturday 22 April 2023

Can Jews, Christians and Muslims live together peacefully?

I am sharing a write up by Paul Salem, President and CEO of the Middle East Institute. He focuses on issues of political change, transition, and conflict as well as the regional and international relations of the Middle East. Although, many readers may not agree with his narrative, but efforts must be made for establishing a sustainable peace in the Middle East.

Passover, Ramadan, and Easter coincide this year, a phenomenon that only occurs a few times in a century. Can alignment of these Jewish, Muslim, and Christian holy days offer a hope for peace in conflict-stricken Middle East?

Five thousand years after the birth of Judaism in the region, 2,000 after the emergence of Christianity, and 1,400 after the spread of Islam, the current moment presents signs of hope for coexistence and cooperation among the three religions. The politicization of religion remains a potent force, even in today’s world, and religion is still ably used by too many leaders to divide rather than unite.

It may be recalled that a dialogue between the three faiths were initiated last month in Abu Dhabi where a church, mosque, and synagogue are located side by side. In 2019 it hosted Pope Francis and the Grand Imam of Al-Azhar Ahmad el-Tayeb, who signed a Document of Human Fraternity.

The Abraham Accords brought normalization between Israel and four Arab states in 2020, and other key countries might join in the near future. Saudi Arabia and Iran also agreed to normalize relations just a few weeks ago.

In a region where religious and sectarian differences have driven violence and animosity for decades, do these developments presage a fundamental shift towards peace and coexistence, or a temporary papering over of persistent conflict?

The role of religion in politics has ebbed and flowed in the Middle East, as have the relations among the region’s various religious and sectarian groups. Over the past two centuries, the potent rise of secular and scientific world views brought on by the Enlightenment, the Industrial Revolution, colonialism, and nationalism have posed challenges to all three Abrahamic religions.

Secular nationalist movements coursed through the Middle East throughout the 20th century. And many secularists believed that the role and power of religion would gradually disappear in the modern world.

The ultra-secularist Turkish leader Mustafa Kemal Atatürk abolished the Caliphate in 1924, and secular nationalist leaders emerged in Turkey, Egypt, Iraq, Syria, and elsewhere. They extended the reach of the largely secular state over society and education, weakening the hold of religious elites and institutions.

Muslims, Christians — and Jews up until 1948 — of the Arab world were joined together in the building of new secular political movements: nationalist, socialist, and communist.

Even the establishment of Israel in 1948 unleashed a conflict which, from the 1950s to 1970s, was fought largely in nationalist terms: Arab and Palestinian nationalists vs. Israeli Zionist nationalists. This semi-secular era did marginalize the political power of religion — for a while — but did not bring peace; it replaced one form of conflict with another.

The secular tide in the region turned decisively in the 1970s. The secular nationalist movements across the Arab world were shattered by their abject defeat by Israel in 1967, as well as their failure to deliver economic and political prosperity at home or unity and victory abroad.

The energy crisis triggered by the Saudi reaction to the 1973 Arab-Israeli war led to a historic rise in oil prices, and a shift in wealth and power from Egypt and the Levant toward a much more religiously observant and conservative Saudi Arabia and its Arab Gulf neighbors.

Iran, also flush with cash from the oil price boom, saw the fall of the Shah and the rise of an Islamic Republic in 1979.

The Soviet invasion of Afghanistan that same year convinced the US, Saudi Arabia, and Pakistan to arm and train Sunni extremists to fight the Soviet menace. The Al Saud, facing an Islamic challenge from Iran, and an attack by Sunni extremists on the Great Mosque of Mecca in 1979, doubled down on supporting and funding Sunni Islamic institutions and movements as a way to shore up their legitimacy.

Indeed, by the 1990s and 2000s, little was left of the Middle East of the 1950s and 1960s, in which religion appeared to be a spent force and secular nationalist and leftist movements defined the political — and militia — landscape.

By the 2000s, the religious wave caught up with the original progenitor of Middle East secularism, Turkey, as Recep Tayyip ErdoÄŸan and the religious conservative Justice and Development Party (AKP) rose to dominate Turkish politics.

In Israel, a nation originally built and dominated by staunchly secular Jewish nationalists became increasingly challenged by religious zealots and extremists — groups that now all but dominate the current government.

In the Arab uprisings of the 2010s secular groups — liberal, leftist, nationalist — faced off against Islamic ones, with the latter generally gained the upper hand, either in elections or in the mayhem of civil war.

The US-led invasion of Iraq in 2003 itself triggered a wave of sectarian polarization as Sunni and Shia groups battled for supremacy.

For the Christians of the Middle East, the last few decades have been an unmitigated disaster. The decline of nationalist and leftist secular movements, in which they had played such a central role, and the rise of Islamic fundamentalism undermined their very place in society. But they had survived under the equal opportunity oppression of Arab dictatorships.

The US-led invasion of Iraq wiped out the state and the oppressive security that it provided, and unleashed a sectarian civil war in which the Christians were the most powerless; from 1.4 million before the war, Christians in Iraq now number less than 250,000.

In Syria the uprising of 2011, initially a point of national unity among Muslim and Christian protesters, soon turned deadly for Christians. The regime preferred to turn the uprising into a shooting war, sought to exploit sectarian differences to weaken the opposition, and released large numbers of Islamic extremists from its prisons.

As the opposition was forced to resort to arms, Islamist groups, some garnering support from pro-Islamist states and institutions in the region, others making common cause with the hard-fighting al-Qaeda, came to dominate the opposition.

In Egypt, the brief rule of the Muslim Brotherhood between 2012 and 2013 terrified an already marginalized Coptic community and cemented their support for the return of the military to power.

The meeting between Saudi Crown Prince Mohammed bin Salman and the Coptic Pope Tawadrus II in 2018 was an important step in restoring warm relations between Muslims and Christians in the Middle East.

Pope Tawadrus II represents the biggest Christian community in the region; Pope Francis of Rome does not.

Christian numbers have also plummeted in Jordan, as well as in the occupied West Bank and East Jerusalem. Lebanon has had its own turbulent history of alternating between fighting and powersharing among its various religious communities. Currently, they share equally in the misery brought about by the corruption and criminal unresponsiveness of their own sectarian oligarchs.

Interestingly, the religious-secular pendulum has started to swing yet again. In today’s Middle East, it is in Iran where a rising generation is making the bravest stand against religious authority and repression. Meanwhile, the leadership in Saudi Arabia has decided to get ahead of this wave by reversing four decades of policy since 1979, eliminating the religious police, and storming ahead with a radical opening of society at the cultural and social level — although decidedly not the political — bringing in a long-delayed wave of secularization and women’s socio-economic empowerment.

Protest movements in Lebanon and Iraq have railed against sectarian politics and corruption and demanded a more civic order.

Nevertheless, the politicization of religious and sectarian identity remains a divisive and conflict-generating force in the Middle East.

Recent steps toward interfaith dialogue and building common positions and institutions underscore the ability of religious entities to work for conflict de-escalation and peace. And the resurgence of secular forces in some areas of the region might also help in calming religious, especially sectarian, conflict.

Indeed, the confluence of the three religious holidays is a bittersweet occasion. It hints at the opportunity for a more peaceful and harmonious future in the birthplace of the three religions, but also underscores the arduous work that still needs to be done to reverse the deep religious divides that exist today.

Now that diplomatic ties are restored, Saudi Arabia and Iran must work together to end violence and conflict in Yemen, Lebanon, Syria, and Iraq, and support peace- and nation-building efforts.

The Abraham Accords between Israel and some of its Arab neighbors have allowed bilateral relations to flourish, bringing great dividends in trade, investment, development, tourism, technology, and other sectors. But these trends have coincided with a worsening of conditions at home.

Less than three years after Prime Minister Benjamin Netanyahu achieved the Abraham Accords, Israel has the most right-wing and extremist government in its history, making life under occupation for Palestinians even more intolerable. Jews and Arabs across the region will not find lasting normalization until progress and a just settlement is found for Jerusalem and the Palestinian people.

 

China’s Middle East Strategy

The Middle East’s emergence as a key front in the new Cold War between the United States and China has become even prominent. Bloomberg believes that Beijing is making efforts to widen the breach between Washington and Saudi Arabia.

China has put its stamp on the region in a way that could hardly have been guessed six months ago, notably by brokering a rapprochement between longtime regional rivals Saudi Arabia and Iran. Remarkably, China Foreign Minister Qin Gang this week launched an effort at encouraging a restart of Israel-Palestine talks.

On the finance front, the Beijing-based Asian Infrastructure Investment Bank (AIIB) opened its first overseas office this week—in Abu Dhabi, United Arab Emirates. The hub is to serve as a strategic destination supporting the agenda of the AIIB—a multilateral development bank conceived almost a decade ago as China’s answer to institutions set up by Western nations.

This followed the shock in Washington when Saudi Arabia and its fellow OPEC P members not only rejected a US request for production increases, but cut output earlier this month.

It’s become inescapable that the Middle East—and specifically a Saudi Arabia led by Crown Prince Mohammed bin Salman—is rapidly departing Washington’s orbit in favor of Beijing.

Still, the Middle East’s exchange-rate pegs to the dollar remain a powerful link to America, as do its strong, enduring military ties. So for the US government, all is not lost—yet.

The US dollar remains by far the most powerful force in the global financial system, even if its share of central bank reserves has been waning. And that confers on Washington inimitable power, the threat to impede access to the currency.

That’s the reason the Gulf Cooperation Council members’ use of the dollar as the key currency of cross-border exchange—and not Beijing-sponsored diplomacy—is the ultimate gauge of the council’s geo-economic alignment. A sudden change would be destabilizing for the countries themselves, so any shift would have to be gradual.

But signs of movement are there. Just last month, the UAE made the first settlement of natural gas exports to China denominated in Chinese yuan. That’s an especially interesting precedent after China’s landmark US$60 billion deal in November 2023 for liquefied natural gas from the UAE’s fellow GCC member, Qatar.

That Qatar deal, which saw European buyers pipped for crucial long-term energy supplies, is designed to last until the 2050s. 

“Chinese state-owned energy companies historically did not have the expertise to compete on an equal footing with Western energy companies,” said Justin Dargin, a Carnegie Endowment for International Peace Middle East specialist. “This contract highlights how the situation is rapidly evolving.”

Indeed, one thing to watch for is how the currency aspect of the deal unfolds. Shifting approaches toward currencies are also apparent in Saudi Arabia, which was the largest supplier of crude oil to China until Russia displaced it earlier this year.

Riyadh had telegraphed to Beijing in January 2023 that it’s open to discussions about trade in currencies other than the dollar—which is currently used to settle more than 80% of Saudi Arabia’s US$326 billion in annual oil exports, according to Eurizon SLJ Capital calculations.

In addition to becoming the Middle East’s key customer, China is also being approached for more investments of its own. This week, the UAE’s minister of industry and advanced technology, Sultan Ahmed Al Jaber, was in Beijing seeking to bolster clean-energy cooperation.

That trip came after China and Saudi Arabia signed a number of agreements on renewable and green-hydrogen cooperation during Chinese President Xi Jinping’s visit in December 2023. And it comes ahead of the UAE hosting COP28, the United Nations climate summit (which Al Jaber, despite presiding over a massive fossil-fuel exporter, is overseeing).

Analysts at Trivium China, a policy research consultancy in Beijing, lent support to Xi’s move into the Middle East. Those green deals enable Chinese clean-tech firms to expand into lucrative foreign markets and strengthen economic and diplomatic ties with major Gulf swing states, they wrote.

While Beijing’s effort at diplomacy should be viewed as less important than currency considerations, there’s a third arena where Washington may wish to remain most vigilant, if it wishes to forestall displacement from the Middle East stage.

What hasn’t yet been seen from China yet is any big headline on a military connection to the Persian Gulf—whose sea lanes have long been overseen by the US. 

 

Thursday 20 April 2023

As the United States focuses on its showdown with Russia in Ukraine and its escalating competition with China, the Middle East has been left to run its affairs the way it always has: with marriages of convenience between rival powers. These are not Catholic-style ‘holy matrimonies’, comprehensive and permanent, but coolly pragmatic deals to survive through short-term relationships that fit changing strategic conditions. If only Israel understood that.

Of course, one relatively constant factor—religion—does play an important role in determining whether countries in the region are rivals or allies. But the Sunni–Shia divide has been accorded excessive weight in assessments of the Middle East’s diplomatic shifts. Geopolitical interests and regime survival always prevail over religious identities. This helps to explain why conservative Arab regimes have shown such a remarkable ability to withstand both internal upheaval—exemplified by the resounding defeat of pro-democracy forces during the Arab Spring—and external pressures.

The Gulf countries exemplify this hard-headed approach. Business-oriented and living in the shadow of predator states like Iraq and Iran, they are much more concerned with commerce and discreet security understandings than with ideology. A particularly striking display of such diplomatic pragmatism came last month, when Saudi Arabia, the leader of the Sunni world and Shia Iran re-established relations.

Beyond the headlines trumpeting China’s role in mediating the rapprochement, the logic driving the shift is clear. For Iran—desperate to extricate itself from the economic and social crises that have fuelled popular uprisings in recent months—Saudi Arabia is a much-needed lifeline. For the Saudis, the failure of America’s ‘maximum pressure’ campaign against Iran—thanks, not least, to its alliance with China and Russia—and Iran’s imminent emergence as a nuclear state make détente a necessity.

Saudi Arabia was most likely also motivated by the prospect of ending the war in Yemen, where it has suffered humiliating losses at the hands of the Houthis, Iran’s proxies. Peace would enable the kingdom to focus its attention on diversifying its economy away from oil and petrochemicals. As a trade-dependent economy, Saudi Arabia can thrive only in a context of peace and security.

Saudi Arabia’s opening with Iran is part of a broader regional accommodation. The United Arab Emirates re-established diplomatic relations with Iran last year, with Bahrain expected to follow suit soon. Turkey has reached out to both Syria and Israel, and the Arab states seem to be allowing Syria—with its distinctly secular and nationalist Ba’ath regime—back into the fold. Last month, Syrian President Bashar al-Assad, long shunned as a pariah, visited the UAE, and a Saudi reconciliation with the ‘butcher of Damascus’ is now in the offing.

Here, too, pragmatism has been the guiding principle. Different conditions call for different policies, and at a time when the US—Assad’s main international nemesis—has become less assertive in the region, Syria has come to seem like a legitimate partner.

But no one should expect that the Arab League will welcome Syria back only if it pledges to reduce Iran’s military deployment on its territory. A key feature of Middle Eastern marriages of convenience is that they don’t entail policy changes that reflect the parties’ core interests. Iran won’t downgrade its support for Hezbollah in Lebanon, whether it has embassies in Saudi Arabia or not.

Likewise, the Saudi–Iranian rapprochement won’t change the fact that the US is the ultimate guarantor of Saudi Arabia’s security. Nor does it rule out a Saudi–Israeli peace agreement. The House of Saud is always keen to diversify its strategic options.

Before a Saudi deal with Israel can happen, however, Israel will have to put its domestic political house in order, avoid escalation in the occupied territories, freeze settlement expansion and restore its relationship with the US. More fundamentally, Israelis must comprehend what the Arabs, Turks and Iranians already understand: pragmatic deal-making will do it a lot more good than an impossible quest for total victory.

The 2020 Abraham Accords, which normalized diplomatic relations between Israel and the UAE, Bahrain, Morocco and Sudan, were more a product of American pressure than diplomatic savoir faire on Israel’s part. And, in the eyes of its newfound Arab partners, Israel’s standing is already deteriorating, owing not only to its domestic crisis, but also to its refusal to rethink its Iran strategy.

While other Middle Eastern countries adapt to current strategic conditions, Israel remains committed to its longstanding ‘shadow war’ against Iran, with its covert attacks, including drone strikes and cyberattacks, as well as airstrikes against Iranian targets in Syria. Despite the region’s recent surfeit of marriages, Israeli leaders’ lack of vision and courage implies that they are unlikely to step up to the altar any time soon.

Curtesy: The Strategist

Monday 13 March 2023

Where was the US when Iran and Saudi Arabia restored ties?

The news over the weekend that Iran and Saudi Arabia agreed to reestablish relations took many policymakers by surprise and is seen by some as potentially casting a shadow over the possibility of Israel and Saudi Arabia progressing in their relations.

It came just days after the Wall Street Journal reported that peace between Saudi Arabia and Israel is contingent on assistance from Washington in developing the Saudi civilian nuclear program and the provision of security guarantees.

A senior official traveling with Prime Minister Benjamin Netanyahu’s entourage to Italy naturally put the blame on his predecessors, as well as on the Biden administration.

“There was a feeling of American and Israeli weakness, so Saudi Arabia turned to other channels,” said the senior Israeli official, who briefed reporters in Italy.

Other observers said the rapprochement between the long-strained countries was in part due to Israel’s increasingly right-wing turn and political chaos unfolding due to the judicial reforms.

The move certainly must have been a surprise for Netanyahu, who has often portrayed Israel’s strength as a ticket to more relations in the region.

While all the critics of the Iran-Saudi deal may be correct, it would be wise to urge caution in how Israel moves forward. It would be good for the government to welcome the deal cautiously but to also draw the necessary conclusions.

First and foremost, the fact that China mediated a deal between two Middle Eastern powers says something about the US.

China is a rival to America and the countries have been vying for influence over the region for decades.

China’s ability to enter into the Iranian-Saudi standoff is a result of the vacuum created by the lack of US engagement in the region.

It is no secret that the Biden administration – and the Obama administration before it – viewed their role as moving away from the Middle East.

Obama did this by setting redlines in Syria that were never enforced, allowing Russia to enter the country. The Biden administration has done the same by signaling to the Saudis and Emiratis that they are on their own when it comes to fighting the Houthis in Yemen.

China has outshone the US in the Middle East and that will have repercussions on Israel, whose alliance with America directly affects its own standing in the region.

It has been long argued, when the US is strong and perceived as engaged in the region, this empowers Israel and vice versa.

On the other hand, Israel will need to wait and see if the normalization of ties between Iran and Saudi Arabia means that Riyadh will have more influence and connections when it comes to reining in Iran.

When Iran is more aggressive, whether in weapons trafficking to Lebanon or Yemen, or destabilizing Iraq and Syria, then Israel and Saudi Arabia are both threatened. Saudi Arabia cares deeply about Yemen and Lebanon, and also Iraq and Syria; and this means that Iran’s actions will be in the spotlight after the agreement.

We should welcome diplomacy as a pathway toward peace and stability in the region. At the same time, we should make it clear that the redlines relating to nuclear weapons production remain the same as in the past.

Riyadh does not want Iran to have a nuclear weapons program. It is likely true that China also does not want an Iranian bomb, even if Beijing has chosen to remain silent on this issue, or appear to support Iran against US sanctions in the past.

Israel’s other interest is to maintain its track of emerging and potential ties with Saudi Arabia. As we have seen with reconciliation with Turkey – which has warm relations with Tehran – relationships can evolve on separate tracks.

Courtesy: The Jerusalem Post

 

Sunday 12 March 2023

Iran: One agreement seven achievements

The agreement between the Islamic Republic of Iran and Saudi Arabia to resume bilateral relations after seven years is tangible and analyzable from various aspects. Except for the Israeli regime and to some extent the United States, the reactions have been positive, and regional and international actors have welcomed this agreement.

This agreement is considered a victory for the Islamic Republic from various perspectives. Of course, one should be cautious about the depth and scope of this victory and wait to see how the details of the agreement will play out in practice, but so far, some of its achievements for Tehran can be listed. 

The first achievement for Iran shows Tehran is willing to engage in dialogue. And tensions, no matter how extensive and complicated they may be, can be managed if both sides show flexibility and rationality. This demonstrates that contrary to Western propaganda and claims, the deadlock between America and Europe with Iran has not been due to Tehran's obstinacy, but rather these Western countries lack interest or readiness to resolve issues and differences due to various reasons.

The second achievement goes back to America's efforts to isolate Iran. The agreement with Saudi Arabia, which was achieved through the mediation of various countries led by China, is the latest evidence of the failure of this effort. Iran's dynamic diplomacy from East Asia to Latin America indicates that most countries prefer their national interests over US dictates when interacting with Iran.

The third point relates to the strategic alliance of Islamic countries. Although, one should not be delusional about the agreement between Iran and Saudi Arabia, it cannot be denied that these two countries are important and influential in the Islamic world. The closer Tehran and Riyadh get to each other, the less successful will be those who seek to create divisions among Muslims. one must not forget that uniting sects and Islamic countries has always been a permanent strategy for Iran.

The fourth achievement concerns the situation of the Zionist regime and its relation to the aforementioned agreement. Israelis, especially in the past decade, have intensified their efforts to demonize Iran and form alliances against Tehran in the region. The "Abraham Accords" is at the peak of these efforts. They seek to change friends and foes in Muslim countries. The agreement between Iran and Saudi Arabia is an undeniable blow to this Zionist effort.

The fifth achievement is related to Iran-US relations. America is trying to deceive Iranian society into believing that there is no way out other than a bigger JCPOA, i.e. surrendering to the White House’s extortion or that Iran has no choice but to kiss the wolf's paw to solve its problems. The agreement with Saudi Arabia, which was struck in Beijing outside US equations, shows that it is possible to reach an agreement without the involvement of a self-proclaimed master. This was in contrast to the previous government's mistaken belief that if it reach an agreement with the US, relations with others, including regional countries, would also improve. However, in practice, the opposite happened. 

The Iran-Saudi Arabia agreement signed in China can be considered as Beijing's first political-security entry into the complex relations in West Asia. This successful entry is a sign of transition and departure from the current global order. In the new global order, the US, unlike the past, will not have hegemony and will lose its leverage. It can no longer bully others through petrodollars. The marginalization of the US role in the region and its exclusion from negotiations and equations is a significant sixth achievement.

And finally, the seventh achievement, those who were dreaming of an easy regime change through media hype in autumn and enjoying the open and hidden support of the Saudi kingdom. Riyadh's sudden agreement with Tehran came down like an avalanche on this complacent and treacherous group and once again showed that mercenaries also have an expiration date for their masters.

 

Saturday 11 March 2023

Israeli Grudge: Saudi-Iran deal destroys defense wall against Iran

A credible military threat against Iran coupled with a tough Western diplomatic stance is the best way to weaken the impact of the resumption of diplomatic relations between Tehran and Riyadh, a senior Israeli official told reporters over the weekend.

The official spoke in response to the Iranian-Saudi Arabian deal reached to reestablish relations after years of hostility that had threatened stability and security in the Gulf and helped fuel conflicts in the Middle East from Yemen to Syria.

Israeli politicians immediately expressed concern as the move appeared to throw a monkey wrench in one of Netanyahu’s new government’s chief policy initiatives – to normalize ties with Saudi Arabia.

Israel has presumed that the necessity of creating a Gulf alliance between Israel and its Arab partners against Iran would help provide an incentive for the establishment of diplomatic ties between Saudi Arabia and the Jewish state.

Former Prime Ministers Yair Lapid and Naftali Bennett immediately warned of its implications for Israel’s strategy against Iran as they used the moment to attack Prime Minister Benjamin Netanyahu, who was in Italy when news of the deal broke.

The rapprochement signals the collapse of the regional defense wall that we started building against Iran, Lapid said, adding that it reflects the complete and dangerous failure of the Israeli government’s foreign policy.

 “This is what happens when one deals with legal insanity all day instead of doing one’s job against Iran and strengthening relations with the United States,” Lapid said.

The senior Israeli official, however, blamed the governments of Lapid and Bennett for the Iranian-Saudi rapprochement, noting that talks toward the agreement had begun already last year when they were in power.

Negotiations for this deal started about a year ago, with a round of at least five meetings, including the arrival of senior Saudi officials in Iran” and Iranian visits to Saudi Arabia in return, the official said.

It’s possible that at the time the Saudis felt that the Israeli stand on Iran was not strong enough, the official speculated.

The Saudis felt that the West’s position towards Iran was weak, particularly in the aftermath of Tehran’s armed drone attack against Saudi oil fields coupled with talks to revive the 2015 Joint Comprehensive Plan of Action, the Israeli official explained.

Western countries have toughened their positions against Iran, but it’s still not strong enough, the official said.

An Israeli official told Iran International that Tehran’s agreement with Riyadh was not a surprise and that Israel did not believe the deal impacted its pursuit of normalizing ties with Riyadh.

Bennett, however, called the news of the renewed Iran-Saudi alliance a serious and dangerous development for Israel and a political victory for Iran.

“This delivers a fatal blow to efforts to build a regional coalition against Iran,” said Bennett.

He charged that it was a mark of the resounding failure of the Netanyahu government and stems from a combination of political neglect with the country’s general weakness and internal conflict.

“Countries in the world and the region are watching Israel in turmoil over the dysfunctional government that is engaged in systematic self-destruction,” Bennett said, adding in this case one of those countries chose a side.

Every day of this government’s “existence endangers the State of Israel,” Bennett stated.

“We need a broad national emergency government, which will work to repair the damage,” Bennett added.

Former defense minister Benny Gantz said Netanyahu had abandoned the security of Israel and its citizens. “The enormous security challenges facing the country are increasing, and the prime minister and his cabinet are busy with a coup d’état.”

Knesset Foreign Affairs and Defense Committee Chairman Yuli Edelstein said the alliance was “bad for Israel and the entire free world.”

Iranian expert Danny (Dennis) Citrinowicz from the Institute of National Security Studies at Tel Aviv University tweeted that the new alliance was a message to Israel that its dream of a regional alliance was not feasible and never had been.

It underscored the point that most of the countries in the region view dialogue as the best way to deal with Iran, leaving Israel as the sole country that is focused on a military option.

Analyst and former MK Ksenia Svetlova of Mitvim – The Israeli Regional Institute for Regional Foreign Policies noted on Twitter that “Saudi Arabia is normalizing relations. No, not with Israel but rather with Iran”, while it has rebuked Israel publicly for its treatment of the Palestinians.

“Only two months ago, Netanyahu promised to bring peace with Saudi Arabia. We seem to be moving in the opposite direction,” she wrote.

The Wall Street Journal in an editorial published Friday blamed the Biden administration for the Iranian-Saudi deal and the fact that Saudi Arabia has yet to join the Abraham Accords, which is the vehicle by which Israel has already normalized ties with four Arab countries.

Friday 10 March 2023

China brokers agreement between Iran and Saudi Arabia

After four days of talks in Beijing, both Tehran and Riyadh agreed to reestablish relations and open up embassies in their respective countries following seven years of hostilities.

The three countries — Iran, Saudi Arabia and China — issued a joint statement on Friday that the two Middle Eastern nations had agreed to resume diplomatic relations between them and re-open their embassies and missions within a period not exceeding two months.

“The three countries expressed their keenness to exert all efforts towards enhancing regional and international peace and security,” they added, according to a copy of the statement tweeted out by the Saudi Ministry of Foreign Affairs.

Saudi Arabia and Iran also expressed their appreciation and gratitude to China for hosting the successful talks, as well as to Iraq and Oman for hosting previous efforts.

Riyadh severed diplomatic ties with Tehran in 2016, after protesters stormed the Saudi Embassy in Iran in response to Saudi Arabia’s execution of a prominent Shiite cleric.

The two Middle Eastern powers have frequently been at odds with one another, backing opposite sides in the region’s conflicts, including the long drawn-out Yemeni and Syrian civil wars.

The announcement was a major diplomatic and political win for China, whose top diplomat, Wang Yi, hailed it as a victory and said Beijing, would continue to address global issues.

Jonathan Fulton, a nonresident senior fellow for Middle East Programs at the Atlantic Council, said the deal may lead to something positive or it may fizzle.

"It’s too early to proclaim it anything other than a good first step," Fulton wrote in an analysis. "It is, however, significant as China’s first major foray into regional diplomacy. Beijing has been signaling since at least last January that it is willing to promote a non-US centered vision of the Middle East, and this is a sign of things to come."

The US role in the Middle East remains under question as some nations in the region see Washington slowly pulling out after the 2021 withdrawal from Afghanistan and downsizing in Syria.

Also, tensions with Iran have soared and relations with Saudi Arabia are frosty after the killing of US-based journalist Jamal Khashoggi in 2018.

The White House dismissed those concerns as National Security Council spokesperson John Kirby told reporters the US is not stepping back from its role in the region.

Meanwhile, US President Biden welcomed the easing of tensions in the Middle East.

Alex Vatanka, the director of the Iran Program at the Middle East Institute, pumped the brakes on China's victory lap, telling The Hill the agreement might not be a major loss for Washington in the long term.

“It symbolically makes the United States look like it’s not able to be a key player,” he said. “But it’s not going to be a Chinese-dominated Middle East.” 

 

Wednesday 19 October 2022

Rising diesel exports to Europe

Oil traders are ramping up diesel exports from Asia and the Middle East to Europe in October to profit from a wide price gap between the regions as weeks-long strikes at French refineries have tightened stocks, although a steep backwardation may cap volumes, according to trade sources and shipping data.

The price spread between front-month Singapore 10 ppm sulphur gasoil swaps and the ICE low sulphur gasoil futures contract, also known as exchange of futures for swaps (EFS) , was close to minus US$150 a ton on Wednesday, versus minus US$29 a year ago, data on Refinitiv Eikon showed, making it attractive for traders to send oil to Europe.

"East of Suez is sending everything they can ship... it's just a question of how much China exports in November," a Europe-based trader said.

For October, around 289,000 tons of gasoil will be loaded from South Korea and China to northwest Europe, up from 137,500 tons in September, ship tracking data from Refinitiv showed.

Exports from India and the Middle East for October to northwest Europe were at around 480,000 tons and 834,000 tons respectively, as compared to 361,000 tons and 511,310 tons a month ago, the data showed.

The trader estimated that Europe may import about 3 million tons (750,000-850,000 barrels per day) from east of Suez in November, of which the Middle East could account for two-third of the volume. Traders expect the bulk of supplies to Europe to come from India and the Middle East, on shorter shipping times.

Asia's top fuel exporters in South Korea and Taiwan have issued a flurry of spot tenders this month, while China will also step up diesel exports after Beijing increased allocation.

However, outages at TotalEnergies' refineries in France caused by worker strikes since September have led prompt diesel prices to surge versus those in future months, a market structure known as backwardation, posing risks to the value of oil cargoes that travel over long distance such as from Asia to Europe.

Steep backwardation, which is already deterring traders from storing diesel globally, may prevent the much-needed heating fuel from reaching Europe this winter as the region is scaling back on imports from top supplier Russia ahead of a European Union embargo in February.

"Some end consumers were stockpiling Russian diesel but now with French strikes, the market has tightened up and we have brutal backwardation," a Europe-based trader said.

"So there is a big commercial incentive to draw stocks, which will make it worse to buy diesel."

Northwest European diesel barge profit margins rose to over US$83 a barrel on Tuesday, a record high, amid supply tightness.

Already soaring diesel prices in the United States have led traders to divert several cargoes heading from the Middle East to Europe to the New York harbour area, further constraining supplies in Europe.

"European gasoil cracks could come down even further up to US$15 a barrel once the strikes end, making it risky for Asian barrels to head over here even on a prompt loading basis given the strong backwardation, although the arbitrage is technically open on paper," said Mark Williams, a research director at Wood Mackenzie.

 

Saturday 30 July 2022

Iran aspires to become a gas hub with Russian support

Iran is currently under sanctions and involved in nuclear deal discussions with the United States and the West. It is also positioning itself to work with China and Russia.

The investment by Gazprom in Iran’s National Iranian Oil Company was announced during a recent visit by Russian President Vladimir Putin to Iran. This creates hope that Russian investment could help Iran become a regional gas hub.

Analyst and energy expert Habibollah Zafarian was quoted in an article at Iran’s Fars News arguing that the country could become a gas hub based on gas trade with neighboring countries. “Iran's gas reserves and privileged geographical location allow the country to play an influential role in the gas trade of the region.” 

Zafarian said “Iran's strategy should be defined in such a way that it buys the surplus gas of the countries of the region as much as possible and exports gas to the requesting countries at a higher price.”

Those like Zafarian, quoted in Iran pro-government media, are part of a push for the Islamic Republic to get out from under the West’s shadow and increase energy independence. 

Iran is well positioned to trade with Qatar, Azerbaijan and Turkmenistan, which have a surplus of gas, the article said, adding that gas is currently being exported by various countries to Armenia, Turkey, Iraq, Kuwait and the Persian Gulf countries – especially the UAE – and Oman, Pakistan and Afghanistan. 

“Everyone wants to import gas,” Zafarian said. “As a result, there is a great opportunity for Iran to become a regional gas hub with gas trade between exporting and importing countries.” 

Iran wants to take advantage of the war in Ukraine and the global economic crisis to work closely with Qatar and also improve its gas fields and its liquefied natural gas (LNG) infrastructure

“Also, in the recent developments of the gas market, Russia has minimized gas exports to Europe, and America is trying to increase its LNG exports in order to replace a part of Russian gas in the European market,” an expert told Fars News.

Iran can now purchase Russian gas and then export it. There could even be an export pipeline. Gas could be exported to Turkey, Armenia, Georgia and Syria.

"In return, we can also help Russia and buy Qatar gas, which is one of the most serious options to replace Russian gas in the European market, and sell it to our destination markets."  

Clearly Iran is plotting to take advantage of the global crises, openly saying what it wants to do. The regime has been trying to develop north-south rail and transport lines for years so that it can hook up Turkey with southern Iran and also develop links to Central Asia and Pakistan or even India.