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Iran’s Competing Futures: Global Economic Participant or Regional Religious Hegemon?

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As the official deadline for the nuclear deal approaches, many are expressing their apprehension over the consequences that may emerge should a deal be reached and sanctions on the Islamic Republic are lifted.

The anxiety mostly has to do with concerns over regional and global stability that may be threatened if Shia Iran plans to export more than oil, gas, and pistachios. Like its Islamic Revolution ideology, for example.

While there is no doubt that Iran – a country that is often accused of aspiring to be a hegemonic power driven by aspirations to dominate the Middle East by spreading its religious ideology – would have a greater influence on Sunni Azerbaijan and the five majority Sunni Central Asian states, there is no evidence that suggests their influence would extend past a purely economic one. In fact, the governments of these former Soviet Republics have high-ranking members that were once affiliated with the Communist Party during the Soviet era. Members who are still deeply suspicious of theocratic rule.

For these states, who have been independent for almost 25 years, there are clear opportunities that may arise from new trade developments in the region. As talks of recreating the ancient Silk Road – the name for the ancient trade route between the Mediterranean Sea and China – continue, the possibility that Iran will no longer be off-limits is being eagerly anticipated. Because the Caspian Sea offers little trade potential at the moment due to its contested legal status, this situation may offer opportunities for Central Asia that will allow it to cut back its reliance on countries like Russia to the north and China to the east. A southern route through Iran would effectively change the dynamics of trade, giving the five central Asian countries more leverage at the bargaining table with their superpower neighbors.

A passage through Iran also offers a shorter non-Russian route for shipping Central Asian oil and gas to Europe. The European Union is also looking to decrease its dependence on Russian supplies so it is actively looking to diversify its gas suppliers. Receiving gas from the Caspian Region – known as the Southern Gas Corridor Project – via this route would be enormously advantageous for them. However, this would take a minimum of five years and maybe even closer to a decade before any of these projects would be functional.

In general, coming to a nuclear agreement is welcome among ordinary Iranians who have suffered a great deal from the international sanctions slapped on them by the United States and other nations. These sanctions have imposed restrictions on trade and international banking which have seriously hurt Iran’s economy. To the Iranian people, a deal means more jobs which would lead to a higher standard of living. While many would argue that the Iranian people have gotten a raw deal, it is important to remember that Iran’s Guardian Council regime has often tried to deliberately provoke the United States. When presented with evidence to support it was enriching uranium in the early 2000s, Iran’s regime admitted it had hidden a uranium enrichment program from the world for almost two decades. Iran continued to enrich uranium openly in defiance to the United Nations. Things got worse when Iran’s former President Mahmoud Ahmadinejad, a very controversial leader, insisted that Iran would not stop enriching uranium and that the West had no business interfering in their affairs. He publicly announced that it was Iran’s intention to destroy the nation of Israel and eventually defeat the United States – the “Great Satan.” This certainly hurt the side effort by calmer voices in Iran that tried to emphasize nuclear energy alone.

The United States – despite Iran’s insistence that it was pursuing a uranium enrichment program only to build nuclear power plants – was convinced Iran was building a nuclear weapon and saw Iran’s actions as deliberately violating the Nuclear Nonproliferation Treaty. Under its provisions, the nations with nuclear weapons at the time agreed not to give nuclear weapons – or the knowledge on how to build them – to any other nation. The United States and its allies – especially Israel and Saudi Arabia – are worried that should Iran acquire nuclear weapons, it would throw the Middle East into turmoil. They believed other countries would want to build their own nuclear weapons and a regional nuclear arms race would ensue that would be tinged with religious extremism.

To be fair, Iran has made real progress in recent years. With the election of Iran’s current president, Hassan Rouhani, the country has taken a different stance toward the nuclear issue. President Rouhani criticized the nuclear stand-off with the West and brought much attention to the state of Iran’s economy that was being smothered by the sanctions. The sanctions isolated Iran from the rest of the world and President Rouhani started negotiations with the P5+1 countries which led to an interim treaty in 2013 that stated Iran would seriously limit their uranium enrichment program in exchange for temporary relief from the sanctions.

However, as many are aware, Iran’s president is the elected head of government but largely fills a ceremonial position. The Supreme Leader, Ayatollah Sayed Ali Khamenei, is the one who calls the political shots. He has the power to veto any legislation passed by the executive branch per Iran’s unique “Islamic government” constitution. Not surprisingly, there are deep rifts in the country’s government caught in what some might consider a nasty power struggle. On one side are the reformists led by President Rouhani and on the other conservatives led by Ayatollah Khamenei. The reformists want Iran to become more democratic while the conservatives want to keep the country in line with the fundamentalist Islamic social codes introduced by Ayatollah Khomeini in 1979.

Even though Ayatollah Khamenei has been behind President Rouhani on the nuclear issue, these rifts could prevent Iran from improving its global image and from making further progress socially, economically and politically. Unfortunately, the country already has a reputation to some for thuggish behavior as both a violator of human rights and as one of the largest exporters and contributors of terrorism. Even though an argument can be made that the rights and opportunities of women have improved in recent years, the country has lost too many of their best and brightest citizens to relocate to the West and other countries that are more modern and democratic. If sanctions are lifted and it is truly their desire to get involved with projects like the Southern Gas Corridor Project, Iran will need to take some serious steps toward addressing its internal problems, worrying more about being a major participant in the global economy and less about aspirations to be a regional religious hegemon. Right now it seems like most of the country favors the former objective overwhelmingly. But the Guardian Council undoubtedly still dreams of the latter. Checking that desire, or enacting some type of reform on the Guardians, could be the most interesting immediate future for Iran when it comes to economic plans in the greater Caspian region.

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Israeli contrasts: Likud’s favoured soccer teams veers left as Bibi turns further right

Dr. James M. Dorsey

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The contrast could not be starker. As Israel plays a dangerous game of US politics by restricting or banning visits by controversial Democratic members of Congress to seemingly please President Donald J. Trump’s prejudiced electoral instincts, the owner of a notorious Jerusalem soccer club draws a line in the sand in confronting his racist fan base.

The contrast takes on added significance as prime minister Benyamin Netanyahu woes Israel’s far-right in advance of elections on September 17 given that storied club Beitar Jerusalem has long been seen as a stronghold for his Likud party.

Mr. Netanyahu’s barring of Congresswomen Rashida Tlaib and Ilhan Omar was as much a response to Mr. Trump’s tweeted suggestion that they should not be allowed to visit Israel as it was catering to his right-wing base that includes Beitar’s fans.

Beitar is the only Israeli squad to have never hired a Palestinian player. Its fans, famous for their racist slogans and bullying tactics, have made life impossible for the few Muslim players that the club contracted in its history.

Messrs. Netanyahu and Moshe Hogeg, the Beitar owner and tech entrepreneur who founded social mobile photo and video sharing website Mobli and crypto transactions platform Sirin Labs, are both treading on slippery ground.

Mr. Netanyahu, who initially raised out of respect for the US Congress no objection to the planned visit by Ms. Tlaib and Ms. Omar, has ensured that Israel for the first time in decades can no longer be sure of bi-partisan support in the Congress and beyond and is likely to become a partisan issue in the run-up to next year’s US presidential election.

His pandering to Mr. Trump sparked rare criticism from the American Israel Political Action Committee (AIPAC), Israel’s most powerful and influential lobby in the United States even though AIPAC agrees that Ms. Tlaib and Ms. Ilham support the Boycott, Diversification and Sanctions (BDS) movement that targets Israel.

“We disagree with Reps. Omar and Tlaib’s support for the anti-Israel and anti-peace BDS movement, along with Rep. Tlaib’s calls for a one-state solution. We also believe every member of Congress should be able to visit and experience our democratic ally Israel first hand,” AIPAC tweeted.

A breakdown of bi-partisan support for Israel may not be what Mr. Netanyahu wants, but it may be, in a twist of irony, what Israel needs. It would spark a debate in the United States with a potential fallout in Israel about whether Mr. Netanyahu’s annexationist policy and hard-line approach towards Palestinian aspirations serves Israel’s longer-term best interests.

Israel’s toughening stand was evident on Tuesday when police broke up an annual soccer tournament among Palestinian families in East Jerusalem on assertions that it was sponsored by the Palestinian Authority, which is barred from organizing events in the city. The tournament’s organizer denied any association with the Authority.

In a dismissive statement, Israeli public security minister Gilad Erdan’s office scoffed: “We’re talking about scofflaws who lie and blame the agency that enforces the law when they know full well that the Palestinian Authority is involved in the event that Minister Erdan ordered halted.”

The incident was emblematic of an environment that prompted columnist and scholar Peter Beinart, writing in The Forward, a more than 100-year old, left-wing Jewish weekly, to argue that “the United States has a national interest in ensuring that Israel does not make permanent its brutal occupation of the West Bank and blockade of the Gaza Strip.

By taking on La Familia, a militant Beitar Jerusalem fan group that has driven the club’s discriminatory policy, Mr. Hogeg is going not only against Mr. Netanyahu’s policies that emphasize Israeli Jewish nationalism at the expense of the rights of Palestinians with Israeli citizenship as well as those subject to occupation.

He is also challenging a global trend spearheaded by civilizational leaders like Indian prime minister Narendra Modi who, two weeks after depriving Kashmiri Muslims of their autonomy, is planning to build detention camps for millions of predominantly Muslim Indians suspected of being foreign migrants, Victor Orban who envisions a Muslim-free Hungary, and Xi Jinping who has launched in China’s troubled, north-western province of Xinjiang the most frontal assault on Islam in recent history

The degree of polarization and alienation that civilizational policies like those of Messrs Netanyahu, Modi, Xi and Orban is highlighted by the fact that Mr. Hogeg’s battle with his fans is over a name.

Ali Mohammed is Beitar Jerusalem’s latest acquisition. The only Muslim thing about him is his name. Mr. Mohammed is a Nigerian Christian.

That wasn’t good enough for the fans who demand that he change his name. During Mr. Mohammed’s first training session fans chanted “Mohamed is dead” and “Ali is dead.”

Unlike his predecessors, Mr. Hogeg seems unwilling to back down. He has threatened to sue the fans for tarnishing Beitar’s already battered reputation and demand up to US$500,000 in damages. Lawyers for Mr. Hogeg have written to fans demanding an apology.

“They are very good fans; they are very loyal. They love the club and what it represents … but they’re racist and that’s a big problem,” Mr. Hogeg said.

Convinced that the militants are a minority that imposes its will on the majority of Beitar fans, Mr. Hogeg takes the high road at a time that the likes of him threaten to become an endangered species.

“I was surprised to find that Mohamed is not Muslim, but I don’t care. Why should it matter? He’s a very good player. As long as the player that comes respects the city, respects what he represents, respects Israel, can help the team and wants to play then the door will be open. If those radical fans will fight against it, they will lose. They will simply lose,” Mr. Hogeg said.

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“Today Saudi Arabia finally lost the war on Yemen.”

Eric Zuesse

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On August 17th, an anonymous German intelligence analyst who has perhaps the world’s best track-record of publicly identifying and announcing historical turning-points, and who is therefore also a great investigative journalist regarding international relations (especially military matters, which are his specialty) headlined at his “Moon of Alabama” blog, “Long Range Attack On Saudi Oil Field Ends War On Yemen”, and he opened:

Today Saudi Arabia finally lost the war on Yemen. It has no defenses against new weapons the Houthis in Yemen acquired. These weapons threaten the Saudis economic lifelines. This today was the decisive attack:

Drones launched by Yemen’s Houthi rebels attacked a massive oil and gas field deep inside Saudi Arabia’s sprawling desert on Saturday, causing what the kingdom described as a “limited fire” in the second such recent attack on its crucial energy industry.  …

The Saudi acknowledgement of the attack came hours after Yahia Sarie, a military spokesman for the Houthis, issued a video statement claiming the rebels launched 10 bomb-laden drones targeting the field in their “biggest-ever” operation. He threatened more attacks would be coming. 

New drones and missiles displayed in July 2019 by Yemen’s Houthi-allied armed forces

Today’s attack is a check-mate move against the Saudis. Shaybah is some 1,200 kilometers (750 miles) from Houthi-controlled territory. There are many more important economic targets within that range.  …

The attack conclusively demonstrates that the most important assets of the Saudis are now under threat. This economic threat comes on top of a seven percent budget deficit the IMF predicts for Saudi Arabia. Further Saudi bombing against the Houthi will now have very significant additional cost that might even endanger the viability of the Saudi state. The Houthi have clown prince Mohammad bin Salman by the balls and can squeeze those at will.

He went on to say that the drones aren’t from Iran but are copies from Iran’s, “assembled in Yemen with the help of Hizbullah experts from Lebanon.”

He has been predicting for a long time that this war couldn’t be won by Crown Prince Mohammed bin Salman al-Saud (MbS). In the present report, he says:

The war on Yemen that MbS started in March 2015 long proved to be unwinnable. Now it is definitely lost. Neither the U.S. nor the Europeans will come to the Saudis help. There are no technological means to reasonably protect against such attacks. Poor Yemen defeated rich Saudi Arabia.

The Saudi side will have to agree to political peace negotiations. The Yemeni demand for reparation payments will be eye watering. But the Saudis will have no alternative but to cough up whatever the Houthi demand.

The UAE was smart to pull out of Yemen during the last months.

If he is correct (and I have never yet found a prediction from him turn out to have been wrong), then this will be an enormous blow to the foreign markets for U.S.-made weapons, since the Sauds are the world’s largest foreign purchasers of those, and have spent profusely on them — and also on U.S. personnel to train their soldiers how to use them. So (and this is my prediction, not his), August 19th might be a good time to sell short U.S. armament-makers such as Lockheed Martin.

However: his prediction that “the Saudis will have no alternative but to cough up whatever the Houthi demand” seems to me to be the first one from him that could turn out to have been wrong. If the Sauds have perpetrated, say, $200 billion of physical damage to Yemen, but refuse to pay more than $100 billion in reparations, and the Housis then hit and take out a major Saudi oil well, isn’t it possible that the Sauds would stand firm? But if they do, then mightn’t it be wrong to say, at the present time, that: “Today Saudi Arabia finally lost the war on Yemen.”? He has gone out on limbs before, and I can’t yet think of any that broke under him. Maybe this one will be the first? I wouldn’t bet on that. But this one seems to me to be a particularly long limb. We’ll see!

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The message behind the release of Iranian oil tanker

Mohammad Ghaderi

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The Gibraltar court ordered the Iranian oil tanker Grace 1 to be released. The tanker was seized by the British Royal Marines about a month ago. 

This verdict was the ending of an elaborate game designed by John Bolton National Security Advisor of the United States and Mike Pompeo, carried out by the Britain government. 

With seizing the tanker, Bolton was trying to put psychological and political pressures on Iran and force other countries to form a consensus against Iran, but he couldn’t fulfill any of these goals. 

Iran’s firm, logical and wise answer to the seizure of Grace 1 (like making solid legal arguments) and the seriousness of our country’s armed forces in giving a proper response to Britain’s contemptuous act, made the White House lose the lead on reaching its ends. 

Washington imagined that the seizure of Grace 1 will become Trump’s winning card against Iran, but the release of the tanker (despite disagreement of the U.S.) became another failure for the White House in dealing with Iran.  

Obviously, London was also a total loser in this game. It is worth noting that U.S. was so persistent about keeping the oil tanker in custody that John Bolton traveled to London and insisted on British officials to continue the seizure of the ship. Their failure, however, clearly shows that the White House and its traditional ally, Britain, have lost a big part of their power in their relations with Iran. 

Clearly, the illegal seizure of the Iranian oil tanker by Britain proceeded by the seizure of a British tanker by Iran and the following interactions between the two countries is not the whole story and there is more to it that will be revealed in coming days. 

What we know for sure is that London has to pay for its recent anti-Iran plot in order to satisfy Washington; the smallest of these consequences was that Britain lost some of its legal credibility in international arena as it illegally captured an Iranian oil tanker. 

The order of the Gibraltarian court revealed that London had no legal right to seize the Iranian oil tanker and nobody can defend this unlawful action. Surely, Iran will take all necessary legal actions to further pursue the matter.  

In this situation, the Islamic Republic of Iran is firm on its position that it doesn’t have to follow the sanctions imposed by the European Union on other countries (including Syria). 

No entity can undermine this argument as it is based on legal terms; therefore, Iran will keep supporting Syrian nation and government to fight terrorism. This is the strategic policy of the Islamic Republic and will not be changed under the pressure or influence of any other third country. 

Finally, it should be noted that the release of Grace 1 oil tanker was not only a legal and political failure for Washington and London and their allies but it was also a strategic failure. Undoubtedly, the vast consequences of this failure will be revealed in near future. 

From our partner Tehran Times

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