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Shaping Eurasia’s future: Unintended consequences of abrogating Iran’s nuclear deal

Dr. James M. Dorsey

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US President Donald J. Trump’s targeting of a two-year-old agreement curtailing Iran’s ability to produce nuclear weapons could not only spark a nuclear arms race in the Middle East, but also tilt European-Chinese competition for domination of Eurasia’s future energy infrastructure in China’s favour.

As Mr. Trump keeps the world in suspense by declining to disclose how he intends to correct what he calls an embarrassment, Iranian leaders are betting against the odds that European signatories of the nuclear agreement will persuade him to stop short of pulling out of the nuclear deal and avoid steps that would effectively undermine the accord.

In doing so, Iranian President Hassan Rouhani is relying on common interests with Europe: a desire to keep the deal in place, prevent Iranian hardliners from getting the upper hand in his country’s power struggles, avoid a nuclear arms race, and ensure a European role in shaping the future architecture of Eurasian energy.

However, if Mr. Trump’s record is anything to go by, he is unlikely to heed European calls for keeping the nuclear deal in place, much like he ignored pressure from Europe and others not to pull out of the Paris climate accord.

A more likely scenario is that Mr. Trump will refuse to certify Iranian compliance with the deal by October 15, a quarterly requirement mandated by Congress. That would open the door to Congress re-imposing secondary sanctions lifted as part of the nuclear deal.

Renewed secondary sanctions would put Europe in an impossible position. They would not only put European companies and banks at risk of running afoul of US law if they continued to do business with Iran, but also unleash consequences that could significantly increase tension in the Middle East and ripple across Eurasia.

De facto European compliance would significantly weaken the agreement’s value to Iran, boost pro-Chinese Iranian hardliners opposed to the deal and eager to free Iran from restrictions on its nuclear program, risk a nuclear arms race in an environment in which the US is losing out in the Middle East’s quest for nuclear energy that contains tacit building blocks for programs to develop nuclear weapons, and potentially tilt Iran towards China in determining the flow of its natural gas – a key factor in the quest to shape the future architecture of Eurasian energy.

“If the United States leaves the treaty and Europe follows, then this deal will certainly collapse and Iran will go back to what it was before and, technically speaking, to a much higher level,” said Ali Akbar Salehi, the head of Iran’s Atomic Energy Organization.

The United States may be unprepared for the fallout of Iran pursuing an unfettered nuclear program, beyond its ability to tighten the economic screws, wield military power, and support potential efforts to destabilize Iran in a bid to achieve regime change.

A group of former senior US government and military officials recently warned that the United States in the absence of a strategy to promote the peaceful use of nuclear energy was lagging behind China and Russia in helping Middle Eastern states develop programs of their own. The officials cautioned that Mr. Trump’s failure to articulate a policy undermined “Washington’s ability to shape the highest standards of non-proliferation safeguards, safety, and security.”

Noting that “the Middle East is in the process of going nuclear,” the officials went on to say that “the big question is whether the nuclearization of the region will be dominated by Russia and China, or by the host countries in partnership with the United States and its allies under a proven program that ensures absolute safety, security and standardization throughout the nuclear fuel cycle.”

Most Middle Eastern states are signatories to the Non-Proliferation Treaty (NPT). They have disavowed the pursuit of nuclear weapons and called for a nuclear-free zone in the region in a bid to force Israel to declare its nuclear weapons and join the NPT and at the same time avert a nuclear arms race with Iran.

Saudi cooperation with nuclear power Pakistan has nonetheless long been a source of speculation about the kingdom’s ambition. Pakistan’s former ambassador to the United States, Husain Haqqani, asserted that Saudi Arabia’s close ties to the Pakistani military and intelligence during the anti-Soviet jihad in Afghanistan in the 1980s gave the kingdom arms’ length access to his country’s nuclear capabilities.

The Washington-based Institute for Science and International Security (ISIS) said earlier this year that it had uncovered evidence that future Pakistani “assistance would not involve Pakistan supplying Saudi Arabia with a full nuclear weapon or weapons; however, Pakistan may assist in other important ways, such as supplying sensitive equipment, materials, and know-how used in enrichment or reprocessing.”

The report said it was unclear whether “Pakistan and Saudi Arabia may be cooperating on sensitive nuclear technologies in Pakistan. In an extreme case, Saudi Arabia may be financing, or will finance, an unsafeguarded uranium enrichment facility in Pakistan for later use, either in a civil or military program,” the institute said.

Rather than embarking on a covert program, the institute predicted that Saudi Arabia would, for now, focus on building up its civilian nuclear infrastructure as well as a robust nuclear engineering and scientific workforce.

This would allow the kingdom to take command of all aspects of the nuclear fuel cycle at some point in the future. That process could accelerate if US actions undermine the nuclear agreement with Iran.

Saudi Arabia has in recent years significantly expanded graduate programs at its five nuclear research centres as part of a $100 billion program to build 16 nuclear reactors by 2030.

Saudi King Salman earlier this year signed an agreement with China on cooperation on nuclear energy. The agreement is for a feasibility study for the construction of high-temperature gas-cooled (HTGR) nuclear power plants in the kingdom as well as cooperation in intellectual property and the development of a domestic industrial supply chain for HTGRs built in Saudi Arabia.

The agreement was one of number nuclear-related understandings concluded with China in recent years. Saudi Arabia has signed similar agreements with France, the United States, Pakistan, Russia, South Korea and Argentina.

Lurking in the background of the battle for the future of the Iranian nuclear agreement is an unrelated but no less important issue: the future of Eurasia’s energy architecture. US efforts to undermine the deal and de facto European compliance with US sanctions could push Iran to favour China rather than Europe in allocating its estimated surplus over the next five years of 24.6 billion cubic metres of natural gas. Iran boasts the world’s second largest natural gas reserves and its fourth largest oil reserves.

“Not enough to supply all major markets, Tehran will face a crucial geopolitical choice for the destination of its piped exports. Iran will be able to export piped gas to two of the following three markets: European Union (EU)/ Turkey via the Southern Gas Corridor centring on the Trans-Anatolian Natural Gas Pipeline (TANAP), India via an Iran-Oman-India pipeline, or China via either Turkmenistan or Pakistan. The degree to which the system of energy relationships in Eurasia will be more oriented toward the European Union or China will depend on the extent to which each secures Caspian piped gas exports through pipeline infrastructure directed to its respective markets,” said energy scholar Micha’el Tanchum.

The lifting of international sanctions as part of the nuclear agreement gave Iran a vested interest in deploying its energy wealth in ways that would allow it to balance its relations with China and Europe. A Europe incapable of developing economic ties with the Islamic republic, including the expansion of pipeline infrastructure, could undermine Iran’s calculus to China’s benefit.

Dr. James M. Dorsey is a senior fellow at the S. Rajaratnam School of International Studies, co-director of the University of Würzburg’s Institute for Fan Culture, and the author of The Turbulent World of Middle East Soccer blog, a book with the same title, Comparative Political Transitions between Southeast Asia and the Middle East and North Africa, co-authored with Dr. Teresita Cruz-Del Rosario and three forthcoming books, Shifting Sands, Essays on Sports and Politics in the Middle East and North Africaas well as Creating Frankenstein: The Saudi Export of Ultra-conservatism and China and the Middle East: Venturing into the Maelstrom.

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Middle East

Gulf countries pivot towards Israel: Can Arab recognition be foresighted?

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The visit of Israeli Prime Minister Benjamin Netanyahu to Oman surprised the entire world and delivered a message of smoothening of relations between Oman and Israel. This event has marked the first ever visit by any Israeli leader to Oman in 22 years. The Israeli Prime Minister and the Sultan discussed ‘Ways to enhance the peace process in the Middle East’ as well as other issues of ‘joint interest’. For Netanyahu, a milestone was achieved in the form of Oman recognition of Israel as normalizing relations with fellow regional states is one of the important clause of Netanyahu’s policy. Moreover, an Israeli Minister Yisrael Katz attended an International Transport Conference in Oman and proposed a railway link to connect Persian Gulf with the Mediterranean Sea. However, the railway link isn’t confirmed yet, it was just proposed in the conference. In parallel, Israeli Culture and Sports Minister Miri Regev attended Abu Dhabi Grand Slam 2018 in United Arab Emirates, where for the first time in history the national anthem of Israel was played. Similar approach was adopted by Israel towards Qatar. These changing dynamics can foresight the future of Gulf politics, that is, gulf countries can align with Israel to counter the influence of Iran in the region and for this purpose gulf countries may recognize Israel.

An important thing to notice is that the countries smoothening their relations with Israel are members of GCC, where Saudi Arabia is at the top of hierarchy- the major decision maker in Middle East- which means without Saudi Arabia’s willingness and its interests, GCC countries cannot take such a big decision. Now here a question arises, why would Saudi Arabia allow this approach?

The main reasons are; firstly, the crown prince Mohammad Bin Salman have cordial relations with Israel’s top leadership and he(MBS) is seen as a potential ally by Israel in Middle East, the major reason why Israel demanded US to side by Saudi Arabia in Khashoggi murder case. Second, it would be very difficult for Saudi Arabia- the self-proclaimed leader of the Sunni Muslim world- to recognize Israel while other states in the region still oppose the existence of a Jewish state in Middle East. Recognition of Israel by other GCC countries would make it far easier for Saudi Arabia to recognize Israel or at least to melt ice. Lastly, the Khashoggi murder case have already deteriorated the international image of Saudi Arabia, at this point of time the country cannot afford to bear another blame as Muslim countries think it would be injustice to Palestinians if Israel is recognized.

So will Saudi Arabia follow the suit and recognize Israel? The question still remains ambiguous, but since Saudi Arabia haven’t opposed these action of GCC countries and a continuous diplomatic support from Israel to Saudi Arabia have been visible although both countries do not have diplomatic relations, it can be predicted that something is going on, between both of these states which they have chosen  not to disclose now. Coming to Qatar, since Qatar is also involved in this process of developing diplomatic relations with Israel, it can prove to be a catalyst in the troubled Saudi/Qatar relations as helping Saudi Arabia to develop relations with Israel while other Arab states are doing the same can lift up the entire blame from Saudi Arabia. Maybe the sanctions over Qatar will be lifted or just become less intensified. Qatar sees it as an opportunity to regain the similar status in the region as well as to reconstruct relations with the other Arab countries.

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Turkish Newspaper Implicates UAE’s Crown Prince in Covering Up Murder of Khashoggi

Eric Zuesse

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Saudi Crown Prince Mohammed bin Salman al-Saud, and UAE Crown Prince Mohammed bin Zayed al-Nahyan, are close friends and allies, who jointly lead the war against Houthi-led Yemen. On Sunday afternoon, November 18th, a leading Turkish newspaper, Yeni Şafak, reported the two leaders to have also collaborated in hiding the murder on October 2nd in Istanbul of Washington Post columnist Jamal Khashoggi.

Yeni Şafak headlined “Dahlan ‘cover-up team’ from Lebanon helps hide traces of Khashoggi murder” and reported that on October 2nd, “A second team that arrived in Istanbul to help cover-up the murder of Saudi journalist Jamal Khashoggi was dispatched by Muhammed Dahlan, UAE Crown Prince Muhammed bin Zayed’s chief hitman in the region, … according to an informed source who spoke to Yeni Şafak daily on the condition of anonymity.”

On November 16th, the Washington Post had headlined “CIA concludes Saudi crown prince ordered Jamal Khashoggi’s assassination”.

Bin Salman and bin Zayed are U.S. President Donald Trump’s closest foreign allies other than, possibly, Israel’s Prime Minister Benjamin Netanyahu. All four men are determined that there be regime-change in Shiite Iran. This anti-Shia position bonds them also against the Houthis, who are Shiites, in Yemen, where bin Salman and bin Zayed lead the war, and the United States provides the training, logistics, and weapons. Both bin Salman and bin Zayed are fundamentalist Sunnis who are against Shia Muslims. Israel and the United States are allied with these two princes. Saudi Arabia’s royal family have been committed against Shia Muslims ever since 1744 when the Saud family made a pact with the fundamentalist Sunni preacher Mohammed ibn Wahhab, who hated Shia Muslims. Thus, Saudi Arabia is actually Saudi-Wahhabi Arabia, with Sauds running the aristocracy, and Wahhabists running the clergy.

In 2017, in Saudi Arabia’s capital of Riyadh, Trump sold, to the Saudi Crown Prince, initially, $350 billion of U.S.-made weapons over a ten-year period (the largest weapons-sale in world history), and $110 billion in just the first year. That deal was soon increased to $404 billion. For Trump publicly to acknowledge that Salman had “ordered Jamal Khashoggi’s assassination” would jeopardize this entire deal, and, perhaps, jeopardize the consequent boom in America’s economy. It also would jeopardize the U.S. alliance’s war against Shiites in Yemen.

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Revisiting the Qatari crisis

Ahmed Genidy

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In 2017 the dispute between Qatar and a number of its neighbours Saudi Arabia, Egypt, the UAE and Oman has considered as the most serious crisis since years and could escalate in the future to destabilise an already turbulent region. The Qatari support to the extremist parties and terrorist entities in the region is the apparent reason, however, conflicting of interest between Qatar and the other states about the Iranian relations, the political Islam and the competition over the regional leadership are the main reasons. Egypt, Oman and the UAE with the leadership of Saudi Arabia withdrawing diplomats, closing borders, announcing a number of Qatari citizens as terrorist supporters and place an embargo on Qatar and most of its interests and businesses in the region.

The primary reason for the Saudi’s camp blockade is the Qatari politically and financially support for violent extremist groups often affiliated with the Muslim Brotherhood which considers as a real threat for the other GCC states in particular because of the ability of these group to create a secretive organisation with extreme religious behaviour. However, Qatar is relatively weaker in terms of politically and militarily than the Saudi’s camp, but it has continued to support its Islamist allies for many reasons: ideological sympathy; a believe that political Islam could reflect into Qatar’s influence in the region; a desire to challenge the traditional regional influence especially Saudi Arabia and its followers. In addition, Qatar has used its owned media tool the Aljazeera channel to magnify the Muslim Brotherhood influence and to criticise leaders in Cairo, Riyadh and Abu Dhabi which has been the major thorn in the relations.

The Qatari-Iranian close tie is the second source of tension which seen by other GCC states as a threat to the stability and even the existence of the Sunni majority states in the Gulf. The growing Qatari Iranian relation is evident in many occasions such as the Qatari voting against the UNSC resolution that calling on Iran to stop its nuclear enrichment project and the signing of Qatari Iranian agreement in counterterrorism cooperation which is a Qatar approach to benefit from the Iranian forces due to the modest Qatari military capability. Moreover, the Amir of Qatar called the Iranian President Hassan Rouhani and congratulated him on his re-election on April 2017. Finally, Qatar paid the amount of $700 for Kataab Hezbollah Iraq (Iranian baked militia) for the exchange of a member of the Qatari royal family who has been a hostage in Iraq, (probably falsely) was the act that irritated most of the GCC states and triggering the crisis.

The Trump’s administration policy in the region gives Riyad, Cairo and Abu Dhabi the green light to punish Qatar for its support to the Islamic movement. Trump expressed a passive acceptance to the Saudi and its allies in an attempt to contain the greedy Iranian strategy in the region and to confront the rising of the radical Islam. However, it seems that Saudi and its allies are unqualified for such a containment scheme to Iran the giant regional power. Trump also took credit on Twitter and describe the Qatari Amir as “high-level founder of terrorism.” Thus, the blockade can see as an attempt from the Saudi’s camp to push Qatar back to the line, an opportunity to satisfy their allies in Washington and to shift the public opinion to the Qatari issues instead of many internal issues and shortcoming.

The crisis involved a number of unpredictable stakeholders with huge interests in the region which could turn the situation into uncontrollable in many ways. The blockade camp clearly desires that Qatar recognise how serious they are, rapidly back to the line and admit unambiguously their list of demands which include shutting down Aljazeera, end the cooperating with Iran, stop supporting the Islamic parties and recognise the Saudi leadership in the GCC region. On the other hand, Qatar with its relatively small population 300,000 citizens and fund over $300 billion ensures the state will never face a serious financial issue in the future. Moreover, Qatar is the home of the U.S. air base Al-Udeid which is a critical component of the U.S. campaign in the Middle East. Therefore, Qatar knows that the U.S. has an immediate interest in emphasising the stability and the security in Qatar in particular while the U.S. does not have an alternative to Al-Udeid base to support its strategy in the Middle East. The Saudi’s camp is unlikely to abandon their demands. The crisis shows how much the GCC leaders are threatening and in a confusing situation toward support specific radical Islam movements and relation with Iran. In addition, the blockade camp can maintain the sanctions for a long time rather than take a military action due to its economic cost and the lack of suitable capabilities to conduct such a war. For instance, the Saudi campaign in Yemen now and after three years, shows a significant failure to achieve its strategic goals.

The current situations for both sides show that the crisis could easily continue for more years which is a critical concern to all the stakeholders in the region. Now Iran and Turkey are playing a significant role in supporting Qatar needs of foods and goods to minimise the inconvenient of the embargo. Also, Ankara is considering enhancing its military presence in Qatar which seen as a direct threat to Saudi Arabia the major regional compotator for the Turkish influence. That also shows a high possibility of an Iranian Turkish large-scale involvement in case of a military confrontation.

The U.S. mission should focus on balancing the support to the Gulf States and their core interests as well as supporting the stability by avoiding encouraging them from adopting a risky diplomatic offensives options that can backfire into the whole region. It seems that the U.S. should adopt nuanced diplomacy to end the crisis which is not that simple for the current U.S. administration. Since the conflicting parties of this crisis will not likely find a comprehensive solution on their own, the U.S. should make it a priority to help them do so before the costs of the dispute continue to escalate in unpredictable ways.

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