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Iran: What is in store for the JCPOA?

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The Islamic Republic of Iran (IRI) continues to be in the spotlight of global politics. And even though the “Iranian problems” go beyond the Joint Comprehensive Plan of Action (JCPOA), it is the “dying” JCPOA that is the main cause of tensions in and around Iran, be it the financial and economic blow of the United States, which uses the “oil baton” to strike at the Iranian economy, the threat of war in the Persian Gulf and tanker conflicts, or Iran’s geostrategic and regional position in general.

Regrettably, we have to admit that because of Washington’s destructive moves on the global scene the JCPOA is coming under corrosion and may well turn into dust in the near future. Such a negative outcome runs counter to the interests of Russia, China, and the European Union. Therefore, they are making tremendous efforts to preserve these agreements, even if in a slightly different format after the withdrawal of the US.

Political analysts reveal two conflicting views on the future of the JCPOA. Some are sure that the days of the nuclear deal are numbered. Others believe that it can still be “saved”, but this requires the concerted efforts of the countries participating in it.

On July 28, members of the Joint Commission on the Implementation of the JCPOA gathered in Vienna at the level of political directors to focus on pressing issues the JCPOA is confronted with. Participating in the meeting were delegations from Russia, China, Great Britain, France, Germany and Iran. They discussed the negative effect of Iran’s measures to curtail its commitments under the agreement thereby aggravating the situation in the Persian Gulf.

Iran’s partners called on Tehran to refrain from further withdrawal from a number of obligations under the JCPOA. The Iranian leaders have announced that, starting from May 8, they introduce 60-day rounds to gradually curtail compliance with the requirements of the JCPOA . Early September will see a new, third phase of the Iranian struggle against US sanctions. The essence of such moves on the part of Iran is to force the European Union, and, first of all, Britain, France and Germany, to launch at full capacity the INSTEX settlement mechanism, which serves to guarantee the export of Iranian oil. Apparently, this presents a lot of difficulty and causes a lot of doubts among the founders of this financial mechanism.

Reporting on the Vienna consultations, Iranian Foreign Ministry spokesman Abbas Mousavi said that “the meeting in Vienna did not give us any guarantees about the future the JCPOA.” He pointed out that Iran is not sure of the effectiveness of European efforts within the framework of INSTEX and, therefore, about maintaining the JCPOA. Iran will decide on further steps after the forthcoming ministerial meeting of countries that act as guarantors of the JCPOA, the diplomat said.

The head of the Russian delegation in Vienna, Deputy Foreign Minister Sergey Ryabkov, remarked in this connection: “We urged the Iranians to refrain from this [from the phased exit from the JCPOA, V.S.] and explained why: the more measures are taken to reconsider commitments, even if voluntary ones, the higher the political temperature and the higher the chances that some of the participants in the JCPOA may lose temper and trigger aggravation. ”

The Russian diplomat went on to comment: “Certainly, you can follow this course, but it is getting ever more precarious. If we want Iran to refrain, and we also talked about this, the rest of the countries must redouble their efforts in order to provide Iran with an acceptable level of oil export despite all the odds and set the stage for at least some normalization of foreign economic activity.”

To what extent is this possible amid the unprecedented US pressure on Iran? Federica Mogherini, head of the EU for foreign affairs, has cautiously suggested the possibility of intensifying the work of INSTEX. “The question whether INSTEX will deal with oil is currently being discussed by the shareholders,”- she said.

But it is this very issue that determines Iran’s policy, and the choice of the directions of this policy clearly correlates with the following possible developments regarding the JCPOA.

The first way is possible if the authors of the JCPOA, the European Union, and other countries concerned can provide an “acceptable level of oil export”. In this case, Iran will return to the meticulous fulfillment of its nuclear deal commitments. However, there are great doubts that Iran’s partners will be able to satisfy its oil export needs.

American officials have warned European countries that they risk violating sanctions against Iran if they promote a barter system that could allow the export of Iranian oil. A senior White House administration official told Washington Examiner that the US Department of the Treasury had contacted the INSTEX Council to “signal dissatisfaction with the creation of a tool that helps to dodge sanctions and the dangers associated with it.”

No matter how much European politicians and diplomats would like to support the JCPOA, it seems that European business is not ready to take chances with the US sanctions.

The American oil embargo has created a situation which is unparalleled, even compared to the tough international sanctions of 2012-2016. In July, the export of Iranian oil fell to 100 – 120 (taking into account condensate and light oil) thousand barrels per day . In June, this indicator ranged between 300 and 500 thousand. In April 2018, Iran exported 2.5 million bpd , which is 25 times more than this July.

According to experts, to determine the exact amount of oil currently sold by Iran is difficult, since Tehran is using “gray” and other export options. However, the current estimates range within the above mentioned figures.

Thus, even if INSTEX begins to operate at its full “oil” capacity, even if oil is sold on a daily basis to China , Russia , and European countries, and even if the oil export is carried out with the use of all possible legal and semi-legal ways, it is unlikely that all this will compensate Iran’s losses in oil exports and, accordingly, in petrodollars.

However, even in the event of such a far from optimistic scenario, and even considering financial losses, Tehran will not profit from leaving the JCPOA, first of all, for political reasons.

The second option for Iranian policy, will most likely take shape in the context of the EU’s inability to circumvent US sanctions and thereby fulfill its obligations under the JCPOA. In this case, there could be two scenarios.

The first hypothetical option for Iranian policy amid INSTEX futility: Iran openly leaves the JCPOA. On July 29, the Iranian Foreign Ministry issued a statement in which it demanded yet again that European countries act on the conditions of the JCPOA. Otherwise, the statement said, Iran would cease to pursue its obligations under this agreement.

As part of this option, Iran terminates the implementation of the Additional Protocol to the IAEA guarantees,  puts an end to the activities of the IAEA inspectors and control by the Agency, restores its nuclear potential and activates the implementation of its nuclear program under plans which were in force before the adoption of the JCPOA. In its most radical version, Iran withdraws from the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Such a policy, in its best version for the Iranians, will lead to the complete isolation of Iran and the resumption of international sanctions, possibly under the patronage of the UN Security Council. At worst, it will lead to possible air and missile strikes by the United States and / or Israel at Iran’s nuclear facilities (let’s recall the troubled year 2012). Clearly, such a development does not suit anyone, first of all, Iran.

It should be borne in mind that the European Union (Britain, France and Germany), while opposing the United States on the JCPOA, backs Donald Trump and his team on other issues concerning Iran and its policies. These are as follows: Iran’s missile program, Tehran’s military and political activities in the Middle East, Iran’s support of Hezbollah, Hamas and other Shiite groups, which are deemed terrorist in most Western countries. Therefore, in the event of the collapse of the JCPOA, the EU will concentrate all its political, diplomatic and propaganda campaigns and, possibly, military potential, on Iran.

The second possible political option of Tehran in the conditions of INSTEX incapacity is the continuation of the policy which is currently pursued by the Iranian leadership. On the one hand, there is a well-structured and well-thoughtout phasing out of obligations under the JCPOA, which does not envisage going beyond the “red lines”. On the other hand, bringing partners as close as possible and at the same time lifting tensions in relations with opponents with a view to set the stage for negotiations

On January 29, 2019, addressing a conference on defense and security in Iran, Chief Military Advisor to the Commander-in-Chief and Supreme Leader of the Islamic Republic of Iran, Brigadier-General Yahya Rahim Safavi said that “the development of Iran’s strategic relations with global competitors of the United States, including Russia and China, is one of Iran’s major defense strategies.”

In June, China and Iran held joint naval exercises at the strategic Strait of Hormuz. In July, Iran unilaterally introduced a visa-free regime for citizens of China, as well as for residents of Hong Kong and Macau.

According to Iranian politicians and political analysts, Russia is Iran’s strategic ally in the region and elsewhere in the world. The Commander of the Iranian Navy, Rear Admiral Hossein Khanzadi, has said that Iran and Russia intend to step up maritime cooperation. According to the admiral, a memorandum of understanding was signed in Moscow on naval cooperation and the two sides plan joint military exercises in the Indian Ocean before the end of the year. “By the Indian Ocean, we mean a vast area in the northern part of the ocean, including … the Strait of Hormuz, as well as the Persian Gulf.” Later, on July 30, the command of the Iranian Navy stated that Rear Admiral Khanzadi’s words about the location of the exercises were misinterpreted. He meant the northern part of the Indian Ocean and the Oman Sea.

On August 1, the Russian Defense Ministry did not confirm either the signing of any  document, or any plans for joint maneuvers of the Russian Navy and the Iranian Navy.

Judging by these facts, Tehran is trying to use Iran’s good relations with China and Russia for its political agenda and for an effective struggle against its antagonists.

Simultaneously, Iran is seeking to alleviate tensions with its opponents as part of its policy of moderate withdrawal from the JCPOA. A few days ago, Iranian Foreign Minister Mohammad Javad Zarif announced his country’s readiness for a dialogue with Saudi Arabia, Iran’s most fierce rival in the Middle East. The two countries disagree on many issues and support parties that are at war with one another.

The most significant event of recent days is an appeal of the Iranian Foreign Minister Mohammad Javad Zarif to U.S. President Donald Trump to settle the differences between the two countries through negotiation and not succumb to the influence of advisers and allies, who, in his opinion, are pushing Washington into war with Tehran. As Mr. Zarif said “diplomacy is tantamount to common sense, not weakness.”

The Iranian diplomacy is thus demonstrating political flexibility and, at the same time, pragmatism. It seems that Tehran is playing a simultaneous game with many parties and, an all likelihood, there are two major points for Iran to gain from these games.

The first is to prolong the time it takes to make drastic decisions. In any case, it will play for time until the presidential election in the United States, due to take place in November 2020, hoping for the victory of the Democrats and, accordingly, the revival of the JCPOA and the return of Iranian-American relations to the period of 2015-2016.

The second is to score as many points as possible on playing venues around the world to create favorable conditions for undoubtedly welcome future negotiations, in the first place, with the Americans, and, preferably, with a Democratic administration.

Despite its daring and independent position, Tehran has no other pragmatic choice but negotiations. In all likelihood, the American pressure on Iran under Donald Trump will not dwindle. Given the situation, Iran’s foreign policy of the near future will move along a thorny path full of unpredictable pitfalls and unexpected turns. But obviously, all these efforts are oriented at the only option possible – negotiations. Other ways are either unrealistic, or lead to war. And this, I dare say, is something no one wants, including the United States.

From our partner International Affairs

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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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