Wednesday, April 20, 2016

Eye on Iran: Obama Meets Saudi King with Iran on Agenda








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Reuters: "U.S. President Barack Obama arrived in Riyadh on Wednesday to meet Saudi Arabia's King Salman ahead of a summit with other Gulf Arab leaders on Thursday and with regional tensions with Iran likely to be high on the agenda. Obama comes to the world's top oil exporter for a fourth and likely last time as president hoping to reassure it and other Gulf allies of Washington's commitment to their security, and to seek ways to reduce sectarian tensions in the region... The Gulf Cooperation Council (GCC) groups Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates and Oman which are ruled mostly by Sunni Muslim monarchies, with the exception of Oman. They see Shi'ite Iran as a threat to their security and say its involvement in Iraq, Syria, Lebanon and Yemen has fueled conflict and deepened sectarian divisions. That tension surfaced again on Wednesday when Iran's Supreme Leader Ayatollah Ali Khamanei attacked Riyadh's attempts to isolate its ally, Lebanon's Hezbollah movement, in a series of fiery Tweets. 'Hezbollah is shining in the Muslim world. It doesn't matter if a corrupt, dependent and hollow government with the use of petrodollars condemns it in a statement. To hell with it,' he wrote. The White House shares the view of Gulf Arab states that Tehran plays a destabilizing role, but has said it hopes to bring them and Iran to develop a 'cold peace' in which their rivalry does not further inflame smoldering Middle East tensions. Greeting Obama in an ornate room in a Riyadh palace, King Salman said he was pleased the American president was visiting and Obama thanked him for hosting the summit. Before Obama met King Salman, in an ornate room in a Riyadh palace, U.S. Defense Secretary Ash Carter had talks with his Gulf Arab counterparts on ways of countering Iranian influence and fighting the Islamic State group, hours before President Barack Obama arrived in Saudi Arabia. They agreed on joint cooperation toward improving Gulf missile defense, special forces and maritime security, but no new deals were announced. The GCC secretary general said the bloc and the United States would stage joint maritime patrols to stop weapons smuggling to Iran. American officials said these were already taking place and did not represent a new step." http://t.uani.com/1U6EaIq

AP: "U.S. Secretary of State John Kerry and Iran's Foreign Minister Mohammad Javad Zarif reported some progress Tuesday on Iranian complaints that it's not getting the sanctions relief it deserves under last year's landmark nuclear deal. After meeting for more than 2 1/2 hours behind closed doors, the ministers emerged saying they agreed to meet again Friday on the sidelines of a high-level U.N. ceremony to sign the climate change agreement... Iran says it is locked out of the international financial system and that the U.S. isn't fulfilling its obligations under the agreement. The White House, Treasury and the State Department have all said the U.S. has done what is required, but U.S. officials say the Obama administration is considering easing or formally clarifying financial restrictions that prevent U.S. dollars from being used in transactions that enable business with Iran. The officials have ruled out granting Iran access to the U.S. financial system or direct access to the dollar, but they have left the door open to other steps to encourage trade that is now legal under the nuclear deal. Kerry told reporters that he and Zarif are working to make sure the nuclear agreement 'is implemented in exactly the way that it is meant to be, and that all the parties ... get the benefits that they are supposed to get out of the agreement.' 'We worked on a number of key things today. We made some progress on it,' Kerry said. 'We agreed to meet on Friday ... to sort of solidify what we talked about today.' Zarif said they focused on how to implement the deal 'to make sure that we will draw the benefits that Iran is entitled to.'" http://t.uani.com/1SkvRUG   

Reuters: "Iran faces a struggle to increase oil exports because many of its tankers are tied up storing crude, some are not seaworthy, and foreign shipowners remain reluctant to carry its cargoes... Iran has 55-60 oil tankers in its fleet, a senior Iranian government official told Reuters. He declined to say how many were being used to store unsold cargoes, but industry sources said 25-27 tankers were parked in sea lanes close to terminals including Assaluyeh and Kharg Island for this purpose. Asked how many tankers were not seaworthy and needed to go to dry docks for refits to meet international shipping standards, the senior official said: 'Around 20 large tankers ... need to be modernized.' ... This means foreign ships are needed for a big export push to Europe and elsewhere, said the industry sources, as Iran looks to meet its target of reaching pre-sanctions sales levels this year. But many owners, who are not short of business in a booming tanker market, are unwilling to take Iranian cargoes. The main reason is that some U.S. restrictions on Tehran remain in place and prohibit any trade in dollars or the involvement of U.S. firms including banks - a major hurdle for the oil and tanker trades, which are priced in dollars... Paddy Rodgers, chief executive of leading international oil tanker company Euronav, said at present there was 'no great urgency to do business in Iran'. 'There is not a premium to do business in Iran and there is plenty of other business - the markets are busy, rates are good. So there is no stress on wanting to do it,' he told Reuters. 'I don't really want to set up a euro bank account in Dubai in order to trade with Iran - that would crazy.' Michele White, general counsel with INTERTANKO, an association which represents the majority of the world's tanker fleet, said: 'We have witnessed a reluctance by our members generally to return to Iranian trade given the prohibition on use of the U.S. financial system - essentially no U.S. dollars.' The senior Iranian government official, who declined to be named due to the sensitivity of the matter, acknowledged his country was finding it difficult to hire foreign tankers... Two other sources with other leading oil tanker operators echoed the concerns of Rodgers and White, and said they were not doing Iran deals at the moment. One of the two sources said with a new U.S. president to take office in January, tanker owners were unsure whether there could be any change to the nuclear deal Washington and other world powers agreed with Iran which led to the end of sanctions. 'It does not appeal to them to take on the risk and the uncertainty of the U.S. connection and future U.S. political policy that would come into play,' said the source, who declined to be named, citing sensitivity over potential Iranian trade. Gavin Simmonds, of the UK Chamber of Shipping trade association, said of the U.S. presidential timing and the global oil oversupply: 'Iran is rejoining the market at the worst possible time.'" http://t.uani.com/1QmLaKj

GCC Summit

Reuters: "U.S. Defense Secretary Ash Carter and his Gulf Arab counterparts met in Riyadh on Wednesday to discuss ways to counter Iranian influence and fight the Islamic State group, hours before President Barack Obama arrived in Saudi Arabia... Obama and Carter will seek to reassure the GCC, which groups Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates and Oman, that Washington still shares their interests and will continue to ensure their security, U.S. officials have said. In part, Carter aims to do so by helping them build up their cyber, special operations and maritime capabilities, which U.S. defense officials see as more effective in countering Iran than their historical big spending on air power. Carter and the GCC defense ministers agreed to cooperate in building the GCC states' joint missile defense systems, and in developing special forces, the bloc's Secretary General Abdullatif al-Zayani said, but no new arms deals were announced... U.S. Army Lieutenant General Sean MacFarland, head of the U.S.-led coalition against Islamic State, briefed the group on the campaign, and the commander of U.S. forces in the Middle East General Joseph Votel briefed the group on Iran's activities in the region." http://t.uani.com/20X6VIm

Reuters: "Gulf Cooperation Council (GCC) countries and the United States have agreed to carry out joint patrols to stop any Iranian arms shipments reaching Yemen, the bloc's secretary general, Abdullatif al-Zayani, said on Wednesday. Zayani was speaking at a news conference with U.S. Defense Secretary Ash Carter after a meeting between Carter and his counterparts from the GCC, which includes Saudi Arabia, Kuwait, Qatar, Bahrain, the United Arab Emirates and Oman." http://t.uani.com/1MI24IM

U.S.-Iran Relations

Bloomberg: "Iranian Foreign Minister Mohammad Javad Zarif said international banks remain wary of U.S. regulations and need 'reassurances' that they can resume business with his nation even after its nuclear deal with world powers. Zarif, speaking in New York ahead of a Tuesday meeting with U.S. Secretary of State John Kerry, said talks with his counterpart were necessary to follow up on the implementation of the agreement on the U.S. side. The deal's aim 'was to not have the U.S. intervene in Iran's relations with most other countries,' the Iranian Students' News Agency cited Zarif as saying. 'We should prevent past U.S. regulations from being obstacles to most financial institutions in Europe and Asia having banking relations with Iran.' Iranian central bank Governor Valiollah Seif voiced similar sentiments last week, telling Bloomberg Television that the U.S. Treasury's Office of Foreign Assets Control should issue guidelines encouraging European banks to be more receptive to Iran... Iran has been unable to tap as much as $100 billion of its assets held abroad and has gotten 'almost nothing' from the nuclear accord, which was implemented on Jan. 16, Seif said in the interview. 'One of the needs that we definitely have goes back to converting currencies to pay our suppliers,' he said. 'It requires having access to the U.S. financial system.'" http://t.uani.com/1pgKr7s

Sanctions Relief

AFP: "Iran's purchase of 118 Airbus passenger aircraft is in its final stages and the deal could be completed as soon as next week, the French transport minister said Monday in Tehran. Alain Vidalies told reporters that the contract, initially valued at $25 billion, is subject to approval from the US government's Office of Foreign Assets Control (OFAC) and talks are planned next week. The deal would be by far the biggest commercial contract signed since Iran and world powers implemented an agreement on Tehran's nuclear programme that saw crippling sanctions lifted in January. 'We are in a very advanced stage of negotiations since the meetings should be held next week to finalise the decision,' said Vidalies, who arrived Sunday on the first Air France flight to Iran in eight years. OFAC must approve the deal, which Iranian officials say is worth nearer $10 billion, because more than 10 percent of components in the Airbus planes are of American origin, Vidalies said at a press conference with his Iranian counterpart Abbas Akhoundi. Iran agreed to buy the medium- and long-haul aircraft when President Hassan Rouhani visited France in January, just days after the nuclear deal lifted sanctions." http://t.uani.com/23JIdAA

Reuters: "TMK, Russia's largest maker of steel pipes for the oil and gas industry said on Wednesday it was tendering for contracts in Iran in an effort to increase its exports... 'We are taking part in several tenders in Iran, expecting good results,' TMK's head of strategy Vladimir Shmatovich told a media conference call." http://t.uani.com/1Nlc8r1

AP: "Iran's parliament approved a $97 billion budget for the current year, the official IRNA news agency reported Tuesday. The figure - compared to the budget the previous year, which was $72 billion - reflects Iran's hopes for its economy following a landmark nuclear deal with the world powers. The report said the new budget assumes an average oil price $40 a barrel and exports of 2.25 million barrels per day. Iran says it has increased its crude export to 2.1 million barrels per day, almost double the production levels before the nuclear deal went into effect in January... According to media reports, the bill has a five percent increase for the defense budget." http://t.uani.com/1qZiTVv

Syria Conflict

Reuters: "Iran's army chief said on Wednesday the forces it had deployed in Syria in the first such operation abroad since the 1979 revolution were volunteers working under Revolutionary Guards supervision, and the regular army was not directly involved. The Islamic Republic announced this month that it had sent commandos from the army's Brigade 65 to Syria as advisers, suggesting it was using its regular army as well as forces from the elite Revolutionary Guards to help President Bashar al-Assad's forces in the country's civil war. Iran is Assad's main regional ally and has provided military and economic support for his conflict with rebel groups and Islamic State militants. 'Some volunteers have been sent to Syria, under the supervision of the related organization, and among them there might be some of the Brigade 65 forces,' armed forces chief Ataollah Salehi was quoted by the Tasnim news agency as saying. 'The army has no responsibility in the military advice given to Syria,' Salehi added." http://t.uani.com/240bpjk

Domestic Politics

Reuters: "Iran's president criticized the use of thousands of undercover morality police in Tehran to report on young women who are not wearing a full Islamic hijab or those who play loud music in their cars. Some 7,000 men and women officers began reporting such violations in Tehran, Iran's capital, on Monday. The head of police said the officers were not authorized to arrest anyone; they can only send reports of violations by text messages to police headquarters. Asked about the undercover morality police, President Hassan Rouhani said such decisions should not be made by the government and he would keep his promise to preserve citizens' freedom. 'Our first duty is to respect people's dignity and personality. God has bestowed dignity to all human beings and this dignity precedes religion,' Rouhani was quoted as saying by the news agency ISNA on Wednesday. Iranian police are part of the armed forces and supervised by Supreme Leader Ayatollah Ali Khamenei, but the government has a say in their policies through the Interior Ministry. The morality police in Iran usually detain women on the street for wearing bright clothes, a loose hijab or make-up, and men for 'unacceptable' hair and clothing styles. They have sealed off barber shops for giving Western haircuts and cafes in which boys and girls were not observing Islamic law." http://t.uani.com/1YGP3Qc
       

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

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