Sunday 31 October 2021

India one of largest buyers of military hardware from Israel

Israel and India have agreed to form a task force that will build a 10-year cooperation plan to identify new areas in defense cooperation between the two countries. The plan that includes defense procurement, production and research and development, has been agreed upon during a recent visit of Ajay Kumar, Director General of Indian Ministry of Defense to Israel.

Kumar met with his Israeli counterpart, Director General of Defense Ministry Amir Eshel at the Kirya military headquarters in Tel Aviv for the 15th meeting of the Joint Working Group on defense cooperation.

According to The Times of India, during the meeting, the two officials discussed bilateral military technological cooperation as well as strategic challenges in the Middle East and Indo Pacific regions.

“The two sides reviewed the progress made in military to military engagements, including exercises and industry cooperation,” an Indian official was quoted by the report, adding that “it was also decided to form a new sub-working group on defense industry cooperation.”

India recently participated in the Blue Flag international air drill, sending for the first time a Mirage fighter squadron to Israel. India had also participated in Blue Flag 2017. 

Israel has been supplying India with various weapons systems, missiles and unmanned aerial vehicles over the last few years, making India one of Israel’s largest buyers of military hardware.

A 2020 report by the Stockholm International Peace Research Institute found that Israel’s arms exports over the past four years have been the highest ever and accounted for 3% of the global total. 

According to the report, the top three customers of Israeli arms were India (45%), Azerbaijan (17%) and Vietnam (8.5%). Weapons sales to India have consistently totaled over US$ one billion per year.

In September, India purchased 4 Heron MK II from Israel Aerospace Industries in a deal worth some US$200 million as part of the country’s plans to upgrade the military amid its ongoing border strife with China.

The Indian Air Force already operates more than 180 Israeli-made UAVs, including IAI-made Searchers and 68 unarmed Heron 1s, for surveillance and intelligence gathering, as well as a fleet of IAI-produced Harpy UAVs, which carry a high-explosive warhead and self-destructs to take out targets such as radar stations.

Last year the Indian cabinet approved an order of two Phalcon AWACs from Israel in a deal reportedly about US$ one billion that had been in the works for the past few years.

Mounted on a Russian Ilyushin-76 heavy-lift aircraft the system has Active Electronic Steering Array (AESA), L-Band radar with 360° coverage and can detect and track incoming aircraft, cruise missiles and drones before ground-based radars.

The first three Phalcon AWACS were obtained by the Indian Air Force in 2009 after a US$1.1 billion. The deal was signed between India, Israel, and Russia in 2004.  

The two countries have also signed contracts to manufacture and supply BARAK 8/MRSAM missile kits for the Indian Army and Air Force.

The MR-SAM system, jointly developed by India’s Defence Research and Development Organization (DRDO) in close collaboration with Israel's Israel Aircraft Industry, is a land-based configuration of the long range surface-to-air missile (LRSAM) or Barak-8 naval air defense system. It is capable of shooting down enemy aircraft at a range of 50 to 70 km; it will help to protect India from enemy aircraft and will replace the country’s aging air defense systems. 

Israel accuses Iran for installing advanced anti aircraft batteries in Syria

Israel has carried out hundreds of strikes in Syria in an attempt to thwart Iranian entrenchment and supply of advanced weapons to not only to Hezbollah in Syria and Lebanon but also in countries like Iraq and even further.

While Israeli strikes on Syria have intensified, the response time by Syrian air-defense batteries has become quicker. This has lead to the Israel Air Force (IAF) changing it acts during such operations that include having larger formation during operations so that more targets can be struck at once instead of having jets return to the same target.

In 2018, an F-16 crashed in northern Israel after it was struck by an S-200 missile fired by Syrian forces during an Israeli operation. Syrian missiles have also landed in Israel in recent years, including this year when shrapnel from one missile hit northern Tel Aviv and another errant interceptor missile landed close to the Dimona nuclear site in the Negev Desert.

Iran is a top priority for Israel’s military and Chief of Staff Aviv Kohavi has set aside an additional defense budget for war readiness and military exercises. The IAF has also resumed intensive training for scenarios in which Iran’s nuclear facilities are targeted.

In an attempt to challenge Israeli jets, Iran has changed the deployment of its anti-aircraft missile batteries, separating their radars from the missile launchers. Such a move forces more Israeli jets to take part in any possible operation against the country’s nuclear program.

The IAF believes that the defense industry of Iran is robust. While it might not have an air force, its drone capabilities are enormous and pose a major threat to Israel and other regional countries, as evident from the 2019 Aramco attack and the recent attack on Mercer Street earlier this year.

Defense officials have identified an increased amount of Iranian drones in the hands of Hezbollah, Hamas, and other groups.

Hamas, Palestinian Islamic Jihad group and Hezbollah have all used weaponized drones to carry out attacks after they invested in drone capabilities.

Drones have breached Israeli airspace in recent years, leading the IDF to scramble jets or fire missiles. Hamas used Iranian drones during the last war in May, and several Iranian drones tried to breach Israeli airspace in the North of the country.

Following the attack on Mercer Street, Israeli Defense Minister Benny Gantz warned that Iran has used its drones in several attacks, and it is “exactly why we must act now against Iran. Iran not only strives to gain nuclear capabilities, but it is also sparking a dangerous arms race and creating instability in the Middle East through militias armed with hundreds of UAVs, in Iran, Yemen, Iraq and other countries.”

Warning that the threat posed by Iran is “not a future threat but a tangible and immediate one,” Gantz vowed that Israel will work to remove any threat against Israeli citizens and interests.

Biden wants to mend relations between US and France

Joe Biden, President of the United States, has lately acknowledged that handling of a submarine deal with Australia by his administration was clumsy.

 He sought to repair relations between the US and France during a one-on-one meeting with French President Emmanuel Macron in Italy.

The security pact made between Australia, United Kingdom and the United States, known as AUKUS, caused a rift between the US and its oldest ally, France and resulted in France temporarily recalling its ambassador to the United States

“I think what happened was, to use an English phrase, what we did was clumsy,” Biden told reporters during the meeting with Macron at the French Embassy to the Holy See. "It was not done with a lot of grace. I was under the impression certain things had happened that hadn’t happened."

“I want to be clear: France is an extremely, an extremely valued partner,” Biden continued. “We have the same values.”

Biden later said he was under the impression that France had been informed long before the AUKUS pact was announced, in fact Paris had not been.

“We clarified together what we had to clarify,” Macron then told reporters. “And now what’s important is precisely to be sure that such a situation will not be possible for our future.”

Macron insisted on the need for “stronger coordination" and "stronger cooperation” and said the two countries had taken steps in recent weeks to enhance their ties.

"What really matters now is what we will do together in the coming weeks, the coming months, the coming years," he said.

France was caught flat-footed with the announcement of the AUKUS pact, which deals with security in the Asia Pacific, and reacted angrily to the announcement last month. The pact involves the U.S. and the U.K. selling Australia nuclear-powered submarines and caused France to lose out on a multibillion-dollar deal to provide submarines to Australia.

At the time, one French official likened Biden to former President Trump, who often acted unilaterally to the dismay of US allies.

Biden and Macron have spoken twice over the phone since the incident. On Friday, there were signs of a thawing. Biden and Macron shook hands, sat closely to one another and occasionally smiled in the meeting, giving way to a genial atmosphere that seemed to ease tensions between the US and France in recent weeks.

A senior administration official told reporters following the meeting that the two leaders discussed a range of topics, including Russia, China, Iran and nuclear issues.

The official also said of the US-France relationship: “We’re moving forward.”

 “We had some hard conversations in September and October, I think the conversations heading into November will be exciting and engaging,” the official said. “There’s not any sense that there's some kind of fundamental rift in the relationship, I think, at this point.”

The meeting came at the start of Biden’s second overseas trip as president. Both leaders will attend a Group of 20 Summit in Rome and, later, a major UN climate summit in Glasgow.

Saturday 30 October 2021

If Hezbollah not, who else is responsible for Beirut port explosion?

A new report by Rai Al-Youm about the investigations into Beirut port explosion reveals that a bank account based in a Gulf capital and its main branch in Switzerland financed the ship and personalities affiliated with the future introduced nitrates without Hariri’s knowledge. 

The results of the port’s investigations will not be published as it is part of the black box of the war in Syria.

The investigation into the last year’s explosion in Beirut port is still kept secret and the Lebanese judicial authorities have been keen not to publish anything about this investigation. The investigation is supposed to answer the questions that preoccupied Lebanese public opinion since the first day of Beirut’s shaking and destruction.

There are two important questions, 1) who brought the ammonium nitrate to the port of Beirut? Who owned the ship? 

Since the explosion, the Secretary General of Hezbollah Hassan Nasrallah has demanded the judicial investigator in three letters to publish the results of the technical investigation to the Lebanese public opinion. He has said to the judge, “If you do not want to publish the investigation to the public opinion, at least gather the families of the port victims and tell them how their sons were martyred.” 

 But those demands from Hassan Nasrallah did not resonate and the investigation results were kept secret. The current investigative judge Tariq Al-Bitar, as the former judge Fadi Sawan preceded him, followed up the part related to job negligence in the explosion without details of what preceded the shipment.

The first part, Job neglect, required a request to listen and investigate several parliamentarians, military commanders and general managers that caused split in Lebanon, accusing the judge of discretion in summoning and politicization. Still, the judge concentrated on ministers who held the position in the period between the ship’s arrival and the explosion.

He also chose the former Prime Minister Hassan Diab without summoning previous prime ministers who successively held the position during the presence of nitrates inside the port. These are questions and observations made by political parties and legal figures that Judge Bitar did not answer until now.

According to Rai Al-Youm sources, the investigation answers these questions regarding who brought the ship to Lebanon and for whom? The authorities talk about part of the investigations with broad headings without going into details.

The sources report that the shipment was paid for from a bank account based in an Arabian state in the Persian Gulf, with the main branch in Switzerland. The shipment was brought in by some figures in the Future Movement, without the knowledge of Saad Hariri.

The sources suggested that the nitrates were stored in the port and were due to transport into Syrian territory to benefit terrorist groups stationed on the Syrian-Lebanese border. At that time, some of the materials remained neglected in ward No. 12 in the port.

It appears that the ship, its owners, and the shipment route were included within the “black box” of the war in Syria, which was forbidden with strict international and regional support, not to disclose or publish facts of the Syrian conflict. Including the parties involved in it, how weapons and terrorists transferred, and their financing for that. 

 According to Rai Al-Youm, there is not a single evidence against Hezbollah in the investigations and that the accountability framework will be limited to those directly responsible for negligence. Information indicates that the judge was heading to close the file and issue the indictment, but the prosecution insisted on listening to former President Michel Suleiman, and former Prime Minister Tammam Salam, before giving the decision.

The investigation into the port explosion will likely reach a clear conclusion for public opinion and legal accountability, unlike other files that remain pending without conclusions.

 

Friday 29 October 2021

Biden administration sanctions top Iranian military official

Biden administration on Friday sanctioned a top Iranian military official for his role in the July attack on an Israeli-managed commercial shipping vessel in the Gulf of Oman. In addition to that there was blacklisting a network of individuals and companies behind Iran’s Unmanned Aerial Vehicle (UAV) program. 

Iran’s drone program is a highly criticized aspect of its military support and operations in the Middle East against US forces and partners in the region. 

This includes actions in Syria, Iraq and Yemen; actions against Saudi and Israeli entities; and its reported use in Ethiopia’s brutal, yearlong civil war. 

“Iran’s proliferation of UAVs across the region threatens international peace and stability,” Deputy Treasury Secretary Wally Adeyemo said in a statement.

“Iran and its proxy militants have used UAVs to attack US forces, our partners, and international shipping. Treasury will continue to hold Iran accountable for its irresponsible and violent acts.”

The sanctions come days after US intelligence officials reportedly pointed to Iran as behind a drone attack on a military outpost in southern Syria where American forces reside, although no injuries were reported.  

Targeted individuals include Saeed Aghajani, Brigadier Beneral of Iran’s Islamic Revolutionary Guard Corps (IRGC), who oversees the military unit’s drone command and directs the planning, equipment and training of drone operations, the Treasury Department said in a statement. 

Aghajani is described as orchestrating a July 29 attack on the commercial shipping vessel Mercer Street off the coast of Oman, killing two Romanian crew members. The incident was condemned by the US, the United Kingdom, Romania and Israel. The Israeli management office was located in London. 

The Treasury Department further said that Aghajani was behind the planning of a 2019 attack against oil refineries in Saudi Arabia, which temporarily disrupted global oil markets and risked triggering a larger, regional confrontation. 

Other sanctioned individuals include IRGC Brigadier General Abdollah Mehrabi, Chief of the IRGC Aerospace Force Research and Self-Sufficiency Jihad Organization. The Oje Parvaz Mado Nafar Company, co-owned by Mehrabi, was also sanctioned along with its Managing Director, Yousef Aboutalebi.

The Treasury sanctioned the Kimia Part Sivan Company (KIPAS), an Iranian-based company that the US says has worked with the IRGC's elite Quds Force to improve its UAV program, and blacklisted Mohammad Ebrahim Zargar Tehrani for helping KIPAS source UAV components from companies based outside of Iran. 

The sanctions block any property or interests held in the US by the blacklisted individuals or companies, prohibit American transactions with those sanctioned and put international financial institutions on notice that they risk being blocked from the U.S. market if they engage with sanctioned entities. 

Iran is likely to take issue with the sanctions amid its deliberations to return to international talks to reinvigorate the Joint Comprehensive Plan of Action (JCPOA), the international nuclear agreement that former President Trump withdrew the United States from in 2018.

Iran has said it is likely to return to talks before the end of November. The sixth round of talks ended in April.

The intent of the JCPOA is to put strict limits on Iran's nuclear activities and subject it to intensive oversight, but critics of the agreement say it does little to curb Iran's other problematic behavior, such as its support for proxy fighting forces across the Middle East.

US foreign policy held hostage by Israel

Some might recall US Presidential candidate, Joe Biden’s pledge to work to rejoin the Joint Comprehensive Plan of Action (JCPOA) that was a multilateral agreement intended to limit Iran’s ability to develop a nuclear weapon.

The JCPOA was signed by President Barack Obama in 2015, when Biden was Vice President and was considered one of the only foreign policy successes of his eight years in office.

Other signatories to it were Britain, China, Germany, France, and Russia and it was endorsed by the United Nations. The agreement included unannounced inspections of Iranian nuclear facilities by the IAEA and, by all accounts, it was working and was a non-proliferation success story.

In return for its cooperation Iran was to receive its considerable assets frozen in banks in the United States and was also to be relieved of the sanctions that had been placed on it by Washington and other governments.

The JCPOA crashed and burned in 2018 when President Donald Trump ordered US withdrawal from the agreement, claiming that Iran was cheating and would surely move to develop a nuclear weapon as soon as the first phase of the agreement was completed.

Trump, whose ignorance on Iran and other international issues was profound, had surrounded himself with a totally Zionist foreign policy team, including members of his own family, and had bought fully into the arguments being made by Israel as well as by Israel Lobby predominantly Jewish groups to include the Foundation for Defense of Democracies (FDD) and the American Israel Public Affairs Committee (AIPAC).

Trump’s time in office was spent pandering to Israel in every conceivable way, to include recognizing Jerusalem as the country’s capital, granting Israel the green light for creating and expanding illegal settlements on the West Bank and recognizing the occupied Syrian Golan Heights as part of Israel.

Given Trump’s record, most particularly the senseless and against-American-interests abandonment of JCPOA, it almost seemed a breath of fresh air to hear Biden’s fractured English as he committed his administration to doing what he could to rejoin the other countries who were still trying to make the agreement work.

After Biden was actually elected, more or less, he and his Secretary of State Tony Blinken clarified what the US would seek to do to fix the agreement by making it stronger in some key areas that had not been part of the original document.

Iran for its part insisted that the agreement did not need any additional caveats and should be a return to the status quo ante, particularly when Blinken and his team made clear that they were thinking of a ban on Iranian ballistic missile development as well as negotiations to end Tehran’s alleged interference in the politics of the region.

The interference presumably referred to Iranian support of the Palestinians as well as its role in Syria and Yemen, all of which had earned the hostility of American friends Israel and Saudi Arabia.

Israel inevitably stirred the pot by sending a stream of senior officials, to include Foreign Minister Yair Lapid, Defense Minister Benny Gantz and Prime Minister Naftali Bennett to discuss the Iranian threat with Biden and his top officials. Lapid made clear that Israel reserves the right to act at any given moment, in any way… We know there are moments when nations must use force to protect the world from evil. And to be sure, Biden, like Trump, has also made his true sentiments clear by surrounding himself with Zionists. Blinken, Wendy Sherman and Victoria Nuland have filled the three top slots at State Department; all are Jewish and all strong on Israel.

Nuland is a leading neocon. And pending is the appointment of Barbara Leaf, who has been nominated Assistant Secretary to head the State Department’s Near East region. She is currently the Ruth and Sid Lapidus Fellow at the Washington Institute for Near East Policy (WINEP), which is an AIPAC spin off and a major component in the Israel Lobby. That means that a member in good standing of the Israel Lobby would serve as the State Department official overseeing American policy in the Middle East.

At the Pentagon one finds a malleable General Mark Milley, always happy to meet his Israeli counterparts, and Secretary of Defense Lloyd Austin, an affirmative action promotion who likewise has become adept at parroting the line “Israel has a right to defend itself.” And need one mention ardent self-declared Zionists at the top level of the Democratic Party, to include Biden himself, Speaker of the House Nancy Pelosi, House Majority Leader Steny Hoyer and, of course, Senate Majority Leader Chuck Schumer?

Rejoining the JCPOA over Israel objections was a non-starter from the beginning and was probably only mooted to make Trump look bad. Indirect talks including both Iran and the US technically have continued in Vienna, though they have been stalled since the end of June.

Trita Parsi has recently learned that Iran sought to make a breakthrough for an agreement by seeking a White House commitment to stick with the plan as long as Biden remains in office. Biden and Blinken refused and Blinken has recently confirmed that a new deal is unlikely, saying time is running out.

There have been some other new developments. Israeli officials have been warning for over twenty years that Iran is only one year away from having its own nukes and needs to be stopped, a claim that has begun to sound like a religious mantra repeated over and over, but now they are actually funding the armaments that will be needed to do the job.

Israeli Defense Force Chief of Staff Aviv Kohavi has repeatedly said the IDF is accelerating plans to strike Iran and Israeli politicians, including former Prime Minister Benjamin Netanyahu have regularly been threatening to do whatever must be done to deal with the threat from Iran. Israeli media is reporting that US$1.5 billion has been allocated in the current and upcoming budget to buy the American bunker buster bombs that will be needed to destroy the Iranian reactor at Bushehr and its underground research facilities at Natanz.

In the wake of the news about the war funding, there have also been reports that the Israeli Air Force is engaging in what is being described as intense drills to simulate attacking Iranian nuclear facilities.

After Israel obtains the 5000 pound bunker buster bombs, it will also need to procure bombers to drop the ordnance, and one suspects that the US Congress will come up with the necessary military aid to make that happen. Tony Blinken has also made clear that the Administration knows what Israel is planning and approves. He met with Israeli Foreign Minister Yair Lapid on October 13, 2021 and said if diplomacy with Iran fails, the US will turn to other options. He followed that up with the venerable line that Israel has the right to defend itself and we strongly support that proposition.

Lapid confirmed that one of Blinken’s options was military action. “I would like to start by repeating what the Secretary of State just said.  Yes, other options are going to be on the table if diplomacy fails. Eeverybody understands what does that mean. It must be observed that in their discussion of Iran’s nuclear program, Lapid and Blinnken were endorsing an illegal and unprovoked attack to prevent Iran from acquiring a nuclear weapon that it is apparently not seeking, but which it will surely turn to as a consequence if only to defend itself in the future.

In short, US foreign policy is yet again being held hostage by Israel. The White House position is clearly and absurdly that an Israeli attack on Iran, considered a war crime by most, is an act of self-defense. However it turns out, the US will be seen as endorsing the crime and will inevitably be implicated in it, undoubtedly resulting in yet another foreign policy disaster in the Middle East with nothing but grief. The simple truth is that Iran has neither threatened nor attacked Israel.

Given that, there is nothing defensive about the actions Israel has already taken in sabotaging Iranian facilities and assassinating scientists, and there would be nothing defensive about direct military attacks either with or without US assistance on Iranian soil. If Israel chooses to play the fool it is on them and their leaders. The United States does not have a horse in this race and should butt out, but one doubt if a White House and Congress, firmly controlled by Zionist forces, have either the wisdom or the courage to cut the tie that binds with the Jewish state.

 

Thursday 28 October 2021

Iran to return to talks in November

On October 27, 2021, Iran’s lead negotiator announced the return to nuclear talks with the world’s six major powers by the end of November this year. 

Ali Bagheri, the new Deputy Foreign Minister, tweeted the announcement after meeting in Brussels with Enrique Mora, the EU coordinator for the talks.

In response, White House press secretary Jen Psaki said that the Europeans and the US negotiators would determine next steps. “Our framing continues to be compliance for compliance,” she told reporters. 

A return to negotiations in Vienna, however, is no guarantee that the diplomatic process will resolve the deep differences between Tehran and Washington over both substance and sequencing.

On substance, Iran wants guarantees that the United States will never reimpose sanctions if it returns to compliance with the 2015 nuclear deal, while the Biden administration says it cannot guarantee what another president might do.

On sequencing, Iran wants the United States to lift sanctions before Tehran reverses breaches that began in 2019, after the Trump administration abandoned the deal and reimposed sanctions. 

The Biden administration has stipulated that both countries must simultaneously return to their commitments in the Joint Comprehensive Plan of Action (JCPOA).

From April to June 2021, Iran and the world’s six major powers held six rounds of talks on restoring the 2015 nuclear deal. Diplomacy stalled in June during Iran’s presidential campaign and the political transition as Ebrahim Raisi took office and appointed his cabinet in August. The two main issues in the talks are lifting US sanctions and reversing Iran’s nuclear program that can be addressed in the following three likely scenario.

Scenario 1

President Raisi's team agrees to a deal that is marginally better for Iran than the package that was on the table in June. Although they were close to their bottom lines, both sides probably still have some maneuvering space. If they are willing to compromise, this would be the least costly option. It would provide the Raisi administration with an early political win, which could be framed as their victory given that the hardliners now control all levers of power and dominate the country’s media. It would also constitute a much needed economic reprieve amid a confluence of crises that Iran is facing, ranging from economic stagnation and social unrest to the raging COVID-19 pandemic.

The Biden administration, which has had a major setback in Afghanistan, would benefit not just by defusing a simmering nuclear crisis, but also by potentially paving the ground for de-escalation in Iraq and in the Gulf. This would allow Washington to shift its focus to the larger challenge of great power competition with China and Russia. The parties could then try to achieve a better-for-better deal that is more satisfactory for both sides and thus more stable than the JCPOA.

Scenario 2

Raisi's team drives a hard bargain and makes maximalist demands that are unacceptable to the United States and European powers. This is the most likely outcome because the Iranian leadership seems to believe that time is on its side. Iran sees an advantage in the exponential growth of its nuclear program. It also views the US leverage from sanctions as past its peak and now at the point of diminishing returns. Iran also believes that the West has no appetite for military confrontation. This calculus is underpinned by an optimistic view on Iran’s ability to remain afloat as its economy has stabilized and oil exports to China hover around a million barrels per day. 

In this scenario, Iran would insist that the United States lift all the sanctions that were imposed and reimposed since 2017, provide the sanctions relief upfront and allow several months for Tehran to verify its effectiveness. Iran would also demand guarantees. It is not hard to predict what comes next.

In 2005, when Mahmoud Ahmadinejad came to power, Iran pursued a similar confrontational approach, which led to 10 years of mutual escalation in what can be called the race of sanctions against centrifuges. It was a lose-lose game for both sides and brought them to the brink of military confrontation.

Renegotiating the package that has been coming together in six rounds of talks is not going to shift Washington’s bottom lines or core demands, but it risks bringing down the JCPOA. This is primarily because there are pressure points on the timeline. The United States and European powers are increasingly concerned that Iran’s advances are approaching the point of irreversibility, making the existing agreement, even if fully restored, insufficient.

At the same time, Iran is in a standoff with the IAEA over access for its inspectors and outstanding issues with regards to Iran’s past nuclear activities. If these issues are not resolved before the end of 2021, another referral to the UN Security Council is almost certain.

Scenario 3

Raisi's team seeks to negotiate a new deal to replace the JCPOA. A consensus seems to have emerged among the Iranian hardliners, who now control all levers of power that the JCPOA was flawed from the beginning and that its restoration is futile as it will only produce the same outcome ‑ depriving Iran of its nuclear leverage with an empty promise of economic incentives, followed by a return of sanctions. This approach has a lot of appeal to those in Tehran and Washington who deem the JCPOA inadequate and seek a more advantageous agreement, JCPOA-Plus. 

Kayhan, the daily whose editor in chief is appointed by the Supreme Leader, recently wrote, “The JCPOA must change is the one issue upon which Iran and the US converge.” But the path to a new deal is likely to pass through a risky escalation. 

Iran might up the nuclear ante further, prompting the United States to impose more coercive measures, both looking for more leverage ahead of a return to talks. Iran, as it has already indicated in the six rounds of talks in Vienna, would want more sanctions relief, including from US primary sanctions. They were the main obstacle to the Iranian banking sector’s return to the US$-dominated global financial system after the United States lifted sanctions in 2016. Iran also wants compensation for damages incurred during the Trump administration’s “maximum pressure” campaign. 

The path to a JCPOA-Plus does not need to be so treacherous. One option to avoid the escalatory cycle would be to quickly strike an arrangement that amounts to a JCPOA-Minus. Iran could agree to freeze proliferation-sensitive activities, including uranium enrichment above 3.67 percent, advanced centrifuge work, and uranium metal production. In return, the Western powers could accept an agreed-upon level of oil exports and/or partial access to its frozen assets.

An interim arrangement could cap the immediate nuclear proliferation crisis, deliver economic reprieve for Iran, and buy time for the parties to negotiate parameters of a more-for-more JCPOA-Plus that addresses their broader demands. One pertinent question here is whether such an interim agreement would trigger the Iran Nuclear Agreement Review Act (INARA) of 2015 – a US law requiring any new deal with Iran to be subject to a congressional review, but a JCPOA-Minus is not a new deal, it is a waystation toward the original agreement.


Oil chiefs to testify at congressional hearing

Top executives at ExxonMobil and other oil giants are set to testify at a landmark House hearing today (Thursday) as congressional Democrats investigate what they describe as a decades-long, industry-wide campaign to spread disinformation about the role of fossil fuels in causing global warming.

Top officials at four major oil companies are testifying before the House Oversight Committee, along with leaders of the industry’s top lobbying group and the US Chamber of Commerce. Company officials were expected to renew their commitment to fighting climate change.

The much-anticipated hearing comes after months of public efforts by Democrats to obtain documents and other information on the oil industry’s role in stopping climate action over multiple decades. The appearance of the four oil executives — from ExxonMobil, Chevron, BP America and Shell — has drawn comparisons to a high-profile hearing in the 1990s with tobacco executives who famously testified that they didn’t believe nicotine was addictive.

 “The fossil fuel industry has had scientific evidence about the dangers of climate change since at least 1977. Yet for decades, the industry spread denial and doubt about the harm of its products — undermining the science and preventing meaningful action on climate change even as the global climate crisis became increasingly dire, ″ said Carolyn Maloney and Ro Khanna.

Maloney chairs the Oversight panel, while Khanna leads a subcommittee on the environment.

More recently, Exxon, Chevron and other companies have taken public stances in support of climate actions while privately working to block reforms, Maloney and Khanna charged. Oil companies frequently boast about their efforts to produce clean energy in advertisements and social media posts accompanied by sleek videos or pictures of wind turbines.

The industry “spends billions to promote climate disinformation through branding and lobbying″ that is increasingly outsourced to trade groups, “obscuring their own roles in disinformation efforts,” the lawmakers said.

Democrats have focused particular ire on Exxon, after a senior lobbyist for the company was caught in a secret video bragging that Exxon had fought climate science through “shadow groups” and had targeted influential senators in an effort to weaken President Joe Biden’s climate agenda, including a bipartisan infrastructure bill and a sweeping climate and social policy bill currently moving through Congress.

Keith McCoy, a former Washington-based lobbyist for Exxon, dismissed the company’s public expressions of support for a proposed carbon tax on fossil fuel emissions as a “talking point.”

McCoy’s comments were made public in June by the environmental group Greenpeace UK, which secretly recorded him and another lobbyist in Zoom interviews. McCoy no longer works for the company, an Exxon spokesperson said last month.

Darren Woods, Exxon’s chairman and chief executive, has condemned McCoy’s statements and said the company stands by its commitment to work on finding solutions to climate change.

Woods is among the chief executives set to testify Thursday, along with BP America CEO David Lawler, Chevron CEO Michael Wirth and Shell President Gretchen Watkins.

Casey Norton, an ExxonMobil spokesperson, said the company has cooperated with the Oversight panel, adding: “ExxonMobil has long acknowledged that climate change is real and poses serious risks.″

In addition to substantial investments in “next-generation technologies,” the company also advocates for responsible climate-related policies, Norton said.

“Our public statements about climate change are, and have been, truthful, fact-based, transparent and consistent with the views of the broader, mainstream scientific community at the time, ″ he said.

Maloney and Khanna compared tactics used by the oil industry to those long deployed by the tobacco industry to resist regulation “while selling products that kill hundreds of thousands of Americans.″

The oil industry’s “strategies of obfuscation and distraction span decades and still continue today,″ Khanna and Maloney said in calling the hearing last month. The five largest publicly traded oil and gas companies reportedly spent at least US$ one billion from 2015 to 2018 “to promote climate disinformation through ‘branding’ and lobbying,” the lawmakers said.

Bethany Aronhalt, a spokeswoman for API, said the group’s president, Mike Sommers, welcomes the opportunity to testify and “advance our priorities of pricing carbon, regulating methane and reliably producing American energy.”



Wednesday 27 October 2021

Cyber attack on Israeli Defense Ministry

Reportedly, a hacker group called Moses Staff claimed that it has successfully conducted a cyber attack on the Israeli Defense Ministry, releasing files and photos obtained from the ministry's servers.

Moses Staff's website claims that the group has hacked over 165 servers and 254 websites and compiled over 11 terabytes of data, including Israel Post, the Defense Ministry, files related to Defense Minister Benny Gantz, the Electron Csillag Company and Epsilor Company.

"We've kept an eye on you for many years, at every moment and on each step," wrote the group in the announcement of the attack on their Telegram channel. "All your decisions and statements have been under our surveillance. Eventually, we will strike you while you never would have imagined."

Moses Staff claimed in the announcement to have access to confidential documents, including reports, operational maps, information about soldiers and units, and letters and correspondence. "We are going to publish this information to aware [sic] all the world about the Israeli authorities’ crimes," warned the group.

The files leaked included photos of Gantz and IDF soldiers and a 2010 letter from Gantz to the Deputy Chief of the Joint Chiefs of Staff and Chief of Intelligence in the Jordian Armed Forces. The leaked files also included Excel files allegedly containing the names, ID numbers, emails, addresses, phone numbers and even socioeconomic status of soldiers, mechina pre-military students and individuals connected to the Defense Ministry.

The group stated on its website that it is targeting the same people who "didn't tolerate" the legitimacy of Moses, seemingly the reason for the name Moses Staff.

The group's description states that it will not forget "the soldiers whose blood is shed due to wrong policies and fruitless wars, the mothers mourning for their children, and all the cruelty and injustice were [were] done to the people of this nation." The group did not clarify in its description which soldiers it was referring to.

It is as of yet unclear if the group is acting independently or is backed by a state.

Moses Staff leaked identifying information, addresses and information about packages from an attack it says it conducted on the Israel Post. The group also leaked pictures of identity cards from a number of companies it claims it attacked.

The group's website also has a contact form for those interested in joining the group.

The National Cyber Directorate stated in response to the leaks that it has repeatedly warned that hackers are exploiting vulnerability on the Exchange email service in order to attack organizations.

The Directorate once again calls on organizations to implement in their systems the latest critical updates that Microsoft has released for this vulnerability – a simple and free update that can reduce the chance of this attack.

"Over the past few years we have heard a great deal about exposure of soldiers' details and military information at various levels of classification as a result of information security failures on various websites and applications," said cyber security consultant Einat Meyron, adding that while most of the exposures were seemingly innocent, this incident shows that there are anonymous hacker groups systematically collecting such information.

Meyron stressed that attackers aiming to impact the image of Israel, a country that sees itself as a defense and cyber security power, are patient and don't reveal all their cards at once. The cyber security consultant urged companies to take information security seriously, adding that many companies can often protect themselves with tools they already have as long as they have a correct understanding of the risks and their consequences.

The attack is the latest in a long series of cyber attacks on Israel in recent years. Earlier this month, the Hillel Yaffe Medical Center in Hadera was targeted by a ransomware attack that affected its computer systems.

Cybereason also revealed earlier this month that MalKamak, an Iranian state-supported hacker group, was running a highly targeted cyber-espionage operation against global aerospace and telecommunications companies, stealing sensitive information from targets around Israel and the Middle East, as well as in the United States, Russia and Europe. The threat posed by MalKamak is still active.

Last month, a hacker group called Deus leaked data it claims it obtained in a cyber attack on the Israeli call center service company Voicenter from the company’s customers, including 10bis, CMTrading, Mobileye, eToro, Gett and My Heritage. The data leaked so far include security camera and webcam footage, ID cards, photos, WhatsApp messages and emails, as well as recordings of phone calls.

A series of cyber attacks has plagued Israeli businesses and institutions in the past two years, including Israel Aerospace Industries, the Shirbit insurance company and the Amital software company.

The National Cyber Directorate reported that it handled more than 11,000 inquiries on its 119 hotline in 2020, some 30% more than it handled in 2019. The directorate made about 5,000 requests to entities to handle vulnerabilities exposing them to attacks and was in contact with about 1,400 entities concerning attempted or successful attacks.

First public Israeli flight lands in Saudi Arabia

According to The Jerusalem Post an Israeli private jet landed in Riyadh, Saudi Arabia on Tuesday morning, marking the first time a public flight from Israel has ever landed in the Kingdom of Saudi Arabia.

The news comes just a day after the first flight from Saudi Arabia landed in Israel, as an Emirati 737 Royal Jet landed in Ben-Gurion airport Monday evening.

This is the latest among improving regional ties for Israel, agreements to normalize ties with four nations — UAE, Bahrain, Morocco and Sudan — have been realized since the 2020 Abraham Accords.

While there remain no commercial flights between Saudi Arabia and Israel, as the two states share no official relations, the flights are a considerable advancement in Saudi-Israeli relations, as both nations finally opened their airspaces to each other just last year.

Surrounded by nations that have clashed with Israel in the past, free air travel is not something that is taken for granted in Israel.

Along the 2020 normalization of ties with Bahrain, Sudan, Morocco and the UAE was the opening of airspaces to Israeli flights, along with announcements of direct flights to Dubai, Morocco, and Bahrain.

Prior to the opening of Saudi airspace, El Al’s planes had to follow a long, winding route to Mumbai in order to avoid Saudi airspace, adding roughly two hours to the trip from Tel Aviv and putting the Israeli carrier at a huge disadvantage to competitors, who are allowed to fly direct.

Similar examples make flights to some locales out of Ben-Gurion difficult to navigate and potentially dangerous.

Airspace has always been a point of contention amongst Israel and its adversaries. The following countries continue to ban both direct flights and overflying traffic to/from Israel: Afghanistan, Algeria, Bangladesh, Brunei, Iran, Iraq, Kuwait, Lebanon, Libya, Malaysia, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Somalia, Syria, Tunisia and Yemen.

Tuesday 26 October 2021

Israel allows entry of Lebanese workers for olive harvest

Israeli army announced on Tuesday that as a gesture of goodwill, it had allowed Lebanese agricultural workers to enter the country in order to harvest olive trees. The workers from Lebanese border towns have been allowed to enter Israeli territory under supervision.

"In light of the economic situation in Lebanon, and as a gesture of goodwill to the Lebanese people, the IDF opened the border to agricultural workers from Al Jabal, Itaron and Balida."

"The IDF allowed the workers to cross the Blue Line, to a certain extent, allowing them to harvest olive trees in Israeli territory. This gesture was reported to the Lebanese side by UNIFIL."

The move came just two days after IDF soldiers and Israel Police foiled an attempt to smuggle weapons and drugs across Israel’s border with Lebanon.

The economic crisis leaves the IDF concerned that there may be an increase of drug smuggling and infiltration of migrant workers and refugees along the northern border.

Lebanon and Israel are also in dispute over the delineation of their territorial waters. Negotiations between the old foes could lead to Lebanon being able to unlock valuable gas reserves amid its financial crisis.

Some two million tons of olives harvested annually worldwide, most of which is used for making olive oil. In commercial terms, olives are one of the most important fruits grown in Israel, with olive plantations in the mountains of the Galilee, on the coastal plain, in the mountains of Samaria and Ephraim.

 

Amateurish act of Israeli Defense Minister

US State Department spokesman Ned Price gave credence to American criticism of Israel’s decision to designate six Palestinian NGOs as terror organizations, saying Washington did not get a heads-up about the move.

According to a report, United States was not alone. Israeli Defense Minister Benny Gantz, who signed the order, did not give Prime Minister Naftali Bennett or Foreign Minister Yair Lapid any advance warning either.

If the State Department was upset at being blindsided (defense officials were later cited as saying the US was in fact informed), diplomats at Foggy Bottom can only imagine how Bennett and Lapid must feel.

That Gantz took this decision without informing Bennett or Lapid – two men who now have to deal with diplomatic fallout from the move – bespeaks of a government not working as it should.

That is a serious problem, considering it’s the government’s calling card, “Even though we are ideologically diverse, the component parts work well together for the benefit of the country.”

Gantz’s failure to let others in on his NGO decision came just three weeks after Bennett dropped a bombshell announcement during his speech to the opening of the Knesset’s winter session that the Mossad recently carried out a daring operation to recover information about missing Airman Ron Arad.

Though, Bennett briefed Lapid beforehand on what he would say, he only informed Gantz moments before he began his speech, giving the defense minister no time to object. Gantz was miffed, as evident in the briefings defense officials gave reporters, saying that the mission was a failure.

Could it be that Gantz did not brief Bennett or Lapid in advance of the NGO announcement as a tit-for-tat? One shudders at the very thought.

But something is obviously amiss. This is not the way to run a government, or to instill confidence in a politically shell-shocked nation. That the prime minister and the foreign minister did not know of this move in advance is evidence of amateurism seeping into critical government decisions.

What message does it send that the prime minister does not know what the defense minister is up to, and vice versa?

This came up at a meeting of coalition heads before Sunday’s cabinet meeting, where Meretz head Nitzan Horowitz and Labor leader Meirav Michaeli reportedly demanded of Bennett that he stop being surprised by key decisions begin made by his ministers.

At the cabinet meeting itself, Bennett – in an apparent effort to lighten the mood – told how in the middle of his meeting on Friday with Russian President Vladimir Putin in Sochi, Construction and Housing Minister Ze’ev Elkin – who was acting as a translator between the leaders, turning Bennett’s Hebrew into Russian – dozed off, eliciting a wake-up elbow from the prime minister.

The Russian president, Bennett said, laughed and cracked a joke, as did – it is safe to assume – those around the cabinet table hearing the story for the first time.

But this is not very amusing. The Russian president is probably one of the canniest, shrewdest and cunningest leaders in the world, who thinks numerous steps ahead on the chessboard. Israelis officials meeting him on life-and-death issues like Syria and Iran need to be keenly alert, not drowsy.

To get tired is human, but to fall asleep while translating a key diplomatic meeting – one that could have serious ramifications for Israel’s security – is inexcusable. If Elkin was sleep-deprived going in and didn’t feel he could serve as a translator, someone else should have been sent to do the job.

This scene makes Israel look not like a world power but a shtetl, where tired senior officials fall asleep after a long journey to appeal to the czar.

The lack of coordination between Gantz, Bennett and Lapid also smacks of amateurism, something one might expect, say, when residents of an apartment building – some of whom are miffed and not talking to their neighbors – do not inform one another of key decisions affecting the whole building.

None of this makes the government look serious – and not the image it wants to project domestically or overseas.

Monday 25 October 2021

Ayatollah Khamenei urges reversal of progress in Arab Israeli relations

Iran’s Supreme Leader Ayatollah Ali Khamenei said on Sunday that the Arab nations who have improved ties with Israel have “sinned” and must reverse course. Four nations, the United Arab Emirates, Bahrain, Morocco, and Sudan, agreed to normalize ties in 2020 under the “Abraham Accords” .

This led to Israel’s first treaties with Arab nations since reaching an agreement with Jordan in 1994. Jordan and Egypt were the only Arab nations to have existing diplomatic ties with Israel before the 2020 agreements.

“Some governments have unfortunately made big errors and have sinned in normalizing their relations with the usurping and oppressive Zionist regime,” Khamenei said. “It is an act against Islamic unity; they must return from this path and make up for this big mistake.”

Iran has positioned itself as a strong defender of the Palestinian cause since Ayatollah Khameini took power in the midst of the 1979 Islamic Revolution. “If the unity of Muslims is achieved, the Palestinian question would definitely be resolved in the best fashion,” Khamenei said.

Tensions between Iran and Israel continue to escalate as the former builds out its nuclear program, which Israel accuses of being a nuclear weapons program designed to inflict as much harm as possible. Iran has repeatedly accused Israel of sabotaging and targeting its nuclear facilities.

In response to last Monday’s reports that NIS 5 billion had been approved to prepare the military for a potential strike on Iran’s nuclear facilities, Iran’s top security official Ali Shamkhani pledged to inflict “many billions of dollars” worth of damage if Israel strikes Tehran’s nuclear program.

Sunday 24 October 2021

Need to condemn BJP leader urging India to invade Bangladesh

Reportedly, Subramanian Swamy, member of ruling Bharatiya Janta Party (BJP) has urged India to invade Bangladesh and take over it if the torture over Hindus is not stopped. He made this statement while speaking to reporters at Agartala, the capital city of the northeast Indian state of Tripura on Sunday.

The outspoken BJP leader said, India will continue to support Bangladesh, but its Prime Minister Shiekh Hasina should be warned to stop those mad people from demolishing Hindu temples, converting Hindu temples into mosques and converting Hindus to Muslims.

He also urged, if Bangladesh authorities do not stop torturing Hindus, I would recommend that Indian government to invade Bangladesh.

Swamy’s frequent rhetorical outbursts on Bangladesh are often far beyond diplomatic codes. In October, 2012 Swamy first recommended invading Bangladesh. He said, “Bangladesh was created for Muslims on the premise that they cannot live with Hindus. But since Muslims from Bangladesh have entered into India and living with Hindus then the reason for the existence of a separate Muslim country doesn’t exist.”

He demanded, Bangladesh should return land in proportion to the Muslims that have immigrated into India or, India should invade Bangladesh to occupy the land.

In April 2014 he had suggested Bangladesh should compensate India with land for what he said was “the influx of its citizens” to the neighbouring country. “If Bangladesh does not agree to take back its people, then the country should compensate by giving land to India,” Swamy said.

It is necessary to remind all the civilized countries that the violence against Muslims in India, which has now become pan Indian, may also be seen with the violence and vendetta against Christians. Ironically both the Indian and western media tend to ignore the violence against Christian.

Human rights groups which monitor atrocities against Christians in India have been recording regularly the cases of violence against Christians by Hindutva groups from all states, but these have largely been unnoticed in the media or even in the human right circles.

Recent attacks on churches especially in Uttar Pradesh which is one of the most populated states of India must not be ignored.

Attacks and hate speech against Christians are common in other parts of India, particularly Chhattisgarh and Karnataka.

Let me ask Swamy a question, should the countries having faith in Christianity also attack and occupy India because of the state sponsored terrorism in India against Christians?

Saturday 23 October 2021

Turkey to expel 10 western ambassadors

Reportedly, Turkish President, Recep Tayyip Erdogan has announced to expel the ambassadors of 10 Western countries who appealed for the release of Osman Kavala. Seven of these ambassadors represent Turkey’s NATO allies. 

The expulsions, if carried out, would cause the worst rift with the West in Erdogan’s 19 years in power.

 “I have ordered our Foreign Minister to declare these 10 ambassadors as persona non grata as soon as possible,” Erdogan said on Saturday, referring to a term used in diplomacy that signifies the first step before expulsion. He did not set a firm date.

 “They must know and understand Turkey,” Erdogan added, accusing the envoys of “indecency”.

“They must leave here the day they no longer know Turkey,” Erdogan said.

Lately, the envoys had issued a highly unusual joint statement saying the continued detention of Parisian-born activist Osman Kavala “cast a shadow” over Turkey. Kavala has become a symbol of the sweeping crackdown Erdogan unleashed after surviving the coup attempt.

The United States, Germany, Canada, Denmark, Finland, France, the Netherlands, New Zealand, Norway and Sweden called for a just and speedy resolution to Kavala’s case.

Speaking to the AFP news agency from his jail cell last week, Kavala said he felt like a tool in Erdogan’s attempts to blame a foreign plot for domestic opposition to his nearly two-decade rule.

Kavala said on Friday he would no longer attend his trial as a fair hearing was impossible after recent comments by Erdogan.

The Council of Europe, the continent’s top human rights watchdog, issued a final warning to Turkey to comply with a 2019 European Court of Human Rights order to release Kavala pending trial.

If Turkey fails to do so by its next meeting scheduled to commence on November 30 and continue till December 02, the Strasbourg-based council could vote to launch its first disciplinary proceedings against Ankara.

European Parliament President David Sassoli tweeted: “The expulsion of 10 ambassadors is a sign of the authoritarian drift of the Turkish government. We will not be intimidated.

A source at the German Foreign Ministry also said the 10 countries were consulting with one another. German lawmakers called for a tough response.

“Erdogan’s unscrupulous actions against his critics are becoming increasingly uninhibited,” Bundestag vice president Claudia Roth told the dpa news agency.

She said Erdogan’s “authoritarian course must be confronted internationally” and demanded sanctions and a halt to weapons exports to Turkey.

“The possible expulsion of 10 ambassadors, including the representatives of Germany and many of Turkey’s NATO allies, would be unwise, undiplomatic and would weaken the cohesion of the alliance,” lawmaker and foreign policy expert Alexander Graf Lambsdorff tweeted. “Erdogan can have no interest in that.”

Norway said its embassy had not received any notification from Turkish authorities.

“Our ambassador has not done anything that warrants an expulsion,” said the ministry’s chief spokesperson, Trude Maaseide, adding that Turkey was well aware of Norway’s views.

“We will continue to call on Turkey to comply with democratic standards and the rule of law to which the country committed itself under the European Human Rights Convention,” Maaseide said.

Danish Foreign Minister Jeppe Kofod said his ministry had not received any official notification, but was in contact with its friends and allies.

“We will continue to guard our common values and principles, as also expressed in the joint declaration,” he said in a statement.

Friday 22 October 2021

The New Great Game

Lately, Nikkei Asia after focusing on Mongolia has featured Central Asia. These are five states of the region: Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan. All were members of the former Soviet Union and became independent 30 years ago.

Nikkei wants it readers to look at both the latest Big Stories, on Mongolia and on Central Asia, because historically the Mongol Empire in the 13th century, under the rule of such distinguished leaders as Chinggis Khan and Kublai Khan, were pioneers during their reigns of what today has become the "Belt and Road" initiative to link infrastructure and economy.

They could make it possible, because they governed the region from China to modern day Russia and Iran. Some historians argue that Mongolia created a global trade network for the first time in human history.

In this big story, the author mentions Samarkand in Uzbekistan as the capital of the empire of Timur, the conqueror who made the city a key economic and cultural hub linking East and West in the 14th century. Timur was a descendant of the Mongolian Empire.
 
China's current expansionism is a potential threat to these "stans", as is shown from their huge loans from the communist country, which account for 43% of the government's foreign debt in Kyrgyzstan and about 40% in Tajikistan. Still, considering their geopolitical positions, without making use of the opportunities that the Belt and Road Initiative offers them, a bright future for these countries is unimaginable.

The Great Game is a historical term referring to the political and diplomatic confrontation between the British and Russian Empires over Afghanistan and neighboring territories in the 19th and early 20th centuries.

In the main illustration to this big story, we see a chessboard with a toppled Eagle having failed in Afghanistan. Meanwhile, a Dragon has approached, while the Bear is watching from a distance.

 

Thursday 21 October 2021

Surging Energy Prices May Not Ease Until Next Year, says IMF

Soaring natural gas prices are rippling through global energy markets and other economic sectors from factories to utilities. 

According to a report by International Monetary Fund (IMF), an unprecedented combination of factors is roiling world energy markets, rekindling the memories of the 1970s energy crisis and complicating an already uncertain outlook for inflation and the global economy. Energy futures indicate that prices are likely to moderate in the coming months.

Spot prices for natural gas have more than quadrupled to record levels in Europe and Asia and the persistence and global dimension of these price spikes are unprecedented. Typically, such moves are seasonal and localized. Asian prices, for example, saw a similar jump last year but those didn’t spill over with an associated similar rise in Europe.

Analysts expect prices will revert back to normal levels early next year, when heating demand ebb and supplies adjust. However, if prices stay high as they have been, this could begin to be a drag on global growth.

Meanwhile, ripple effects are being felt in coal and oil markets. Brent crude oil prices, the global benchmark, recently reached a seven-year high above US$85 per barrel, as more buyers sought alternatives for heating and power generation amid already tight supplies. Coal, the nearest substitute, is in high demand as power plants turn to it more. This has pushed prices to the highest level since 2001, driving a rise in European carbon emission permit costs.

Bust, boom, and inadequate supply

Given this backdrop, it helps to look back to the start of the pandemic, when restrictions halted many activities across the global economy. This caused a collapse of energy consumption, leading energy companies to slash investment. However, consumption of natural gas rebounded fast—driven by industrial production, which accounts for about 20 percent of final natural gas consumption—boosting demand at a time when supplies were relatively low.

Energy supply, in fact, has reacted slowly to price signals due to labor shortages, maintenance backlogs, longer lead times for new projects, and lackluster interest from investors in fossil fuel energy companies. Natural gas production in the United States, for example, remains below pre-crisis levels. Production in the Netherlands and Norway is also down. And Europe’s biggest supplier, Russia, has recently slowed its shipments to the continent.

Weather has also exacerbated gas market imbalances. The Northern Hemisphere’s severe winter cold and summer heat boosted heating and cooling demand. Meanwhile, renewable power generation has been reduced in the United States and Brazil by droughts, which curbed hydropower output as reservoirs ran low, and in Northern Europe by below-average wind generation this summer and fall.

Coal supplies and inventories

While coal can help offset natural gas shortages, some of those supplies are also disrupted. Logistical and weather-related factors have crippled production from Australia to South Africa, while coal output in China, the world’s largest producer and consumer, has fallen amid emissions goals that dis-incentivize coal use and production in favor of renewables or gas.

In fact, Chinese coal stockpiles are at record lows, which increases the threat of winter fuel supply shortfalls for power plants. And in Europe, natural gas storage is below average ahead of winter, adding risk of more price increases as utilities compete for scarce resources before the arrival of cold weather.

Energy prices and inflation

Coal and natural gas prices tend to have less of an effect on consumer prices than oil because household electricity and natural gas bills are often regulated and prices are more rigid. Even so, in the industrial sector, higher natural gas prices are confronting producers that rely on the fuel to make chemicals or fertilizers. These dynamics are particularly concerning as they are affecting already uncertain inflation prospects amid supply chain disruptions, rising food prices, and firming demand.

Should energy prices remain at current levels, the value of global fossil fuel production as a share of gross domestic product this year would rise from 4.1 percent (estimated in our July projection to 4.7 percent. Next year, the share could be as high as 4.8 percent, up from a projected 3.75 percent in July. Assuming half of this increase in costs for oil, gas, and coal is due to reduced supply, this would represent a 0.3 percentage point reduction in global economic growth this year and about 0.5 percentage points next year.

Energy prices to normalize next year

While supply disruptions and price pressures pose unprecedented challenges for a world already grappling with an uneven pandemic recovery, the silver lining for policymakers is that the situation doesn’t compare to the early 1970s energy shock.

Back then, oil prices quadrupled, directly hitting household and business purchasing power and, eventually, causing a global recession. Nearly a half century later, given the less dominant role that coal and natural gas plays in the world’s economy, energy prices would need to rise much more significantly to cause such a dramatic shock.

Moreover, we expect natural gas prices to normalize by the second quarter as the end of winter in Europe and Asia eases seasonal pressures, as futures markets also indicate. Coal and crude oil prices are also likely to decline. However, uncertainty remains high and small demand shocks could trigger fresh price spikes.

Tough policy choices

That means central banks should look through price pressures from transitory energy supply shocks, but also be ready to act sooner—especially those with weaker monetary frameworks—if concrete risks of inflation expectations de-anchoring do materialize.

Governments should act to prevent power outages in the face of utilities curtailing generation if it becomes unprofitable. Blackouts, particularly in China, could dent chemical, steel, and manufacturing activity, adding to global supply-chain disruptions during a peak season for sales of consumer goods. Finally, as higher utility bills are regressive, support to low-income households can help mitigate the impact of the energy shock to the most vulnerable populations.

How do Israelis view Lapid’s foreign policy?

On June 14, 2021 a day after the new government was sworn in, Foreign Minister Yair Lapid delivered his first speech in his new role at a ceremony in the Foreign Ministry where he took over from Gabi Ashkenazi. His speech was essentially a broad outline of where he would like to take Israel’s foreign policy and the Foreign Ministry during his tenure.

On Tuesday, the Mitvim Institute, a left-leaning think tank, published its Ninth Annual Public Opinion Survey on Israeli Foreign Policy. The poll, in collaboration with the Friedrich-Ebert-Stiftung, was taken in September and carried out by the Rafi Smith Institute among a representative sample of the Israeli population (700 men and women, Jews and Arabs), with a sampling error of 3.5%. It provides an instructive look at how the public views the country’s foreign policy.

What follows is a look at some of Lapid’s assumptions and policy goals, and what the public believes to be the case. In many instances what emerges are significant gaps between the two.

Israel’s global standing

“In recent years, Israel has disgracefully neglected its foreign service and the international arena,” Lapid said in that speech in the Foreign Ministry. “Then it woke up in the morning and was surprised to find that there was considerable erosion in its international standing.”

Lapid’s premise was simple, Israel’s stature in the world arena was low. But the public, according to the Mitvim survey, does not necessarily agree with that basic assumption.

Asked to rate, on a scale of 1 to 10, Israel’s standing in the world today, almost three-fourths of the country gave it a score of 5 or higher, with the average rating being 5.58. That does not indicate a country that believes its international standing is in the doldrums.

What is even more interesting, and what flies in the face of Lapid’s premise, is that this figure – the poll was taken with him firmly in the foreign minister’s chair – is at its lowest since 2017, with the poll showing that Israel’s stature was better from 2018 to 2020, when Benjamin Netanyahu was premier.

The poll also showed that the public was more satisfied with the government’s handling of foreign policy in 2019 and 2020, under Netanyahu, than it is today under Prime Minister Naftali Bennett and Lapid.

As for Lapid’s claim that Israel has neglected its foreign service, while the poll finds that a vast majority of the public wants to see the Foreign Ministry strengthened, when asked how satisfied the public is with the Foreign Ministry’s status today, more were satisfied in 2019 and 2020 than they were in 2021. That result shows that at least in the eyes of the public, Lapid has not yet succeeded in bolstering the image of the ministry.

Israel and United States

Lapid blasted the former government in this speech for “abandoning” major international arenas.

For instance, he said, the policy toward the US Democratic Party “was both disgraceful and dangerous,” and in his estimation, the former government took a “bad, dangerous and hasty bet” on the Republicans, and abandoned its traditional position of bipartisanship.

Four months into his tenure and his efforts at making inroads with the Democrats, how does the public view the current ties with the US? On a scale of 1 to 10, the public gave the current state of Israel-US relations a grade of 6.46, the lowest rating since 2016, when Barack Obama was president. Under the four years of President Donald Trump, this rating varied from a low of 6.88 in 2017 to a high of 8.05 in 2020.

Lapid has said repeatedly it was a mistake for Netanyahu to focus on the Republicans, but the public – according to this poll – believes that in the years when this was the policy, Israel’s ties with the US were better.

Even though the Biden administration has been careful up until now not to pick public fights with Jerusalem, or apply heavy public pressure – as was the case during the Obama years – some 53% of the public, and 58% of the Jewish respondents, believe the Biden administration is “less beneficial for Israel” than the previous administration. And this is even before disagreements over Iran and the opening of a Palestinian consulate in Jerusalem fully break out into the open.

Relations with the EU

“The situation with the countries of the EU is also not good,” Lapid said in June. “Relations with too many governments have been neglected and turned hostile. To shout that ‘everyone is antisemitic’ is neither a policy nor a plan of action, even if it sometimes feels right.”

Lapid said at the time that he had already spoken to EU foreign policy chief Josep Borrell and French President Emmanuel Macron, who believe there is a need to deepen the dialogue between Israel and Europe. His first four months in office have been marked by an effort to improve ties with Brussels and certain Western European countries, and to distance Israel from the “illiberal” EU countries such as Hungary and Poland.

The public, however, largely does view the EU as a foe.

Asked if the EU is now more a “friend or an opponent of Israel,” 46% of the general public, and 51% of Jews, said “more of an opponent.”

If a condition for joining various EU programs was that the settlements would not be included in them, 47% said Israel should not join, while 35% said they should – a figure that belies the premise that Israelis are unconcerned by policies, such as the Ben & Jerry’s boycott, that “only” target those Israelis living beyond the Green Line.

The polls also showed that as Lapid steers Israel away from countries like Hungary, he is going against a position articulated by 43% of the public, which believes that Israel “should not consider regime type as a factor when building its foreign relations.” However, an equal percentage of people (42%) said it should “give priority to developing ties with democratic countries.”

Israel and the region

Lapid’s assertion that Israel needs to strive for more agreements with Muslim nations is very much in the national consensus. Interestingly, however, 31% of the respondents did not feel that Israel’s position in the Middle East has changed significantly as a result of the Abraham Accords, though 34% did detect a change.

While this government has not made any public moves to improve ties with Recep Tayyip Erdogan’s Turkey, a country that has proven implacably hostile to Israel, some 61% of the population think Israel should try to do so. Even with the Abraham Accords, and following an initial enthusiasm in visiting the United Arab Emirates and Bahrain, some 48% of the country said they had no interest in visiting an Arab country in the region, up from 41% who said the same thing three years ago.

Tellingly, only 2.7% of the public has an interest in visiting Jordan, down from 8% in 2018 and a sign that Israelis have no great desire to visit countries – even those close by – where they do not feel welcome.

Israel and Palestinians

Lapid, in his speech, said that while a diplomatic breakthrough with the Palestinians is not in the immediate offing, there is much Israel can do to improve the living conditions of the Palestinians and to improve the dialogue.

The public, does not feel that this should include strengthening the Palestinian Authority. Asked whether, in light of the political and economic crisis in the PA, Israel should work to strengthen it, only 28% said this would be the wise policy, while 38% said Israel should not intervene.

And as far as a dialogue with the PA is concerned, even as Defense Minister Benny Gantz and Meretz ministers traveled to Ramallah to meet PA President Mahmoud Abbas in recent weeks, only 32% said this was a positive development that will contribute to improving relations, while 46% said it was either a symbolic move that will not impact Israel-Palestinian relations (29%) or a negative development (17%) that actually harms Israeli interests.

Israel and Iran

One area where there was much compatibility between what Lapid said and what the public believes is in regard to Iran, where he said that in preparing for the possibility that the US will return to the nuclear deal, Israel’s guiding principle needs to be that it will prevent in any way the possibility that Iran will get a nuclear weapon.

There is a wide consensus on this, though the country is split regarding whether it should do so independently through military action, be it covert or overt (31%) or through forming coalitions with other Mideast countries against Iran (34%). Only 17.5% thought that Israel should support the international efforts to renew and improve the 2015 nuclear deal.

Wednesday 20 October 2021

Egypt consolidates grip on northern Sinai

According to a The Jerusalem Post report, the Egyptian military has secured large areas of the strategic stretch of land bordering Palestinian-run Gaza and Israel on one side and the Suez Canal on the other. 

It is no longer on the back foot, witnesses, security sources and analysts say. Civilian life is still severely curtailed but the long-neglected region is changing as the state forges ahead with development schemes.

Many of the militants have been killed, fled or surrendered. Around 200 are still active, down from 400 two years ago and 800 in 2017, according to three Egyptian security sources.

On the outskirts of North Sinai's main city Al Arish, near where razed olive farms once stood, the government has built new apartment blocks.

A resident said people just sought a return to normality.

"We've had enough," said the man in his 50s, declining to be named. "We want to return to our houses or even the new ones they are building. We want to live in peace again."

Unrest roiled northern Sinai following the uprising in Egypt against Hosni Mubarak in 2011, escalating after the army overthrew President Mohamed Mursi.

In November 2017, the Islamic State-affiliated militant group Sinai Province claimed the most lethal attack in Egypt's modern history, which killed more than 300 people at a North Sinai mosque, as well as an assassination attempt against the defense and interior ministers at Al Arish military airport.

The military started an operation in response in February 2018 and now appears to be in its strongest position in North Sinai - the only area in Egypt where there is regular militant activity - for at least a decade.

The security presence in southern Sinai, a popular tourist destination, has also been reinforced and some international travel warnings scaled back.

At Sinai's northeastern point at Rafah and along the border with Gaza, a buffer zone has been created on cleared land, monitored by dozens of Egyptian watchtowers.

In its most recent statement on North Sinai, the Egyptian military said 89 suspected militants had been killed in an undefined period over recent months, against eight casualties from its own ranks.

There has been a "continuous and significant decline" in the number of attacks over the past three to four years, with approximately 17 recorded shooting attacks and 39 bomb attacks so far this year compared to 166 and 187 respectively in 2017, security analyst Oded Berkowitz said.

Sinai Province's capability has also been eroded by the squeezing of supply lines and recruitment from Gaza due in part to deteriorating relations with Palestinian factions there, and the hostility from Sinai residents, Berkowitz said.

Though, estimating militant numbers is hard, recent death notices suggest those still active are mostly Egyptian and Palestinians from Gaza, while previously they included foreign fighters from the Caucuses and Saudi Arabia, he said.

Near Bir al-Abd, where militants occupied a group of villages for weeks in the summer of 2020, masked gunmen stormed a café where Salem al-Sayed was watching football in September, kidnapping him and seven others and accusing them of cooperating with the military.

"They put us in a closed place so we could not hear anything, not even the sound of the wind," the 35-year-old told Reuters. After four days with their hands bound and blindfolded, they were freed by the military in a raid, Sayed said.

President Abdel Fattah al-Sisi, who as Army Chief ousted Mursi in 2013, says developing Sinai is a priority.

"We will not leave any land that can be developed in Sinai until we make it grow," he said this month at an event to mark the 1973 war with Israel on the peninsula.

Last month in northwestern Sinai, Sisi inaugurated a US$1.3 billion agricultural wastewater plant to help reclaim land for farming.

The government recently announced a plan for 17 agricultural and residential development clusters across Sinai, 10 of them in the north. It says it is allocating modern and traditional homes for those displaced.

Access and international cooperation development remain limited, however. Demolitions and other restrictions linked to military operations have triggered complaints from some residents and rights groups.

State infrastructure projects and housing developments seem beyond local needs and means, said Ahmed Salem of the London-based Sinai Foundation for Human Rights.

The effective siege in north-eastern Sinai has restricted much economic activity, he said.

"They (both sides) destroyed Al Arish, which used to be one of the most beautiful tourist places in Egypt. Nowhere else you could see such sandy beaches," said one middle-aged resident.

"We don't support Islamic State, but many Sinai residents, from Rafah to Al Arish, were dealt with unjustly and paid a heavy price after doing nothing wrong," he said.