Israel designates PFLP international branch as a terrorist organization,

As part of the campaign against the Palestinian Front for the Liberation of Palestine (PFLP) and its global organizational infrastructure, Defense Minister of Israel, Benny Gantz has signed an order designating the Samidoun organization, which acts abroad on the group’s behalf, as a terrorist organization.

According to a Defense Ministry press release, representatives of the organization are active in many countries in Europe and North America.

The Samidoun Palestinian Prisoner Solidarity organization, also known as Samidoun (Arabic for holding ground), was designated as a terrorist organization because it is part of the PFLP. It was founded by members of the front in 2012.

The designation was made following the recommendation of the Shin Bet (Israel Security Agency) and the National Bureau for Counter Terror Financing, the Defense Ministry said in a press release.

Representatives of the organization are active in many countries in Europe and North America, led by Khaled Barakat, who is part of the leadership of the PFLP abroad, press release stated.

Barakat is involved with establishing terrorist cells in the West Bank and abroad, the Defense Ministry said. The formal goal of Samidoun is to help Palestinian prisoners secure their release from prison, it said, adding that in practice, it serves as a front for the PFLP abroad.

Samidoun also plays a leading and significant role in the PFLP’s anti-Israel propaganda efforts, fundraising and recruiting of activists, the Defense Ministry said. These activities complement PFLP terrorist attacks against Israel, it said.

Gantz and the defense establishment will continue to take measures to foil terrorist activity and enforce the law against the attempts of the PFLP terrorist organization and its associated bodies to harm the security of Israel, the Defense Ministry said.

What could be likely quantum of Iranian oil exports even if United States eases sanctions?

According to some of the analysts, one of the reasons for lingering imposition of sanctions on Iran by the United States is pressure of large oil producers from the Middle East. Thanks to Israel which has drilled into their minds, “Iran is a bigger threat as compared to Israel”.

As Joe Biden seems adamant at joining the Joint Comprehensive Plan of Action (JCPOA), anti Iran elements have once again started talking about adverse impacts of re-entry of Iran in oil trade.

Fitch Solutions, a subsidiary of Fitch Ratings, which is one of three biggest credit rating agencies of United States, has forecasted a 6.8% growth in Iranian oil exports in 2021 if the US comes back to the 2015 nuclear deal.

In one of its latest reports dubbed “Iran Oil and Gas Report”, Fitch has stated that crude oil exports of Iran would double in 2022 compared to 2020.

“The prospects for the Iranian oil sector have brightened significantly following Joe Biden's victory in the US presidential election, He has indicated re-entry of the US into the Iranian nuclear deal, paving the way for a roll-back of secondary sanctions and recovery of around 2.0 million barrels per day (bpd) in oil production,” the report said.

Fitch also stated that Iranian gas production is also expected to rise in the coming years considering the new developments in the country’s giant South Pars gas field that Iran shares with Qatar in the Persian Gulf.

“However, Iran needs to find new export markets in neighboring countries to maximize the productivity of the new output capacities,” the report reads.

Fitch further mentioned development of the Iranian oil and gas industry’s downstream sectors saying, “The outlook on the downstream is relatively robust, with the National Iranian Oil Company (NIOC) making continued investments to expand and upgrade its refined fuels production, and with a robust demand outlook for both oil and gas as the market recovers from the combined effects of Covid-19 and US nuclear related sanctions.”

Also, the study of the risk index of the upstream sectors of the country’s oil and gas industry in this report shows that, given the huge oil and gas resources, these sectors are reasonable options for investment in the country.

According to the report, Iran ranks fourth among 12 countries in the region in terms of the oil and gas industry’s risk-return index, while the country occupies 20th place among the world’s top 72 oil-producing countries.

Iranian oil production and exports have been both increasing over the past few months despite the US sanctions. Iranian Oil Ministry has announced its readiness for boosting the country’s crude oil output to the pre-sanction levels in case of the US rejoining JCPOA.

Back in January this year, the data from SVB International and two other firms indicated that Iranian oil exports were climbing in January after a boost in the fourth quarter despite US sanctions.

Iran’s Deputy Oil Minister Amir Hossein Zamaninia had said earlier that the country started boosting its oil production and would be able to reach pre-sanction levels within two months.

Iranian oil won’t create any surplus in the oil market and the market will be able to accommodate the country’s maximum oil output of around 3.9 million to four million barrels a day, Bloomberg quoted Zamaninia as saying on the sidelines of the Iran Oil Show in Tehran in late January.

 

No alternative to two state solution, says King Abdullah of Jordan

Speaking at the Brookings institute webinar, King Abdullah of Jordan said, “It is time to turn toward conflict resolution not management of the Israeli-Palestinian conflict.” He urged upon all parties to “focus on the end goal instead of losing ourselves in the process.”

“We owe this to our world” adding “Let us learn from past mistakes and take the higher path of peace.”

He noted that he spoke 19 years ago during the institution’s inaugural event about the need to solve the conflict, which he called the core issue in the Middle East. “You can only imagine the frustration of the people still living in the midst of this protracted conflict, unable to move forward,” the king said.

“Occupation and peace simply cannot coexist,” he continued. “The Palestinian people have a right to an independent, viable and sovereign state on the June 4, 1967, lines, to live alongside Israel in peace and security.”

He declared that there is no alternative to the two-state solution, “and continued unilateral steps will only kill the prospects of peace.”

“Occupation, injustice, despair, apartheid – history has shown us there are no winners in this formula, only losers and tragedy,” King Abdullah said.

“There is an opportunity to build on recent positive developments, and we need to restore hope in the viability of peace and bring our youth closer to a future that for so long has been tantalizingly out of reach – and United States leadership here is essential.”

Jordan, he said, will always be ready to play its part in any effort to re-launch peace negotiations.

He also addressed the regional challenges of COVID-19, saying, “The pandemic has taken away from our focus on fighting terrorism and extremism. Although the battle may be won, the war is not yet over. Rising inequalities and emerging crises caused by the pandemic will fuel the recruitment efforts of ISIS, Boko Haram, Al Shabaab and al- Qaeda.”

Crude oil price caught between Covid and green energy options

Prospects for global oil products markets this year are in flux, with major uncertainties surrounding the pace of vaccination program, rationalization in refining and the adoption of alternative fuels. Most forecasts for products demand and prices have been steadily revised upwards as vaccination programs have got underway and this has created positive market sentiment.

Argus' global head of oil products Stephen Jones told the forum held recently. Any actual demand recovery will depend on how quickly governments lift lockdown measures. One major unknown is how well the vaccines will deal with new variants of Covid-19.

In Europe, major oil products margins to the North Sea crude benchmark coalesced around $5/barrel by the end of January, according to Argus' European oil products editor Elliot Radley. This came in between a third and a half of their five-year averages.

A recovery toward pre-pandemic margin levels could be stimulated by lifting of lockdown measures and by major cuts to European production. Low margins have forced Europe's refiners to begin a phase of rationalization, and almost one million barrel per day of crude distillation capacity is either mothballed, shut down permanently or marked for various conversions to renewable-fuel processing.

European utilization has increased marginally since the second half of 2020, but remains close to 30-year lows, said Radley, with many refineries either offline or operating close to technical minimum rates. This reflects an oversupplied market, and oil product inventories are close to 30-year highs.

The third major uncertainty surrounding is how quickly environmental policies are adopted internationally, said Argus' head of European business development Josefine Ahlstrom. Argus Consulting — a division of Argus Media that provides forecasts and analyses separate and independent of Argus' news and price-assessment business — expects electric vehicles will make up 20% of the European vehicle fleet by 2030 and 50% by 2040. This could reduce gasoline demand by a third by 2030 as compared to 2019 levels.

Diesel demand is likely to be safer because commercial vehicles, which are more likely to retain internal combustion engines, make up a greater share of demand.

The EU's Renewable Energy Directive (RED) II calls for 14% of transport energy to be renewable by 2030, although this target could be increased as member states aim to meet ambitious greenhouse gas (GHG) emission targets. In the United States, the recent change of presidency could signal a revival of political momentum behind environmental legislation.

Overall, oil products demand is likely to fall slightly, and the share of renewables to increase rapidly.

Will ending war in Afghanistan be ever possible?

Speaking in Kabul on 14th February at the 32nd anniversary of withdrawal of the Soviet Union troops from Afghanistan, President, Ashraf Ghani, made an important distinction. 

The civil war that devastated Afghanistan after the withdrawal was caused not by the departure of Soviet troops, but by the failure to formulate a viable plan for Afghanistan’s future. As the United States intends to pull outs its troops from the country, it should keep in mind that lesson.

After withdrawing its troops from Afghanistan in 1989, the Soviet Union continued to provide financial support to the communist-nationalist regime, led by President Mohammad Najibullah. But, lacking domestic legitimacy, Najibullah’s regime quickly collapsed when Soviet Union withdrew its financial support in 1992, triggering the civil war. In 1996, the Taliban gained control of Kabul and, ultimately, the country.

The Taliban remained in power until 2001, when a US-led invasion—spurred by the 9/11 terrorist attacks—ended its rule. In February 2020, US President Donald Trump’s administration reached a deal with the Taliban intended to end the nearly 20-year-long war. The US and its NATO allies agreed to withdraw all troops by May 2021 if the Taliban fulfilled certain commitments, including cutting ties with terrorist groups and reducing violence.

The Taliban also have to engage in meaningful negotiations with the Afghan government, which was not involved in the deal. The Trump administration apparently hoped that an intra-Afghan peace agreement would materialize by the designated withdrawal date, ending the fighting and minimizing the risk that Afghanistan would become a haven for terrorists.

That hasn’t happened; the number of US troops has been reduced to around 2,000 troops, fighting in Afghanistan hasn’t decreased. On the contrary, a US watchdog agency reports that the Taliban carried out more attacks in the last quarter of 2020 than during the same period in 2019. Moreover, the latest intra-Afghan talks, which began in Doha in September, have produced virtually no results.

It seems that the Taliban’s plan was to keep fighting until US troops left, at which point they might be able to secure a victory in the long war. Now they face another possibility that US troops won’t leave nearly as expected. President Joe Biden’s administration has announced that it is reviewing the deal to determine whether the Taliban is ‘living up to its commitments’.

The Biden administration also has to decide the role NATO allies, which together have substantially more troops in Afghanistan than the US does. Keeping in view the post-Soviet experience, the US has to devise a plan for influencing the situation in Afghanistan and the region after the withdrawal.

The challenge is formidable; Afghanistan is one of the world’s poorest countries. Afghanistan’s state income amounts to little more than a third of what the US pays to sustain its various security forces, to say nothing of US aid to the civilian sector (it amounts to less than half of Europe’s contributions). In fact, Afghanistan has remained depended on outside support to sustain its statehood since Russia and Britain played their ‘Great Game’ in the 19th century.

It seems that the US is leaning towards maintaining some sort of security presence, focused on fighting the terrorists of al-Qaeda and the Islamic State, beyond the May deadline, an approach German Foreign Minister Heiko Maas has also advocated.

But there are risks. The Taliban could reject this solution, leading to an intensification of fighting and renewed attacks on international forces. Zalmay Khalilzad, the US special representative for Afghanistan reconciliation, is most likely already working to assess this risk.

The Taliban’s acceptance of a continued security presence may depend on progress in the intra-Afghan talks, though no one seems to have a clear vision for a power-sharing agreement. The gap between today’s Afghanistan and the Taliban’s desired Islamic Emirate is wide, and narrowing it will require a recalibration of the diplomatic process concerning Afghanistan.

The regional powers—including Iran, Russia and China—should be engaged in all talks about the country’s future, with one or two also taking a more active role in facilitating the intra-Afghan political dialogue. In this process, managing the dynamics between India and Pakistan, for which developments in Afghanistan hold profound national security implications will undoubtedly emerge as a key challenge. Indeed, at the moment Russia is taking the initiative in this regard.

The pressure in the US and elsewhere to end the ‘forever war’ in Afghanistan is understandable. But, as Ghani has warned, simply withdrawing international forces is unlikely to yield that result. To avoid a new spiral of violence, all stakeholders must first deliberate what may happen after the withdrawal of troops from Afghanistan.

Netanyahu terms Iran Nuclear agreement worthless

Israel will not rely on efforts to return to a nuclear deal with Iran, Prime Minister Benjamin Netanyahu said Tuesday. “Israel isn’t pinning its hopes on an agreement with an extremist regime like (Iran),” he said at a memorial service for the 1920 Battle of Tel Hai.

“With or without an agreement, we will do everything so Iran isn’t armed with nuclear weapons,” he added.

Referring to the story of Purim, which begins on Thursday night, Netanyahu said, “2,500 years ago, a Persian oppressor tried to destroy the Jewish people, and just as he failed then, you will fail today… We didn’t make a journey of thousands of years to return to the Land of Israel to allow the delusional ayatollahs’ regime to finish the story of the rebirth of the Jewish People.”

On Monday, Netanyahu met with Defense Minister Benny Gantz, Foreign Minister Gabi Ashkenazi, IDF Chief of Staff Lt.-Gen. Aviv Kochavi, Mossad Director Yossi Cohen, National Security Adviser Meir Ben-Shabbat, Ambassador to the US Gilad Erdan and others to discuss Israel’s strategy and response to the Biden administration’s attempted rapprochement with Iran.

The United States is seeking to start a dialogue with Iran and move toward a return to the 2015 Iran deal, US Secretary of State Antony Blinken recently said in a statement with the European countries that were party to the deal. Officials in Washington have called on Iran to return to compliance with the deal before the US would remove sanctions.

Officials in the meeting were split on whether Israel should advocate for the US to stay out of the Iran deal until it can get a better, more-secure agreement, or be more supportive of what US President Joe Biden’s stated plan is, to rejoin the Joint Comprehensive Plan of Action, as the 2015 Iran deal is officially called, and then negotiate tougher terms.

Netanyahu reportedly took the first, harder line, while Gantz and Ashkenazi supported a less-confrontational approach.

As indicated by Netanyahu’s remarks, open opposition to a return to the JCPOA is still on the table.

Rejoining “the old nuclear deal of 2015 that paves Iran’s path to an arsenal of nuclear bombs will be a mistake,” Erdan told KAN Reshet Bet on Tuesday.

If the US returns to the JCPOA by lifting sanctions, it won’t have any leverage to convince Iran to reopen negotiations for a stricter deal, he said.

Nevertheless, “a diplomatic solution is always preferable to a military solution,” Erdan said, adding that “the question is whether there will be an agreement that blocks any way Iran can get a nuclear weapon.”

The officials at Monday’s meeting agreed Israel should continue its ongoing dialogue with the Biden administration rather than opt for open confrontation, as it did in former US president Barack Obama’s second term.

Erdan emphasized the importance of dialogue during his interview with KAN Reshet Bet.

“The new US administration has shown a very honest and deep will to hold organized consultations with Israel, led by US National Security Advisor Jake Sullivan,” he said. “Israel is in a process of full dialogue with the Biden administration and they are listening to our stance – the American government and also central countries in Europe.”

Also Tuesday, the European parties to the JCPOA, known as the E3, said Iran’s decision to block snap inspections by the International Atomic Energy Agency was dangerous and a violation of the Iran deal.

The foreign ministers of France, Germany and the UK said they “deeply regret” that Iran suspended what is known as the Additional Protocol of the JCPOA.

“Iran’s actions are a further violation of its commitments under the JCPOA and significantly reduces safeguards oversight by the IAEA,” they said. “The E3 are united in underlining the dangerous nature of this decision.”

The foreign ministers said stopping snap inspections would limit IAEA access to nuclear sites and its ability to monitor Iran’s nuclear program and related activities.

“We urge Iran to stop and reverse all measures that reduce transparency and to ensure full and timely cooperation with the IAEA,” they said.

The foreign ministers said they seek to preserve the JCPOA and negotiate for Iran and the US to return to it.

The JCPOA’s additional protocol said the IAEA could hold short-term inspections in locations that Iran had not declared as nuclear sites.

Iran announced it would stop the inspections on Tuesday, going back on a prior agreement to extend them for three more months. The move was a response to the US not lifting sanctions on the regime.

Israel views the E3 as more open to the Israeli position than in the past due to Iran’s repeated violations of the deal’s limitations, KAN reported.

In recent weeks, Iran announced it would enrich uranium up to 20% and produce uranium metal, which the E3 said has no credible civilian use.

Israel has increased pressure on the E3 to try to talk them out of rejoining the old Iran deal, with many more discussions about Iran than usual, KAN reported.

Saudi Arabia and Russia once again on opposite sides

Saudi Arabia and Russia once again seem to be propagating opposite stance prior to OPEC plus meeting scheduled in March. While Riyadh is publicly urging fellow members to be extremely cautious, Moscow is demanding increase in output.

When OPEC plus gathers on 4th March, it will discuss increasing output in April. There will be two crucial decisions.

First, the group as a whole must choose whether to restore as much as 500,000 barrels a day. Second, Saudi Arabia must decide the fate of one million barrels a day of extra voluntary cuts and clearing surplus inventories even more quickly.

The kingdom initially announced this reduction would be reversed in April, but their latest thinking is fluid and the next move hasn’t been finalized. Offering to maintain some part of this voluntary cut in April could give Riyadh a useful bargaining chip if it’s seeking to limit the group’s overall output increase.

Some easing in production restraint is likely at the March meeting. The real bargaining has yet to start and no decision has been pre-baked.

Having differed over the pace of supply increases at the last two ministerial meetings, public comments from Riyadh and Moscow indicate that another debate looms.

Russian Deputy Prime Minister Alexander Novak said on 14th February that the market was balanced. While he hasn’t publicly expressed a policy preference for the March discussions, Novak argued at the last two OPEC+ meetings for production increases.

Acknowledging his stance might be unpopular; Saudi Energy Minister Prince Abdulaziz bin Salman warned his fellow producers against complacency. The group must recall the scars of last year’s crisis and be extremely cautious in its next move, he said.

This year’s 20% rally in crude prices has been sharp enough for major consumers such as India to complain about the squeeze, and for Wall Street banks and trading houses to predict further gains.

Global inventories are falling very fast and are set to diminish sharply later this year, according to the International Energy Agency. Demand for petroleum products that cater to societies working and consuming at home is booming.

After freezing storms in Texas shuttered as much as 40% of US crude production in the past week, the clamor for barrels from refiners in some regions has grown stronger. There’s also the risk for OPEC plus that, once the weather-related disruption in the shale heartlands abates, high prices would provoke a new flood of supply.

At the same time, inventories remain significantly above average levels and the IEA forecasts they could pile up again next quarter. The supply disruption from the US freeze won’t last long enough to cause a shortage.

Prices are still below the levels most OPEC members need to cover government spending. Saudi Arabia’s one million barrels cut is a gift. If an attempt is made to snatch back this gift, prices would decline only.

Can Russia and China restore balance to JCPOA?

As the United States doubles down on its diplomatic effort to reach a common consensus with Europe on the 2015 Iran nuclear deal, pundits raise speculation on how the European Union, particularly EU Foreign Policy Chief Josep Borrell, can save the day by setting the stage for Iran and the US to ultimately implement the nuclear deal in full.

These pundits rarely point to the fact that the European signatories to the nuclear deal – Joint Comprehensive Plan of Action (JCPOA) – have lost the neutrality needed to act as a go-between since Joe Biden won the US presidential election in November. The Europeans are now harboring even more hawkish views than Washington itself.

During the Trump administration, the European parties to the JCPOA – France, Germany and the UK (E3) – had been calling on Iran to fully implement the nuclear deal in the hope that Trump would lose the presidential election and then they will revive the JCPOA in collaboration with a more favorite Democratic administration.

Trump lost the election and was replaced by someone who had played a direct role in negotiating the JCPOA in the first place. But the Europeans were quick to renege on their promise to salvage the nuclear deal. They called for a new negotiation with Iran after Biden assumed office, one that would expand the JCPOA and add other thorny issues such as Iran’s defensive missile program and its regional activities to it.

The top diplomats of the E3 and the US reiterated this position during a recnt joint meeting.

“The E3 welcomed the prospect of a US and Iranian return to compliance with the JCPOA. The E3 and the United States affirmed their determination to then strengthen the JCPOA and, together with regional parties and the wider international community, address broader security concerns related to Iran’s missile programs and regional activities. We are committed to working together toward these goals,” the chief diplomats said in a joint statement after the meeting.

The Europeans are now planning an informal meeting of all JCPOA participants and the US. Citing a European official, Reuters said that the date of this meeting is yet to be set.  The official also pointed to a US willingness to accept an invitation from the EU to participate in a meeting of the P5+1.

Earlier, US State Department spokesman Ned Price said Washington was willing to attend a meeting of the P5+1, although the US is not a member of this group of major world powers.

“The United States would accept an invitation from the European Union High Representative to attend a meeting of the P5+1 and Iran to discuss a diplomatic way forward on Iran's nuclear program,” Price noted, referring to the UN Security Council's five permanent members and Germany.

Price’s remarks signified a U.S. desire to walk into the P4+1 with the help of the E3 even before lifting its sanctions on Iran.

Iran’s Foreign Ministry spokesman Saeed Khatibzadeh reminded the West that the US is still not a JCPOA member and the only way to get the JCPOA membership is to lift sanctions.

Because of US withdrawal from JCPOA, there is NO P5+1. It is now only Iran and P4+1. Remember, Trump left the room and tried to blow it up. Gestures are fine. But to revive P5+1, US must act lift sanctions. We will respond, Khatibzadeh said on Friday.

But while the E3 tries to sneak the US in the JCPOA without lifting the sanctions, two JCPOA parties, namely China and Russia, can ensure that the US would rejoin the nuclear deal after correcting the mistakes Trump made against Iran.

China took a step in this regard by saying that US should unconditionally return to the JCPOA and lift all sanctions.

Speaking at a news conference, China’s Foreign Ministry Hua Chunying said, “Currently the Iranian nuclear issue is at a critical stage with both opportunities and challenges. China holds that the return of the United States to the JCPOA is the only correct approach to resolve the impasse on this issue. All parties should act with greater urgency, work together to implement consensus reached at the foreign ministers' meeting last December, and push for the unconditional return of the United States to the JCPOA as soon as possible and the lifting of all sanctions on Iran. On its part, Iran should resume full compliance with the JCPOA. In the meantime, we call on all sides to remain calm and exercise restraint, avoid taking actions that will escalate the situation and reserve space for diplomatic efforts.”

Russia, for its part, reminded the West why the JCPOA ended up a failed deal. Dmitry Peskov, spokesman for the Kremlin, has welcomed a US decision to rescind the Trump administration’s restoration of all UN sanctions on Iran in September.

Peskov also said that the main reason for the non-implementation of the JCPOA is the sanctions pressure that the US put on Iran.

Also, Russian Deputy Foreign Minister Sergey Ryabkov told TASS that Iran cannot be suspected of carrying out a covert nuclear weapons program as the E3 and the US ramped up pressure on Iran, accusing it of pursuing nuclear activities that have no civil justifications.

“We have always said and are saying now that a state, which has an agreement on comprehensive guarantees with the International Atomic Energy Agency (IAEA) and which has been committed to this deal - and Iran has such an agreement, and a state, which has been fully observing the JCPOA for a long time, cannot be suspected of carrying out a covert program on weaponization in the nuclear field,” Ryabkov noted.

With the E3 working to pave the way for a US return to the JCPOA without lifting the sanctions, Russia and China have a unique opportunity to ensure that the dispute around the JCPOA is resolved reasonably. They need to make it clear to the West that a dispute settled unfairly is bound to break out in the not-so-distant future.

Iran to launch direct shipping line to South Africa and Latin America

Iran has expressed its plan to launch a direct shipping line to South Africa and Latin American countries in near future; this was stated by an official with the Iranian Chamber of Cooperatives (ICC). Babak Afghahi, Head of non-oil trade and export development committee of ICC stated that the proposed shipping line will connect Southern Iranian ports to the ports of South Africa and then to Latin American countries, specifically Brazil.

He said, shipping line is going to be launched with the support of the Islamic Republic of Iran Shipping Lines (IRISL) and is aimed at developing Iranian non-oil trade with the countries in the mentioned regions.

“With the support of the Islamic Republic of Iran Shipping Lines, considering the capacity of Iran's cargo export to the mentioned destinations, the chambers of commerce across the country, the Trade Promotion Organization (TPO) of Iran and other export bodies have been informed about the new development,” Afghahi said.

As reported by IRNA, the Islamic Republic’s trade with South Africa reached US$43 million in the first six months of the previous Iranian calendar year, while the figure stood at US$27 million in the same period a year ago.

Following a new strategy for boosting non-oil trade and distancing the country’s economy from oil, Iran has been launching several direct shipping lines to its major trade destinations over the past few years.

Earlier this month, the Head of Iran-Syria Joint Chamber of Commerce Keyvan Kashefi announced the establishment of a direct shipping line between Iran’s southern port of Bandar Abbas and Syria’s Mediterranean port of Latakia.

Iran has also launched five direct shipping lines to Oman and is planning to establish direct routes to Qatar, India, Turkmenistan, and Russia as well.

Crude oil outlook remains gloomy

Oil prices declined after climbing to the highest in more than a year. Prices fell for a second day on Friday, retreating further from recent highs, as Texas energy companies began preparations to restart oil and gas fields shuttered by freezing weather and power outages. 

US energy firms during this past week cut the number of oil rigs operating for the first time since November 2020.

Brent crude futures ended the session down 1.6% at US$62.91/barrel, while US benchmark, West Texas Intermediate (WTI) fell 2.1%, to settle at US$59.24. For the week, Brent gained about 0.5% while WTI fell about 0.7%. This week, both benchmarks had climbed to the highest in more than a year.

Price pullback thus far appears corrective and is slight within the context of this month’s major upside price acceleration. Unusually cold weather in Texas and the Plains states curtailed up to 4 million barrels per day (bpd) of crude production and 21 billion cubic feet of natural gas, analysts estimated.

Texas refiners halted about a fifth of the nation’s oil processing amid power outages and severe cold. Companies were expected to prepare for production restarts on Friday as electric power and water services slowly resume.

While much of the selling relates to a gradual resumption of power in the Gulf coast region ahead of a significant temperature warm-up, the magnitude of this week’s loss of supply may require further discounting given much uncertainty regarding the extent and possible duration of lost output.

A point worth noting is that oil prices fell despite a surprise drop in the US crude stockpiles, before the big freeze hit. Inventories fell 7.3 million barrels to 461.8 million barrels, their lowest since March last year, the Energy Information Administration reported on Thursday.

Vaccines and the impressive rollouts have delivered strong gains, as have the efforts of OPEC plus - Saudi Arabia, in particular - and the big freeze in Texas, which gave oil prices one final kick during the week. With so many bullish factors now priced in, it seems some of these positions being unwound.

The United States on Thursday said it was ready to talk to Iran about returning to a 2015 agreement that aimed at preventing Tehran from acquiring nuclear weapons. Still, analysts did not expect near-term reversal of sanctions on Iran that were imposed by Trump administration.

This breakthrough increases the probability of Iran returning to the oil market soon, although there is much to be discussed and a new deal may not be a carbon-copy of the 2015 nuclear deal.

Lately, oil prices climbed on hopes that the US stimulus package will boost the economy and fuel demand, as supplies tighten due largely to output cuts by top producing countries. The rally was also in anticipation of the US President Joe Biden meeting with a bipartisan group of mayors and governors as he keeps pushing for approval of a US$1.9 trillion coronavirus relief plan to bolster economic growth and help millions of unemployed workers.

Oil prices have risen due to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the group OPEC+. Oil prices remained buoyed by further signs that crude stocks, particularly in the US were falling. Analysts anticipate that inventories will fall further later this year as transport fuel demand revives in tandem with the easing of virus-related restrictions on travel.

OPEC this week ratcheted down expectations for global oil demand to recover in 2021, trimming its forecast to 5.79 million bpd. The International Energy Agency (IEA) said oil supply was still outstripping global demand, though COVID-19 vaccines are expected to support a demand recovery.

The (IEA) report paints a more pessimistic picture than market participants have presumably been envisaging given the current high prices. Demand data from the world’s biggest oil importer also paints a bleak picture.

The number of people who travelled in China ahead of Lunar New Year holidays plummeted by 70% from two years ago as coronavirus restrictions curbed the world’s largest annual domestic migration, official data showed.

The US drillers this week added oil and natural gas rigs for a 12th week in a row, the longest streak of additions since June 2017.

According to secondary sources, OPEC crude oil production averaged 25.50 million bpd in January 2021, up 180,000 bpd from December 2020, with output rising in top producer Saudi Arabia, as well as in Venezuela and Iran, which are exempt from the OPEC+ cuts.

Satellite images reveal Israel expanding Dimona nuclear site

Recently released satellite images reveal that Israeli — the sole possessor of nuclear arms in West Asia — is conducting significant activities at the highly secretive Dimona nuclear facility in the Negev Desert. The construction site is located in the immediate vicinity of the buildings that house the nuclear reactor and the reprocessing plant.

Citing commercial satellite imagery of the facility, the International Panel on Fissile Material (IPFM), a group of independent nuclear experts from 17 countries, reported that significant new construction had been underway at the Dimona complex.

The IPFM’s website said the construction had “expanded and appears to be actively underway with multiple construction vehicles present.”  However, it added, the purpose was not known.

It was unclear when the construction work began, but Pavel Podvig, a researcher with the program on science and global security at Princeton University, told The Guardian that the project had apparently been launched in late 2018 and 2019.  “But that’s all we can say at this point,” he added.

Reportedly, Israel has tightly withheld information about its nuclear weapons program, but the regime is estimated to be keeping at least 90 nuclear warheads in its arsenal, according to the non-profit organization Federation of American Scientists (FAS).

The warheads, FAS said, had been produced from plutonium obtained at the Dimona facility’s heavy water reactor.

According to reports, Dimona, which is widely believed to be the key to Israel’s nuclear arms manufacturing program, was built with the assistance from the French government and activated sometime between 1962 and 1964.

Israel has acknowledged the existence of the Dimona nuclear reactor, but neither confirms nor denies the purpose of the facility, which is assumed to be the manufacturing of nukes.

Meanwhile, environmentalists have warned that Dimona — one of the world’s oldest nuclear facilities — could pose enormous environmental and security threats to those living in the area and to the entire West Asia region, calling on the regime to shut down the complex.

Turning a deaf ear to international calls for nuclear transparency, Israel has so far refused, with the US support, to join the Non-Proliferation Treaty (NPT) that is aimed at preventing the spread of nuclear weapons.

 

Iran agro products export terminal inaugurated

President Hassan Rouhani inaugurated the first phase of Iran’s biggest agricultural products export terminal. It has been constructed with an investment of US$171 million in the Northern Mazandaran province. The terminal spread over 31,000 hectares of land is situated in Jouybar city.

Marketing, exporting products, creation and introduction of Iranian brands in global markets, reforming the distribution system and regulation of the market of agricultural products are the primary goals of the export terminal.

Speaking in the opening ceremony, the terminal’s Head Khalil Gholizadeh said, the first phase of this export terminal with a capacity of more than 364,000 tons has different sections for sorting and packing fruits, producing carton boxes, freezing protein materials that has created direct jobs for 300 people.

The export terminal includes 57 cold storage halls and has the capacity for freezing 80 tons of agricultural products and producing 6,000 tons of carton boxes every day, as well as the annual packaging of 274,000 tons of various agricultural products and the storing of 90,000 tons of vegetable and protein products at above and below zero temperatures.

The regulation of the market of agricultural products, especially horticulture products, as one of the most important advantages of this terminal and call for the support of public and private banks in providing working capital for the country’s agricultural units.

Offering complete supply chain, including the packaging industry is one of the main requirements of the country’s export terminals for agricultural products. Supporting the chain needs of this export terminal and setting up export terminals for similar agricultural products in other provinces are the requirements for boosting export of Iran

As announced by an official with the Islamic Republic of Iran Customs Administration (IRICA), the value of the country’s agricultural products export has risen 8.4 percent during the first ten months of the current Iranian calendar year as compared to the same period in the past year. Mehrdad Jamal Orounaqi, the IRICA deputy head for technical and customs affairs, put the value of exported products at US$4.9 billion in the ten-month of the present Iranian calendar.

The official said the weight of agricultural products exported in the mentioned period has risen by almost 26% to 7.085 million tons. Iran had exported 5.6 million tons of agricultural products worth US$4.5 billion during the first ten months of the previous year.

Details of agricultural exports in the period under review show that 2.4 million tons with a value of more than US$2.1 billion comprises of 10 major agricultural products, among these pistachio is at the top of the list.

The share of pistachios with fresh or dried skin is 147,000 tons worth more than US$920 million, and the export of fresh or dried pistachio kernels is about 15,000 tons worth more than US$170 million.

Eight countries were the export destinations of the 10 major exported products which shows that there is a wider distribution than before in the export of these items between countries.

Iran exported over US$5.8 billion worth of agricultural and foodstuff products in the previous Iranian calendar year (ended on March 19, 2020), the Head of Agriculture Ministry’s Planning and Economic Affairs Department Shahrokh Shajari has announced.

Watermelons, apples, tomatoes, potatoes, onions, and shallots were the top five exported products in the previous year in terms of weight, while in terms of value, pistachios, apples, tomatoes, pistachio kernels, and watermelons were the five major exported items.

WTO appoints first woman and African head

Nigerian economist, Ngozi Okonjo-Iweala has been appointed to head World Trade Organization (WTO), becoming the first woman and first African to take on the role amid rising protectionism and disagreement over how the body decides cases involving billions in sales and thousands of jobs.

Ms Okonjo-Iweala, 66, was named Director General by representatives of the 164 countries that make up the WTO, which deals with the rules of trade between nations based on negotiated agreements.

She said during an online news conference that she was taking over at a time when the WTO was "facing so many challenges".

"It's clear to me that deep and wide-ranging reforms are needed … it cannot be business as usual," she said.

Her first priority will be quickly addressing the economic and health consequences of the COVID-19 pandemic.

Strategies may include lifting export restrictions on supplies and vaccines, and encouraging the manufacturing of vaccines in more countries.

Other big tasks include reforming the organization’s dispute resolution process and finding ways for trade rules to deal with change like digitalization and e-commerce.

She takes over after four turbulent years in which former United States president Donald Trump used new tariffs, or import taxes, against China and the European Union to push his America-first trade agenda.

"It will not be easy because we also have the issue of lack of trust among members which has built up over time, not just among the US and China and the US and the EU … but also between developing and developed country members and we need to work through that," she said.

I absolutely do feel an additional burden, I can't lie about that ‑ being the first woman and the first African means that one really has to perform.

"All credit to members for electing me and making that history, but the bottom line is that if I want to really make Africa and women proud I have to produce results, and that's where my mind is at now."

The appointment, which takes effect on 1st March 2021, came after United States President Joe Biden endorsed her candidacy, which had been blocked by Trump.

Biden's move was a step toward his aim of supporting cooperative approaches to international problems after Trump's go-it-alone approach that launched multiple trade disputes.

But unblocking the appointment is only the start in dealing with US concerns about the WTO that date back to the Obama administration.

The US had blocked the appointment of new judges to the WTO's appellate body, essentially freezing its ability to resolve extended and complex trade disputes.

The US Government has argued the trade organization is slow-moving and bureaucratic, ill-equipped to handle problems posed by China's state-dominated economy, and unduly restrictive on US attempts to impose sanctions on countries that unfairly subsidies their companies or export at unusually low prices.

Chad P. Bown, senior fellow at the Peterson Institute for International Economics, said unblocking Ms Okonjo-Iweala's appointment was "a very good first step" in re-engaging with the WTO.

In particular, the WTO faces "a ticking time-bomb" in the form of other countries' challenges to Trump's use of national security as a justification for imposing tariffs, a little-used provision in US law rejected by key US trading partners in Europe.

Ms Okonjo-Iweala has been Nigeria's finance minister and, briefly, foreign minister, and had a 25-year career at the World Bank as an advocate for economic growth and development in poorer countries.

She rose to the number two position of Managing Director, where she oversaw US$104.1 billion in development finance in Africa, South and Central Asia, and Europe.

In 2012 she made an unsuccessful bid for the top post with the backing of African and other developing countries, challenging the traditional practice that the World Bank is always headed by an American.

She has a bachelor's degree in economics from Harvard University and a PhD in regional economics and development from the Massachusetts Institute of Technology.

South Korean Trade Minister Yoo Myung-hee withdrew her candidacy, leaving Ms Okonjo-Iweala as the only choice.

Her predecessor, Roberto Azevedo, stepped down on 31st August 2020, a year before his term expired.

Netanyahu first leader in Middle East to get a call from Biden

US President, Joe Biden and Israeli Prime Minister Benjamin Netanyahu spoke on phone; nearly a month after Biden assumed the charge. Netanyahu was the first leader in the Middle East to get a call from Biden. The conversation lasted for nearly an hour. 

The two leaders noted their personal ties of many years and said they will work together to continue bolstering the strong alliance between Israel and the US.

The leaders agreed to continue a dialogue between them to promote peace agreements between Israel and states in the region, the Iranian threat and regional challenges.

Biden congratulated Netanyahu for his leadership in fighting the COVID-19 pandemic and they exchanged opinions on the matter.

Biden affirmed his personal history of steadfast commitment to Israel's security in call with Israeli Prime Minister Netanyahu.

Biden emphasized US support for recent normalization of relations between Israel and countries in the Arab and Muslim word and underscored importance of working to advance peace throughout the region, including between Israelis and Palestinians.

“It was a good conversation,” Biden later told reporters in the Oval Office, where he was meeting US labor leaders.

The phone call came a day before US Secretary of State Antony Blinken is expected to hold a video conference with his counterparts in UK, France and Germany that are party to the 2015 Iran deal. The meeting comes after Tehran announced it would not allow snap inspections by the International Atomic Energy Agency if the US does not lift sanctions imposed since 2018 by February 21.

The Biden administration seeks to rejoin the nuclear deal, which former US president Donald Trump left in 2018, as long as Tehran returns to full compliance with its limitations.

Israel is opposed to the deal, which would eventually permit Iran to enrich high levels of uranium that could lead to the development of a nuclear weapon. In recent weeks, Iran has begun enriching uranium to 20%, far beyond the limitations of the 2015 deal, and developing uranium metal.

The delay in Biden’s call sparked speculation that the president was distancing himself from Netanyahu, possibly in light of the prime minister’s tense relationship with former US President Barack Obama, under whom Biden was vice president, and his especially warm one with Trump, including after Biden won the 2020 election.

Netanyahu rejected those theories, most recently in an interview with Army Radio on Wednesday afternoon hours before the call, in which he said “Joe Biden is my personal friend for 40 years” and that he believes Biden will advance further peace agreements between Israel and Arab and Muslim states.

Blinken and US National Security Advisor Jake Sullivan each called their Israeli counterparts twice in recent weeks.

Advisers for some of Netanyahu’s political rivals said officials in the Biden administration told them they were maintaining the strong US-Israel relationship while relaying a message that there would be “no special relationship” between Netanyahu and Biden.

Quad seeking collaborative defence arrangement to counter China

The effectiveness with which Russia and China have been able to exploit situations to make territorial gains has exposed a chronic vulnerability for collective defence regimes. Collective defence risks are becoming weaker for an era of strategic competition in the grey zone. The Quad implicitly acknowledges this and has developed as a collaborative defence arrangement that has the capacity to respond to the sorts of threats China poses.

For the Quad to succeed, Australia, India, Japan and the United States need to work together using force—or tactics that is either above or slightly below the threshold of armed conflict to block Chinese attempts to seize territory. They members need a coherent strategy to counter China’s other activities below the threshold of armed conflict.

This requires broad understanding of the defence using different elements of national power to counter a range of coercive threats. Each member needs to understand which levers should be pulled at what times in a coherent strategy that thwarts Beijing’s ability to achieve its political objectives at each stage of competition or conflict.

The more coercive the power China mobilizes, the fewer levers of national power the Quad members would need to pull. In a hypothetical example in the first part of this series, let us explore how Quad members might develop an effective military response to a Chinese attempt to seize Pratas Island from Taiwan. In that case, the four members of the Quad would be pulling down heavily on the military levers of national power—albeit at different stages of the conflict and in different theatres.

Responding to the most coercive of China’s threats is the easiest part of the Quad’s job. It gets harder if China mobilizes less coercive power when threatening the Quad’s interests in the Indo-Pacific. This is where the distinction between collective defence and collaborative defence becomes the key.

Over time, China has reclaimed land and transformed islands into military facilities that have increased its ability to project power across the Western Pacific. This has raised the costs for the US to defend its treaty allies, which undermines its presence in Asia.

For Japan and Australia, China’s South China Sea facilities pose a threat to the freedom of navigation each relies on for trade.

In India, the stakes may not be as high, but any erosion of international norms in the South China Sea would set an unwelcome precedent as the Chinese military increases its presence in the Indian Ocean. The differing stakes for each country in the Quad have made a collective response impossible.

However, an effective response to China’s grey-zone coercion need not be ‘collective’. In 2017, Ely Ratner, Biden’s top China adviser at the Pentagon, argued in Foreign Affairs that the US should ‘abandon its neutrality and help countries in the region defend their claims’.

Ratner suggested that the US help treaty allies such as the Philippines with joint land-reclamation projects, increased arms sales and improved basing access. Other Quad members would also need to draw upon their own bilateral partnerships to help claimant states build resilience to Beijing’s grey-zone operations. The Quad would be a subtle means of helping Southeast Asian claimants defend their sovereignty against China’s creeping expansionism.

Ratner’s proposal shows collaborative defence in action with the aid of the Indo-Pacific’s established great power. While Washington is laying the groundwork to compete with China in the grey zone, Australia could strengthen its maritime capacity-building initiatives and joint naval exercises with Malaysia and Indonesia in archipelagic Southeast Asia.

India and Japan could each increase the frequency of their bilateral naval exercises with Vietnam. The Quad could agree to conduct Exercise Malabar in the South China Sea, while members of the ‘blue dot network’ could jointly finance critical infrastructure projects in littoral states. An effective strategy would require each Quad member to use a mix of diplomacy, aid, military exchanges, arms sales, joint exercises and new basing infrastructure.

None of these initiatives will achieve results immediately, but nor did China’s island-building campaign. Over time, each initiative will shift the burden of escalation back to China. With each Quad member working independently and collaboratively to embolden claimant states to defend their maritime rights, Beijing will incur new risks when rotating new fighters on Fiery Cross Reef or contemplating further incursions into the Natuna Islands.

Collaboration will allow each Quad member to find out how best to draw on its bilateral partnerships to embolden claimant states to defend their interests. The Quad will be invisible, but omnipresent in Southeast Asia. That’s precisely the threat that Beijing doesn’t want to deal with.

To succeed as a collaborative defence arrangement, the Quad needs to be guided by three principles. Its members need to work independently on their bilateral relationships to improve claimant states’ ability to defend their interests; they must exercise together whenever strategic circumstances require it; and they need to share notes on regional strategy, knowing it will be much harder for China to secure further territorial gains if it’s on the back foot.

Israel not to engage with Biden on Iran nuclear strategy

Israel has openly declared, it would not engage with US President Joe Biden on strategy regarding the Iranian nuclear program, urged tougher sanctions and a credible military threat against Iran, its arch-enemy. 

"We will not be able to be part of such a process if the new administration returns to that deal," Ambassador to United States, Gilad Erdan told Israel's Army Radio.

The remarks by Israel's envoy to Washington came at a touchy juncture for Prime Minister Benjamin Netanyahu. Up for re-election next month, he has revived his hard line on Iran, while not yet having any direct communication with Biden.

Joe Biden has expressed repeatedly, the US return to a 2015 nuclear deal with Tehran - which former President Donald Trump had quit, restoring sanctions - if the Iranians recommit to their own obligations. Washington has also said it wants to confer with allies in the Middle East about such moves.

"We will not be able to be part of such a process if the new administration returns to that deal," Ambassador Gilad Erdan told Israel's Army Radio.

Netanyahu aides have privately questioned whether engaging with US counterparts might backfire, for Israel, by falsely signaling its consent for any new deal that it still opposes.

Israel was not a party to the 2015 deal. It has powerful advocates within the US Congress. However, Netanyahu's threats to take unilateral military action on Iran if he deems diplomacy a dead end also figure into big-power planning.

"We think that if the United States returns to the same accord that it already withdrew from, all its leverage will be lost," Erdan said.

"It would appear that only crippling sanctions - keeping the current sanctions and even adding new sanctions - combined with a credible military threat - that Iran fears - might bring Iran to real negotiations with Western countries that might ultimately produce a deal truly capable of preventing it breaking ahead (to nuclear arms)."

The Biden administration has said it wants to strengthen and lengthen constraints on Iran, which denies seeking the bomb.

Android based apps spying on Pakistanis

According to a US based cyber security company, two malware programs based on an Android platform that emerged in India have been spying on sensitive institutions. The report said it has discovered the two malware, Hornbill and SunBird, which are used by a cyber group named Confucius that first appeared in 2013 as a state-sponsored, pro-India actor primarily pursuing Pakistani and other South Asian targets.

"Targets of these tools include personnel linked to Pakistan’s military, nuclear authorities, and Indian election officials in Kashmir," the statement said.

"Hornbill and SunBird have sophisticated capabilities to exfiltrate SMS, encrypted messaging app content, and geo-location, among other types of sensitive information," it added.

Confucius had created in the past malware for Windows operating systems, but the group has been known developing mobile malware since 2017 when the spying app ChatSpy was created.

While SunBird has a remote access function that can execute commands on a device by an attacker, Hornbill is a surveillance tool that can extract data from users.

"SunBird has been disguised as applications that include Security services, such as the fictional “Google Security Framework”, Apps tied to specific locations (“Kashmir News”) or activities (“Falconry Connect” and “Mania Soccer”), Islam-related applications (“Quran Majeed”)," the report said.

The majority of applications appear to target Muslim individuals, the report added.

Both malware, which are circulated as fake Android apps, can access users' call logs, contacts, images, browser history, and they take screenshots and photos with the device camera.

Some major targets included an ''individual who applied for a position at the Pakistan Atomic Energy Commission, individuals with numerous contacts in the Pakistan Air Force (PAF), as well as officers responsible for electoral rolls (Booth Level Officers) located in the Pulwama district of Kashmir", the analysis found.

"The data included information on victims in Europe and the United States, some of which appear to be targets of spouse ware or stalkerware. It also included data on Pakistani nationals in Pakistan, India, and the United Arab Emirates that we believe may have been targeted by Confucius APT campaigns between 2018 and 2019," the detailed report added.

 

India trying to widen breach between Pakistan and Bangladesh

Indian high commissioner to Bangladesh Vikram Kumar Doraiswami on Monday indicated the trial of genocide committed by Pakistan during the 1971 liberation war can take place anytime as there is no statute of limitations in terms of times, reports UNB.

“I think we should be clear about it without getting into legal formalities…in other words, even if something happened long ago,” he said.

The High Commissioner said that there was no statute of limitation on any kind of arrangement that may have been arrived in and this is something entirely within the jurisdiction of the Government of Bangladesh to assess the history and see how this goes forward.

Doraiswami came up with the remarks when asked which provision of the 1974 tripartite agreement is holding back to try the Pakistani Generals who committed genocide during the war of liberation in 1971.

“History is history,” said the High Commissioner noting that the question is historically very relevant in this historic year when Bangladesh is set to celebrate the 50 years of its Independence.

The Indian diplomat was speaking at ‘DCAB Talk’ organized by the Diplomatic Correspondents Association, Bangladesh (DCAB) at the Jatiya Press Club. DCAB President Pantho Rahman and General Secretary A K M Moinuddin also spoke at the event.

Bangladesh has recently reiterated the importance of resolving outstanding bilateral issues with Pakistan, including an official apology from Pakistan for the genocide it committed during Bangladesh’s liberation war in 1971.

Bangladesh also sought completion of the repatriation of stranded Pakistanis in Bangladesh, and settling the issue of the division of assets.

Bangladesh has made it clear that it cannot forget the atrocities committed by Pakistan in 1971 and the pain will remain there forever.

United Arab Emirates appoints first ambassador to Israel

Ruler of Dubai and Vice President of United Arab Emirates, Sheikh Mohammed bin Rashid Al Maktoum has sworn in the country's first ambassador to Israel, Mohammed Mahmoud Al-Khaja, according to the Dubai Media Office.

The UAE's cabinet last month approved the establishment of an embassy in Tel Aviv in Israel, state media said, while Israel announced its embassy had opened in Abu Dhabi, after the UAE and Israel agreed to normalize relations.

Hundreds of Israelis booked flights and went to visit the Gulf state after the historical signature of the Abraham Accords. In light of this, the Tourism Ministry is hoping to attract many new tourists from the UAE as soon as travel returns when COVID-19 infection rates drop.

However, due to Israel closing its border in efforts to contain new coronavirus variants, hundreds of Israeli remained stuck in Dubai. 

In addition to tourism, Israel and the UAE are currently building bridges in a variety of sectors, from hi-tech to space exploration and ag-tech.

The UAE's Hope Probe success in entering orbit around Mars last week places it in the unique club of only five agencies able to reach the red planet so far. The Gulf state even has plans for settlements on Mars, which it hopes would become a reality in less than a century. 

Israel's own Beresheet moon project is meant to launch a second mission in three year's time. The scientific cooperation between the Start up Nation and the UAE is likely to be at the focus of diplomats, and think tanks, from both countries in the near future.

Israel and the UAE both had important milestones last year points to how important the current relations are. Israel and the UAE have many shared interests, whether it is a shared regional outlook about threats and instability, or the fact that both countries are close partners of the United States.

Both countries are also pioneering technology products, whether in fintech or food tech or other sectors, many of which have been on display, or will be soon, in joint ventures and exhibitions in the UAE which Israelis are taking part in.

For instance, Israeli companies flocked to the GITEX trade show last year and hope to be at IDEX in Abu Dhabi this month and also GISEC this summer.

Need for further consolidating Pakistan-Brazil diplomatic and trade relations

Brazil can be rightly termed an emerging economic power in the world – 6th by GDP after US, China, Japan, Germany and France. Brazil has been expanding its presence in international financial and commodities markets and is one of a group of four emerging economies called the BRIC countries.

The relations between Pakistan-Brazil are friendly and face zero issues. Brazil considers Pakistan an important country, and wants to promote relations in areas of trade, agriculture, defense, tourism and education. Brazil has been granting scholarships to Pakistani students and this number has been increasing over the years.

Brazil is keen in boosting bilateral trade ties with Pakistan as both countries have great potential to enhance trade in diverse fields. Pakistan produces a number of products which are in high demand in Brazil. Pakistani exporters should make efforts to enhance their exports to Brazil.

It is worth noting that number of Pakistani products go to Europe and then sold to other countries, including Brazil at high prices. Pakistan has opportunity to focus on promoting direct exports to achieve better results.

Although, Brazil was among the 5 largest world producers in 2013, its textile industry is very little integrated into world trade.

Brazil has great expertise in producing renewable energy. The country has been producing around 65% of its energy from water and using ethanol along with bio-fuels instead of costly petroleum products.

Pakistan has enormous potential for hydropower generation while it is also one of the largest sugar producers in the world. Brazil could cooperate with Pakistan in energy production from renewable sources including hydro and ethanol sources.

Keeping in view that the China-Pakistan Economic Corridor (CPEC) project will open trade doors for Pakistan with other countries, Brazil can find new markets in Pakistan and adjoining countries.

Pakistani handicrafts, carpets, fresh dry fruit, sporting equipment and other products enjoy reputation in international markets and can also find buyers in Brazil.

It is on record that Brazil is keen in investing in Pakistan. Brazilian government understands the need of international investment in Pakistan, particularly Baluchistan.

In the mining sector, Brazil stands out distinguished in the extraction of iron ore (second largest world exporter), copper, gold, bauxite (one of the 5 largest producers in the world), manganese (one of the 5 largest producers in the world), tin (one of the largest producers in the world), niobium (concentrates 98% of reserves known to the world) and nickel.

International Energy Agency paints pessimistic outlook for crude oil

Oil prices climbed more than 2% on Friday, hitting the highest levels in more than a year on hopes that the US stimulus package will boost the economy and fuel demand, as supplies tighten due largely to output cuts by top producing countries.

Brent crude settled up at US$62.43/barrel by 1:32 1832 GMT, after rising to a session high of US$62.83, the highest since 22nd January 2020. The US benchmark WTI ended the session at $59.47 after rising to a session high of US$59.82, the highest since 9th January 2020.

While Brent rose 5.3%, WTI notched a weekly gain of about 4.7%. The rally was in anticipation of the US President Joe Biden meeting with a bipartisan group of mayors and governors as he keeps pushing for approval of a US$1.9 trillion coronavirus relief plan to bolster economic growth and help millions of unemployed workers.

Oil prices have risen in recent weeks due to production cuts from the Organization of the Petroleum Exporting Countries (OPEC) and allied producers in the group OPEC+.

Oil prices held onto their recent gains this week, buoyed by further signs that crude stocks, particularly in the US were falling.

Analysts anticipate that inventories will fall further later this year as transport fuel demand revives in tandem with the easing of virus-related restrictions on travel.

Still, OPEC this week ratcheted down expectations for global oil demand to recover in 2021, trimming its forecast to 5.79 million bpd.

The International Energy Agency (IEA) said oil supply was still outstripping global demand, though COVID-19 vaccines are expected to support a demand recovery.

The (IEA) report paints a more pessimistic picture than market participants have presumably been envisaging given the current high prices.

Demand data from the world’s biggest oil importer also paints a bleak picture.

The number of people who travelled in China ahead of Lunar New Year holidays plummeted by 70% from two years ago as coronavirus restrictions curbed the world’s largest annual domestic migration, official data showed.

The US drillers this week added oil and natural gas rigs for a 12th week in a row, the longest streak of additions since June 2017.

According to secondary sources, OPEC crude oil production averaged 25.50 million bpd in January 2021, up 180,000 bpd from December 2020, with output rising in top producer Saudi Arabia, as well as in Venezuela and Iran, which are exempt from the OPEC+ cuts.

Joe Biden team dominated by Jews

US President Joe Biden has appointed a strong and experienced team, among them half of Jews, one wonders if there has ever been a more Jewish US administration. Here are the 15 Jews who comprise Biden’s team. It is believed that a vigorous American presence in world affairs, spearheaded by the Jewish team, is in Israel’s long-term interest, more than an ‘America first’ which makes the US largely irrelevant in global affairs.

• Antony Blinken, Secretary of State, is a veteran career diplomat. His stepfather, Samuel Pisar, was the only Holocaust survivor of some 900 children in his Polish school. He was rescued after fleeing from a Nazi death march and finding refuge in a US armed corps tank – an episode Blinken recounted movingly when Biden introduced him.

• David Cohen, Deputy CIA Director returns to this role after filling it from 2015 to 2017. Cohen is the son of a prominent Boston Jewish physician.

• Janet Yellen, Secretary of the Treasury is the first woman to fill this role; previously, she headed the Federal Reserve Board of Governors. A 2016 Trump attack ad featured three Jews, including Yellen, and reflected anti-Semitic tropes. She is a renowned labor economist. 

• Merrick Garland, Attorney-General was blocked from becoming a Supreme Court Justice by then-Senate majority leader Mitch McConnell, in the last year of the Obama presidency. After being nominated Garland spoke of his grandparents, who fled antisemitism in Europe and moved to the US.

• Avril Haines, Director of National Intelligence was deputy director of the CIA under Obama, the first woman to hold this job. Her mother was a well-known Jewish painter, Adrian Rappin (Rappaport) and Haines identifies with Israel; she visited Israel with her non-Jewish father. 

• Ron Klain, Chief of Staff was also Biden’s chief of staff in his vice presidential days. Klain speaks of his childhood synagogue in Indianapolis, where he learned multiple Torah portions for his bar mitzvah, and of his commitment to raising Jewish children. 

• Eric Lander, Director, Office of Science & Technology Policy is a leading geneticist. His position has been elevated to Cabinet level. Lander has spoken of being the subject of antisemitic criticism by James Watson, discoverer of the DNA double helix. 

• Rachel Levine, Deputy Secretary, Health and Human Services grew up in a Conservative Jewish home in Massachusetts. She is the first open transgender person to be nominated for a position requiring Senate confirmation.

• Alejandro Mayorkas, Secretary of Homeland Security was the Deputy Secretary of Homeland Security under Obama. He was born in Cuba, to a Cuban Jewish father and Romanian Jewish mother who survived the Shoah. He has worked closely with Jewish groups in the past. 

• Anne Neuberger, Director of Cybersecurity, National Security Agency is an Orthodox Jew, from Brooklyn, educated through college in Orthodox schools. She helped establish the US Cyber Command and led security efforts in the 2018 midterm elections. Her grandparents are Holocaust survivors and her parents were among the passengers on the Air France flight in 1976, kidnapped to Uganda and rescued in Israel’s Entebbe operation. She founded Sister to Sister, an NGO that serves single mothers across the US.

• Wendy Sherman, Deputy Secretary of State was born in Maryland to a Jewish family. Her father served in the Marines. She is the first woman to be appointed Deputy Secretary of State. A career diplomat, she was the lead negotiator for the controversial Iran nuclear deal. 

• Jeff Zients, COVID-19 Coordinator was born in Washington, DC, and was raised in Kensington, Maryland. His family is Jewish. From 2014 through 2017 he was the director of the National Economic Council. He will fill the crucial role of directing and coordinating efforts to overcome the COVID-19 pandemic.

• Rochelle Walensky, Director, Center for Disease Control and her husband are members of Temple Emanuel, in Newton, Massachusetts, a prominent Conservative synagogue. She is an expert on AIDS and HIV and served as Chief of Infectious Diseases at Massachusetts General Hospital, and professor at Harvard Medical School.

• Jared Bernstein, member, Council of Economic Advisors was the chief economist and economic adviser to Biden under Obama. 

• Douglas Emhoff is husband of US Vice President Kamala Harris. He is the first-ever husband of a US Vice President to enjoy a key position. He was born in Brooklyn, son of Jewish parents Barbara and Michael Emhoff. He grew up in New Jersey. He is an entertainment lawyer and teaches at Georgetown University Law Center.

 

 

Can appointment of Timothy Lenderking bring peace in Yemen?

On 4th February 2021, the Biden administration announced the appointment of Timothy Lenderking as the US special envoy to Yemen. In a televised speech, President Joe Biden said that by appointing Lenderking, the US is stepping up its diplomatic efforts to end the war in Yemen and by extension the humanitarian catastrophe the war has created. “This war has to end,” Biden said. 

“To underscore our commitment, we are ending all American support for offensive operations in the war on Yemen, including relevant arms sales,” he added. Two days later, the administration revoked the designation of the Houthis as a foreign terrorist organization (FTO), citing humanitarian concerns.

While Lenderking’s appointment is a much-needed step, the “end the Yemen war” discourse championed by Western policy analysts, diplomats, and peace advocates is highly problematic and disconnected from the reality on the ground. Since 2014, successive UN special envoys for Yemen have tried to broker a political settlement between the Hadi government and the Houthis to end the conflict and resume the political transition process that was thwarted when Houthi forces allied with former President Ali Abdullah Saleh and captured Sanaa in September 2014. This effort is commonly known as the “peace process” and is widely supported by the international community, including the permanent members of the UN Security Council and the European Union.

The urgency to reach a political settlement is largely driven by the desire to address the dire humanitarian situation in Yemen. The war has made the country the world’s worst humanitarian crisis. However, neither halting arms sales to the Saudi-led coalition nor reaching a power-sharing agreement between the Hadi government and the Houthis will end Yemen’s war or mitigate the humanitarian crisis. Yemen's conflict is multilayered and far too complex to be solved with a rushed political agreement. A political settlement under the current circumstances might be a quick win for American and Western diplomacy, but it will most likely reinforce the current power dynamics and lock Yemen into a cycle of perpetual war, bringing 30 million Yemenis closer to famine and pushing the country farther away from peace.

While the Biden administration can successfully put pressure on the Saudi-led coalition and the Yemeni government, it does not have the same leverage on the Houthis, who currently have the upper hand militarily. A political settlement risks tipping the military balance in favor of the Houthis, who have failed to demonstrate any commitment to cease-fires in the past.

The Biden administration appears to have revoked the FTO designation unconditionally in the hope that the Houthis will reciprocate and engage in negotiations in good faith. As former USAID official Dave Harden argues, the Houthis will perceive this rescission as a sign of American weakness. The move created widespread anger among Yemenis, who interpreted it as the Biden administration giving the Houthis a green light to continue their violence against civilians. The very next day after Biden’s decision to revoke the FTO designation, the Houthis mobilized their forces and launched a renewed offensive to seize the oil-rich city of Marib as well as cross-border drone attacks against Saudi Arabia.

In recent years, Yemen has paid the price for well-intentioned international interventions in the name of peace that have not only failed but also backfired. In 2011, the Gulf Cooperation Council (GCC) Initiative resulted in a power-sharing deal between former President Saleh and his opponents and outlined a plan for a political transition process. Focused primarily on the power struggle among the political elite while neglecting the long-standing grievances of ordinary Yemenis, the deal granted former President Saleh immunity, which effectively allowed him to remain in control of most of the armed forces. Saleh then allied with the Houthis and overthrew the government in September 2014, dragging the country into a devastating civil war.

Moving forward, the Biden administration should be cautious and assess the unintended consequences of using diplomacy to force a political negotiation process that fails to consider Yemen’s complex domestic dynamics and the reality on the ground. The Houthis are an ideologically-driven group that claims a divine right to rule as descendants of the Prophet Muhammad, defying the basic principles of democracy. They have built a police state that rules Yemenis through systematic repression. As part of Iran’s “Axis of Resistance,” they have a jihadist agenda that poses a threat not only to Yemen, but to the entire region. Their threat must not be taken lightly.

In order to address the Yemen problem, the Biden administration should first embrace the complexity of the conflict and develop a Yemen policy that reflects it. The administration has to come to terms with the fact that conditions might not be ripe to end the conflict, much less bring about peace. While it can hold the Saudi-led coalition accountable for their role in mismanaging the war and for the civilian casualties their intervention has caused, it is not the responsibility of the United States to solve the conflict. Second, rather than using its political capital to push through a shaky deal that will likely be counterproductive, the US administration should work with the Office of the Special Representative of the Secretary-General to Yemen Martin Griffiths to mitigate the impact of the conflict on civilians by easing access to humanitarian aid and opening airports, seaports, and key roads to cities. Third, it should work with Saudi Arabia to stabilize the Yemeni currency, support the local economy, and strengthen governance and security where possible.