Investors not likely to pay attention to FOMC and BoE announcements

The 2020 US Presidential Election hangs in the balance with an outcome that is too close to call. No winner has been declared at the time of publication and it could be days before the new President is announced. Trump’s campaign has already requested a re-count of ballots in Wisconsin and the same could be asked for other states.

An uncertain election outcome with a split government was worse case scenario for Wednesday but instead of crashing lower, stocks rallied hard with the Dow Jones Industrial Average up more than 700 points at one stage.  While this rally may seem counterintuitive, the two most likely outcomes are positive for the markets.

With a split government, even if Biden wins, sweeping policy changes like tax increases or more regulation are unlikely.  If Trump wins, investors can expect more business friendly policies.  The markets also liked the decision by Illinois voters to reject the fair tax amendment that would have introduced gradually higher taxes for those making over US$250,000 instead of their flat 4.95% tax regardless of income level. In California, voters rejected the push to provide benefits to drivers for food delivery and ride hail companies like Uber, Lyft and DoorDash. All of these decisions are good for corporate America and equities.  

Yet currencies did not follow equities higher. Most of the major currency pairs including EUR/USD, USD/JPY, USD/CHF and USD/CAD were unchanged on Wednesday. GBP/USD fell ahead of Thursday’s Bank of England Quarterly Inflation report and monetary policy announcement but AUD/USD and NZD/USD extended recent gains. 

The greenback is mixed as investors wait for the final tallies which may not be delivered until Friday. Counting in Pennsylvania is expected to go on until Friday and the secretary of the state of Michigan also said it could take until the end of the week for a winner to be declared.

Complicating matters further, Trump filed a lawsuit to halt ballot counting in Michigan. Typically currencies take their cue from Treasuries but USD failed to follow ten year Treasury yields, which are down more than 10%. 

The US Fed and the Bank of England have monetary policy announcements tomorrow and the question is will they even matter? The latest US economic reports haven’t been terrible. Manufacturing activity is up; service sector activity is flat but not contracting. Equities are holding steady and the latest decline in yields makes lending conditions easier. All of this gives the central bank little reason to act, especially with investors focused more on the election than stimulus. They’ve made it clear that interest rates will remain on hold for the next few years and that’s the message they’ll reinforce at Thursday’s meeting. 

The Bank of England on the other hand is widely expected to ease monetary policy. PMIs were revised lower today, underscoring the overall weakness of the economy. Very little progress has been made on Brexit talks and as the clock ticks towards next week’s soft deadline, the probability of a no deal Brexit is high.

The central bank also meets on the same day the country enters its four week long lockdown. The closure of pubs, restaurants, gyms and non-essential shops will have a severe impact on an economy that was already sputtering.  The central bank will not only lower its economic projections but will be taking steps tomorrow to avoid a double dip recession. More asset purchases are likely but the market wants to know if negative interest rates are next. 

World Health Organization selects Iran regional base for cooperation in the nutrition science and food industry

According to reports, World Health Organization (WHO) has selected National Institute of Nutrition and Food Industry Research of Iran as the regional base for cooperation in the nutrition science and food industry for Eastern Mediterranean countries.

The importance of food and nutrition in the world these days is felt more than ever. Even in some developed countries the issue of establishing the Ministry of Food and Nutrition has been raised, Jalaledddin Mirzaei Razzaz, head of the Nutrition and Food Technology Research Institute said.

In Iran, the ministries of health and agriculture were commissioned to make arrangements for food independence.

Iran was in close competition with countries such as Saudi Arabia and the United Arab Emirates, and finally, Iran was selected with the efforts made by the Ministry of Health, he explained.

He expressed hope that such international cooperation will improve food and nutrition in addition to people's health.

A report jointly prepared by FAO, IFAD, UNICEF, WFP and WHO shows that currently around 690 million people or 9% of the world population are hungry. Compared to the previous figures, this number is up by 10 million people in one year and by nearly 60 million in five years.

“The State of Food Security and Nutrition in the World 2020” also indicates that the number of people affected by severe food insecurity has experienced a similar upward trend over the last five years. In 2019, close to 750 million—or nearly one in ten people in the world—were exposed to severe levels of food insecurity. The figures reveal that about 2 billion people in the world did not have regular access to safe, nutritious, and sufficient food in 2019.

Considering the widespread impacts of the COVID-19 pandemic, it is estimated that the pandemic may add between 83 and 132 million people to the total number of undernourished in the world in 2020 depending on the economic growth scenario.

Also, the nutritional status of the most vulnerable population groups is likely to deteriorate further due to the health and socio-economic impacts of COVID-19.

While the burden of malnutrition in all its forms remains a challenge for the world, current estimates reveal that in 2019, 21.3% (144 million) of children under 5 years of age were stunted, 6.9% (47 million) wasted, and 5.6% (38.3 million) overweight.

The report states that healthy diets are unaffordable to many people, especially the poor, in every region of the world. The most conservative estimate shows they are unaffordable for more than 3 billion people in the world. Healthy diets are estimated to be, on average, five times more expensive than diets that meet only dietary energy needs through a starchy staple.

Under current food consumption patterns, diet-related health costs linked to mortality and non-communicable diseases are projected to exceed $1.3 trillion per year by 2030.

On the other hand, the diet-related social cost of greenhouse gas emissions associated with current dietary patterns is estimated to be more than $1.7 trillion per year by 2030.

According to the report, Iran experienced a relative reduction in the prevalence of undernourishment in its total population, dropping from 5.2% in the period of 2004-2006 to 4.7% in the period of 2017-2019. However, despite this improvement, the net number of people experiencing undernourishment increased to 3.9 million, from 3.6 million.

Israel the biggest resistance in easing US Iran conflict

In 2018, soon after becoming President of the United States Donald Trump withdrew from the 2015 Iran nuclear deal, calling it “the worse deal ever.” In response, Iran’s supreme leader, Ayatollah Khamenei, vowed never to renegotiate another nuclear deal with the United States. Iran must accept that if Trump is reelected, it will have no choice but to reengage in negotiations with the United States.

Based on his recent statements, including uttering during the peace ceremony between Israel, Bahrain and the United Arab Emirates, Trump appears eager to get back to the negotiating table. He may even try to get Senate approval (67 votes) to convert his deal into a treaty.

Former vice president Joseph Biden, if elected, is also expected to quickly negotiate a new deal with Iran, with the help of other participants of the deal. Some of his advisers have circulated working papers with the aim of getting “back to the JCPOA,” the 2015 Joint Comprehensive Plan of Action.

Many in Israel believe that Biden would offer up-front sanctions relief to bring Iran back to the table, without getting much in return. They insist, it was a bad idea in 2013, 2015 and would be problematic 2021. They openly say that since the United States withdrew from the JCPOA in 2018, the Iranian regime has engaged in nuclear blackmail, enriching more uranium, installing new centrifuges, enhancing its R&D efforts, and taking many other dangerous steps.

International Atomic Energy Agency (IAEA) has issued several reports expressing its concern, backed by Israeli findings that the Mossad captured during its daring raid on Iran’s then-secret atomic archive. They say, the international community has failed in taking any decision or decisive action. Europeans have contributed to this inaction. Iranians, meanwhile, have played their cards well, deferring any major decision until after the elections in United States.

In Israel there is a perception that no matter who negotiates, the dangers are clear. They allege, Iranians have a demonstrated history of fleecing American counterparts at the negotiating table. The American negotiators failed to seize the advantage, despite the fact that Iranian President Hassan Rouhani telegraphed his negotiation strategy in his 2010 book. They also say that the errors of the 2013–2015 negotiations, which yielded Iran massive sanctions relief and sunsetting restrictions, made that abundantly clear.

Israel insists that the new agreement must address all core weaknesses of the JCPOA. Indeed, it cannot be more of the same with some minor improvements. The goal must be to establish clear new terms so that the JCPOA’s vagueness does not persist. The deal should include an end to Iran’s support for terrorism, regional destabilization and other malign activities. This was all articulated by US Secretary of State Mike Pompeo in his “12 points” plan. It demands the new agreement should also include all three elements of Iran’s illicit nuclear program: fissile materials, weaponization, and means of delivery.

Israel insists that a new deal should be achieved only after the regime comes clean about its past, admits to previous violations and declares its past inventory. Even then, it will not be enough. The JCPOA included dangerous sunset clauses that expired over the course of a decade. Those must be removed for decades, with stricter monitoring and verification.

Some say the right agreement would never be accepted by Tehran. Acquiescence to such an agreement would tantamount to regime change given that it would run counter to the “revolutionary” aims of the Islamic Republic. But that does not mean that America’s president, Democrat or Republican, should accept anything less.

In a nutshell Israel demands, regardless of who wins this November, there should be a “sanctions wall” in place, and it should not be easy to take down. These sanctions should punish the wide range of Iranian terrorist activities, human rights violations and aggressive behavior.

No matter who wins, there is a risk that the next administration will be too occupies with concerns about China, followed by Russia and North Korea, relegating Iran to a lesser priority. This might soften the ground for a less stringent nuclear deal. More must be done to avoid this.

Israel believes, Trump if wins has an opportunity between now and January 2021 to sanction Iran’s entire energy sector as part of its “maximum pressure” scheme. It can also blacklist all of Iran’s nuclear agency workers.

The Biden team has indicated that it may lift sanctions on Iran. Some of his advisers believe that sanctions relief will help achieve an agreement that can help in avoiding war. It is being opposed on the pretext that sanctions can help reach the right agreement and prevent war. Propagators of this philosophy insist that the threat of war can be helpful. Indeed, without a credible military threat, the Iranians won’t come to the table willing to negotiate real changes to the JCPOA.

One significant change since the last round of talks is the peace agreements between Israel and three Arab countries (the United Arab Emirates, Bahrain and now Sudan). These countries and others strongly object to granting any concessions to Iran, in the nuclear file or with any of its other malign activities. The concerns of America’s regional partners were ignored last time but should not be ignored again. Their decisions to make peace with Israel were driven, in part, by their shared concerns about Iran and a future flawed deal.

Some former Israeli officials have recently suggested offering other red lines in a future Iran deal. However, others insist red lines do not yield desired results. They demand Israeli government should reject any compromises that give Iran the benefit of the doubt. The priority should be to convince the international community that business with Iran is off limits as long as its policies do not change.

US Elections: Likely Impact on Pakistan

The much anticipated elections in United States will come to a close on 3rd November 2020. The Republican President, Donald Trump, is being challenged by Democratic Party nominee Joe Biden, who is best known as Barack Obama's Vice-President but has been in US politics since 1970s.

Biden is leading National Presidential Polls by 52% to 43%. National polls are a good guide as to how popular a candidate is across the country, but these are not necessarily a good way to predict the outcome of the election.

In 2016, for example, Hillary Clinton led in the polls and won nearly three million more votes than Donald Trump, but she still lost – that is because the US uses an Electoral College system, so winning the most votes does not always win the election.

According to a report by Topline Securities, the outcome of US Elections 2020 is unlikely to have major repercussions on Pakistan unlike the past. Key areas that Pakistan will keep a close eye on, if Biden wins, will be his 1) trade policy with China, 2) ties with India, (3) policy on troops pull-out from Afghanistan and 4) financial assistance to Pakistan (including IMF).

Biden is likely to ease stance on China adopted by President Trump, who has termed China as the biggest threat to the US right now. This in turn is likely to be a positive for Pakistan, given long standing relationship between Pakistan and China and also the China Pakistan Economic Corridor (CPEC).

President Trump and Prime Minister Imran Khan have enjoyed a strong relationship, where President Trump in January 2020 hailed the growing relationship between the US and Pakistan. However, Trump’s close relationship with India has somewhat left a sour taste with Pakistan, where PM Imran Khan had recently said in an interview that Pakistan wants ‘even-handed treatment’ from the US with respect to India.

The brokerage house expects Biden to continue with Trump’s policy of US troops pull-out from Afghanistan, however in a more gradual and measured way.

Historically, Pakistan and Democrats have held a relatively more fruitful relationship, where it was under the Democrats that the Kerry-Lugar-Berman Act was approved – the largest civilian assistance package to Pakistan. However, it is under President Trump that Pakistan signed the latest IMF program. The US is the largest cumulative contributor to the IMF and the largest voting bloc – holding effective veto power for many decisions. 

Topline believes Financial Markets are likely to see a relief rally on the conclusion of the US elections given that uncertainty is likely to end.

Both the parties have failed reaching an agreement over a fiscal stimulus package, which it believes will be passed after the elections irrespective of the outcome of the elections.

The markets will be keen to see the structure of the government (President and the Senate).

At present, the US has a Republican President and a Republican Senate (though the House is Democrat).

A unified government is likely to be appreciated by the financial markets as a divided government is likely to result in policy standoff between the President and the Congress.

The US market’s reaction to a Republican win has been much better compared to a Democrat win. The PSX has largely mirrored US equities performance post the outcome of the US Elections

"Cannot force dialogue between Iran and Saudi Arabia", says Pakistani Prime Minister Imran Khan

In an interview with the German magazine Der Spiegel published on Friday, Pakistan’s Prime Minister Imran Khan said that he cannot “force” dialogue between Iran and Saudi Arabia.

Iran is fierce critic of the Saudi-led war on Yemen and has urged the Riyadh rulers to end the war on the fellow Arab country.  

“When I came to power, I immediately offered to mediate in Yemen. Such a colossal human rights disaster is going on there. I spoke to Iran and then I spoke with Mohammad bin Salman, Crown Prince of Saudi Arabia. But you can´t force anybody to agree on peace talks if they don´t want to,” Khan said when he was asked have you seen any progress in mediation efforts.

The United Nations has described human suffering in Yemen as the worst in modern history. A large percentage of the population is facing starvation.

Since Saudi Arabia launched war on Yemen in March 2015, Iran put forward a four-point plan for ceasing the war. However, Saudi Kingdom did not heed it. Iran called for an inclusive government in Yemen.

The new leadership in Saudi Arabia has been pursuing a hostile policy against Iran since King Abdullah died. 
 
Saudi Arabia along with Israel was also influential in prompting US President Donald Trump to ditch the 2015 nuclear deal and impose sanctions against Iran. Riyadh has welcomed every anti-Iran move by the Trump administration.

Despite all these hostile moves, Iran has said it is open to dialogue with Saudi Arabia.
 
The Pakistan prime minister also said a direct war between Iran and Saudi Arabia would be a “disaster” which will affect the entire world.
 
“It would be a disaster. It would be devastating for countries all over the world, especially the poor, and the price of oil would shoot up,” Khan warned.

 

Is Josh Reinstein the prime minister in making in Israel?

The famous or notorious manta of US administration is “Regime Change”. They had done this in many countries and are still playing in some other countries. It seems that Israel also needs a regime change. The next best man seems Josh Reinstein. He may be a little known to rest of the world but his caliber and mindset become evident when one reads excerpts from his interview published in The Jerusalem Post.

Josh Reinstein is Director of the Knesset Christian Allies Caucus (KCAC) and President of the Israel Allies Foundation (IAF). Born in Toronto, Reinstein grew up in Texas, graduated from the University of Western Ontario with a degree in political science. In 2000, he was enlisted in the IDF and served as a tank gunner in the 188th Armored Brigade. He is the owner and operator of JSR International Marketing, an international marketing and public relations firm based in Israel. He is the founder and producer of Israel Now News, a 30-minute weekly TV show broadcast to millions of Christians around the world.

Tell us about your new book and what motivated you to write it.

The book is really the culmination of the last 16 years of my life. In 2004, MK Yuri Shtern and I started the Knesset Christian Allies Caucus. It tracks the importance of faith-based diplomacy and how it affects political circumstances today in the 21st century. I started with Titus, the emperor who destroyed the Second Temple and declared victory over the God of Israel. He was so excited that he built the Arch of Titus, which was the biggest infrastructure project of its time. He was convinced he won, but for people who believed in the Bible, this was actually the beginning of prophecy. This was the time that the Jewish people were kicked out of the land of Israel and they always held on to the belief that one day we would be gathered in Israel, and Israel would once again be a light unto the nations. If you know the Bible, you realize that the destruction of the Second Temple wasn’t the end of our story, but if you didn’t know the Bible, you’d think that was the end of the Jewish people.

The same thing is happening today. If you don’t look at Israel through a biblical lens, you miss the real story. So all the predictions of what is supposed to happen in the Middle East, from the State Department and past administrations, have been flawed because they haven’t been looking at it from a biblical point of view. Christians are better equipped to support Israel because they do look at it from a biblical point of view. So it’s important not only to talk about the importance of faith-based diplomacy but also to describe why Christians are in a position to understand better what is happening in the Middle East and also to show who’s standing against people who believe in the Bible and where that’s coming from. Basically it is an overview of the last 16 years of my life, developing what we call faith-based diplomacy.

How do you view President Trump and his relationship with Israel?

I think if you look at it objectively, Donald Trump is the most pro-Israel president that we’ve ever had. And there’s been a long line of pro-Israel presidents, from Harry Truman and Ronald Reagan, of course. But none of them did anything compared to what Donald Trump has done. My organization, the Israel Allies Foundation, made a list in 2015 of the top 10 things that America could do for Israel, and our goal was in the next five years to get one of them done. Donald Trump, over the last three-and-a-half years, has done nine of them. It’s really unbelievable the amount of support we have seen from Washington DC. We’ve never seen anything like this before. He does such big things and so fast that a lot of people miss some of them.

What do you think are the top things he’s done?

He moved the US Embassy from Tel Aviv to Jerusalem. He stopped the Iran deal, which was allowing Iran to get nuclear weapons within 10 years and gave them billions of dollars in cash to promote terrorism around the world. He recognized Israeli sovereignty over the Golan Heights, which is something that we’ve been working on for a very long time. He passed the Taylor Force Act, which made it illegal for US funding to go to Palestinian terrorists. He defunded UNRWA (United Nations Relief and Works Agency) – the organization that was formed to perpetuate the Palestinian refugee problem around the world – by executive order. He legislated against antisemitism on campuses, adopting the international definition of antisemitism to also include anti-Zionism. He stopped the ordinance that anytime you mentioned Judea and Samaria you’d have to say “illegal settlements.” Now it’s “disputed settlements” or just “settlements.” He has overseen a sea change in Washington’s policy on Israel.

US officials talk about suspending Israel’s sovereignty plans, popularly known as annexation, in favor of the Abraham Accords. How do you see this in terms of the Trump administration’s promises?

I think this is a question of strategy, rather than substance. I don’t think it’s mutually exclusive. I think that you can have both the Abraham Accords and sovereignty. I don’t think that sovereignty is off the table. Diplomacy always happens behind the scenes and not in front of the cameras. But what’s being reported in the media is not necessarily what’s happening. This president understands that his base is Bible-believing Christians, and if he wants to embolden his base and get their support, he’s got to do things that they want him to do in Israel. And one of the most important things is recognizing Israeli sovereignty in Judea and Samaria. If President Trump doesn’t declare support for sovereignty before the election, I believe it’ll be made very soon after.

How do you view the Democratic presidential contender, Joe Biden, and his relationship with Israel?

I view him with caution. I think one of the biggest threats to Israel, the only existential threat, really, is a nuclear Iran. He was a proponent of the Iran nuclear deal, and he even went on record saying that he would re-sign that deal. For me, on top of all the other rhetoric and issues, that’s the most important when it comes to Israel’s safety. The idea that a Biden administration would give more money to Iran and let them develop nuclear weapons within six years, not 10, and go back to that deal, which we know Iran won’t honor, is a very scary prospect for Israel. Just on that one issue alone there is a lot of reason for concern and cause to say, is this really what’s best for Israel?

As we draw closer to the US election, what is your prediction?

If I had a prediction, and this is in no official capacity, this is just Josh Reinstein speaking, I think that Donald Trump’s going to win it, and he’s going to win it pretty big. I think he’s done enough to embolden his base. I think there’s a real silent majority out there of Christians and others who care about Israel, but for those who don’t care, he’s also done enough on the economy to show that it’s going in the right direction after the coronavirus destruction, and I believe that the majority of Americans vote on economic issues.

What do you make of the recent peace deals with the UAE and Bahrain, and which Arab states do you see following suit?

I think it’s an incredible victory for both Benjamin Netanyahu and Donald Trump. This proves what they call the Bibi-Trump Doctrine of peace through strength. When Israel’s strong, anything’s possible, and when Israel’s weak, everything kind of fades away. I believe the real lesson of what we’re seeing right now is that peace through strength works in the Middle East. When Israel is strong, other countries then flock to that strength and that power. We were ranked the eighth most powerful country in the world this year, which is unbelievable when you consider that just 10 years ago, we were number 57, and that’s because we’re seeing a strengthening of support for Israel. This proves not only that peace is possible through strength, but also shows that when Israel’s weak, we don’t have an opportunity to make peace. I think what’s incredible about these deals, aptly named the Abraham Accords, is that Donald Trump did what was biblically correct, not what was politically correct, and that leads to real peace. I think we are going to see a lot of countries follow suit, including Sudan, African countries and Arab countries. We’re seeing so many people standing with Israel, especially in Christian countries, and that support is leading to political success, and that’s really what faith-based diplomacy is – taking biblical support and turning it into real political action.

What do you say to Christians who don’t support Israel?

I know there are a lot of Christians who are on the fence about Israel, and there are a lot of people who support Israel who aren’t Christians. I think that people need to understand that we’re the only free democracy in the Middle East, and that if you don’t support us from a biblical point of view, we also have the legal, political and archeological rights to the land. We are the only place in the Middle East that has gender equality and full rights for women, the only country with religious freedoms, the only democracy with media rights. I just believe as someone who believes in the Bible myself that these pale in comparison with the biblical rights to Israel, and that’s what I tried to show in the book. People who believe in the Bible almost always stand with Israel.

What kind of reception has your book had?

We’ve had an incredible reception. We broke the pre-sales record of Gefen Publishing House, which has been in the business for some 40 years. We’re currently running out of books on Amazon, so we’re seeing a really positive response from people around the world. I mailed the first copies via a friend of mine to President Trump and members of his administration, and the president mailed back a copy of the book signed by him. This book is not an endorsement of Trump, and does not say, “Vote Trump!” It just shows the facts and uses Trump as a test case of when Bible-believing Christians get involved in the discourse, this is what could happen. And I think it’s important not just for the Christian community but for the Jewish community to say thank you to Donald Trump for doing things that no one has had the courage to do before.

What’s your message to the majority of American Jews and others who don’t support Trump?

I try to make the case for why Donald Trump is good for the Jewish people. Unfortunately, about 70% of American Jews don’t like Trump, and the reason is that what he’s done for Israel is not high on their list. They have other issues that are more important to them. But I think anyone who puts Israel high on their list of priorities is more likely to support Donald Trump. I think these smear campaigns about him being antisemitic make no sense. He’s done more for Israel than any president before. He’s the only president who has a Jewish child and Jewish grandchildren. There are more people with kippot on their heads invited to the White House than in any previous administration. A recent Ruderman Family Foundation report found that only 4% of American Jews put Israel high on their list of important issues coming up to the election. But we’re also seeing that among 60 million Evangelical Americans, Israel is a top issue. It’s a biblical issue for them, and because of that, we’re seeing incredible support for Israel, like never before.

You ended your book by saying, “The best is yet to come.” What do you mean by that?

Well, I believe that the story of the Jewish people, its past, its present and its future, has been foretold, and I take great solace in the fact that there will be peace in Jerusalem, and the question is how we’re going to get there. I think faith-based diplomacy has exploded and you can’t put it back into the box. Regardless of what happens in the American presidential election, we’re seeing more and more support out of Latin America, Africa, Eastern Europe and Asian countries, and among political leaders in places from Australia to Brazil and Canada. This idea of faith-based diplomacy is here to stay, and I believe today it is the most important weapon that Israel has in its diplomatic arsenal. I think we’ve just seen the beginning of this process and not the end. The book is not just about the history of Christian support for Israel and what Christians are doing now, but it lays out a road map of what Christians can do in the future for Israel, and what this new relationship between Jews and Christians in the 21st century is going to look like in years to come. I implore people to read the book and find out how they can stand with Israel. At this time when tourists can’t come to the holy land, it is a great opportunity to learn about the history of Israel and what is happening here now so they can prepare themselves for the next chapter in faith-based diplomacy. 

Iran reiterates support for peace in Afghanistan

Ali Akbar Velayati, a top foreign policy adviser to the Leader of the Islamic Revolution, has said Iran opposes the continuation of war in Afghanistan and reiterated Tehran’s long-held position for establishment of peace and stability in the war-torn country.

“Any kind of war among Muslims is foul because Muslim blood is sacred,” Velayati said during a meeting with Afghan Ambassador Abdolghafour Lival.

He voiced Iran’s opposition to the presence of American forces in Afghanistan and warned of the threat posed by the Daesh (ISIS) terrorist group to the prospects of peace and security in the country.

Iranian Foreign Ministry spokesman Saeed Khatibzadeh also expressed sympathy with the Afghans over a suicide bombing at an education center in western Kabul.

“Afghanistan is once again wounded by blind terrorism,” Khatibzadeh tweeted on Saturday night. “Afghan students fell victim to ugly violence and an endless war they had never chosen.”

Afghan ambassador thanked the Islamic Republic for supporting peace and security in his country.

The peace talks between the Afghanistan government and the Taliban began on September 12 in Qatar’s capital Doha to end decades of war. 

Iran has strongly supported talks between the government and the Taliban without foreign interference. Zarif has also appointed an envoy for the purpose.

Chairman of Afghan peace council Abdullah Abdullah made a three-day visit to Iran earlier in October this year to hold talks with top Iranian officials.

In his meeting with Zarif at the Foreign Ministry, Iran’s chief diplomat reaffirmed Tehran’s support for the government of the Islamic Republic of Afghanistan, the peace process under the leadership and management of Afghans, and the agreements among the participants in the intra-Afghan talks.

Zarif also admired Abdullah for his participation in the political process and assuming responsibility to run Afghanistan’s High Council for National Reconciliation. The top Iranian diplomat finally expressed Iran’s support for the Taliban’s participation in Afghanistan’s political structure. 

Abdullah expounded on the most recent developments in Afghanistan and the latest status of the intra-Afghan talks. While in Tehran, Abdullah also held talks with President Rouhani, Parliament Speaker Mohammad Bagher Ghalibaf, Supreme National Security Council (SNSC) secretary Ali Shamkhani and Energy Minister Reza Ardakanian, who is the chairman of Iran-Afghanistan joint economic commission.

Iran has been hosting hundreds of thousands of Afghan refugees since the Soviet Union invaded Afghanistan in 1979.