Islamic State claims Iran shrine attack

The Islamic State claims carrying out attack on a Shi'ite Muslim shrine in Iran on Wednesday which killed 15 people, escalating tensions in a country reeling from a wave of protests, reports Reuters.

Iranian officials said they had arrested a gunman who carried out the attack at the Shah Cheragh shrine in the city of Shiraz. State media blamed takfiri terrorists - a label Tehran uses for hardline Sunni Muslim militants like Islamic State.

The group has claimed previous attacks in Iran, including deadly twin bombings in 2017 which targeted Iran's parliament and the tomb of the Islamic Republic's founder Ayatollah Ruhollah Khomeini.

Wednesday's killing of Shi'ite pilgrims came on the same day that Iranian security forces clashed with increasingly strident protesters marking the 40-day anniversary since the death in police custody of Mahsa Amini, a 22-year-old Kurdish woman.

Interior Minister Ahmad Vahidi blamed the protests sweeping Iran for paving the ground for the Shiraz attack, and President Ebrahim Raisi said Iran would respond, according.

"Experience shows that Iran's enemies, after failing to create a split in the nation's united ranks, take revenge through violence and terror," said Raisi, speaking before Islamic State released its claim of responsibility.

"This crime will definitely not go unanswered, and the security and law enforcement forces will teach a lesson to those who designed and carried out the attack."

The semi-official Tasnim news agency said the attacker shot an employee at the shrine entrance before his rifle jammed and he was chased by bystanders.

He managed to fix his gun and opened fire on his pursuers, before entering a courtyard and shooting worshippers. Several women and children were among the dead, it said.

 

Oil isn’t the reason for US-Saudi rift

Saudi Arabia decided to be the mature guys in a spat with the United States over oil supplies, the Kingdom's energy minister Prince Abdulaziz bin Salman said on Tuesday.

The decision by the OPEC Plus oil producer group led by Saudi Arabia this month to cut oil output targets unleashed a war of words between the White House and Riyadh ahead of the kingdom's Future Investment Initiative (FII) forum, which drew top US business executives.

The two traditional allies' relationship had already been strained by the Joe Biden administration's stance on the 2018 murder of Saudi journalist Jamal Khashoggi and the Yemen war, as well as Riyadh's growing ties with China and Russia.

When asked at the FII forum how the energy relationship with the United States could be put back on track after the cuts and with the December 05, 2022 deadline for the expected price-cap on Russian oil, the Saudi energy minister said: "I think we as Saudi Arabia decided to be the mature guys and let the dice fall".

"We keep hearing you 'are with us or against us', is there any room for 'we are with the people of Saudi Arabia'?"

Saudi Investment Minister Khalid al-Falih said earlier that Riyadh and Washington will get over their unwarranted spat, highlighting long-standing corporate and institutional ties.

"If you look at the relationship with the people side, the corporate side, the education system, you look at our institutions working together we are very close and we will get over this recent spat that I think was unwarranted," he said.

While noting that Saudi Arabia and the United States were solid allies in the long term, he highlighted the kingdom was very strong with Asian partners including China, which is the biggest importer of Saudi hydrocarbons.

The OPEC Plus cut has raised concerns in Washington about the possibility of higher gasoline prices ahead of the November US midterm elections, with the Democrats trying to retain their control of the House of Representatives and the Senate.

Biden pledged that there will be consequences for US relations with Saudi Arabia after the OPEC Plus move.

Princess Reema bint Bandar Al Saud, the kingdom's ambassador to Washington, said in a CNN interview that Saudi Arabia was not siding with Russia and engages with everybody across the board.

"And by the way, it's okay to disagree. We've disagreed in the past, and we've agreed in the past, but the important thing is recognizing the value of this relationship," she said.

She added, "A lot of people talk about reforming or reviewing the relationship" and said it was a positive thing as Saudi Arabia is not the kingdom it was five years ago.

Like previous years, the FII three-day forum that opened on Tuesday saw a big turnout from Wall Street, as well as other industries with strategic interests in Saudi Arabia, the world's top oil exporter.

JPMorgan Chase & Co Chief Executive Jamie Dimon, speaking at the gathering, voiced confidence that Saudi Arabia and the United States would safeguard their 75-year-old alliance.

"I can't imagine any allies agreeing on everything and not having problems – they’ll work it through," Dimon said. "I'm comfortable that folks on both sides are working through and that these countries will remain allies going forward, and hopefully help the world develop and grow properly."

The FII is a showcase for the Saudi crown prince's Vision 2030 development plan to wean the economy off oil by creating new industries that also generate jobs for millions of Saudis, and to lure foreign capital and talent.

No Biden administration officials were visible at the forum on Tuesday. Jared Kushner, a former senior aide to then-President Donald Trump who enjoyed good ties with Prince Mohammed, was featured as a front-row speaker.

The Saudi government invested US$2 billion with a firm incorporated by Kushner after Trump left office.

FII organizers said this year's edition attracted 7,000 delegates compared with 4,000 last year.

 

Energy market should be depoliticized, says Iranian Oil Minister

Energy market should be depoliticized, says Iranian Oil MinisterIranian Oil Minister Javad Oji said sanctioning the owners of the world’s biggest gas reserves will have devastating consequences for the environment, stressing that the global energy market should be depoliticized.

GECF Members account for 43% of the world's gas production and own 72% of the world's gas reserves; 55% of the gas transmission by pipeline and 50% of the liquefied natural gas (LNG) trade is also carried out by GECF member states.

 “Using energy as a political tool and sanctioning the most important owners of natural gas reserves will have irreparable consequences on the world’s environment and will make it impossible to achieve the United Nations’ sustainable development goals,” said Oji, addressing the 24th Ministerial Meeting of the Gas Exporting Countries Forum (GECF) in Cairo, Egypt.

“I believe that the realization of a global ecosystem with zero carbon emission will remain only a slogan without political will, financial resources, investment in infrastructure, and serious scientific and technological cooperation of all nations,” he said.

Underlining the important role of natural gas in the world’s energy transition, the official stated that the members of the GECF assembly should put new policies on the agenda to promote and facilitate natural gas consumption.

Oji further emphasized the need to pay more attention to environmental issues, saying, “As a person who has worked in engineering and management activities in Iran's gas sector for many years, I believe reducing carbon emissions and protecting the environment is possible considering the existing technical and engineering capabilities.”

Emphasizing that it is necessary for developing and developed countries to pay serious attention to new technologies in various fields such as carbon absorption, utilization, and storage of natural gas, and reducing the leakage of methane or blue hydrogen, he added, “Fortunately, new technologies for reducing the carbon emission in the natural gas production process are widely available if there is the political will to do so.”

The official finally stressed the need for improving the GECF status in the global gas market for ensuring the world's energy security, saying, “I suggest that joint thinking and construction cooperation among the members of the assembly should be promoted at strategic, managerial and technical levels.”

“I believe that the exchange of successful experiences among member countries at the mentioned levels is very important,” he added.

The ministerial meeting is the highest governing body of the forum, and according to the GECF statute, it is held once a year.

Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, and Venezuela are 11 main members of GECF, and Malaysia, Norway, Iraq, Peru, Azerbaijan, UAE, and Mozambique are observer members in the forum.

 

Rishi Sunak faces huge task as Prime Minister

Rishi Sunak became Britain's third prime minister in two months on Tuesday, tasked with tackling a mounting economic crisis, a warring political party and a deeply divided country in one of the greatest challenges to confront any new leader.

The 42-year-old former hedge fund boss was asked to form a government by King Charles, and will seek to bring an end to the infighting and feuding at Westminster that has horrified investors and alarmed international allies.

Sunak, one of the richest men in parliament, will have to find deep spending cuts to plug an estimated 40 billion pound ($45 billion) hole in the public finances due to an economic slowdown, higher borrowing costs and a six-month program of support for people's energy bills.

With his party's popularity in freefall, Sunak will also face growing calls for an election if he moves too far from the policy manifesto that elected the Conservative Party in 2019, when then leader Boris Johnson pledged to invest heavily in the country.

Economists and investors have said Sunak's appointment will calm markets, but they warn that he has few easy options when millions are battling a cost of living crunch.

"With a recession in 2023 now increasingly likely, and the next general election in only two years' time, Rishi Sunak can expect a challenging premiership," Eiko Sievert at the Scope ratings agency told Reuters.

Sunak has warned his colleagues they face an "existential crisis" if they do not help to steer the country through the surging inflation and record energy bills that are forcing many households and businesses to cut back spending.

"We now need stability and unity, and I will make it my utmost priority to bring our party and our country together," he said as he was elected by his lawmakers on Monday.

Sunak, Britain's youngest prime minister for more than 200 years and its first leader of colour, replaced Liz Truss who resigned after 44 days following a "mini budget" that sparked turmoil in financial markets.

With debt interest costs rising and the outlook for the economy deteriorating, he will now need to review all spending, including on politically sensitive areas such as health, education, defence, welfare and pensions.

Reflecting the near constant state of turmoil in British politics this year, politicians, journalists and photographers once again crammed into Downing Street on Tuesday to hear a departing speech from Truss.

Speaking seven weeks to the day after she arrived as prime minister, Truss did not apologize for her short tenure and said she knew Britain was set for brighter days.

During her time in office the pound hit a record low against the dollar, borrowing costs and mortgage rates surged, and the Bank of England was forced to intervene to protect pension funds from collapsing.

Sunak will now start forming his cabinet, with some Conservative lawmakers hoping he will include politicians from all wings of the party.

He is expected to retain Jeremy Hunt as finance minister after the former foreign and health secretary helped calm volatile bond markets by ripping up most of Truss's economic program.

Investors will also want to know if Sunak still plans to publish a new budget alongside borrowing and growth forecasts on October 31, 2022 which would help inform the Bank of England's interest rate decision on November 03, 2022.

Sunak, a Goldman Sachs analyst who only entered parliament in 2015, must unite his party, aware that voters are increasingly angry over the antics at Westminster as the economy heads for recession.

He was blamed by many in the party when he quit as finance minister in the summer, triggering a wider rebellion that brought down Johnson.

While many expressed relief that the party settled on a new leader quickly, a sense of distrust remains among some while others questioned whether struggling families would relate, or ever vote, for a multimillionaire.

"I think this decision sinks us as a party for the next election," one Conservative lawmaker told Reuters on condition of anonymity.

Historian and political biographer Anthony Seldon told Reuters that Sunak would also be constrained by the mistakes of his predecessor.

"There is no leeway on him being anything other than extraordinarily conservative and cautious," he said.

Many politicians and officials abroad, having watched as a country once seen as a pillar of economic and political stability descended into brutal infighting, welcomed Sunak's appointment.

Sunak becomes Britain's first prime minister of Indian origin.

 

Nord Stream owners in insurance limbo

With the mystery of the blasts that destroyed undersea gas pipelines between Russia and Germany unsolved, insurers and reinsurers of Nord Stream 1 are grappling with how to respond to hundreds of millions of dollars in potential claims.

Munich Re and syndicates within the Lloyd's of London market are among the major underwriters for Nord Stream 1. Industry sources with knowledge of the situation said, it was unclear whether they would renew its cover.

If the insurance is not renewed, the prospect of the pipeline bringing gas to Europe under the Baltic Sea ever being repaired and restarted becomes more remote.

Even before leaks were found, supplies via Nord Stream 1 had been halted as a result of a dispute over Western sanctions on Russia, while the newly-built Nord Stream 2 pipeline had not started commercial deliveries.

While a claim has not yet been made for the damage and disruption to the pipeline, two of the sources told Reuters, Nord Stream 1 underwriters may dispute any submitted on the grounds that the damage was an act of self-sabotage, or of war, neither of which are generally covered by insurance.

Amid speculation as to who was behind alleged sabotage that severed the pipelines at the centre of an energy crisis prompted by Russia's invasion of Ukraine, Danish police said on October 18, 2022 that the damage to Nord Stream 1 was caused by powerful blasts.

While damage itself would not necessarily affect the renewal of a property policy, insurers might ask for more premium, said Tim Shepherd, a litigation partner at Mayer Brown.

For the underwriters of the pipeline system, which Nord Stream's website says was built with 7.8 billion euros (US$7.6 billion) of investment, the stakes are high.

"Even if you are taking a small size (of cover), it is a big risk," one of the four industry sources said.

"The issue is going to be what happens if you can't prove it is a state sponsor (responsible for the blasts), you end up with a massive claim for damage," the source added.

Nord Stream 1 majority shareholder with a 51% stake is a subsidiary of Russian energy group Gazprom, which is subject to sanctions by the United States, Britain and Canada as well as some European Union restrictions.

Two of the sources said renewal of Nord Stream 1 cover by the Lloyd's syndicates would be challenging given the risk of tighter sanctions on Gazprom, which would prevent paying claims.

German energy groups Wintershall and E.ON, meanwhile, hold 15.5% each. Wintershall did not immediately respond to a request for comment.

An E.ON spokesperson said Nord Stream 1 operating company was responsible for operational issues, including insurance.

"Nord Stream AG remains in close contact with relevant authorities on the recent incident. Due to prevailing uncertainties, we as a shareholder continuously monitor developments and are in close contact with the other relevant stakeholders," the spokesperson said.

Gazprom and Swiss-based Nord Stream AG, did not respond to requests for comment, while French energy provider ENGIE, which has a 9% stake, declined to comment.

Dutch natural gas infrastructure company N.V. Nederlandse Gasunie, which also has a 9% stake, said it would assess the situation as soon as there was more clarity.

"The exact extent of the damage and possible follow-up actions can only be determined after inspection of the pipelines and that is not yet possible at this moment," Gasunie said.

"We are in close contact with our European partners and the relevant government authorities," it added.

Nord Stream's insurers will have to prove that its policy does not cover the damage caused by the blasts in order to avoid paying out on any claim, lawyers said.

Although property policies typically exclude malicious damage, policy holders often buy extra cover, which is likely in Nord Stream's case, legal and insurance sources said.

Russian President Vladimir Putin has said the United States and its allies blew up the pipelines, an allegation that has been dismissed by the White House. US President Joe Biden has said damage to Nord Stream was a deliberate act of sabotage.

The West has not directly pointed the finger at Moscow, which has denied any involvement.

French President Emmanuel Macron said earlier that Nordic leaders had told their European partners it was still impossible to say at this stage who was behind the damage.

If a Western state actor was found to be responsible, the damage might be designated as an act of terror, which one broking source said might be covered by insurance.

However, if investigations found Russia to have been involved, insurers could argue it was an act of "self-sabotage", given Gazprom is owned by the state.

"If there was a deliberate act by the policyholder, you are not going to have a covered claim," said David Pryce, managing partner at Fenchurch Law, which is not involved with the policy.

If there was any Russian involvement it could also mean the Nord Stream 1 damage being designated as an act of war, something that is typically excluded by insurance policies.

 

Ship survives drone attacks at Yemeni port

According to Seatrade Maritime News, Yemen’s Houthi militia has issued a warning to tankers loading at Yemeni oil terminals firing two armed drones at a Okeanis Eco Tankers VLCC as the vessel called for loading at the Al-Dabba oil terminal in Ash Shihr, Yemen. 

In a filing to the Oslo Stock Exchange, the Alafouzos-controlled company confirmed two “drone-driven explosions” in close proximity to its 300,000dwt newbuilding Nissos Kea on October 21, 2022.

The Greek owner of the Marshall Islands-flagged 2022-built tanker said it sustained no damage and no injuries to the crew in the attack which saw one drone explode ahead of it and another on its starboard side and came 14 minutes apart.

The Nissos Kea was scheduled to load 2 millio barrels of crude, but the vessel sailed from the loading port in international waters following the incident. “All necessary precautionary measures were duly taken beforehand and during the incident,” said Okeanis Eco Tankers.

The drone attack came two weeks after a cease-fire in the country’s civil war ended. Yemen’s Houthi militias said they were behind the attack, calling it a “warning strike.” to prevent pro-government forces from using terminals for oil exports. Meanwhile, the country’s Saudi-backed government said its forces had intercepted the drones.

The European Union (EU) said the flagrant menacing of international maritime commerce was unacceptable. “Houthi attacks on international shipping are an affront to core principles of the Law of the Sea, jeopardizing freedom of navigation through the region’s waterways and blocking access to Yemeni ports,” it added.

Cyprus-based, maritime security company Diaplous Group said: “The Company immediately emailed the Coast Guard to report the incident and request to stop. The coastguard warned that the vessel was in danger and prompted the master to abandon the operations at the terminal, to evacuate the area instantly and to inform accordingly when the vessel would be sailing in international waters.

Will Rishi Sunak be next Prime Minister of Britain?

Rishi Sunak looked set to become next Prime Minister of Britain after Boris Johnson withdrew from the contest on Sunday. Although he enjoys enough support to make the final ballot he realizes the country and the Conservative Party needed unity.

If chosen, Sunak would be the first prime minister of Indian origin in the United Kingdom.

Johnson had raced home from a holiday in the Caribbean to try and secure the backing of 100 lawmakers to enter Monday's contest to replace Liz Truss, the woman who succeeded him in September after he was forced to quit over a string of scandals.

He said he had secured the backing of 102 lawmakers and could have been "back in Downing Street", but that he had failed to persuade either Sunak, or the other contender Penny Mordaunt, to come together "in the national interest".

"I believe I have much to offer but I am afraid that this is simply not the right time," Johnson said late on Sunday.

The former prime minister had secured the public backing of just under 60 Conservative lawmakers by Sunday, well under half of the nearly 150 endorsements Sunak had received.

Johnson's statement likely paves the way for his arch rival, the 42-year-old former finance minister Sunak, to become prime minister, possibly as soon as Monday. If confirmed, he would replace Truss who was forced to resign after she launched an economic program that triggered turmoil on financial markets.

According to the rules, if only one candidate secures the backing of 100 Conservative lawmakers, they will be named prime minister on Monday.

If two candidates pass the threshold, they will go forward to a vote of the party membership, with the winner announced on Friday, just days before new finance minister Jeremy Hunt lays bare the state of the country's finances in a budget plan due to be released on October 31, 2022.

That had raised concerns that Johnson would return to Downing Street with the backing of the party members, and not a majority of lawmakers in parliament, leaving the party badly divided. Hunt declared his backing for Sunak late on Sunday.

Some Johnson supporters could switch to Mordaunt, who has presented herself as the unity candidate, but many immediately switched to Sunak. A source close to the Mordaunt campaign said the former defence minister would continue in the contest.

"She is the unifying candidate who is most likely to keep the wings of the Conservative Party together," the source said.

Johnson has loomed large over British politics ever since he became mayor of London in 2008 and went on to become the face of the Brexit vote in 2016. While he led the Conservative Party to a landslide election in 2019, he was forced out just three years later by a rebellion of his ministers.

Sunak said he hoped Johnson would continue to contribute to public life "at home and abroad".

One Sunak supporter, who asked not to be named, said his main reaction was relief because if Johnson had won the "party would have torn itself apart".

Another Conservative lawmaker Lucy Allan said on Twitter: "I backed Boris for PM, but I think he has done the right thing for the country."

Other Johnson backers immediately jumped ship.

Cabinet office minister Nadhim Zahawi, who minutes earlier had published an article on the Daily Telegraph website praising Johnson, said "a day is a long time in politics".

"Rishi is immensely talented, will command a strong majority in the parliamentary Conservative Party, and will have my full support and loyalty," he said.

Earlier, many of the Conservative lawmakers who normally back Johnson switched their support to Sunak, saying the country needed a period of stability after months of turmoil that has sparked headlines - and raised alarm - around the world.

Johnson is also still facing a privileges committee investigation into whether he misled parliament over Downing Street parties during COVID-19 lockdowns. He could be forced to resign or be suspended from office if found guilty.

Sunak first came to national attention when, aged 39, he became finance minister under Johnson just as the COVID-19 pandemic arrived in Britain, developing a furlough scheme to support millions of people through multiple lockdowns.

"I served as your chancellor, helping to steer our economy through the toughest of times," Sunak said in a statement on Sunday. "The challenges we face now are even greater. But the opportunities - if we make the right choice - are phenomenal."

His family migrated to Britain in the 1960s, a period when many people from Britain's former colonies arrived to help rebuild the country after the Second World War.

After graduating from Oxford University, he later went to Stanford University where he met his wife Akshata Murthy, whose father is Indian billionaire N. R. Narayana Murthy, founder of outsourcing giant Infosys Ltd.