US attempt to control oil movement in Gulf

The US military will work to bolster the defensive posture in the Gulf region following Iran's seizure and harassment of commercial shipping vessels in recent months, US officials said on Friday.

In the past two years, Iran has harassed, attacked or interfered with the navigational rights of 15 internationally flagged commercial vessels, officials said.

"The Department of Defense will be making a series of moves to bolster our defensive posture in the Arabian Gulf," White House spokesperson John Kirby told a news briefing.

Kirby added that in the coming weeks there would be an attempt to increase coordination and interoperability with allies in the Strait of Hormuz.

The US Navy's Bahrain-based Fifth Fleet said it was working with regional allies to increase the rotation of ships and aircraft patrolling around the Strait of Hormuz.

"Iran's unwarranted, irresponsible and unlawful seizure and harassment of merchant vessels must stop," the Fifth Fleet's commander, Vice Admiral Brad Cooper, said in a statement.

A spokesperson from the US military's Florida-based Central Command, which oversees American forces in the Middle East, said the United States was discussing options with regional partners.

"Any decisions about force posture will be made after consulting with our allies and will be consistent with the collective desire to ensure the safety and freedom of navigation for all nations," the spokesperson said.

The moves come after Iran seized a second oil tanker in a week in Gulf waters earlier this month, and the State Department called for its release in the latest escalation in a series of actions against commercial vessels in Gulf waters since 2019.

The US Navy said on May 3 the Panama-flagged oil tanker Niovi was seized by Iran's Islamic Revolutionary Guard Corps Navy while passing through the Strait of Hormuz. Days earlier, Iran had seized a Marshall Islands-flagged oil tanker in the Gulf of Oman.

Kirby said the United States strongly condemns actions that threaten and interfere with commercial shipping, and will not allow foreign powers to jeopardize navigating Middle East waterways.

About a fifth of the world's crude oil and oil products passes through the Strait of Hormuz, a choke point between Iran and Oman, according to data from analytics firm Vortexa.

 

Abizaid elected Chairman MEI Board

The Middle East Institute (MEI) announced election of John P. Abizaid as chairman of its Board of Governors. The board voted unanimously in favor of his appointment at its semi-annual meeting held on May 10, 2023.

“I am honored to assume this role and I thank you all for your support and commitment to this Institute. You can expect a lot from me and you should demand a lot from me as we work with the entire MEI community to pursue our mission,” said Abizaid.

“The Middle East is a complex and often misunderstood region. MEI provides a global platform for knowledge and an opportunity for engagement and understanding that is essential to long-term stability. I will work with the board, scholars, and staff to sustain MEI and uphold our mission at a critical juncture in US-Middle East relations.”

At the meeting the board also expressed its deep appreciation to outgoing chairman, Richard A. Clarke, who served in the role for more than 10 years. During his tenure, Clarke oversaw a period of historic growth for the Institute, including the renovation and expansion of its Washington, D.C. headquarters, and the flourishing of its policy, arts, and educational programs. 

“We would not be where we are today without Dick’s exceptional leadership and bold vision. His chairmanship was essential to securing MEI’s position as a preeminent voice on Middle East policy and analysis,” said MEI President and CEO Paul Salem.

“We are thrilled to have a leader of Gen. Abizaid’s stature and experience take up this mantle. His passion for the Institute’s mission of promoting peace, prosperity, and partnership between the people of the United States and the region will be invaluable as we set our course for the years ahead.”

Gen. Abizaid is a retired U.S. Army four-star general, who most recently served as the US Ambassador to the Kingdom of Saudi Arabia from 2019 to 2021. In his 34 years of active military service, he commanded units at every level, serving in Grenada, Lebanon, Kurdistan, Bosnia, Kosovo, Afghanistan, and Iraq, and served as the head of US Central Command from 2003 to 2007.

He has also served as the Distinguished Chair (Emeritus) of the Combating Terrorism Center at the US Military Academy at West Point and was the first Annenberg Distinguished Visiting Fellow at Stanford University's Hoover Institution.

Abizaid is a Lebanese American, born in northern California in 1951. He is a graduate of the US Military Academy at West Point, holds a master's degree in Middle Eastern Studies from Harvard University, has also studied at the University of Jordan in Amman, and has received Honorary Degrees from Dartmouth College and Norwich University. 

 

New expressions being used to describe Pakistan-IMF relations

Some scary words were heard about Pakistan politics and economy on Thursday about. Historically, politics has always remained volatile in Pakistan. However, the current status of economy needs utmost as well as immediate and focused attention of all the stakeholders.

A statement came out from IMF yesterday morning saying that the Fund remains engaged with Pakistan on the program, despite the recent happenings in politics which give some confidence to market participants.

However, the same statement says that the country will ‘durably allow, market-based exchange rate and will scrap the fuel subsidy program. PKR depreciated and was very close to crossing the PKR300 mark.  

Another IMF statement on Pakistan yesterday said that the country requires ‘significant’ more financing in order for IMF SLA to go through.

The explicit meaning of ‘durably allow’ and ‘significant’ is very unclear right now as it is difficult to understand what exactly more is required from the IMF side.

Finance Minister also spoke in an event yesterday saying we will not accept IMF demands any more as a lot has already been done and Pakistan will not default, without the IMF.

It appears he meant to say Pakistan will not default without IMF under his remaining tenure which is of less than 3 months now before the term of current government ends.

 

Two global giants move their regional headquarters to Saudi Arabia

iHerb, a global leader in health and wellness, and CJ Logistics, a leading Asian logistics company, moved their regional headquarters to Saudi Arabia. This is part of relocating regional headquarters of several global companies to Riyadh. The move reinforces the strength of the Saudi economy, and expresses optimism about the recent economic reforms, which are expected to reflect positively on investors.

The US company, iHerb for health and wellness products and the Korean CJ Logistics, a world leader in logistical solutions, finally chose Riyadh as the hub of their operations in the Middle East and Africa. This is in response to the growing demand from consumers, in addition to the attractiveness of the business environment in the Kingdom. The periodic meetings held by the E-Commerce Council have contributed tremendously to attracting global companies to the Saudi capital.

President of the General Authority of Civil Aviation (GACA) Abdulaziz Al-Duailej presented CJ Logistics Company the license to practice its commercial business in the Kingdom. The ceremony was held in the presence of Minister of Commerce and Chairman of the E-Commerce Council Dr. Majed Al-Qasabi, Korean Ambassador to Saudi Arabia Park Joon-yong, CEO of CJ Logistics Sin Ho Kang, and Chief Operating Officer of iHerb Miriee Chang.

Speaking on the occasion, Al-Qasabi said that the influx of international companies to conduct their commercial business in the Kingdom comes in the context of the growing interest in the promising opportunities available in light of the Saudi Vision 2030, which pays attention to the development of the e-commerce business system, and its important role in the Saudi economy, especially in view of the fact that the Kingdom is among the top 10 developed countries in this sector.

Al-Qasabi praised the role of the E-Commerce Council as a platform for constructive dialogue and cooperation between the private sector and government agencies, which paves the way for other initiatives and achievements.

For his part, GACA President Al-Duailej stated that the integrated logistics zone is an evidence of the achievements of the national strategy for the aviation sector within the framework of Saudi Vision 2030, which confirms the strengthening of the Kingdom’s position as a global logistics center linking three continents and attracting the largest companies in the world and the region.

He pointed out that the integrated logistics zone is characterized by regular procedures that contribute to attracting investments by allowing foreign investors to establish companies and own them 100% in addition to facilitating the requirements and procedures for registering investments in the zone.

CEO of CJ Logistics Sin Ho Kang said, “The e-commerce market in Saudi Arabia is one of the highest growing markets, in addition to the geographical location that connects markets in Africa and Europe. “The company will employ all modern technologies in the new center to lead logistics services related to e-commerce in the region,” he added. CJ Logistics is the oldest and largest parcel delivery firm in South Korea.

 

US lawmakers to introduce bill to combat normalization with Syria

A bipartisan group of US Lawmakers plans to introduce a bill on Thursday intended to bar the US government from recognizing Bashar al-Assad as Syria's president and enhance Washington's ability to impose sanctions in a warning to other countries normalizing relations with Assad.

The bill would prohibit the US federal government from recognizing or normalizing relations with any government in Syria led by Assad, who is under US sanctions, and expands on the Caesar Act, a US law that imposed a tough round of sanctions on Syria in 2020.

The bill comes after Arab states turned the page on years of confrontation with Assad on Sunday by letting Syria back into the Arab League, a milestone in his regional rehabilitation even as the West continues to shun him after years of civil war.

Regional countries including Saudi Arabia, Qatar and others - had for years supported anti-Assad rebels, but Syria's army - backed by Iran, Russia and allied paramilitary groups - regained most of the country. The icy ties with Assad began to thaw more quickly after devastating earthquakes in Syria and Turkey in February 2023.

The United States has said it will not normalize ties with Assad and its sanctions remain in full effect.

The bill will be introduced by House of Representatives Foreign Affairs Committee Chairman Michael McCaul, Congressman Joe Wilson, the chair of the Subcommittee on the Middle East, North Africa, and Central Asia; and Democrats Steve Cohen and Vicente Gonzalez, among others, a senior congressional staffer who worked on the bill told Reuters.

The legislation is a warning to Turkey and Arab countries that if they engage with Assad's government, they could face severe consequences, the staffer, said speaking on condition of anonymity.

"The readmission of Syria to the Arab League really infuriated members and made clear the need to quickly act to send a signal," they said.

The bill's provisions include a requirement for an annual strategy from the secretary of state for five years on countering normalization with Assad's government, including a list of diplomatic meetings held between Syria's government and Turkey, the United Arab Emirates, Egypt and others.

The bill would also clarify the applicability of US sanctions on Syrian Arab Airlines and another carrier, Cham Wings. Under the proposed bill, countries that allow the airlines to land would face sanctions against that airport, the staffer said.

If passed, the bill would also require a review of transactions, including donations over US$50,000 in areas of Syria held by Assad's government by anyone in Turkey, the UAE, Egypt and several other countries.

 

Iran and Russia to facilitate Turkey and Syria in deescalating tension

After years of tensions, the foreign ministers of Turkey and Syria sat at the same table to discuss ways to deescalate tensions with help from Iran and Russia.

On Wednesday, Russia hosted an important quadrilateral meeting between Iran, Syria, Russia, and Turkey at the level of foreign ministers. The meeting was a giant step forward in terms of putting an end to differences between Turkey and Syria, which have been at loggerheads over the last decade. 

While some international issues have also been on the agenda, the Moscow meeting was primarily focused on the normalization of relations between Ankara and Damascus. The diametrically opposed positions of Syria and Turkey since the outbreak of the Syrian crisis in 2011 seriously have damaged their relations. With the Syrian government regaining control of much of its lost territory, Turkey moved to patch up relations with Syria with mediation and facilitation by Iran and Russia.

In the Wednesday meeting, this featured high on the agenda. The Russian foreign ministry said in a statement that the foreign ministers of the four countries held a substantive and frank discussion on issues related to resuming the interstate relations between Syria and Turkey in various aspects.

The Moscow meeting is another indication that Syria moving past crisis and war, a trend that prompted Turkey and many Arab states to restore ties with Damascus. Earlier this week, Syria was readmitted to the Arab League and Saudi Arabia reopened its diplomatic missions in Damascus. Currently, there are speculations that Syrian President Bashar Assad could take part in the upcoming summit of the Arab League in Saudi Arabia, which has already officially extended an invitation to Assad to participate in the summit. 

Turkey appears to be willing to keep up with this reconciliatory trend. In their meeting, the foreign ministers agreed to task the deputy foreign ministers to prepare a road map to advance the relations between Turkey and Syria in coordination with the work of the ministries of defense and special services of the four countries, according to the Russian statement. 

The statement added that the ministers noted a positive and constructive atmosphere of their exchange during the meeting and agreed to further maintain high-level contacts and technical talks in this quadripartite format in the upcoming period.

The Moscow meeting also provided a convivial atmosphere for the foreign ministers to hold bilateral meetings. The Iranian foreign minister, Hossein Amir Abdollahian held separate meetings with his Syria, Russian, and Turkish counterparts. 

In his meeting with Syrian Foreign Minister Faisal Mekdad, Amir Abdollahian congratulated him on Syria’s readmission to the Arab League and expressed Iran’s support for the Turkish-Syrian normalization. 

Amir Abdollahian described the Moscow meeting as a step forward in his meeting with Turkish Foreign Minister Mevlut Cavusoglu. The Turkish foreign minister, for his part, pointed to Iran’s important role in facilitating the quadrilateral meeting. 

As things stand, Turkey and Syria are making strides in restoring their ties. The full resumption of ties, however, is hindered by the fact that Turkish troops are illegally present in Syrian territory, thus contravening the Arab country’s territorial integrity. This point was raised in Moscow. 

In his speech at the joint meeting, Amir Abdollahian underlined that any political resolution to the Syrian issues must ensure Syria’s sovereignty over its entire territory, according to IRNA. 

Amir Abdollahian suggested that deployment of Syrian troops at the border regions can alleviate security concerns of Turkey and other neighboring countries, prevent terrorist and separatist activities, and set the stage for the withdrawal of Turkish military forces from the common border areas.

“We believe that a strong and independent Syria can overcome terrorism, separatism, occupation of American forces, and theft of the country's national resources,” he noted.

Iran’s top diplomat also stressed the need for joint efforts by regional countries and the rest of the international community to reconstruct Syria and prepare the ground for Syrian refugees to return to their homeland.

“Of course, any political precondition and double standards on this issue not only will not help solve this humanitarian issue but will also add to its complexity,” he pointed out.

The Iranian foreign minister pointed out that the beginning of talks between Syria and Turkey will benefit the people of the two countries and the security of the region.

“We deeply believe that these two countries can put the past behind them and resolve the bilateral issues through dialogue and deepening cooperation based on good neighborliness,” Amir Abdollahian said.

He also noted that the meeting in Moscow would have a strong message of peace and sustainable security in the region and strengthening of good neighborliness between Turkey and Syria.

 

Pakistan-Iran to revive gas pipeline project

Pakistan and Iran on Wednesday agreed to explore new avenues of collaboration in the fields of aviation including direct flight, revival of gas pipeline project and expansion of trade between the two nations.

The understanding was reached during a meeting between Commerce Minister Naveed Qamar and visiting Chairman of the Commission of National Security and Foreign Policy of the Majlis of the Islamic Republic of Iran Vahid Jalalzadeh, who is leading a high-level delegation to Pakistan to discuss various measures to promote bilateral economic relations between the two countries.

An official announcement issued after the meeting said that both sides underlined the need to strengthen economic ties and emphasized the importance of increased connectivity.

Jalalzadeh proposed the initiation of direct flights between Iran and Pakistan to enhance travel and business opportunities.

Qamar acknowledged the significance of this proposal and expressed his support for establishing direct flights as a means to facilitate trade and promote people-to-people exchanges.

During the meeting, the discussions also touched upon the long-standing issue of the Pak-Iran Gas pipeline. Qamar stressed the importance of expediting the project, as it holds immense potential for energy cooperation between the two countries.

He pledged his commitment to resolve any obstacles and move forward with the pipeline, which would bring substantial benefits to both nations.

Recognizing the current trade volume of approximately US$2 billion as insufficient, Jalalzadeh urged the need to take solid steps to increase it to a multi-billion-dollar level. However, there is no official trade between the two countries owing to the non-availability of banking channels and restrictions.

Qamar emphasized the importance of opening new border markets and implementing a barter trade system to facilitate greater commercial exchange. These measures, he believed, would significantly boost trade volume.

Jalalzadeh also invited Qamar to visit Iran.

The inauguration of one of the six crossings at the Pasheen Border on May 18 by the prime minister of Pakistan and the president of Iran also came under discussion.