Tuesday 25 April 2023

Saudi Arabia joins US-UAE-Egyptian mediation bid to end conflict in Sudan

Saudi Arabia has joined the mediation efforts of the United States, the United Arab Emirates and Egypt to end the conflict in Sudan. This was revealed by Sky News Arabia, quoting well-informed US sources.

The sources stated that the mediation efforts seek to bring together Commander of the Sudanese Armed Forces Lt. Gen. Abdel Fattah Al-Burhan and Commander of the Rapid Support Forces Mohamed Hamdan Dagalo in the Saudi capital Riyadh in the coming weeks.

US Secretary of State Antony Blinken said on Monday that the United States is in close contact with Sudanese military leaders to extend the ceasefire, and to explore options for restoring the diplomatic and consular presence of Sudan as soon as possible.

“Following intense negotiation over the past 48 hours, the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) have agreed to implement a nationwide ceasefire starting at midnight on April 24, to last for 72 hours,” Blinken said in a statement issued two hours before the ceasefire started.

In an interview with MSNBC, Blinken said, “We are still looking at options. We have military installations that are still in the immediate area if they are needed, but this is not the time to conduct some kind of massive operations.”

He pointed out that dozens of Americans are participating in a convoy led by the United Nations heading to Port Sudan, and that the US military is helping to monitor it through unmanned aircraft systems (UAS).

The agreement between the Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) came following intense negotiation over the past 48 hours, Blinken said.

“The United States urges the SAF and RSF to immediately and fully uphold the ceasefire,” Blinken said.

“To support a durable end to the fighting, the United States will coordinate with regional and international partners, and Sudanese civilian stakeholders, to assist in the creation of a committee to oversee the negotiation, conclusion, and implementation of a permanent cessation of hostilities and humanitarian arrangements in Sudan,” he added.

The White House Spokesman John Kirby announced that the United States is preparing to send part of the American fleet to help its nationals who wish to leave Sudan.

Meanwhile, the Arab and Western countries continued evacuation of their nationals and diplomatic missions from the capital, Khartoum, after the security and humanitarian conditions have deteriorated and reached on the brink of an impending catastrophe.

In a related development, a US military plane evacuated 45 Japanese citizens and their family members from Sudan.

Yemen Key Test in China Middle East Diplomacy

China scored a diplomatic coup by restoration of ties between Saudi Arabia and Iran, announced on Friday, March 10. But the two rivals for primacy in the Persian Gulf are still a long way off from sharing the neighborhood.

The first litmus test will be whether they can even share Yemen, where their proxies have been at war for eight years.

Given the intense rivalry and extreme volatility in their past relations, using terms like rapprochement and détente to describe the renewal of ties seem premature.

Even “reconciliation” remains to be seen. Since the I979 Islamic revolution in Iran, the two countries have gone through repeated cycles of intense hostility with only short-lived thaws.

The low points include the Saudi shooting down of four Iranian F-4 fighter jets in 1984, the Saudi killing of 275 Iranian pilgrims in Mecca in 1987, and the severance of diplomatic relations first from 1988 to 1991 and then again from 2016 to 2023.

Both breaks in relations were initiated by Saudi Arabia after Iranians ransacked the Saudi embassy in Tehran.

The high points saw visits to the Saudi kingdom by two former Iranian presidents.  Mohammed Khatami made the trip in 1999 - the first by any president since the Islamic revolution - and returned again for a four-day stay in 2002. Mahmoud Ahmadinejad went three times, twice in 2007. Saudi Crown Prince Abdallah, in turn, traveled to Tehran in 1997 for an Islamic summit and received red carpet treatment.

The two sides have tried in vain, again and again, to formalize a working relationship. Since 1991, the Iranians have repeatedly put forth a proposal for an alliance with the Saudi-led Gulf Cooperation Council (GCC) to establish security architecture for the Gulf. The Saudis have always viewed the proposition as a ruse to eliminate the US military presence there and therefore shown no interest.

Still the Saudis have at times signed pacts with the Iranians.  In May 1998, the two rivals signed a Comprehensive Cooperation Agreement and in 2001 a security agreement to fight together against terrorism, drug smuggling, and money laundering. The latter agreement was hailed in the Saudi press as historic and in the words of Iran’s ambassador to Saudi Arabia at that time, “the most important development in the history of relations between the two countries.” Neither agreement took hold.

Given this very checkered history in their relationship, the question is,  what chance does the latest restoration of ties have to, find an effective way to share the neighborhood and institute some sort of cold peace, as Obama put it in his 2016 interview with The Atlantic?

Saudi leaders have long insisted it is up to Iran to take the first step by showing some sign of retreat in its relentless drive to establish a key political role in Arab nations of the Middle East.

The main indicator for them is Yemen, Saudi Arabia’s southern neighbor where it has long been the dominant foreign power. Houthi rebels seized control of the capital Sanaa in September 2014, and Iran quickly came to their military and political support.

The Saudis responded with an invasion the following March and armed Yemeni tribes opposed to the Houthis. They also established a rival Yemeni government based in the south that gained international recognition, even though its rule has been increasingly disputed by secessionists there.

For Saudi Crown Prince Mohammed bin Salman (MBS), the Yemen venture has proven an albatross. He was personally responsible for leading it when the Saudi invasion began, as he had just been named defense minister by his father, King Salman. In fact, it was his first major foreign policy decision. It has led to the souring of his relations with the US Congress that has repeatedly demanded an end to all US military aid and sales to Saudi Arabia because of the disastrous outcomes of the war.

Right now, fighting between pro-Saudi and pro-Iranian Yemeni factions has reached a standstill, UN mediators last year negotiated a ceasefire, while periodically broken, still remains largely in place. Yemen itself is in ruins, however, and is one of the world’s worst humanitarian disasters, with 227,000 dead from famine alone, according to UN estimates.

The question now is whether Saudi Arabia and Iran can find a modus vivendi in Yemen upon which to build a real détente, or at least a cold peace.

This would probably require Saudi Arabia to recognize the Houthi government in Sanaa and its control over northern Yemen, where most of Yemen’s 33 million people live.

Iran would have to terminate arms supplies to the Houthis. These have included missiles and drones that the Houthis have rained down by the hundreds on strategic targets inside the Saudi kingdom, including its oil and gas facilities.

Saudi negotiators have held periodic talks for months now, with both emissaries from Iran in Baghdad and those of the Houthis in Muscat, Oman, but no agreement has been announced.

In any case, it remains far from clear if Iran is ready to stop arming the Houthis. On the contrary, a statement in early February from the US Central Command said, “US, British, and French warships had seized 5,000 rifles, 1.5 million rounds of ammunition, scores of anti-tank missiles, and parts for ballistic missiles from dhows plying the Gulf of Oman on their way from Iran to the Houthis.

They had carried out four seizures over the past two months. In addition, the British Navy declared it had captured more Iranian antitank missiles and fins for ballistic missiles from dhows on February 23.

These arms shipments could be the last before Iran stops as part of a deal with Saudi Arabia. Or, it could be a sign Iran is backing a new Houthi offensive in the making. The Houthis have been trying to extend their hold over Yemen to include its oil fields and pipelines in the center and south of the country.

A new campaign would almost certainly sink any hopes for an eventual Iranian-Saudi détente as well as China’s diplomatic bid to become a power player in the Gulf.

 

Halliburton posts higher quarterly profit

Halliburton has reported higher first-quarter profit on Tuesday, wrapping up upbeat earnings from the world's top oilfield services providers as higher oil prices encouraged drilling activity and boosted demand for services and equipment.

Global oil futures are currently trading around US$82 a barrel, down about 20% from a year ago but remain well above a level where firms can drill profitably.

The average international rig count, an indication of future production, for the quarter stood at 915, 11% higher than the previous year, according to Baker Hughes data.

Markets have been choppy in the past month, falling to around US$70 a barrel as a banking crisis sparked economic downturn worries and raised concerns over fuel demand outlook before rebounding on a surprise cut by OPEC Plus.

"Our customers are clearly motivated to produce more oil and gas and service capacity is tight," CEO Jeff Miller said in a statement.

Houston-based Halliburton said net income attributable to the company stood at US$651 million, or 72 cents per share, for the three months ended March 31, 2023 as compared to US$263 million, or 29 cents per share, a year earlier.

 

Monday 24 April 2023

Gold prices on upward trajectory

Gold prices ticked higher on Tuesday after the dollar retreated as cautious investors awaited further US economic data due this week to gauge the Federal Reserve's next policy move.

Spot price rose 0.2% to US$1,993.64 per ounce by 0514 GMT, while US gold futures inched 0.1% higher to US$2,002.00.

The dollar index eased, making gold more attractive for buyers holding other currencies.

Gold is getting a boost from a weaker dollar, and focus will remain on the next set of US economic data and the Fed meeting to understand its stand on rate hikes for the rest of the year, said Ajay Kedia, director at Kedia Commodities in Mumbai.

Until then, prices may consolidate in the US$1,970 to US$2,020 range, Kedia added.

Dallas Fed's Monday report showed manufacturing activity in Texas contracted in April, highlighting the economic toll of the Fed's rate tightening cycle.

Markets are pricing in an 87.2% chance of a 25-basis-point hike by the Fed at its May 2-3 meeting. Higher interest rates tend to weigh on the bullion's appeal.

Investors now await the US consumer confidence report scheduled later in the day, ahead of the core personal consumption expenditures index, and GDP quarterly growth rate, due this week.

"These reports are more likely to see the US dollar weaken which will further strengthen gold prices in the short term," said Michael Langford, director at corporate advisory firm AirGuide.

Meanwhile, rising concerns that the US Treasury Department could hit its debt limit in the coming months are leading investors to shun certain Treasury bills as they seek out low-risk places to park cash.

In the physical market, gold consumption in the world's largest gold-consuming nation grew 12% year-on-year over January-March.

Iran: Tabas Desert a reminder of humiliating US defeat

On April 25, 1980, the United States launched a covert military operation, known as Operation Eagle Claw, in an attempt to airlift the US embassy staff held in the Iranian capital, Tehran. As a symbol of the failure of US plots against the Islamic Republic, Iran commemorates the event every year in Tabas where government officials, religious leaders and people gather.

The plan was to be based on the use of elements from four branches of the US defense forces: Army, Navy, Marines, and Air Force. The concept was based on an operation whereby helicopters and C-130 aircraft, following different routes, would rendezvous on a salt flat (code-named Desert One) 200 miles (320 km) southeast of Tehran. Here the helicopters would refuel from the C-130s and pick up the combat troops who had flown in on the C-130 transports. The helicopters would then transport the troops to a mountain location (Desert Two) closer to Tehran from which the actual rescue raid would be launched into the city the following night. The operation was further to be supported by an in-country CIA team. On completion of the raid, hostages were to be shepherded to a captured Tehran airport from which they were to be flown to Egypt.

Desert One was in South Khorasan Province, in the Dasht-e Lut desert near Tabas, while Desert Two was located 50 miles (80 km) short of Tehran.

The operation, one of Delta Force's first, encountered many obstacles and failures and was subsequently aborted.

Eight helicopters were sent to the first staging area called Desert One, but only five arrived in operational condition. One had encountered hydraulic problems; another was caught in a sand storm, and the third showed signs of a cracked rotor blade.

During the operational planning, it was decided that the mission would be aborted if fewer than six helicopters remained operational upon arrival at the Desert One site, despite only four being absolutely necessary. The field commanders advised US President Carter to abort the mission, which he did.

As the US forces prepared to withdraw from Desert One, one of the remaining helicopters crashed into a transport aircraft that contained both servicemen and jet fuel. The resulting fire destroyed both aircraft and killed eight servicemen.

The founder of the Islamic Revolution Ayatollah Ruhollah Khomeini in a speech after the incident, condemned Jimmy Carter’s order for military intervention in Iran and said the mission had been stopped by an act of God (angels of God) who had foiled the US mission.

“Who crushed Mr. Carter's helicopters? We did? The sands did! They were God's agents. Wind is God's agent ... These sands are agents of God. They can try again.”

Carter blamed his loss in the 1980 US presidential election mainly on his failure to secure the release of the hostages. The American hostages were released on 20 January 1981; minutes after Ronald Reagan had taken the oath of office after winning the election against Carter.

Many believe Tabas incident played a major role in Carter’s defeat in the 1980 presidential election in the US.

43 years ago on this day, the US forces conceded a humiliating defeat in Tabas that later affected the country's internal politics.

Iran marks the 43rd anniversary of a failed US military operation in the central Tabas Desert that was launched under the direct order of the US President Jimmy Carter in an attempt to release former US embassy staff held in Tehran after the 1979 Islamic Revolution. 

On November 03, the founder of the Islamic Revolution Ayatollah Khomeini delivered a decisive speech and called on Iranian people, students, and the clergies to thwart any US and Zionist regime’s conspiracies against the newly established Islamic Republic of Iran and also to oblige the US government to hand over Shah of Iran, Mohammad Reza Pahlavi, who had gone to New York for medical treatment.

US interference in Iran's internal affairs, its refusal to hand over the fugitive Shah as well as the meeting of some interim government officials with Zbigniew Brzezinski, the National Security Advisor to President Jimmy Carter (November 01, 1978) flared up Iranian's rage and made them take some retaliatory measures.

On November 04, 1979, on the first anniversary of the massacre of 56 Iranian pupils by Shah’s troops, and the day on which Imam Khomeini was exiled to Turkey (November 04 1964) by the oppressive Pahlavi regime, almost 400 Iranian Muslim students known as Muslim Students of Imam Khomeini Line stormed the US embassy.

During the takeover of the embassy, documents were discovered that proved some of the American embassy staff had been working with US intelligence agencies; meaning they were spies. Some 52 Americans were held in Tehran for 444 days, but later released unharmed.

 

 

Defense chiefs of Iran, Russia, Turkey and Syria to meet in Moscow on Tuesday

Turkish Defense Minister Halusi Akar announced that a joint meeting will be held between Iran, Syria, Russian, and Turkey in Moscow on Tuesday.

Akar announced that the meeting will be held at the level of defense ministers and heads of intelligence agencies.

The meeting comes after Moscow hosted the meeting of the deputy foreign ministers of the four countries.

Earlier this month, deputy foreign ministers of Iran, Russia, Syria, and Turkey held a meeting in Moscow to discuss the next meeting of the foreign ministers.

Russian Foreign Minister Sergey Lavrov delivered the opening speech of the meeting, which was held at the headquarters of the Ministry of Foreign Affairs.

The Moscow talks will serve as a prelude to the upcoming meeting between the foreign ministers of the four countries, according to the Turkish Anadolu news agency.

Ali Asghar Khaji, senior advisor to the Iranian foreign minister for special political affairs, who had traveled to Moscow at the head of a delegation to attend the four-way meeting, met separately with the deputy foreign ministers of Russia, Syria, and Turkey.

Also, Iranian Ambassador to Russia Kazem Jalali met in Moscow with Mikhail Bogdanov, the Special Representative of the President of Russia for the Middle East.

In the meeting, the latest planning for holding a quadrilateral meeting of foreign ministers on the Syrian issue was discussed, the Iranian embassy in Moscow said in a statement.

 

Panama Canal enforces lower draught restrictions

According to Seatrade Maritime News, the Panama Canal Authority (ACP) has enforced lower maximum draught of vessels transiting the expanded Panama Canal’s neo-panamax locks due to an ongoing drought.

The restrictions were introduced on April 19 and require vessels to reduce weight or otherwise handle less goods onboard.

The interim measure was outlined by officials without a deadline, but they expressed optimism that it might be lifted as soon as possible once the Central American rainy season starts.

The level of Gatun Lake has been falling faster than anticipated, putting pressure on the critical shipping route, despite implementing water-saving measures, the ACP said,

In response, the ACP has announced updated maximum draughts for the neo-panamax locks.

Effective April 19, 2023, the maximum authorized draught for vessels transiting the neo-panamax locks has been set at 14.48 m (47.5 feet) Tropical Fresh Water (TFW).

Further reductions will take effect on April 27, May 5, and May 12, bringing the maximum authorized draught to 14.02 m (46.0 feet) TFW.

The ACP reminds that vessels must adhere to the maximum authorized draught at the time of transit, warning that waiting times for transit can vary, potentially causing a vessel to arrive in compliance with the maximum allowable draft but then be subject to a draft reduction while still awaiting transit. The ACP therefore advises that waiting times should be factored in when planning transit at or near the maximum authorized draught upon arrival.

The ACP will continue to closely monitor the level of Gatun Lake and provide timely updates on future adjustments.