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Congressman Mike Lawler grills Treasury Secretary over Iran sanctions

Jul 10, 2024, 09:00 GMT+1Updated: 16:24 GMT+0
Ship-to-Ship transfer of illicit oil exports to hide origin, July 2023.
Ship-to-Ship transfer of illicit oil exports to hide origin, July 2023.

Congressman Mike Lawler accused the US Treasury Secretary, Janet Yellen, of the lax implementation of critical sanctions acts aimed at curtailing Iran's oil trade with China.

In a heated session on Tuesday, Lawler claimed the Biden administration has allowed a significant increase in illicit Iranian oil sales, funding Tehran's military activities in the Middle East, some of which targeting US facilities and troops.

In 2023, Iran exported approximately 1.4 million barrels of oil daily, with a significant portion purchased by China, according to tanker shipment tracking firms.

Following the sanctions imposed by the US in 2018 after it withdrew from the JCPOA, Iran's oil exports plummeted from more than two million barrels per day to less than 300,000 by 2019.

Lawler pointed out that since President Biden took office, Iranian oil sales have surged by over $100 billion, providing substantial financial resources for Iran's subversive activities across the Middle East. Yellen responded by saying she would "look into the details".

Lawler highlighted testimony from General Horacio Carrillo, head of CENTCOM, who confirmed that Iran continues to sell 90% of its oil to China. He said the sales are directly funding Tehran's proxy militias such as the Houthis in Yemen which are targeting commercial shipping in the Red Sea region, including attacks on US warships stationed in the area.

“Anyone who participates in the sale of Iranian oil plays a role in helping the regime evade US sanctions. Engaging in this trade is tantamount to aiding and abetting a terrorist state, and it must end,” Lawler said.

The funds are used to purchase weapons, finance operations, and sustain ongoing conflicts, further destabilizing the Middle East and posing a serious threat to international security.

Lawler emphasized the urgency of cutting off the financial lifelines that support Iran's terror activities and criticized the administration's perceived delay in addressing an issue of national security.

As Iran continues to evade sanctions, earlier this month, Iran’s oil minister Jawad Owji admitted that the country is still selling crude to 17 countries, including some in Europe.

In an interview with Mehr News Agency, he defiantly said, "We sell our oil wherever we want to". Iran's sanctions are in place to limit its ongoing nuclear program but more recently, others have been imposed for Iran's supporting Russia's war on Ukraine and brutal human rights abuses at home.

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Syrian state news says Israeli airstrike targets Syria's Baniyas

Jul 9, 2024, 16:20 GMT+1

Syria's news agency says an Israeli airstrike in Baniyas, western Syria was launched in the early hours of Tuesday morning, coinciding with the arrival of two Iranian ships at the port of Latakia.

SANA reported that the strike occurred just after midnight Monday, targeting a position near the coastal city of Baniyas, resulting in material damage.

The Syrian Observatory for Human Rights (SOHR), a UK-based NGO with extensive sources in Syria, said it is the third Israeli attack on Baniyas this year.

The organization noted the presence of Iranian military advisors in the targeted area and added that two missiles hit coastal buildings, including one linked to air defense, causing a significant fire.

Additionally, two individuals believed to be members of the Lebanese Hezbollah were killed and a Syrian driver seriously injured in a drone attack on a car near a military checkpoint on the Damascus-Beirut highway.

The vehicle, belonging to Hezbollah, Iran's largest and most powerful proxy, was completely incinerated, with the victims' bodies charred inside, reported the SOHR.

The attack, carried out from the Mediterranean Sea, adds to the stream of Israeli operations since the Syrian civil war began in 2011. The attacks have primarily targeted Bashar al-Assad's forces and positions held by groups supported by Iran. Despite the frequency of the assaults, Israel has rarely issued comments.

It also comes as Israel is fighting Hezbollah on its northern border. Since the Gaza war broke out on October 7, over 3,400 projectiles have been launched by the terror group towards Israel in allegiance with Iran-backed Hamas in Gaza.

In April, an alleged Israeli strike on the Iranian consulate in Damascus resulted in the death of Mohammad Reza Zahedi, a high-ranking Quds Force commander and several other IRGC officers. In retaliation, the Islamic Republic launched a barrage of missiles and drones toward Israel.

Israeli officials, despite their usual silence on such operations, have consistently declared their determination to prevent Iran from expanding its foothold in Syria. 

Iranian aviation faces turbulence amid threats to regulate prices

Jul 9, 2024, 13:12 GMT+1

Iran’s deputy minister of roads and urban development has criticized whispers of regulating prices for airlines, stating that running an airline under such restrictions is impossible.

The comment highlights the ongoing tension between the government and the aviation industry over ticket pricing.

Mohammad Mohammadi-Bakhsh said that the High Council of Aviation should set prices, a practice that has been in place for many years. However, with current whispers of price liberalization, there is concern about significant increases in flight prices.

Despite the government's attempts to prevent price hikes, airline companies, burdened by rising operational costs, oppose the move.

The head of the Civil Aviation Organization on Tuesday also claimed the arrival of 100 airplanes and helicopters over the past 33 months, with 55 put into operation.

“Currently, 270 ultralight aircraft and helicopters are operating in the country's aviation fleet. We need 550 aircraft."

It comes as Iran recently purchased a 29-year-old plane from the Taliban, highlighting the government's desperate measures amid global sanctions which continues to tie Iran's hands. Critics slam the Raisi administration's claims of fleet expansion, noting many supposed new additions are merely old planes repaired in Iran.

The purchase follows Airbus's cancellation of a major deal to sell Iran 100 planes, worth $30 billion, due to the Trump administration's withdrawal from the JCPOA and reimposition of sanctions. Since the 1990s, Iran has struggled to buy new aircraft or spare parts due to sanctions, leading to a steadily deteriorating fleet.

As a result, Iran's aviation fleet has become increasingly old and unreliable, with an average age of over 25 years and many planes in dire need of major repairs. The government's failure to secure modern aircraft continues to compromise the safety and reliability of air travel in the country.

Khamenei pins hope on new government to deflect foreign pressures

Jul 9, 2024, 10:55 GMT+1
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Behrouz Turani

With a new president nearly in office in Tehran, there is much speculation about the direction of the new Iranian government's foreign policy.

Supreme Leader Ali Khamenei, who is widely believed to have the final say on foreign policy and other matters in Iran, has assured domestic and foreign audiences that no change is likely to take place in Iran's foreign policy with the change of president. However, the specter of Trump’s re-election is not a pleasant prospect for Khamenei and the veneer of a more “moderate” government might be one of the few effective tools he can employ to deflect more sanctions and pressures.

Nonetheless, to respond to the demands of the nation whose patience is running thin in the face of serious and long-standing economic problems, the new president has vowed to do whatever in his power to improve the country's relations with the outside world in a bid to have the paralyzing US and other international sanctions on Iran lifted.

The most severe sanctions on Iran were imposed following the 2018 US withdrawal from the JCPOA nuclear deal. These sanctions have significantly impacted Iran's oil sales and international banking. As a result, Tehran's ability to sell oil on international markets has been restricted, and it faces challenges in repatriating the proceeds, having to sell the oil at discounted prices almost exclusively to China.

Newly election Pezeshkian with former foreign minister Zarif during his election campaign.
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Newly election Pezeshkian with former foreign minister Zarif during his election campaign.

It remains unclear who will be the country's new foreign minister. Traditionally, however, Iran’s so-called moderate governments have relied on disagreements between the United States and Europe, leveraging divisions to weaken a united front against the Islamic Republic’s nuclear program and its regional interventions.

Some of the latest reports from Tehran indicate that the new government is keen to follow an approach of less tensions with West. For instance, a report in proreform Fararu website says that Iran's new government, which has not been officially formed yet, is likely to review the country's domestic and foreign policies.

However, this does not seem to be so easy, as the new President Masoud Pezeshkian's fundamentalist rival Saeed Jalili has threatened that “revolutionary forces” will not allow the government to make any compromise on ideological values.

Fararu reminded that hardliners who oppose better ties with the West have lost the election, but they have not lost political power. This serious challenge, according to the website will affect every decision to be made by the new government.

The new government will inevitably face several challenges, including securing approval for its cabinet ministers from the hardliner-dominated parliament. Some observers note that Pezeshkian has friendly ties with Majles Speaker Mohammad Bagher Ghalibaf. However, the key question is whether Ghalibaf can influence the hardliners in parliament. The answer to this will determine how easy or difficult it will be for Pezeshkian's cabinet ministers to win a vote of confidence from the Majles.

Putting foreign policy on the right track is the next challenge. The unknown factor is Supreme Leader Ali Khamenei’s plan. Does he want a meaningful change or just a façade of a “reformist” government? Then comes Pezeshkian’s task of dealing with hardliners if he ends up trying to make any concessions to the United States.

The next challenge will be striking a balance between relations with and dependency on the East and the West. Radicals in Iran refuse to accept that even China and Russia must engage with the United States and Europe as both trade partners and political rivals. People like Jalili have often been more anti-West than even Russia and China.

Leaving behind these challenges is not easy considering the weight and might of hardliners' media fleet led by the state radio and television and the backing of the Revolutionary Guard.

However, Pezeshkian may have a counterbalance that could silence the hardliners: potential support from Khamenei. Iranians will see within a few months if this backing materializes. Even if it does, Pezeshkian might abandon his promise to end the crackdown on women who defy the compulsory hijab. This is an area where Khamenei is likely to allow the radicals free rein, assuring them that they are not entirely marginalized.

Biden, Starmer to tackle Iran threats in first White House meeting

Jul 9, 2024, 09:47 GMT+1

US President Joe Biden will host Britain's new Prime Minister, Keir Starmer, at the White House on Wednesday, focusing on countering Iran's escalating global threats.

Key issues on the agenda include the conflicts in Ukraine and the Israel-Gaza war, with a critical focus on Iran's nuclear ambitions and destabilizing activities. Tehran's clandestine actions and refusal to fully cooperate with the International Atomic Energy Agency (IAEA) have fueled suspicions of its intent to develop nuclear weapons, potentially sparking a regional arms race.

Additionally, Iran's Houthi rebels in Yemen continues to attack commercial shipping in the Red Sea region and Saudi Arabian oil infrastructure, threatening global energy supplies and trade routes.

With the victory of Labor party in the UK, its politicians have called for tough action against the Islamic Revolutionary Guard Corps (IRGC), including its proscription. The cross-party interest in Iran over the past two years across both Houses of Parliament has been unprecedented.

Recently, over 500 MPs and Lords urged the government to proscribe the IRGC. The Labor manifesto highlights "assassination plots by the IRGC" as part of rising threats in the UK from hostile states, pledging to adapt counter-terrorism measures for state-based threats.

This includes assassination and kidnap attempts on Iran International staff, with the UK's intelligence agency, MI5, calling Iran one of the country's biggest foreign threats on its soil.

Both the new Home Secretary and Foreign Secretary previously urged amendments to the UK’s Terrorism Act 2000 to cover hostile state actors offering hope of proscription under the new government.

Putin congratulates Iran's new president, promises more cooperation

Jul 8, 2024, 18:00 GMT+1

Russian President Vladimir Putin congratulated Masoud Pezeshkian on his election as the president-elect of Iran during a phone call on Monday.

According to ISNA, President Putin expressed his best wishes for Pezeshkian's success in his “significant responsibility ahead,” as well as “for the well-being and prosperity of the Iranian people.”

Pezeshkian was elected in a runoff on Friday, after a highly stage-managed electoral process following the death of President Ebrahim Raisi in a freak helicopter crash in May.

During the phone call, Putin noted that the relations between the Islamic Republic and Russia are at the highest level and expressed hope that these relations will continue during Pezeshkian's presidency.

Russia and Iran have strengthened their alliance in the past decade during the war in Syria where they both sent forces to rescue the government of Bashar al-Assad. Moscow has also sided with Tehran in its nuclear dispute with the West, condemning sanctions and continuing trade and financial relations. Iran in return has supplied Russia with hundreds of suicide drones that have been used against Ukrainian infrastructure and civilian targets.

Russia, which is also under Western sanctions, can offer Iran more military technology, but trade between the two allies has remained limited to less than $5 billion per year. In fact, both economies are heavily dependent on oil exports and they both compete for illicit shipments to China.

Putin also highlighted the expanding cooperation between Iran and Russia, particularly in the energy and transportation sectors. He invited Pezeshkian to attend the upcoming BRICS summit in Kazan and emphasized Russia's readiness to sign a comprehensive cooperation agreement between the two countries on the sidelines of the summit. The agreement is a new version of a previous accord signed in 2001.

According to ISNA, Pezeshkian expressed his gratitude for Putin's warm and friendly congratulations, stating, "We place great importance on our relations with the friendly and neighboring country of Russia, and we will undoubtedly strengthen these relations."

The president-elect emphasized the new government's commitment to pursuing and implementing the agreements made during the late President Raisi's administration.

Pezeshkian also highlighted the importance of cooperation between the two countries in international and regional organizations and alliances such as the Shanghai Cooperation Organization, BRICS, and Eurasia. He noted that the comprehensive cooperation agreement between Iran and Russia has been finalized and is ready to be signed on the sidelines of the BRICS summit in Russia.