Hong Kong airport grinds to halt as China likens protests to terrorism

Anti-extradition bill protesters rally at the departure hall of Hong Kong airport in Hong Kong, China August 12, 2019. REUTERS/Thomas Peter

By Greg Torode and Vimvam Tong

HONG KONG (Reuters) – Hong Kong’s airport canceled all flights on Monday, blaming demonstrators for the disruptions, while China said the anti-government protests that have roiled the city through two summer months had begun to show “sprouts of terrorism”.

The airport authority said it was working with airlines to resume flights from 6 a.m. on Tuesday, but the developments raise the stakes after a weekend of skirmishes during which both activists and police toughened their stances.

Some Hong Kong legal experts say official descriptions of some protesters’ actions as terrorism could lead to the use of extensive anti-terror laws and powers against them.

China’s People’s Armed Police also assembled in the neighboring city of Shenzhen for exercises, the state-backed Global Times newspaper said.

People in the Asian financial hub responded by taking to the streets again, picketing a police station and returning in their hundreds to a metro station where police had hit activists with batons, to protest against the heavy-handed tactics.

The increasingly violent demonstrations have plunged the Chinese-ruled territory into its most serious crisis in decades, presenting Chinese leader Xi Jinping with one of his biggest popular challenges since he came to power in 2012.

“Hong Kong has come to a critical juncture,” said Hong Kong and Macau Affairs office spokesman Yang Guang in Beijing.

“Protesters have been frequently using extremely dangerous tools to attack the police in recent days, constituting serious crimes with sprouts of terrorism emerging.”

The protests began in opposition to a bill allowing extradition to the mainland but have widened to highlight other grievances, winning broad support.

The precise trigger for the airport’s closure was not clear, since protesters occupying the arrivals hall for four days have been peaceful.

“This is about our freedom,” said one of the thousands of protesters who remained there, a 24-year-old wearing a mask, who gave his name only as Yu. “Why should we leave?”

GROUNDED

Hong Kong is the world’s busiest air cargo port and the 8th busiest by passenger traffic, says the Airports Council International (ACI), a global association. It has been filled with anti-government protesters for four days.

The mostly young black-clad protesters have chanted slogans such as “No rioters, only tyranny!” and “Liberate Hong Kong!” while approaching travelers with flyers describing their demands and explaining the unrest.

Demonstrators say they are fighting the erosion of the “one country, two systems” arrangement enshrining some autonomy for Hong Kong when China took it back from Britain in 1997.

The activists at the airport have been polite and passengers mostly unperturbed. “I was expecting something, given all the news,” one arrival, Gurinda Singh, told Reuters.

“I’m just pleased my plane arrived and the protests here seem peaceful.”

Some activists moved to the departure area and caused disruptions, police told a news conference as the cancellations were announced.

Police declined to say if they would move to clear the demonstrators. There was no visible police presence in either the departure or arrivals area.

“Airport operations at Hong Kong International Airport have been seriously disrupted as a result of the public assembly at the airport today,” the city’s airport authority said in a statement, without elaborating.

About 190 flights were hit, Chinese aviation data firm VariFlight said, though planes already en route to Hong Kong were allowed to land.

RESTIVE WEEKEND

Demonstrators threw up barricades across the city at the weekend, as police fired tear gas into crowded underground train stations as well as rubber bullets and pepper pellets at close range.

In response, protesters have sought to channel a Bruce Lee maxim: “Be water,” employing a flash-mob strategy to frustrate authorities and stretch their resources.

Still, scores of protesters were arrested, sometimes after being beaten with batons and bloodied by police. One young female medic was hospitalized after being hit by a pellet round in the right eye.

Hundreds of people returned on Monday to the scene of some of the clashes to protest against the use of force.

“We are completely disappointed with Hong Kong police,” said Terry Ng, 30, a social worker protesting outside Wan Chai police station. “The weight of their shots caused a young girl to lose one eye. Do they still have a conscience?”

Authorities have called the citywide demonstrations illegal and dangerous, while highlighting their impact on the already-faltering economy and residents’ activities.

Beijing says criminals and agitators are stirring violence, but its use of the word “terrorism” on Monday was its starkest warning yet, possibly paving the way for a national-security response to the crisis.

China has used the threat of terrorism to justify tough measures in its regions of Xinjiang and Tibet, which have been criticized by rights groups and Western governments. It warned them off on Monday as well.

“Hong Kong is China’s Hong Kong and Hong Kong affairs are purely China’s internal affairs,” foreign ministry spokeswoman Hua Chunying said in a statement.

China has also put pressure on big companies, such as Cathay Pacific Airways, whose shares tumbled to a 10-year low on Monday, after it was told to suspend staff engaged in illegal protests.

Police, who have arrested more than 600 people since the unrest began more than two months ago, demonstrated a water cannon.

(Reporting by Greg Torode, Vimvam Tong, Clare Jim, Felix Tam, Noah Sin, Brenda Goh, Twinnie Siu, James Pomfret, Farah Master, Felix Tam, Anne Marie Roantree and Donny Kwok; Writing by Tom Westbrook; Editing by James Pomfret and Clarence Fernandez)

Britain faces food shortages in no-deal Brexit scenario, industry body says

FILE PHOTO: Fruit and vegetables sit in cold storage at the New Covent Garden wholesale market in London, Britain, February 3, 2018. REUTERS/Simon Dawson/File Photo

By Kate Holton and Guy Faulconbridge

LONDON (Reuters) – Britain will experience shortages of some fresh foods for weeks or even months if a disorderly no-deal Brexit leaves perishable produce rotting in lorries at ports, Britain’s food and drink lobby warned on Wednesday.

Retailers such as Tesco have warned that leaving the European Union on Oct. 31 without a transition deal would be problematic as so much fresh produce is imported and warehouses are stocked full ahead of Christmas.

The industry – which employs 450,000 people in the United Kingdom – views Brexit as the biggest challenge since World War Two, dwarfing previous crises such as the horsemeat scandal of 2013 and the mad cow disease outbreaks of the 1980s and 1990s.

“We’re not going to starve but there will be shortages of fresh food and some specialist ingredients. It’s going to be a little bit unpredictable,” the Food and Drink Federation’s Chief Operating Officer Tim Rycroft told Reuters.

“Given that food very often is perishable and has a short shelf life, we expect that there will be some selective shortages of food in the weeks and months following no-deal Brexit,” Rycroft said. “There will be some shortages and price rises.”

Part of the problem is that Brexit could change everything – or, possibly, nothing.

Ahead of the original Brexit deadline of March 29, supermarkets and retailers spent millions of pounds preparing for Brexit and working with suppliers to increase stocks of dried goods including pasta, bottled water and toilet paper.

After three years of Brexit discussion, it is still unclear on what terms the United Kingdom will leave the European Union with options ranging from a last-minute exit deal or delay to an acrimonious divorce that would knot the sinews of trade.

Prime Minister Boris Johnson has repeatedly warned the European Union that unless it agrees to do a fresh divorce deal then he will lead the country out of the bloc on Oct. 31 without a deal.

BREXIT AT HALLOWEEN

As winter approaches, the United Kingdom becomes more dependent on imported food so a Halloween no-deal Brexit is potentially more disruptive.

Britain imports around 60 percent of its food by the beginning of November – just the time that delays caused by a no-deal Brexit could be clogging up ports and motorways, Rycroft said.

Fresh fruit and vegetables, which have a short shelf-life of only a few days, cannot be stored for long so any checks at Calais could lead to significant disruption at Dover, Britain’s biggest port.

Rycroft said they estimated that the cost of preparing for a no-deal exit, including reserving warehouse space, using alternative distributors and losing orders in congested ports, would cost the industry up to 100 million pounds ($121 million) a week.

“A lot of money will be spent,” Rycroft said, referring to how the industry prepared for two previous Brexit deadlines in March and April.

“Having marched the industry up the hill twice and down again, we’re now mobilizing and actually 31st of October looks a more realistic prospect than a no-deal Brexit than either of the two previous ones.”

A spokeswoman for the government said it was working to support the industry. “The UK will be leaving the EU on 31 October and our top priority is supporting consumers and businesses in their preparations for Brexit.”

The UK food and drink industry accounts for 19% of the manufacturing sector by turnover and employs over 450,000 people in Britain across 7,000 businesses including Associated British Foods Plc, Nestle and PepsiCo.

Some of the bigger companies have tested different ports to avoid the main route of Dover-Calais while pharmaceutical companies have reserved air freight capacity to fly in supplies if needed.

The trade body has urged the government to waive some competition rules to allow retailers and suppliers to be able to work together to provide the most effective coverage for the country in such a situation.

Rycroft said the industry had repeatedly asked the government to provide a guarantee that companies would not be fined for engaging in anti-competitive behavior.

Brexit supporters say there may be short-term disruption from a no-deal exit but that the UK will thrive if cut free from what they cast as a doomed experiment in integration that has led to Europe falling behind China and the United States.

Rolls-Royce <RR.L> said on Tuesday it was ready to cope with the fallout from a disorderly Brexit after the aero-engine maker spent around 100 million pounds to increase inventory among other preparations.

($1 = 0.8235 pounds)

(Writing by Guy Faulconbridge and Kate Holton; Editing by Alison Williams)

Iran says will not tolerate ‘maritime offences’ in Gulf

Iran's Foreign Minister Mohammad Javad Zarif gestures during a news conference in Tehran, Iran August 5, 2019. Nazanin Tabatabaee/WANA (West Asia News Agency) via REUTERS.

By Tuqa Khalid

DUBAI (Reuters) – Iran runs security in the Strait of Hormuz and will no longer tolerate “maritime offenses” there, its foreign minister said on Monday, a day after it seized a second oil tanker near the strategic waterway that it accused of smuggling fuel.

Tanker traffic through the Strait has become a focus for an increasingly tense standoff between Washington and Tehran, into which Britain has also been dragged, and the United States has beefed up its military presence in the Gulf since May.

On Sunday, Iran’s elite Revolutionary Guards Corps seized the Iraqi tanker north of the Strait and detained its seven crew, state media reported. Guards commander Ramezan Zirahi was quoted as saying it was carrying 700,000 liters of fuel.

“Iran used to forgo some maritime offenses in … (the) Gulf but will never close (its) eyes anymore,” Foreign Minister Mohammad Javad Zarif told a televised news conference in Tehran.

“… Iran is responsible for the security and safety of the Strait of Hormuz and the region.”

Iran has threatened to block all exports via the Strait, through which a fifth of global oil traffic passes, if other countries comply with U.S. pressure to stop buying Iranian oil.

Zarif criticized U.S. sanctions imposed on him on Wednesday, saying Washington had closed the door to diplomacy over Iran’s 2015 nuclear deal, which U.S. President Donald Trump exited last year.

The deal with a handful of global powers had curbed Tehran’s nuclear work in return for an easing of sanctions, striking a delicate political balance that the U.S. pullout has destabilized.

Strains between Washington and Tehran have heightened further since the spring. In June, Iran’s downing of a U.S. drone prompted preparations for a U.S. retaliatory airstrike that Trump called off at the last minute.

Angered by intensified U.S. sanctions designed to strangle its vital oil trade and the failure of European parties to agree on a way of salvaging the nuclear agreement, Tehran has scaled back its commitments under the pact.

“Iran will leave its 2015 nuclear deal with powers if necessary,” Zarif said on Monday, adding that all measures taken by Iran were, however “reversible if its interests under the deal are secured.”

Iran has so far rejected calls by the Trump administration to negotiate a new deal.

Zarif called for improved ties with Iran’s rivals in the Middle East, where it has been involved in proxy wars for decades with Sunni Saudi Arabia.

He also labeled as “piracy” the seizure by Britain in July of an Iranian oil tanker near Gibraltar that London accused of violating sanctions on Syria.

Two weeks later, Iran’s Revolutionary Guards seized a British tanker, Stena Impero, near the Strait of Hormuz for alleged marine violations.

“Britain has been complicit in the U.S. economic terrorism against Iran,” Zarif said.

(Writing by Parisa Hafezi; Editing by John Stonestreet)

Iran says meeting with parties to nuclear deal ‘constructive’

Iran's top nuclear negotiator Abbas Araqchi and EEAS Secretary General Helga Schmid attend a meeting of the JCPOA Joint Commission in Vienna, Austria July 28, 2019. REUTERS/Kirsti Knolle

By Kirsti Knolle

VIENNA (Reuters) – An emergency meeting with parties to Iran’s 2015 nuclear deal was constructive but there are unresolved issues and Tehran will continue to reduce its nuclear commitments if Europeans fail to salvage the pact, Iranian official Abbas Araqchi said on Sunday.

“The atmosphere was constructive. Discussions were good. I cannot say that we resolved everything, I can say there are lots of commitments,” Araqchi, the senior Iranian nuclear negotiator, told reporters after the meeting in Vienna.

Parties to the agreement – Britain, Germany and France plus Russia and China – met Iranian officials for talks called in response to an escalation in tensions between Iran and the West that included confrontations at sea and Tehran’s breaches of the nuclear accord.

“As we have said, we will continue to reduce our commitments to the deal until Europeans secure Iran’s interests under the deal,” Araqchi said.

The parties have been trying to salvage the pact since the United States withdrew from it in May 2018 and re-imposed and toughened sanctions on Iran, crippling an already weak economy.

The Europeans say further breaches of the agreement by Iran would escalate confrontation at a time when Tehran and Washington are at risk of a miscalculation that could lead to war.

However, their efforts to protect trade with Iran against the U.S. sanctions have yielded nothing concrete so far. Earlier this month, Tehran followed through on its threat to increase its nuclear activities in breach of the agreement.

Iran has said it will withdraw from the pact unless the Europeans find ways to shield its economy from the U.S. sanctions.

“All our steps taken so far are reversible if other parties to the deal fulfill their commitments,” an Iranian diplomat told Reuters ahead of the meeting.

In response to the sanctions, Iran said in May it would decrease its commitments under the nuclear pact. Under the deal, most international sanctions against Tehran were lifted in 2016, in exchange for limitations on its nuclear work.

So far, Iran has breached the limit of its enriched uranium stockpile as well as enriching uranium beyond a 3.67% purity limit set by its deal with major powers, defying a warning by Europeans to stick to the deal despite U.S. sanctions.

The U.N. nuclear watchdog, policing the deal, has confirmed the measures announced by Tehran.

SANCTIONS

Fu Cong, director-general of the Department of Arms Control of the Chinese Foreign Ministry, who leads the Chinese delegation, said: “All sides have expressed their commitment to safeguard the JCPOA (nuclear deal) and to continue to implement the JCPOA in a balanced manner.

“All sides have expressed their strong opposition against the U.S. unilateral imposition of sanctions.”

The meeting came after Iran&rsquo;s elite Revolutionary Guards seized a British-flagged oil tanker on July 19, two weeks after British forces captured an Iranian oil tanker near Gibraltar which it said was violating sanctions on Syria.

Araqchi said Britain’s seizure of the Iranian tanker was a violation of the nuclear pact.

“The countries who are part of (the nuclear deal) shouldn’t create obstacles for the export of Iranian oil,” Araqchi said.

Britain has called for a European-led naval mission to ensure safe shipping through the Strait of Hormuz, a vital international oil shipping route. An Iranian government spokesman said on Sunday such a mission would send a “hostile message”.

Britain said on Sunday Royal Navy destroyer HMS Duncan had arrived in the Gulf to join a British frigate escorting British-flagged ships through the Strait.

The seizure of the British tanker in the world’s most important waterway for the oil trade has deepened a crisis between Iran and the West. Iranian President Hassan Rouhani said Britain’s seizure of the Iranian oil tanker was illegal and would be detrimental for Britain.

After meeting Iranian officials in Tehran, Oman’s Foreign Minister Yousuf bin Alawi bin Abdullah said all parties should maintain contact to avoid more incidents in the Strait.

Iran has threatened to disrupt oil shipments through the waterway if the United States tries to strangle its economy with sanctions on its vital oil exports.

Several oil tankers were attacked in waters near Iran&rsquo;s southern coast in May and June, for which the United States blamed Iran. Tehran denied any involvement.

Iran in June shot down a U.S. military surveillance drone in the Gulf, which Tehran said had violated its air space. Washington said the drone was in international skies.

(Additional reporting by Parisa Hafezi, Aziz El Yaakoubi and Lisa Barrington in Dubai and Babak Dehghanpisheh in Geneva, Writing by Parisa Hafezi,; Editing by Janet Lawrence)

Climate records tumble as Europe swelters in heatwave

A temperature indicator outside of a pharmacy indicates 42 degres Celsius (107.6 Fahrenheit) in Brussels, Belgium, July 25, 2019. REUTERS/Yves Herman

PARIS/LONDON (Reuters) – Soaring temperatures broke records in France, Britain and the Netherlands on Thursday as a heatwave gripped Europe for the second time in a month, in what scientists said were becoming more frequent events as the planet heats up.

Tourists shield themselves from the sun with umbrellas as temperatures reach new record highs in front of the Brandenburg Gate in Berlin, Germany, July 25, 2019. REUTERS/Fabrizio Bensch

Tourists shield themselves from the sun with umbrellas as temperatures reach new record highs in front of the Brandenburg Gate in Berlin, Germany, July 25, 2019. REUTERS/Fabrizio Bensch

As a cauldron of hot air from the Sahara desert moved across the continent, drawn northwards by high pressure, Paris recorded its highest temperature since records began and Britain reported its hottest weather for the month of July.

The unusual conditions brought a reduction in French and German nuclear power output, disrupted rail travel in parts of Britain and sent some Europeans, not habitual users of air conditioning in their homes, out to the shops in search of fans.

Health authorities issued warnings to the elderly, especially vulnerable to spikes in temperature.

“It’s very hot at the moment. I saw 42 degrees (Celsius) is forecast for today,” said 19-year-old French tourist Ombeline Massot in the capital’s Montmartre district, where visitors drank chilled bottles of water and fanned themselves.

Shortly after she spoke, the mercury touched 40.6 Celsius (105.08&deg; Fahrenheit) in the French capital, above the previous Paris record of 40.4 C (104.72) recorded in July 1947.

In Britain, the temperature reached its highest for July, hitting 36.9 C (98.42 F), said the Met Office, the national weather service. The temperature, recorded at Heathrow, London, beat the previous July record of 36.7 C (98.06&deg;F).

In the southern Netherlands, the temperature peaked at 40.4 Celsius (104.7 Fahrenheit), topping 40 degrees Celsius (104 Fahrenheit) for the first time on record, Dutch meteorology institute KNMI said. That broke the national record of 39.3 Celsius set the previous day. Before this week, the national heat record of 38.6 degrees had stood for 75 years.

The heat is expected to persist until Friday.

A boy plays with water in a fountain on a hot summer day in Brussels, Belgium, July 25, 2019. REUTERS/Yves Herman

A boy plays with water in a fountain on a hot summer day in Brussels, Belgium, July 25, 2019. REUTERS/Yves Herman

GLOBAL WARMING

Climate specialists said such heatwaves are becoming more frequent as a result of global warming from greenhouse gas emissions.

Britons were facing travel disruption, with trains being forced to slow down to prevent tracks buckling in the heat. Several train operators asked commuters not to travel or set off very early.

A Met Office study found that a heatwave like one that broke records last year was 30 times more likely to occur than in 1750 because of the high amount of carbon dioxide in the atmosphere. Since the pre-industrial period, the Earth’s surface temperature has risen by 1 degree Celsius.

“There is a 40-50% chance that this will be the warmest July on record. This heatwave is exactly in line with climate change predictions,” said Dr. Karsten Haustein at the Environmental Change Institute at the University of Oxford.

Peter Inness, Senior Research Fellow at the University of Reading, said: “The fact that so many recent years have had very high summer temperatures both globally and across Europe is very much in line with what we expect from man-made global warming.”

The heatwave in Britain is expected to come to an abrupt end on Friday with thunderstorms forecast for several parts of the country, the Met Office said.

Very high temperatures across Europe coupled with prolonged dry weather has reduced French nuclear power generation by around 5.2 gigawatts (GW) or 8%, French power grid operator RTE’s data showed.

Electricity output was curtailed at six reactors by 0840 GMT on Thursday, while two other reactors were offline, data showed. High water temperatures and sluggish flows limit the ability to use river water to cool reactors.

In Germany, PreussenElektra, the nuclear unit of utility E.ON, said it would take its Grohnde reactor offline on Friday due to high temperatures in the Weser river.

(Reporting by Nina Chestney in London, Richard Lough in Paris, Alexandra Regida in Brussels and Bart Meijer in Amsterdam; Editing by William Maclean and Peter Graff)

British Prime Minister Johnson vows Brexit with “no ifs or buts”

Queen Elizabeth II welcomes Boris Johnson during an audience in Buckingham Palace, where she will officially recognise him as the new Prime Minister, in London, Britain July 24, 2019. Victoria Jones/Pool via REUTERS

By William James and Kylie MacLellan

LONDON (Reuters) – Boris Johnson used his first speech as prime minister to vow to lead Britain out of the European Union on Oct. 31 “no ifs or buts”, warning that if the European Union refused to negotiate then there would be a no-deal Brexit.

Johnson, who has been hailed by U.S. President Donald Trump as Britain’s Trump, is sending the strongest message yet to the EU that he will be taking a distinctly tougher approach to negotiating the Brexit divorce deal.

He enters Downing Street at one of the most perilous junctures in post-World War Two British history – the United Kingdom is divided over Brexit and weakened by the three-year political crisis that has gripped it since the 2016 referendum.

“We are going to fulfill the repeated promises of parliament to the people and come out of the EU on October 31, no ifs or buts,” Johnson, 55, said after arriving at his new residence, No.10 Downing Street.

“We can do a deal without checks at the Irish border,” Johnson said, watched by his girlfriend Carrie Symonds and his staff. “It is of course vital at the same time that we prepare for the remote possibility that Brussels refuses any further to negotiate and we are forced to come out with no deal.”

One of Britain’s most prominent Brexit campaigners, Johnson has repeatedly pledged to leave the EU by Oct. 31 – “do or die” – and to inject a new optimism and energy into the divorce, which he argues will bring a host of opportunities.

But his strategy sets the United Kingdom up for a showdown with the EU and thrusts it toward a potential constitutional crisis, or an election, at home.

“NEVER MIND THE BACKSTOP”

One of the issues that prevented his predecessor Theresa May getting a divorce deal through parliament was the Irish “backstop” – a provision that would maintain a customs union with the EU if no better solution was found.

Johnson was bullish, however. “Never mind the backstop. The buck stops here,” he said.

He said he would ensure “the people” were his boss and that he would accelerate preparations for a “no-deal” Brexit – a threat he intends to use to force a reluctant EU to renegotiate the exit deal it agreed with May but which parliament has rejected three times.

To implement Brexit, Johnson will appoint Dominic Cummings, the campaign director of the official Brexit Vote Leave campaign, as a senior adviser in Downing Street.

Earlier May, who had formally tendered her resignation to Queen Elizabeth, left Downing Street after a three-year premiership marred by crises over Brexit.

She appeared to be fighting back tears as she was applauded out of the House of Commons chamber.

Johnson had a possible foretaste of turmoil ahead when, as he drove to his audience with the queen, Greenpeace protesters tried – but failed – to block the path of his car as his chauffeur drove around them.

Now formally “Prime Minister and First Lord of the Treasury”, Johnson’ first task will be to appoint key members of the government – names that will give a hint of how he will handle Brexit, Britain’s most significant decision in decades.

BREXIT GOVERNMENT?

But ‘Prime Minister Johnson’ – a man known for his ambition, blond hair, flowery oratory and cursory command of detail – must solve a series of riddles if he is to succeed where May failed.

The 2016 Brexit referendum showed a United Kingdom divided about much more than the EU, and has fueled soul-searching about everything from secession and immigration to capitalism, the legacy of empire and modern Britishness.

The pound is weak, the economy at risk of recession, allies are in despair at the Brexit crisis and foes are testing Britain’s vulnerability.

Johnson’s Conservatives have no majority in parliament and so can only govern with the support of 10 lawmakers from the Brexit-backing Democratic Unionist Party in Northern Ireland.

While Johnson has said he does not want an early election, some lawmakers have vowed to thwart any attempt to leave the EU without a divorce deal. Nigel Farage, whose Brexit Party trounced the Conservatives in May’s EU elections, said he was open to an electoral pact with Johnson.

The appointment of Cummings, known for his campaign skills but also for a combative style that challenges the consensus, indicates Johnson is serious about going in hard on Brexit and wants a first-class political campaigner close.

Interior minister Sajid Javid is widely tipped to stay in a top job – possibly as finance minister – and was spotted flanking Johnson as he arrived to meet lawmakers.

A record number of ethnic minority politicians are expected to serve as ministers including Priti Patel, the former aid minister who resigned in 2017 over undisclosed meetings with Israeli officials, and current employment minister Alok Sharma.

Foreign Secretary Jeremy Hunt, Johnson’s rival for the leadership, was offered the job of defense minister but turned it down, Sky News TV reported.

NO DEAL?

A no-deal Brexit could also prompt Scottish nationalists, who want the UK to remain inside the EU, to seek a fresh referendum on Scottish independence.

Many investors say a no-deal Brexit would send shock waves through the world economy and tip the world’s fifth-largest economic power into recession, roil financial markets and potentially weaken London&rsquo;s position as the pre-eminent international financial center, they say.

Brexit supporters say those fears are overblown and the United Kingdom will thrive if cut loose from the European project, which they cast as a German-dominated bloc that is falling far behind its global competitors such as the United States and China.

“If he really wants a ‘no-deal’, he will get it. We will never push an EU member out, but we can&rsquo;t stop him,” one EU diplomat said. “More likely, his own parliament would.”

(Additional reporting by Elizabeth Piper, Andy Bruce, Kate Holton, William Schomberg, David Milliken and Paul Sandle in London and Gabriela Baczynska in Brussels; Writing by Guy Faulconbridge; Editing by Janet Lawrence and Kevin Liffey)

UK PM May fights back tears as she is applauded out of parliament

British Prime Minister Theresa May takes questions in Parliament on her last day in office as Prime Minister in London, Britain July 24, 2019, in this screen grab taken from video. Reuters TV via REUTERS?

LONDON (Reuters) – British lawmakers gave outgoing Prime Minister Theresa May a standing ovation as they applauded her out of the House of Commons chamber after her final, at times emotional, appearance as leader on Wednesday.

May, 62, appeared to be fighting back tears as she left, stopping to shake hands with the speaker, John Bercow, on her way out. She will officially hand over to her successor Boris Johnson later on Wednesday.

“Later today I will return to the backbenches and it will be my first time in 21 years so it is going to be quite a change,” May told lawmakers as her final weekly question session in parliament came to a close.

Praising the link between lawmakers and the constituents they represent as “the bedrock of our parliamentary democracy”, May’s voice quivered as she finished: “That duty to serve my constituents will remain my greatest motivation.”

The hour-long session, which her husband Philip watched from the public gallery, saw lawmakers from across the political divide pay tribute to May’s public service and sense of duty, despite voicing their disagreement with many of her policies.

Television footage from a news helicopter over parliament showed parliamentary staff lined up in a courtyard, clapping and taking photos on their phones as she walked to her car to return to her Downing Street residence for the final time.

She is expected to make a short speech in Downing Street before going to see Queen Elizabeth to formally stand down and recommend Johnson be asked to form a government.

May took over as prime minister in the aftermath of the 2016 vote to leave the European Union and is standing down just over three years later having failed to deliver Brexit, her divorce deal with the bloc rejected three times by a deeply divided parliament.

(Reporting by Kylie MacLellan; editing by Stephen Addison)

Iran observes all U.S. ships in Gulf region: Iran navy chief

FILE PHOTO: Fleet replenishment oiler USNS Big Horn (T-AO 198) steams out to sea after a vertical replenishment with amphibious assault ship USS Boxer (LHD 4), Arabian Sea off Oman, July 19, 2019.Justin D. Rankin/U.S. Navy/Handout via REUTERS/File Photo

GENEVA (Reuters) – Iran observes all U.S. ships in the Gulf region and has an archive of images of their daily movements, the head of Iran’s navy, Rear Admiral Hossein Khanzadi, said on Tuesday, according to the Young Journalists Club news site.

Iran and the United States came to the brink of war last month after the Islamic Republic shot down a U.S. drone, nearly prompting a retaliatory attack which U.S. President Donald Trump called off at the last minute.

Tensions have also spiked between Iran and Britain after the Islamic Republic seized a British-flagged tanker last Friday because it had collided with a fishing vessel, according to Iranian officials.

British Royal Marines seized an Iranian tanker off the coast of Gibraltar in early July, accusing it of violating sanctions on Syria.

“We observe all enemy ships, particularly (those of) America, point-by-point from their origin until the moment they enter the region,” Khanzadi said, noting that images were recorded using Iranian drones.

“We have complete images and a large archive of the daily and moment-by-moment traffic of the coalition forces and America.”

Iran will hold joint naval exercises with allied countries for the first time by the end of the Iranian calendar year, which is in March 2020, Khanzadi said.

He did not specify which countries might take part in the exercise.

(Reporting By Babak Dehghanpisheh; Editing by Gareth Jones)

Iran says it arrests CIA spies, Gulf tensions simmer

FILE PHOTO - The Iranian flag flutters in front the International Atomic Energy Agency (IAEA) headquarters in Vienna, Austria July 10, 2019. REUTERS/Lisi Niesner

By Michael Georgy

DUBAI (Reuters) – Iran announced on Monday it had captured 17 spies working for the U.S. Central Intelligence Agency (CIA) and sentenced some of them to death, deepening a crisis between the Islamic Republic and the West.

Iranian state television published images that it said showed the CIA officers who had been in touch with the suspected spies.

In a statement read on state television, the Ministry of Intelligence said 17 spies had been arrested in the 12 months to March 2019. Some have been sentenced to death, according to another report.

Such announcements are not unusual in Iran, and are often made for domestic consumption. But the timing suggests Tehran could harden its position in a standoff with Western powers which has raised fears of a direct military confrontation.

In recent weeks the United States has blamed Iran for attacks on shipping near the Strait of Hormuz, the global oil trade’s most important waterway, accusations Iran has denied.

The United States and Iran have downed drones operated by the other side and on Friday, Iran captured a British-registered tanker, the Stena Impero, in the Strait of Hormuz. Tehran had previously warned it would respond to Britain’s seizure of an Iranian tanker off Gibraltar on July 4.

There was no immediate comment on the Iranian allegations by the CIA or U.S. officials.

Iran announced in June that it had broken up an alleged CIA spy ring but it was unclear whether Monday’s announcement was linked to the same case.

BRITAIN’S NEXT MOVE

Prime Minister Theresa May’s office has said she would chair a meeting of Britain’s COBR emergency response committee early on Monday to discuss the tanker crisis and the government was expected to announce its next steps in parliament.

As Britain weighed its next move a recording emerged showing the Iranian military defied a British warship when it boarded and seized the Stena Impero, underscoring the challenges Britain faces responding.

Experts on the region say there are few obvious steps London can take at a time when the United States has already imposed the maximum possible economic sanctions, banning all Iranian oil exports worldwide.

Washington imposed the sanctions after President Donald Trump pulled out of a deal signed by his predecessor Barack Obama, which had provided Iran access to world trade in return for curbs on its nuclear program.

European countries including Britain have been caught in the middle. They disagreed with the U.S. decision to quit the nuclear deal but have so far failed to offer Iran another way to receive the deal’s promised economic benefits.

In Tokyo, Prime Minister Shinzo Abe said on Monday that Japan wants to make every effort to reduce tension between the United States and Iran before responding to an expected U.S. request to send its navy to safeguard strategic waters off Iran.

Japanese media have said Washington’s proposal to boost surveillance of vital Middle East oil shipping lanes off Iran and Yemen could be on the agenda during a visit to Tokyo this week by U.S. national security adviser John Bolton.

“We have a long tradition of friendship with Iran and I’ve met with its president any number of times, as well as other leaders,” Abe told a news conference after his coalition’s victory in a Sunday election for parliament’s upper house.

“Before we make any decisions on what to do, Japan would like to make every effort to reduce tensions between Iran and the United States.”

The United States is struggling to win its allies&rsquo; support for an initiative to heighten surveillance of vital Middle East oil shipping lanes because of fears it will increase tension with Iran, six sources familiar with the matter said.

(Reporting by Gulf bureau and Elaine Lies and Linda Sieg in Tokyo; Editing by Raissa Kasolowsky and Jon Boyle)

U.S. unsure about circumstances of tanker towed to Iran

FILE PHOTO: A British Royal Navy patrol vessel guards the oil supertanker Grace 1, that's on suspicion of carrying Iranian crude oil to Syria, as it sits anchored in waters of the British overseas territory of Gibraltar, historically claimed by Spain, July 4, 2019. REUTERS/Jon Nazca

DUBAI (Reuters) – U.S. officials say they are unsure whether an oil tanker towed into Iranian waters was seized by Iran or rescued after facing mechanical faults as Tehran asserts, creating a mystery at sea at a time of high tension in the Gulf.

The MT Riah disappeared from ship tracking maps when its transponder was switched off in the Strait of Hormuz on July 14. Its last position was off the coast of the Iranian island of Qeshm in the strait.

Iran says it towed a vessel into its waters from the strait after the ship issued a distress call. Although Tehran did not name the vessel, the Riah is the only ship whose recorded movements appear likely to match that description.

A U.S. official, speaking on the condition of anonymity, said it appeared that the tanker was in Iranian territorial waters, but it was not clear whether that was because Iran had seized it or rescued it.

The mystery comes at a time when Washington has called for greater security for ships in the Gulf.

Iran has threatened to retaliate for the British seizure of an Iranian oil tanker accused of violating sanctions on Syria. Iran’s Supreme Leader Ayatollah Ali Khamenei has branded the British action “piracy”.

The United States has also blamed Iran for attacks on tankers in the Gulf since May, which Tehran denies.

Shipping experts say U.S. sanctions on Iran intended to halt its oil exports have led to a rise in unusual tanker movements away from shipping lanes, with Iran seeking covert ways to export its oil. Increasingly, ships are switching off location transponders, transferring oil at sea and concealing their routes. Iran has also become more dependent on a fleet of aging ships, and some have had to be towed for emergency repairs.

Adding to the riddle of the missing ship was difficulty establishing who owns it, which no country or company has so far publicly claimed. Initial reports described it as Emirati. However, an Emirati official told Reuters the tanker was neither owned nor operated by the UAE.

The tanker’s registered manager is Prime Tankers in the UAE. That company told Reuters it had sold the tanker to another UAE-based company, Mouj al-Bahar. An employee at Mouj al-Bahar told Reuters that the firm did not own it but had been managing the vessel up to two months ago, and that it was now under the management of a company called KRB Petrochem. Reuters could not reach KRB Petrochem for comment.

(Reporting by Dubai newsroom, Parisa Hafezi, Ghaida Ghantous and Alex Cornwell; Writing by Lisa Barrington; Editing by Peter Graff)