Four protesters, two policemen killed as Iraq unrest resumes

BAGHDAD (Reuters) – Six Iraqis including two police officers were killed and scores were wounded in Baghdad and other cities on Monday in clashes with security forces, medical and security sources said, as anti-government unrest resumed after a lull of several weeks.

Three protesters succumbed to their wounds in a Baghdad hospital after police fired live rounds in Tayaran Square, security and medical sources said. Two protesters were shot by live bullets while a third was hit by a tear gas canister, they said.

A fourth demonstrator was shot dead by police in the Shi’ite holy city of Kerbala, the sources added.

Protesters threw petrol bombs and stones at police who responded with tear gas and stun grenades, Reuters witnesses said.

“They (security forces) should stop shooting and aiming, who are they and who are we? Both sides are Iraqis. So why are you killing your brothers?” said one woman protester in Baghdad who declined to give her name.

In the Iraqi oil city of Basra, two policemen were struck and killed by a civilian car during the protest, security sources said. The driver was trying to avoid the scene of clashes between protesters and security forces when he drove into the two officers, they said.

Elsewhere in southern Iraq, hundreds of protesters burned tires and blocked main roads in several cities, including Nassiriya, Kerbala and Amara. They say Prime Minister Adel Abdul Mahdi has not fulfilled promises including naming a new government acceptable to Iraqis.

Baghdad police said its forces had reopened all roads that were closed by “violent gatherings”. It said 14 officers were wounded near Tahrir square, including some with head wounds and broken bones.

Traffic was disrupted on a highway linking Baghdad to southern cities, a Reuters witness said. Production in southern oilfields was unaffected by the unrest, oil officials said.

Mass protests have gripped Iraq since Oct. 1, with mostly young protesters demanding an overhaul of a political system they see as profoundly corrupt and as keeping most Iraqis in poverty. More than 450 people have been killed.

Numbers had dwindled but protests resumed last week as demonstrators sought to keep up momentum after attention turned to the threat of a U.S.-Iran conflict following Washington’s killing of Tehran’s top general in an air strike inside Iraq.

The killing of Qassem Soleimani, to which Tehran responded with a ballistic missile attack on two Iraqi military bases housing U.S. troops, has highlighted the influence of some foreign powers in Iraq, especially Iran and the United States.

(Reporting by Iraq staff; Writing by Aziz El Yaakoubi; Editing by Janet Lawrence, William Maclean)

Iran can take fight beyond its borders, Khamenei says in rare sermon

By Parisa Hafezi

DUBAI (Reuters) – The Revolutionary Guards can take their fight beyond Iran’s borders, the supreme leader said on Friday, responding to the U.S. killing of his country’s most prominent commander and to anti-government unrest at home over the downing of an airliner.

In his first Friday prayers sermon in eight years, Ayatollah Ali Khamenei also told thousands of Iranians who chanted “Death to America!” that European powers could not be trusted in Iran’s nuclear standoff with Washington.

Iran’s nuclear ambitions have been at the heart of a months-long crisis, which briefly erupted in January into tit-for-tat military strikes between Iran and the United States.

“Resistance must continue until the region is completely freed from the enemy’s tyranny,” Khamenei said, demanding that U.S. troops leave neighboring Iraq and the wider Middle East.

Washington’s withdrawal in 2018 from Tehran’s nuclear deal with world powers and the reimposition of U.S. sanctions that have crippled Iran’s economy, led to the latest cycle of hostilities between Washington and Tehran, which have been at odds since the 1979 revolution toppled the U.S.-backed shah.

U.S. President Donald Trump ordered the killing in a drone strike on Jan. 3 of Qassem Soleimani, commander of the Quds Force, a unit of the Guards responsible for expanding Iran’s influence abroad. He built up regional militias that Washington has blamed for attacks on U.S. forces.

Iran responded with missile strikes on U.S. targets in Iraq on Jan. 8, injuring although not killing U.S. troops.

“The fact that Iran has the power to give such a slap to a world power shows the hand of God,” said Khamenei, in a reference to the strikes, adding that the killing of Soleimani showed Washington’s “terrorist nature”.

The Quds Force “protects oppressed nations across the region,” Khamenei said. “They are fighters without borders.”

In the tense aftermath of Iran’s missile strikes on U.S. targets when Iranian forces expected U.S. reprisals, the Guards’ air defenses shot down a Ukrainian airliner in error, killing all 176 people on board, mostly Iranians or dual nationals.

It took days for the Guards, which answer directly to Khamenei, to admit their mistake, even though a commander said he had told the authorities about the cause the same day. The delay sparked protests across Iran, sometimes meeting a violent crackdown.

‘AMERICAN CLOWNS’

Trump sent tweets in Farsi and English to support the demonstrators, drawing a sharp response from Khamenei.

“These American clowns who lie and say they are with the Iranian people should see who the Iranian people are,” he said in his sermon, telling Iranians to unite and show solidarity by turning out in numbers in a February parliamentary election.

Khamenei called for national unity and said Iran’s “enemies” had tried to use the downing of Ukraine International Airlines flight 752 to shift attention from the killing of Soleimani.

Most of those on the flight were Iranians or dual nationals. Canada, Ukraine, Britain, Sweden and Afghanistan, which all had citizens on the flight, have demanded compensation and a thorough investigation into what happened.

Khamenei described the crash as a tragedy, but stopped short of a direct apology although the Guards and other officials have issued profuse apologies since the incident. The supreme leader also called for steps to ensure there was no repeat.

The funeral of Soleimani, long portrayed as a national hero in Iran but seen by the West as a ruthless adversary, had brought huge numbers of Iranian mourners to the streets.

But scenes of mourning for Soleimani were followed by four days of protests over the plane disaster, when demonstrators chanted “Death to Khamenei” and scrawled it on walls. “Clerics get lost,” they shouted, as protests spread to several cities.

To quell the demonstrations, riot police were sent onto the streets in force, lining up outside universities that were a focus for the protests. Video footage online showed protesters were beaten and also recorded gunshots and blood on the streets.

Iran’s police denied firing at protesters and said officers had been ordered to show restraint.

In the bloodiest unrest the country has seen since 1979, Iranian authorities two months ago suppressed protests that erupted over sharp fuel price hikes, which have added to the suffering of ordinary Iranians already hurt by U.S. sanctions.

In reaction to Washington’s “maximum pressure” policy, Tehran has gradually scaled back on commitments to the nuclear deal, including lifting limits on its uranium enrichment.

Britain, France and Germany , which have been trying to salvage the pact, have subsequently launched the deal’s s dispute mechanism over Iran’s violations, starting a diplomatic process that could lead to reimposing U.N. sanctions.

“These European countries cannot be trusted. Even their negotiations with Iran are full of deceit,” Khamenei said.

(Reporting by Parisa Hafezi and Babak Dehghanpisheh; Editing by Edmund Blair and Gareth Jones)

U.S. troops describe ‘miraculous’ escape at Iraqi base attacked by Iran

By John Davison

AIN AL-ASAD AIR BASE, Iraq (Reuters) – Troops at the Iraqi air base that bore the brunt of Iran’s first direct missile attack against U.S. forces said they were shocked by its intensity and grateful to emerge unscathed.

The scale of the damage at the Ain al-Asad base showed Iran’s destructive capability at a time when U.S. officials say they are still concerned that Iran-backed groups across the region could wage attacks on the United States.

“It’s miraculous no one was hurt,” Lt Col Staci Coleman, the U.S. air force officer who runs the airfield, told reporters on Monday at the vast base deep in the western Anbar desert in Iraq, where 1,500 Americans were deployed.

“Who thinks they’re going to have ballistic missiles launched at them … and suffer no casualties?”

The Jan. 8 attack came hours after U.S. Defense Secretary Mark Esper said the United States should expect retaliation over the U.S. killing of Iranian military commander Qassem Soleimani in a drone strike in Iraq the previous week.

The killing raised fears of a new Middle East war, but the United States, Iraq and other countries with troops at the base said no one was hurt. U.S. military leaders have said that was thanks to commanders on the ground, not Tehran’s goodwill.

At one site, a cruise missile had left a large crater and incinerated living quarters made from shipping containers.

Heavy concrete blast walls were knocked over and the shipping containers were smashed and charred along with contents including bicycles, chairs and other furniture. Several soldiers said one of their number had come very close to being blown up inside a shelter behind the blast walls.

Almost a dozen missiles hit the air base, where U.S. forces carried out “scatter plans” to move soldiers and equipment to a range of fortified areas apart from one another.

The United States did not have Patriot air defenses at the base, putting the onus on local commanders to protect their troops.

“We’d got notification there could be an attack a few hours prior so had moved equipment,” said U.S. Staff Sergeant Tommie Caldwell.

‘IT’S LIKE TERROR’

Lt Col Coleman said that by 10pm all the staff she manages were ready to take cover. “People took this very seriously,” she said.

Three and a half hours later the missiles started arriving. Several soldiers said they continued for two hours.

Staff Sgt Armando Martinez, who had been out in the open to watch for casualties, said he could not believe how easily one missile leveled the concrete blast walls.

“When a rocket strikes that’s one thing; but a ballistic missile, it’s like terror,” he said.

“You see a white light like a shooting star and then a few seconds later it lands and explodes. The other day, after the attack, one colleague saw an actual shooting star and panicked.”

One missile landed on the tarmac of a parking and servicing area for Blackhawk helicopters helping to ferry equipment in the fight against Islamic State insurgents.

The helicopters had been moved but it destroyed two light hangars and badly damaged portacabins nearby.

“We must have been in the bunkers for more than five hours, maybe seven or eight,” said Kenneth Goodwin, Master Sgt in the U.S. Air Force. “They knew what they were aiming at by targeting the airfield and parking area.”

It was the latest strike against an air base that has figured prominently in high-ranking U.S. officials’ visits to Iraq.

“After these missile attacks, when we hear of possible militia rocket attacks, we tend to think, ‘Oh only rockets … that’s a change’,” Coleman said, describing the common feeling when the missile attacks were over as “sheer relief”.

On Sunday the Iraqi military said four people had been wounded in an attack on Balad air base in northern Iraq, which also houses U.S. personnel. Military sources identified the wounded as Iraqi soldiers.

(Reporting by John Davison; Writing by Philippa Fletcher; Editing by David Goodman)

Washington rebuffs Iraqi request to pull out troops

By John Davison and Susan Heavey

BAGHDAD/WASHINGTON (Reuters) – Washington rebuffed an Iraqi request on Friday to prepare to pull out its troops, amid heightened U.S.-Iranian tensions following the U.S. killing of an Iranian commander in Baghdad.

Iraq looks set to bear the brunt of any further violence between its neighbor Iran and the United States, its leaders caught in a bind as Washington and Tehran are also the Iraqi government’s main allies and vie for influence there.

Prime Minister Adel Abdul Mahdi made his request in a phone call with U.S. Secretary of State Mike Pompeo late on Thursday in line with a vote by Iraq’s parliament last week, his office said in a statement.

Abdul Mahdi asked Pompeo to “send delegates to put in place the tools to carry out the parliament’s decision”, it said, adding without elaborating that the forces used in the killing had entered Iraq or used its airspace without permission.

However, the U.S. State Department said any U.S. delegation would not discuss the withdrawal of U.S. troops as their presence in Iraq was “appropriate.”

“There does, however, need to be a conversation between the U.S. and Iraqi governments not just regarding security, but about our financial, economic, and diplomatic partnership,” spokeswoman Morgan Ortagus said in a statement.

The latest flare-up in the long shadow-war between Iran and the United States started with the killing of Iran’s top general Qassem Soleimani in a U.S. drone strike on Jan. 3. Iran responded on Wednesday by firing missiles at U.S. forces in Iraq.

In the aftermath, both sides backed off from intensifying the conflict but the region remains tense, with Iranian commanders threatening more attacks.

Iraq’s top Shi’ite Muslim cleric on Friday condemned the U.S.-Iranian confrontation taking place on Iraqi soil, saying it risked plunging an already war-ravaged country and the wider Middle East into deeper conflict.

Grand Ayatollah Ali al-Sistani said it was Iraqis who stood to suffer most from the U.S.-Iranian conflict.

In a message delivered through a representative at Friday prayers in the holy city of Kerbala, Sistani said no foreign powers should be allowed to decide Iraq’s fate.

CALLS TO LEAVE

“The latest dangerous aggressive acts, which are repeated violations of Iraqi sovereignty, are a part of the deteriorating situation” in the region, Sistani said.

Sistani, who wields huge influence over public opinion in Iraq, only weighs in on politics during times of crisis and is seen as a voice of moderation.

“The people have suffered enough from wars … Iraq must govern itself and there must be no role for outsiders in its decision-making,” Sistani said.

Iraq has suffered decades of war, sanctions and sectarian conflict, including two U.S.-led invasions and the rise and fall of the Sunni militant groups al Qaeda and Islamic State.

At Friday prayers in Tehran, an Iranian cleric said U.S. interests across the world were now exposed to threat.

“From now on, having too many bases, especially in this region, will not act as an advantage for them,” Mohammad Javad Haj Aliakbari, a mid-ranking cleric, told worshippers.

Since Soleimani’s killing, Tehran has stepped up its calls for U.S. forces to leave Iraq, which like Iran is a mainly Shi’ite Muslim nation. Iranian Supreme Leader Ali Khamenei has said the retaliatory strikes were not enough and that ending the U.S. military presence in the region was Tehran’s main goal.

Trump said on Thursday that Soleimani had been killed because he had planned to blow up a U.S. embassy.

“Soleimani was actively planning new attacks and he was looking very seriously at our embassies and not just the embassy in Baghdad, but we stopped him and we stopped him quickly and we stopped him cold,” Trump, who is seeking re-election this year, told a rally in Ohio.

(Reporting by Ahmed Aboulenein, John Davison and Ahmed Rasheed in Baghdad, Babak Dehghanpisheh and Parisa Hafezi in Dubai and Susan Heavey in Washington; Writing by Edmund Blair; Editing by Angus MacSwan and Kevin Liffey)

Exclusive: Informants in Iraq, Syria helped U.S. kill Iran’s Soleimani – sources

By Reuters staff

(Reuters) – Iranian General Qassem Soleimani arrived at the Damascus airport in a vehicle with dark-tinted glass. Four soldiers from Iran’s Revolutionary Guards rode with him. They parked near a staircase leading to a Cham Wings Airbus A320, destined for Baghdad.

Neither Soleimani nor the soldiers were registered on the passenger manifesto, according to a Cham Wings airline employee who described the scene of their departure from the Syrian capital to Reuters. Soleimani avoided using his private plane because of rising concerns about his own security, said an Iraqi security source with knowledge of Soleimani’s security arrangements.

The passenger flight would be Soleimani’s last. Rockets fired from a U.S. drone killed him as he left the Baghdad airport in a convoy of two armored vehicles. Also killed was the man who met him at the airport: Abu Mahdi Muhandis, deputy head of Iraq’s Popular Mobilization Forces (PMF), the Iraqi government’s umbrella group for the country’s militias.

The Iraqi investigation into the strikes that killed the two men on Jan. 3 started minutes after the U.S. strike, two Iraqi security officials told Reuters. National Security agents sealed off the airport and prevented dozens of security staff from leaving, including police, passport officers and intelligence agents.

Investigators have focused on how suspected informants inside the Damascus and Baghdad airports collaborated with the U.S. military to help track and pinpoint Soleimani’s position, according to Reuters interviews with two security officials with direct knowledge of Iraq’s investigation, two Baghdad airport employees, two police officials and two employees of Syria’s Cham Wings Airlines, a private commercial airline headquartered in Damascus.

The probe is being led by Falih al-Fayadh, who serves as Iraq’s National Security Adviser and the head of the PMF, the body that coordinates with Iraq’s mostly Shi’ite militias, many of which are backed by Iran and had close ties to Soleimani.

The National Security agency’s investigators have “strong indications that a network of spies inside Baghdad Airport were involved in leaking sensitive security details” on Soleimani’s arrival to the United States, one of the Iraqi security officials told Reuters.

The suspects include two security staffers at the Baghdad airport and two Cham Wings employees – “a spy at the Damascus airport and another one working on board the airplane,” the source said. The National Security agency’s investigators believe the four suspects, who have not been arrested, worked as part of a wider group of people feeding information to the U.S. military, the official said.

The two employees of Cham Wings are under investigation by Syrian intelligence, the two Iraqi security officials said. The Syrian General Intelligence Directorate did not respond to a request for comment. In Baghdad, National Security agents are investigating the two airport security workers, who are part of the nation’s Facility Protection Service, one of the Iraqi security officials said.

“Initial findings of the Baghdad investigation team suggest that the first tip on Soleimani came from Damascus airport,” the official said. “The job of the Baghdad airport cell was to confirm the arrival of the target and details of his convoy.”

The media office of Iraq’s National Security agency did not respond to requests for comment. The Iraq mission to the United Nations in New York did not respond to a request for comment.

The U.S. Department of Defense declined to comment on whether informants in Iraq and Syria played a role in the attacks. U.S. officials, speaking on condition of anonymity, told Reuters the United States had been closely tracking Soleimani’s movements for days prior to the strike but declined to say how the military pinpointed his location the night of the attack.

A Cham Wings manager in Damascus said airline employees were prohibited from commenting on the attack or investigation. A spokesman for Iraq’s Civil Aviation Authority, which operates the nation’s airports, declined to comment on the investigation but called it routine after “such incidents which include high-profile officials.”

Soleimani’s plane landed at the Baghdad airport at about 12:30 a.m. on Jan. 3, according to two airport officials, citing footage from its security cameras. The general and his guards exited the plane on a staircase directly to the tarmac, bypassing customs. Muhandis met him outside the plane, and the two men stepped into a waiting armored vehicle. The soldiers guarding the general piled into another armored SUV, the airport officials said.

As airport security officers looked on, the two vehicles headed down the main road leading out of the airport, the officials said. The first two U.S. rockets struck the vehicle carrying Soleimani and Muhandis at 12:55 a.m. The SUV carrying his security was hit seconds later.

As commander of the Revolutionary Guards’ elite Quds force, Soleimani ran clandestine operations in foreign countries and was a key figure in Iran’s long-standing campaign to drive U.S. forces out of Iraq. He spent years running covert operations and cultivating militia leaders in Iraq to extend Iran’s influence and fight the interests of the United States. Reuters reported on Saturday that, starting in October, Soleimani had secretly launched stepped-up attacks on U.S. forces stationed in Iraq and equipped Iraqi militias with sophisticated weaponry to carry them out.

The attack on the general sparked widespread outrage and vows of revenge in Iran, which responded on Wednesday with a missile attack on two Iraq military bases that house U.S. troops. No Americans or Iraqis were killed or injured in the strike.

In the hours after the attack, investigators pored over all incoming calls and text messages by the airport night-shift staff in search of who might have tipped off the United States to Soleimani’s movements, the Iraqi security officials said. National Security agents conducted hours-long interrogations with employees of airport security and Cham Wings, the sources said. One security worker said agents questioned him for 24 hours before releasing him.

For hours, they grilled him about who he had spoken or text with before Soleimani’s plane landed – including any “weird requests” related to the Damascus flight – and confiscated his mobile phone.

“They asked me a million questions,” he said.

(Writing by Michael Georgy; Editing by Brian Thevenot)

Trump says no U.S. troops hurt in Iran strikes, Tehran ‘standing down’

By Ahmed Aboulenein, Phil Stewart and Parisa Hafezi

BAGHDAD/WASHINGTON/DUBAI (Reuters) – U.S. President Donald Trump said on Wednesday Iranian missile strikes on bases in Iraq had not harmed any U.S. troops stationed there and damage was minimal, an outcome he said showed Tehran wanted to prevent an escalation into conflict.

Iranian forces fired missiles at military bases housing U.S. troops in Iraq early on Wednesday, saying it was in retaliation for the killing in a U.S. drone strike of powerful Iranian commander Qassem Soleimani on Jan. 3.

“All of our soldiers are safe and only minimal damage was sustained at our military bases,” Trump said. “Iran appears to be standing down, which is a good thing for all parties concerned and a very good thing for the world.”

“The fact that we have this great military and equipment, however, does not mean we have to use it. We do not want to use it,” the U.S. president said in an address, flanked by Vice President Mike Pence, Defense Secretary Mark Esper and Secretary of State Mike Pompeo and military officers.

He urged world powers to quit a 2015 nuclear accord with Iran that Washington withdrew from in 2018 and work for a new deal, an issue that has been at the heart of rising tension between Washington and Tehran. Iran has rejected new talks.

There was no immediate reaction from Iranian officials to Trump’s comments. The semi-official Fars news agency described the U.S. president’s remarks as a “big retreat from threats.”

Iranian Supreme Leader Ayatollah Ali Khamenei, who earlier on Wednesday addressed a gathering of Iranians chanting “Death to America”, said Iran’s attacks were a “slap on the face” of the United States and said U.S. troops should leave the region.

Iranian Foreign Minister Mohammad Javad Zarif had said the strikes “concluded” Tehran’s response to the killing of Soleimani, who had been responsible for building up Iran’s network of proxy armies across the Middle East. He was buried in his hometown Kerman on Monday after days of national mourning.

“We do not seek escalation or war, but will defend ourselves against any aggression,” he wrote on Twitter.

ELECTION YEAR

Trump’s reaction in the immediate aftermath of Wednesday’s attacks had been to say on Twitter that “All is well!” and that Washington was assessing damage.

That early tweet and the comment by Iran’s foreign minister had acted to soothe some initial concerns about a wider war and calmed jittery financial markets. Oil prices slipped back after an early spike. [O/R]

U.S. and European government sources said they believed Iran had deliberately sought to avoid U.S. military casualties in its missile strikes to prevent an escalation.

But an Iranian army spokesman had denied “foreign media reports” suggesting there had been some kind of coordination between Iran and the United States before the attack to allow bases to be evacuated, Fars news agency said.

The U.S. president, who was impeached last month and faces an election this year, had at the weekend threatened to target 52 Iranian sites if Iran retaliated for Soleimani’s killing.

Iranian state television said Iran had fired 15 ballistic missiles from its territory at U.S. targets in its neighbor Iraq early on Wednesday. The Pentagon said al-Asad air base and another facility in Erbil in Iraq were struck.

Iranian television had said 80 “American terrorists” had been killed, without saying how it obtained this information.

Germany, Denmark, Norway and Poland said none of their troops in Iraq were hurt. Britain, which also has personnel in Iraq, condemned the Iranian action. Iraq said its forces did not suffer casualties.

Iranian television reported an official in the supreme leader’s office as saying the missile attacks were the “weakest” of several retaliation scenarios. It quoted another source saying Iran had lined up 100 other potential targets.

State media showed footage of what it said were Iran’s missiles being fired into the night sky. In the background, voices shouted “God is greatest”.

AVOIDING CONFLICT

But analysts said Iran wanted to avoid any conventional military conflict with superior U.S. forces.

U.S. officials said Soleimani was killed because forces under his command planned attacks on U.S. targets, although they did not provide evidence.

Before Soleimani was buried, his body was taken on a tour of cities in Iraq and Iran, drawing huge crowds. A stampede at his funeral on Tuesday killed at least 56 people.

After the Iranian missile attack, state television showed footage of the burial, with hundreds of people chanting “God is greatest” when the strikes were announced over loudspeakers.

“His revenge was taken and now he can rest in peace,” Iranian television said.

Friction between Iran and the United States rose after Trump withdrew from the nuclear deal between Iran and world powers, approved by his predecessor Barack Obama, and reimposed sanctions on Tehran slashing its vital oil exports.

“We must all work together toward making a deal with Iran that makes the world a safer and more peaceful place,” he said.

Khamenei, in his speech on Wednesday, ruled out any resumption of talks with Washington on the 2015 nuclear pact.

Trump’s U.S. political rivals have challenged his decision to order Soleimani’s killing and questioned its timing in a U.S. election year.

(Reporting by Ahmed Aboulenein in Baghdad, Parisa Hafezi and Babak Dehghanpisheh in Dubai, Phil Stewart, Steve Holland, Jeff Mason and Eric Beech in Washington, Writing by Edmund Blair and Angus MacSwan; Editing by Janet Lawrence, William Maclean)

Iran fires rockets at Iraqi airbase hours after funeral of slain commander

By Ahmed Aboulenein and Phil Stewart

BAGHDAD/WASHINGTON (Reuters) – Iran fired rockets early on Wednesday at Iraq’s al Asad airbase, which hosts U.S. forces, hours after the funeral of an Iranian commander whose killing in a U.S. drone strike has raised fears of a wider war in the Middle East.

Iranian news agency Mehr said Iran’s Islamic Revolutionary Guard Corps had targeted the base. Tehran has vowed retaliation for the killing of Iranian military commander Qassem Soleimani.

It was not immediately clear what the extent of damage or casualties was at the base.

U.S. President Donald Trump has been briefed on reports of an attack on U.S. facilities in Iraq and was monitoring the situation, White House spokeswoman Stephanie Grisham said.

“We are aware of the reports of attacks on U.S. facilities in Iraq. The president has been briefed and is monitoring the situation closely and consulting with his national security team,” Grisham said in a statement.

Earlier on Tuesday, U.S. Defense Secretary Mark Esper said the United States should anticipate retaliation from Iran over the killing in Iraq of Soleimani, commander of the elite Quds Force.

“I think we should expect that they will retaliate in some way, shape or form,” Esper told a news briefing at the Pentagon, adding that such retaliation could be through Iran-backed proxy groups outside of Iran or “by their own hand.”

“We’re prepared for any contingency. And then we will respond appropriately to whatever they do.”

(Reporting by Ahmed Aboulenein in Baghdad, Parisa Hafezi and Babak Dehghanpisheh in Dubai, Phil Stewart in Washington, Michelle Nichols at the United Nations, Steve Scherer in Ottawa and Robin Emmott in Brussels; Writing by Mark Heinrich and Sonya Hepinstall; Editing by Peter Cooney)

Team activated to support global airline safety as Middle East tensions rise

Team activated to support global airline safety as Middle East tensions rise
By Allison Lampert

MONTREAL (Reuters) – An international aviation team has been activated to support “effective coordination and communication” between airlines and countries as tensions mount in the Middle East after a U.S. drone strike killed an Iranian military commander, global airlines body IATA said on Tuesday.

Airlines and the United Nations’ aviation agency have started to monitor strategic airspace over Iran and Iraq. With some commercial carriers still serving those countries and others flying over their airspace, the International Air Transport Association also issued a statement reminding countries of their obligation to communicate potential risks to civil aviation.

“It is critical that states live up to this obligation as tensions in the Middle East rise,” the group said, days after the killing of General Qassem Soleimani on Friday plunged the region into a new crisis.

On Monday, Germany published a new warning for Iraq, indicating areas of concern for overflying traffic, according to a report published by the site OPSGROUP.

The coordination team operated by IATA and the International Civil Aviation Organization (ICAO) was activated as a “standard precautionary measure,” in the event that contingency measures are required by airlines, IATA said in a statement to Reuters.

The team brings together airlines, regulators and air navigation service providers to ensure any potential risks to aviation are shared quickly, an industry source familiar with the group said.

“Everyone’s urging restraint,” said the source who spoke on condition of anonymity because of the sensitivity of the matter.

Carriers are increasingly taking steps to uncover threats to their planes after Malaysia Airlines Flight MH17 was shot down in 2014 by a missile over Ukraine, killing all 298 people on board.

Airspace controlled by Iran and Iraq are seen as strategic for commercial aviation in the Middle East. If there were the need to shut down the airspace, carriers would have to be rerouted which would lead to greater congestion and fuel costs, said the source.

(Reporting By Allison Lampert in Montreal; Editing by David Gregorio)

Oil, safe havens surge as U.S. strikes kill Iranian commander

By Herbert Lash and Marc Jones

NEW YORK/LONDON (Reuters) – Oil prices surged as much as $3 a barrel as gold, the yen and safe-haven bonds all rallied on Friday after the U.S. killing of Iran’s top military commander in an air strike in Iraq ratcheted up tensions between Washington and Tehran.

Traders were spooked after the death of Major General Qassem Soleimani, head of the elite Quds Force who was also one of Iran’s most influential figures, and by Iranian Supreme Leader Ayatollah Ali Khamenei’s vow of revenge.

Mideast-focused oil markets saw the most dramatic moves, with Brent oil futures leaping as much 4.5% to $69.20 a barrel. That was the highest since the attacks on Saudi crude facilities in September, though the impact hit almost every asset class.

Europe’s broad STOXX 600 index fell as much as 1% and shares on Wall Street almost the same as New Year optimism, which had pushed equity markets to new records, evaporated.

The yen rose half a percent against the dollar to a two-month high, the Swiss franc hit its highest against the euro since September and gold prices  climbed to a four-month peak, racing past the key $1,550 an ounce level.

“Geopolitics has come back to the table, and this is something that could have major cross-asset implications,” said Salman Ahmed, Lombard Odier’s chief investment strategist.

“What is critical is how it pans out in the next few days,” Ahmed said. “Whether it turns into a theme depends on Iran’s reaction and then the U.S. response.”

Iran promised harsh revenge. Soleimani’s Quds Force and its paramilitary proxies, ranging from Lebanon’s Hizbollah to the PMF in Iraq, have ample means to mount a response.

In September, U.S. officials blamed Iran for attacking the oil installations of Saudi Aramco, the state energy giant and the world’s largest oil exporter. Iran has denied responsibility for the strikes and accused Washington of war-mongering.

The Trump administration then did not respond, beyond heated rhetoric and threats, and markets settled down within a week after Brent surged 14.6%, its biggest one-day percentage gain since at least 1988.

The U.S. government and others on Friday urged their citizens in the region either to return home or to stay away from potential targets and public gatherings.

U.S. Secretary of State Mike Pompeo said in a round of TV interviews that the United States remained committed to de-escalation with Iran but that it had needed to defend itself.

“He (Soleimani) was actively plotting in the region to take actions – a big action as he described it – that would have put dozens if not hundreds of American lives at risk. We know it was imminent,” Pompeo told CNN.

MSCI’s gauge of stocks across the globe shed 0.43%, while its emerging markets index lost 0.32%.

On Wall Street, the Dow Jones Industrial Average  fell 210.81 points, or 0.73%, to 28,657.99. The S&P 500  lost 18.86 points, or 0.58%, to 3,238.99 and the Nasdaq Composite <.IXIC> dropped 58.26 points, or 0.64%, to 9,033.93.

The global gauge and Wall Street indices set record closing highs on Thursday, extending the year-end rally in equities.

Brent  hit a peak of $69.50 a barrel, its highest since mid-September, though it later traded up $2.40 to $68.65.

West Texas Intermediate  crude  rose $2.20 to $63.38 a barrel, after earlier spiking to $64.09 a barrel, its highest since April 2019.

SCRAMBLE TO SAFETY

Yields on German Bunds and U.S. Treasuries – the world’s benchmark government bonds that are typically seen as the safest assets – fell sharply.

 

The 10-year Bund  yield fell 7 basis points to a two-week low of -0.299%, while Bund futures  were up 0.51 percent, at 172.13 euros.

Benchmark 10-year Treasury notes rose 23/32 in price to yield 1.802%, from 1.882% late on Monday.

The dollar index fell 0.08%, with the euro up 0.06% to $1.1177. The Japanese yen  strengthened 0.59% versus the greenback at 107.94 per dollar.

The focus on geopolitics meant markets paid little attention to stronger-than-expected data from France, where inflation rose 1.6% year-on-year in December, beating analysts’ expectations for a 1.4% rise.

German inflation figures were also higher, although unemployment in Europe’s largest economy rose more than expected.

The U.S. manufacturing sector contracted in December by the most in more than a decade, with order volumes crashing to near an 11-year low and factory employment falling for a fifth straight month, the Institute for Supply Management said.

Investors also were looking forward to the minutes of the U.S. Federal Reserve’s Dec. 10-11 meeting due at 2 p.m. (1900 GMT).

(Reporting by Herbert Lash, additional reporting by Sujata Rao and Dhara Ranasinghe in London and Diptendu Lahiri in Bengaluru; Editing by Dan Grebler)

Soleimani was Iran’s celebrity soldier, spearhead in Middle East

Soleimani was Iran’s celebrity soldier, spearhead in Middle East
By Babak Dehghanpisheh

(Reuters) – Iranian Major-General Qassem Soleimani, the top commander of the elite Quds Force of the Revolutionary Guards, helped Iran fight proxy wars across the Middle East by inspiring militias on the battlefield and negotiating with political leaders.

His death on Friday in a U.S. air strike on his convoy at Baghdad airport marked the end of a man who was a celebrity at home and closely watched by the United States, Israel and Tehran’s regional rival Saudi Arabia.

The Pentagon said the strike was aimed at deterring future Iranian attack plans.

Soleimani was responsible for clandestine overseas operations and was often seen on battlefields guiding Iraqi Shi’ite groups in the war against Islamic State.

He was killed along with top Iraqi militia commander Abu Mahdi al-Muhandis. Both men were seen as heroes in Iran’s fight against its enemies and state television heaped them with praise shortly after their deaths were announced.

The television showed footage of him with Iran’s Supreme Leader Ayatollah Ali Khamenei and in war zones in military garb, including as a young high-school graduate commanding a unit in Iran’s war with Iraq in the 1980s.

After that, he rose rapidly through the ranks of Iran’s Revolutionary Guards to become chief of the Quds Force, a post in which he helped Iran form alliances in the Middle East as it came under pressure from U.S. sanctions that have devastated the Islamic Republic’s economy.

The United States designated the Revolutionary Guards a foreign terrorist organization in 2019, part of a campaign of maximum pressure to force Iran to negotiate on its ballistic missile program and nuclear policy.

Soleimani had a pointed reply: any negotiation with the U.S. would be “complete surrender.”

Soleimani’s Quds Force shored up support for Syrian President Bashir al-Assad when he looked close to defeat in the civil war raging since 2011 and also helped militiamen defeat Islamic State in Iraq.

Its successes have made Soleimani instrumental to the steady spreading of Iran’s clout in the Middle East, which the United States and Tehran’s regional foes Saudi Arabia and Israel have struggled to keep in check.

Khamenei made Soleimani head of the Quds Force in 1998, a position in which he kept a low profile for years while he strengthened Iran’s ties with Hezbollah in Lebanon, Assad’s government, and Shi’ite militia groups in Iraq.

In the past few years, he has acquired a more public standing, with fighters and commanders in Iraq and Syria posting images on social media of him on the battlefield, his beard and hair always impeccably trimmed.

“WE ARE CLOSE TO YOU”

Soleimani’s growing authority within Iran’s military establishment was apparent in 2019 when Khamenei awarded him the Order of Zolfiqar medal, Iran’s highest military honor. It was the first time any commander had received the medal since the Islamic Republic was established in 1979.

In a statement after Soleimani’s death, Khamenei said harsh revenge awaited the “criminals” who killed him. His death, though bitter, would double the motivation of the resistance against the United States and Israel, the Iranian leader said.

“Soleimani is … not a man working in an office. He goes to the front to inspect the troops and see the fighting,” a former senior Iraqi official, who asked not to be identified, said in an interview in 2014.

“His chain of command is only the Supreme Leader. He needs money, gets money. Needs munitions, gets munitions. Needs material, gets material,” the former Iraqi official said.

Soleimani was also in charge of intelligence gathering and covert military operations carried out by the Quds Force and in 2018 he publicly challenged U.S. President Donald Trump.

“I’m telling you Mr. Trump the gambler, I’m telling you, know that we are close to you in that place you don’t think we are,” said Soleimani, seen wagging an admonishing finger in a video clip distributed online.

“You will start the war but we will end it,” he said, with a checkered keffiya draped across the shoulders of his olive uniform.

“GETS WHAT HE WANTS”

Softly-spoken, Soleimani came from humble beginnings, born into an agricultural family in the town of Rabor in southeast Iran on March 11, 1957.

At 13, he traveled to the town of Kerman and got a construction job to help his father pay back loans, according to a first person account from Soleimani posted by Defa Press, a site focused on the history of Iran’s eight year war with Iraq.

When the revolution to oust the Shah began in 1978, Soleimani was working for the municipal water department in Kerman and organized demonstrations against the monarch.

He volunteered for the Revolutionary Guards and, after war with Iraq broke out in 1980, quickly rose through the ranks and went on to battle drug smugglers on the border with Afghanistan.

“Soleimani is a great listener. He does not impose himself. But he always gets what he wants,” said another Iraqi official, adding that he can be intimidating.

At the height of the civil war between Sunni and Shi’ite militants in Iraq in 2007, the U.S. military accused the Quds Force of supplying improvised explosive devices to Shi’ite militants which led to the death of many American soldiers.

Soleimani played such a pivotal role in Iraq’s security through various militia groups that General David Petraeus, the overall head of U.S. forces in Iraq at the time, sent messages to him through Iraqi officials, according to diplomatic cables published by Wikileaks.

After a referendum on independence in the Kurdish north in 2017, Soleimani issued a warning to Kurdish leaders which led to a withdrawal of fighters from contested areas and allowed central government forces to reassert their control.

He was arguably even more influential in Syria. His visit to Moscow in the summer of 2015 was the first step in planning for a Russian military intervention that reshaped the Syrian war and forged a new Iranian-Russian alliance in support of Assad.

His activities had made him a repeated target of the U.S. Treasury: Soleimani was sanctioned by the United States for the Quds Force’s support for Lebanon’s Hezbollah and other armed groups, for his role in Syria’s crackdown against protesters and his alleged involvement in a plot to assassinate the Saudi ambassador to the United States.

Soleimani’s success in advancing Iran’s agenda had also put him in the crosshairs of regional foes Saudi Arabia and Israel.

Top Saudi intelligence officials looked into the possibility of assassinating Soleimani in 2017, according to a report in the New York Times in 2018. A Saudi government spokesman declined to comment, the Times reported, but Israeli military officials publicly discussed the possibility of targeting him.

(Editing by Michael Georgy, Philippa Fletcher and Raju Gopalakrishnan)