Biden and Israeli PM set to discuss Iran strategy at meeting next week

By Trevor Hunnicutt and Maayan Lubell

WASHINGTON/JERUSALEM (Reuters) -Stalled nuclear talks with Iran will be at the top of the agenda when U.S. President Joe Biden and Israeli Prime Minister Naftali Bennett meet next week.

“The President and Prime Minister Bennett will discuss critical issues related to regional and global security, including Iran,” said White House press secretary Jen Psaki in a statement announcing the leaders’ first in-person meeting at the White House on Aug. 26.

Talks between Tehran and six world powers to revive the nuclear pact ditched three years ago by Biden’s predecessor Donald Trump have stalled since they began in April.

The Israeli leader, a nationalist atop a cross-partisan coalition who took office in June, opposes the deal being revived. It views a nuclear-armed Iran as an existential threat.

Tehran denies seeking the bomb, though a U.N. atomic watchdog report on Tuesday seen by Reuters showed the country accelerating its enrichment of uranium to near weapons-grade.

Regional tensions rose over a July 29 attack on an Israeli-managed tanker off the coast of Oman that Israel, the United States and Britain blamed on Tehran. Iran denied any involvement in the suspected drone strike in which two crew members were killed.

Conflict has also flared between Israel and Lebanon’s Iran-backed Hezbollah movement.

The White House meeting will come less than three weeks after U.S. Central Intelligence Agency Director William Burns held talks in Israel with Bennett on Iran.

Bennett said at a news conference that the meeting “will focus on Iran” but the White House also touted “an opportunity for the two leaders to discuss efforts to advance peace, security, and prosperity for Israelis and Palestinians.”

The Israeli leader said he planned to come to the meeting “very focused with a policy of partnership that aims to curb Iran’s destabilizing, negative regional activity, its human rights abuses, terrorism and preventing its nearing nuclear breakout.”

(Reporting by Trevor Hunnicutt in Washington and Maayan Lubell in Jerusalem; Editing by David Holmes and Marguerita Choy)

France worried by new phase in Iran’s breaching of nuclear pact

France worried by new phase in Iran’s breaching of nuclear pact
By John Irish

PARIS (Reuters) – France urged Iran on Wednesday not to scale back further on its commitments to a 2015 nuclear deal, saying Tehran’s new threat to speed up uranium enrichment next month was “especially worrying”.

Iran is breaching restrictions of the pact with major powers step-by-step in response to tough sanctions imposed by the United States, which pulled out of the deal last year.

Tehran has said its next move would be taken on Nov. 6 and diplomats fear this could force a response from European powers, who have been trying to salvage the accord. Britain, France and Germany, all signatories, have refrained from acting so far.

“Iran must abstain from crossing an especially worrying new phase of new measures that could contribute to an escalation in tensions,” French Foreign Ministry spokeswoman Agnès von der Muhll told reporters in a daily briefing.

Iranian President Hassan Rouhani said on Monday that Tehran was working on advanced IR-9 centrifuges for uranium enrichment.

The nuclear deal only lets Iran accumulate enriched uranium with just over 5,000 of its first-generation IR-1 centrifuges at Natanz. It lets Iran use small numbers of more advanced models for research, without producing enriched uranium.

Iran is now enriching uranium with advanced centrifuges and installing more that should come online in coming weeks.

Rouhani’s remarks suggested Iran was developing a new centrifuge, the IR-9, violating the deal which specifies the centrifuges Iran can use and making no mention of an IR-9.

French President Emmanuel Macron attempted and failed last month to broker talks between U.S. President Donald Trump and Rouhani in New York. Prospects of any talks in coming weeks seem slim with Tehran demanding U.S. sanctions are lifted first.

The nuclear deal aimed to extend the so-called “breakout time” Iran would need to obtain enough fissile material for a bomb, if it sought one, to a year instead of two or three months.

“Nov. 6 will be Iran’s fourth violation. Until now they have been political and symbolic with a limited impact on the breakout time, but the more they violate, the less choice and latitude they have that doesn’t impact the breakout time,” said a French diplomatic source.

“After November, the world doesn’t end, but it becomes much harder to save the deal,” the source added.

Iran says it has enriched uranium for civilian purposes and has never sought nuclear weapons, but the United States and IAEA believe it once had a nuclear weapons program that it ended.

“Iran is underscoring that it will no longer be hemmed in by the nuclear agreement, nor is it particularly alarmed by the increasingly concerned statements coming out of Europe,” Eurasia’s Iran analyst Henry Rome said.

“This is a recipe for a significant nuclear escalation in early November, not just another incremental step.”

(Reporting by John Irish; Editing by Catherine Evans and Edmund Blair)

Rouhani says Iran resists sanctions, drives U.S. “desperate”

DUBAI (Reuters) – Iranian President Hassan Rouhani said on Monday new U.S. sanctions blacklisting Iran’s central bank for a second time pointed to U.S. “desperation” in the face of Iranian resistance.

President Donald Trump last year quit a 2015 nuclear pact between Iran and six world powers, reimposing and then tightening sanctions that had been lifted under the deal in return for Iran curbing its nuclear program.

The United States on Friday imposed further sanctions, including on Iran’s central bank which was already blacklisted, following Sept. 14 attacks on Saudi oil facilities that Riyadh and Washington have blamed on Iran.

“Americans are sanctioning institutions that have already been blacklisted. This signals America’s complete desperation and shows that it’s “maximum pressure” has failed … as the great Iranian nation has resisted successfully,” Rouhani said in remarks carried by state television.

Tehran has flatly denied any involvement in the attacks which was claimed by Yemen’s Houthi movement, an Iran-aligned group fighting a Saudi-led alliance in Yemen’s civil war.

Prime Minister Boris Johnson said on Monday Britain believes it is very likely Iran was behind the Sept 14 attacks. He said London will work with the United States and European allies to reduce tensions in the Gulf.

“If Iran was behind this attacks, nothing would be left of this refinery,” Iranian Foreign Minister Mohammad Javad Zarif told reporters in New York.

U.S. Secretary of State Mike Pompeo said on Sunday the United States aimed to avoid war with Iran and the additional troops ordered to be deployed in the Gulf region were for “deterrence and defense”.

“As a diplomat both secretary Pompeo and I should try to avoid war, not to wage war,” said Zarif.

Iran has threatened a crushing response to any military strike following the Sept 14 attacks, though it said the Islamic Republic had no desire for conflict in the Gulf region.

“The region has become intense … They make propaganda about damage (in Saudi ) which can be repaired in two weeks … because America wants to conquer the region,” Rouhani said.

The president said he would introduce a regional peace plan dubbed HOPE (Hormuz Peace Endeavour) at the United Nations General Assembly this week.

“All countries of the Persian Gulf and the Strait of Hormuz and the United Nations are invited to join,” Rouhani said before leaving for New York to attend the annual gathering of world leaders at the United Nations.

(Reporting by Dubai newsroom and Michelle Nichols in New York; Writing by Parisa Hafezi; Editing by Angus MacSwan, William Maclean)

Putin says Russia will make new missiles, warns of arms race

Russian President Vladimir Putin delivers a speech during a plenary session of the Eastern Economic Forum in Vladivostok, Russia September 5, 2019. Sputnik/Mikhail Klimentyev/Kremlin via REUTERS

By Gabrielle Tétrault-Farber and Vladimir Soldatkin

VLADIVOSTOK, Russia (Reuters) – President Vladimir Putin said on Thursday that Russia would produce missiles that were banned under a landmark Cold-War era nuclear pact that ended last month, but that Moscow would not deploy them unless the United States did so first.

Speaking at an economic forum in Russia’s Far East, Putin said Moscow had urged the United States to de-escalate a spiraling arms race between the former Cold War foes, but that Washington had not responded.

The Russian leader said he was concerned by U.S. talk of deploying missiles in Japan and South Korea, a deployment he said would cover parts of Russian territory.

Tensions over nuclear arms control have been rising after Washington formally pulled out of the Intermediate-Range Nuclear Forces Treaty (INF) pact last month accusing Russia of violating it, allegations Moscow denied.

Last month the United States tested a conventionally-configured cruise missile that hit a target more than 500 km away, a test that would have been prohibited under the INF.

The pact banned land-based missiles with a range of 310-3,400 miles, reducing the ability of both countries to launch a nuclear strike at short notice.

“…Of course we will produce such missiles,” Putin told an economic forum in the Russian city of Vladivostok. He repeated a pledge by Moscow not to deploy any new missiles unless the United States does so first.

“We are not happy about the fact that the head of the Pentagon said that the United States intends to deploy them in Japan and South Korea, this saddens us and is a cause for certain concern,” Putin said.

Putin said he offered U.S. President Donald Trump in a recent phone call the chance to buy one of the hypersonic nuclear weapons Moscow is developing. He said Trump spurned the offer and replied that Washington was making its own.

Putin said he feared that an arms race could spread into space and that Washington could develop a new space weapon.

(Additional reporting by Andrey Kuzmin, Maria Vasilyeva; Writing by Tom Balmforth; Editing by Catherine Evans)

Russia, China accuse U.S. of stoking tensions with missile test

FILE PHOTO: National flags of Russia and the U.S. fly at Vnukovo International Airport in Moscow, Russia April 11, 2017. REUTERS/Maxim Shemetov/File Photo

By Tom Balmforth and Maria Kiselyova

MOSCOW (Reuters) – Russia and China accused the United States on Tuesday of stoking military tensions by testing a ground-launched cruise missile, but the foreign ministry in Moscow said it would not be drawn into an arms race.

The Pentagon said on Monday it had tested a conventionally-configured cruise missile that hit its target after more than 500 km (310 miles) of flight, its first such test since the demise of a landmark nuclear pact this month.

The United States formally withdrew from the Cold War-era Intermediate-Range Nuclear Forces Treaty (INF) with Russia on Aug. 2 after accusing Moscow of violating it, a charge dismissed by the Kremlin.

The text would have been banned under the INF, which prohibited land-based missiles with a range of between 310 and 3,400 miles, reducing the ability of both countries to launch a nuclear strike at short notice.

Washington had “obviously taken the course of escalating military tensions,” Russian Deputy Foreign Minister Sergei Ryabkov said

Russia would, however, not allow itself “to be pulled into a costly arms race” and did not plan to deploy new missiles unless the United States did so first, he was quoted as saying by TASS news agency.

The Kremlin said the U.S. missile test showed that Washington had long been preparing to exit the nuclear pact.

“It is simply not possible to prepare for such tests in a few weeks or a few months. This …shows that it was not Russia, but the United States with its actions that brought the breakdown of the INF,” Kremlin spokesman Dmitry Peskov said.

China also expressed concern.

In Beijing, Chinese Foreign Ministry spokesman Geng Shuang said the test showed the United States was stoking a new arms race and confrontation, which would have a serious negative impact on regional and global security.

“We advise the U.S. side to abandon outdated notions of Cold War thinking and zero-sum games, and exercise restraint in developing arms,” Geng told a daily news briefing.

(Reporting by Maria Kiselyova; Additional reporting by Ben Blanchard in BEIJING; Writing by Tom Balmforth; Editing by Andrew Heavens and John Stonestreet)

Staff evacuated as rocket strikes near foreign oil firms in Iraq

Iraqi soldiers sit on a tank at the entry of Zubair oilfield after a rocket struck the site of residential and operations headquarters of several oil companies at Burjesia area, in Basra, Iraq June 19, 2019. REUTERS/Essam Al-Sudani

By Aref Mohammed and Ahmed Rasheed

BASRA, Iraq (Reuters) – A rocket hit a site in southern Iraq used by foreign oil companies on Wednesday, including U.S. energy giant ExxonMobil, wounding three people and threatening to further escalate U.S.-Iran tensions in the region.

There was no immediate claim of responsibility for the attack near Iraq’s southern city of Basra, the fourth time in a week that rockets have struck near U.S. installations.

Three previous attacks on or near military bases housing U.S. forces near Baghdad and Mosul caused no casualties or major damage. None of those incidents were claimed.

An Iraqi security source said it appeared that Iran-backed groups in southern Iraq were behind the Basra incident.

“According to our sources, the team (that launched the rocket) is made up of more than one group and were well trained in missile launching,” the security source said.

He said they had received a tip-off several days ago the U.S. consulate in Basra might be targeted but were taken by surprise when the rocket hit the oil site.

Iranian officials have made no comment about the attack but have strongly denied all other allegations against them of attacking energy tankers and facilities in the region.

Abbas Maher, mayor of the nearby town of Zubair, said he believed Iran-backed groups had specifically targeted Exxon to “send a message” to the United States.

U.S.-Iranian hostility has risen since President Donald Trump withdrew Washington from a 2015 nuclear deal with Iran and other world powers in May last year.

Trump has since reimposed and extended U.S. sanctions on Iran, forcing states to boycott Iranian oil or face sanctions of their own. Tehran has threatened to abandon the nuclear pact unless other signatories act to rein in the United States.

The U.S. face-off with Iran reached a new pitch following attacks on oil tankers in the Gulf in May and June that Washington blames on Tehran. Iran denies any involvement.

ESCALATION FEARED

While the long-time foes say they do not want war, the United States has reinforced its military presence in the region and analysts say violence could nonetheless escalate.

Some Western officials have said the recent attacks appear designed to show Iran could sow chaos if it wanted.

Iraqi officials fear their country, where powerful Iran-backed Shi’ite Muslim militias operate in close proximity to some 5,200 U.S. troops, could become an arena for escalation.

The United States has pressed Iraq’s government to rein in Iran-backed paramilitary groups, a tall order for a cabinet that suffers from its own political divisions.

Iraq’s military said three people were wounded in Wednesday’s strike by a short-range Katyusha missile. It struck the Burjesia site, west of Basra, which is near the Zubair oilfield operated Italy’s Eni SpA.

Police said the rocket landed 100 meters from the part of the site used as a residence and operations center by Exxon. Some 21 Exxon staff were evacuated by plane to Dubai, a security source said.

Zubair mayor Maher said the rocket was fired from farmland around 3-4 km (2 miles) from the site. A second rocket landed to the northwest of Burjesia, near a site of oil services company Oilserv, but did not explode, he said.

“We cannot separate this from regional developments, meaning the U.S.-Iranian conflict,” Maher said.

“These incidents have political objectives … it seems some sides did not like the return of Exxon staff.”

EXPORTS UNAFFECTED

Exxon had evacuated its staff from Basra after a partial U.S. Baghdad embassy evacuation in May and staff had just begun to return.

Burjesia is also used as a headquarters by Royal Dutch Shell PLC and Eni., according to Iraqi oil officials.

The officials said operations including exports from southern Iraq were not affected.

A separate Iraqi oil official, who oversees foreign operations in the south, said the other foreign firms had no plans to evacuate and would operate as normal.

A Shell spokesman said its employees had “not been subject to the attack … and we continue normal operations in Iraq.”

Eni say its operations were also proceeding as normal after the rocket exploded “several kilometers” from its facilities.

Wednesday’s rocket strike fits into a pattern of attacks since May, when four tankers in the Gulf and two Saudi oil pumping stations were attacked.

They have been accompanied by a spate of incidents inside Shi’ite-dominated Iraq, which is allied both to the United States and fellow Shi’ite Muslim Iran.

The attacks in Iraq have caused less damage but have all taken place near U.S. military, diplomatic or civilian installations, raising suspicions they were part of a campaign.

A rocket landed near the U.S. embassy in Baghdad last month causing no damage or casualties. The United States had already evacuated hundreds of diplomatic staff from the embassy, citing unspecified threats from Iran.

Iran backs a number of Iraqi Shi’ite militias which have grown more powerful after helping defeat Islamic State.

Iraqi officials say that threats from Iran cited by Washington when it sent additional forces to the Middle East last month included the positioning by Iran-backed militias of rockets near U.S. forces.

Rockets hit on or near three separate military bases housing U.S. forces near Baghdad and in the northern city of Mosul in three separate attacks since Friday.

(Additional reporting by Rania El Gamal in Dubai, Stephen Jewkes in; Writing by John Davison; Editing by Clarence Fernandez, Jon Boyle and Andrew Cawthorne and Alison Williams)

U.S. firms push Washington to restart nuclear pact talks with Riyadh: sources

U.S. firms push Washington to restart nuclear pact talks with Riyadh: sources

By Reem Shamseddine and Sylvia Westall

RIYADH/DUBAI (Reuters) – U.S. firms attracted by Saudi Arabia’s plans to build nuclear reactors are pushing Washington to restart talks with Riyadh on an agreement to help the kingdom develop atomic energy, three industry sources said.

Saudi Arabia has welcomed the lobbying, they said, though it is likely to worry regional rival Iran at a time when tensions are already high in the Middle East.

One of the sources also said Riyadh had told Washington it does not want to forfeit the possibility of one day enriching uranium – a process that can have military uses – though this is a standard condition of U.S. civil nuclear cooperation pacts.

“They want to secure enrichment if down the line they want to do it,” the source, who is in contact with Saudi and U.S. officials, said before U.S. Energy Secretary Rick Perry holds talks in Riyadh early next week.

Another of the industry sources said Saudi Arabia and the United States had already held initial talks about a nuclear cooperation pact.

U.S. officials and Saudi officials responsible for nuclear energy issues declined to comment for this article. The sources did not identify the U.S. firms involved in the lobbying.

Under Article 123 of the U.S. Atomic Energy Act, a peaceful cooperation agreement is required for the transfer of nuclear materials, technology and equipment.

In previous talks, Saudi Arabia has refused to sign up to any agreement with the United States that would deprive the kingdom of the possibility of one day enriching uranium.

Saudi Arabia, the world’s top oil producer, says it wants nuclear power solely for peaceful uses – to produce electricity at home so that it can export more crude. It has not yet acquired nuclear power or enrichment technology.

Riyadh sent a request for information to nuclear reactor suppliers in October in a first step towards opening a multi-billion-dollar tender for two nuclear power reactors, and plans to award the first construction contract in 2018.

Reuters has reported that Westinghouse is in talks with other U.S.-based companies to form a consortium for the bid. A downturn in the U.S. nuclear industry makes business abroad increasingly valuable for American firms.

Reactors need uranium enriched to around 5 percent purity but the same technology in this process can also be used to enrich the heavy metal to a higher, weapons-grade level. This has been at the heart of Western and regional concerns over the nuclear work of Iran, which enriches uranium domestically.

Riyadh’s main reason to leave the door open to enrichment in the future may be political – to ensure the Sunni Muslim kingdom has the same possibility of enriching uranium as Shi’ite Muslim Iran, industry sources and analysts say.

POTENTIAL PROBLEM FOR WASHINGTON

Saudi Arabia’s position poses a potential problem for the United States, which has strengthened ties with the kingdom under President Donald Trump.

Washington usually requires a country to sign a nuclear cooperation pact – known as a 123 agreement – that forfeits steps in fuel production with potential bomb-making uses.

“Doing less than this would undermine U.S. credibility and risk the increased spread of nuclear weapons capabilities to Saudi Arabia and the region,” said David Albright, a former U.N. weapons inspector and president of the Washington-based Institute for Science and International Security (ISIS).

It is not clear whether Riyadh will raise the issue during Perry’s visit, which one of the industry sources said could include discussion of nuclear export controls.

Under a nuclear deal Iran signed in 2015 with world powers – but which Trump has said he might pull the United States out of – Tehran can enrich uranium to around the level needed for commercial power-generation.

It would be “a huge change of policy” for Washington to allow Saudi Arabia the right to enrich uranium, said Mark Fitzpatrick, executive director of the Americas office at the International Institute for Strategic Studies think tank.

“Applying the ‘golden standard’ of not allowing enrichment or preprocessing (of spent fuel) has held up a 123 agreement with Jordan for many years, and has been a key issue in U.S. nuclear cooperation with South Korea,” said Fitzpatrick, a nuclear policy expert.

The United States is likely to aim for restrictions, non-proliferation analysts say.

These could be based on those included in the 123 agreement Washington signed in 2009 with the United Arab Emirates, which is set to start up its first South Korean-built reactor in 2018 and has ruled out enrichment and reprocessing.

“Perhaps Saudi Arabia is testing the Trump administration and seeing if the administration would be amenable to fewer restrictions in a 123 agreement,” ISIS’s Albright said.

REFORM PLAN

Saudi Arabia’s nuclear plans have gained momentum as part of a reform plan led by Crown Prince Mohammed bin Salman to reduce the economy’s dependence on oil.

Riyadh wants eventually to install up to 17.6 gigawatts (GW) of atomic capacity by 2032 – or up to 17 reactors. This is a promising prospect for the struggling global nuclear industry and the United States is expected to face competition from South Korea, Russia, France and China for the initial tender.

Hashim bin Abdullah Yamani, head of the Saudi government agency tasked with the nuclear plans, has said the kingdom wants to tap its own uranium resources for “self-sufficiency in producing nuclear fuel” and that this is economically viable.

As a nuclear conference in October, Saudi officials declined to comment when asked to expand on the topic.

In 2015, before the Iran deal was signed, Prince Turki al-Faisal, a senior Saudi royal and former intelligence chief, said Riyadh would want the option to enrich uranium if Tehran had it.

In October, Maher al-Odan, the chief atomic energy officer of KACARE, said Saudi Arabia had around 60,000 tonnes of uranium based on initial studies and that the kingdom wanted to start extracting it to boost the economy.

Asked what would happen to the uranium after that, he replied: “This is a government decision.”

(Additional reporting by Stephen Kalin in Riyadh and Shadia Nasralla in Vienna, Editing by Timothy Heritage)