U.S. judge extends deadline for bank records of firm behind Trump dossier

By Mark Hosenball

WASHINGTON (Reuters) – A federal judge has given an unnamed bank more time to respond to a congressional subpoena for financial records of the Washington research firm that hired a former British spy to compile a dossier on presidential candidate Donald Trump.

Trump and other Republicans have alleged that Russians paid Fusion GPS, a Washington firm, for research on their own dealings with Trump and his campaign. The Republican-controlled House Intelligence Committee has sought Fusion’s bank records in an effort to pursue those allegations.

In a closed-door hearing with Senate Judiciary Committee investigators, Fusion GPS founder Glenn Simpson said there was no connection between the firm’s work on the dossier and its legal research on a lawsuit involving Russians who attended a June 2016 Trump Tower meeting with Trump’s son, Donald Trump Jr., his son-in-law and close aide, Jared Kusher, and former campaign chief Paul Manafort, sources familiar with the hearing said.

It has been widely reported that supporters of Republican Jeb Bush, a primary opponent of Trump, initially paid for the firm’s research, and the law firm Perkins Coie, which represented Democratic candidate Hillary Clinton and the Democratic National Committee, confirmed on Tuesday that it hired Fusion GPS in April 2016.

U.S. District Court Judge Tanya Chutkan had set a Thursday evening deadline for the unnamed bank to give the committee its last two years of records on Fusion GPS. But in an order posted on the court docket late on Thursday, she extended the deadline until Monday morning.

The decision indicates that lawyers for Fusion and the House committee are negotiating in an effort to settle their dispute out of court, sources familiar with the matter said.

Joshua Levy, a lawyer for Fusion, declined to comment, and the House of Representatives lawyer on the case did not respond to a request for comment.

(Reporting By Mark Hosenball; Editing by John Walcott and Tom Brown)

Trump releases some JFK files, blocks others under pressure

Trump releases some JFK files, blocks others under pressure

By Steve Holland and Jeff Mason

WASHINGTON (Reuters) – U.S. President Donald Trump on Thursday ordered the unveiling of 2,800 documents related to the 1963 assassination of President John F. Kennedy but yielded to pressure from the FBI and CIA to block the release of other records to be reviewed further.

Congress had ordered in 1992 that all remaining sealed files pertaining to the investigation into Kennedy’s death should be fully opened to the public through the National Archives in 25 years, by Oct. 26, 2017, except for those the president authorized for further withholding.

Trump had confirmed on Saturday that he would allow for the release of the final batch of once-classified records, amounting to tens of thousands of pages, “subject to the receipt of further information.”

But as the deadline neared, the administration decided at the last minute to stagger the final release over the next 180 days while government agencies studied whether any documents should stay sealed or redacted.

The law allows the president to keep material under wraps if it is determined that harm to intelligence operations, national defense, law enforcement or the conduct of foreign relations would outweigh the public’s interest in full disclosure.

More than 2,800 uncensored documents were posted immediately to the National Archives website on Thursday evening – a staggering, disparate cache that news outlets began poring through seeking new insights into a tragedy that has been endlessly dissected for decades by investigators, scholars and conspiracy theorists.

The rest will be released “on a rolling basis,” with “redactions in only the rarest of circumstances,” by the end of the review on April 26, 2018, the White House said in a statement.

In a memo to government agency heads, Trump said the American people deserved as much access as possible to the records.

“Therefore, I am ordering today that the veil finally be lifted,” he wrote, adding that he had no choice but to accept the requested redactions for now.

A Central Intelligence Agency spokesman told Reuters that every single one of approximately 18,000 remaining CIA records in the collection would ultimately be released, with just 1 percent of the material left redacted.

CIA Director Mike Pompeo was a lead advocate in arguing to the White House for keeping some materials secret, one senior administration official said.

While Kennedy was killed over half a century ago, the document file included material from investigations during the 1970s through the 1990s. Intelligence and law enforcement officials argued their release could thus put at risk some more recent “law enforcement equities” and other materials that still have relevance, the official said.

Trump was resistant but “acceded to it with deep insistence that this stuff is going to be reviewed and released in the next six months,” the official added.

QUELLING CONSPIRACY THEORIES?

Academics who have studied Kennedy’s slaying on Nov. 22, 1963, said they expected nothing in the final batch of files would alter the official conclusion of investigators that Lee Harvey Oswald was the lone assassin who fired on the president’s open limousine that day in Dallas from an upper window of the Texas Book Depository building overlooking the motorcade route.

They likewise anticipated that the latest releases would do little to quell long-held conspiracy theories that the 46-year-old Democratic president’s killing was organized by the Mafia, by Cuba, or a cabal of rogue agents.

Of the roughly 5 million pages of JFK assassination-related records held by the National Archives, 88 percent have been available to the public without restriction since the late 1990s, and 11 percent more have been released with sensitive portions redacted. Only about 1 percent have remain withheld in full, according to the National Archives.

Thousands of books, articles, TV shows and films have explored the idea that Kennedy’s assassination was the result of an elaborate conspiracy. None have produced conclusive proof that Oswald, who was fatally shot by a nightclub owner two days after killing Kennedy, worked with anyone else, although they retain a powerful cultural currency.

“My students are really skeptical that Oswald was the lone assassin,” said Patrick Maney, a professor of history at Boston College. “It’s hard to get our minds around this, that someone like a loner, a loser, could on his own have murdered Kennedy and changed the course of world history. But that’s where the evidence is.”

Kennedy’s assassination was the first in a string of politically motivated killings, including those of his brother Robert F. Kennedy and civil rights leader Martin Luther King Jr., that stunned the United States during the turbulent 1960s. He remains one of the most admired U.S. presidents.

(Additional reporting by Mark Hosenball in Washington and Scott Malone in Boston; Editing by Peter Cooney and Michael Perry)

Mattis talks diplomacy on North Korea ahead of Trump’s Asia tour

Mattis talks diplomacy on North Korea ahead of Trump's Asia tour

By Phil Stewart

PANMUNJOM, South Korea (Reuters) – U.S. Defense Secretary Jim Mattis emphasized diplomatic efforts to resolve the North Korean missile and nuclear crisis as he stood at the tense and heavily fortified border between North and South on Friday, saying: “Our goal is not war.”

His remarks came before U.S. President Donald Trump – who has threatened to destroy the North if necessary – leaves on his first trip to Asia next week, including a stop in South Korea to meet President Moon Jae-in.

For his part, Moon, after talks with Mattis, said the “aggressive deployment” of U.S. strategic assets in the region, which have included overflights by U.S. bombers, had been effective in deterring the North Korean threat.

Tension between North Korea and the United States has been building after a series of nuclear and missile tests by Pyongyang and bellicose verbal exchanges between Trump and North Korean leader Kim Jong Un, stoking fears any miscalculation could lead to an armed confrontation.

“North Korean provocations continue to threaten regional and global security despite unanimous condemnation by the United Nations Security Council,” Mattis said in prepared remarks as he visited the demilitarized zone (DMZ).

“As Secretary of State Tillerson has made clear, our goal is not war, but rather the complete, verifiable, and irreversible denuclearization of the Korean peninsula.”

Standing alongside Mattis, South Korean Defense Minister Song Young-moo said: “We together will continue to defend peace through strong will and strong might.”

TRUMP VISIT LOOMS

Ahead of Trump’s visit to Asia, Mattis has emphasized diplomatic efforts to find a peaceful solution to the crisis during his week-long trip to the region.

“That’s really what it was all about – to keep the (North Korea) effort firmly in the diplomatic lane for resolution,” Mattis said earlier this week after three days of meetings with Asian defense chiefs in the Philippines.

At the same time, the U.S. and South Korean militaries are looking for ways to deter Pyongyang and bolster the South’s defenses.

Washington’s top military officer, Marine General Joseph Dunford, chairman of the Joint Chiefs of Staff, met with his South Korean counterpart, General Kyeong Doo Jeong, a U.S. military statement said. Dunford renewed U.S. warnings of retaliation to further provocations.

“(Dunford) reaffirmed that any attack by North Korea would be met with a response that will be overwhelming and effective, using the full range of U.S. military capabilities,” the statement said.

The United States flew Air Force bombers over waters east of North Korea last month in a show of force. The U.S. Navy, in what it says was a long-planned maneuver, will have three U.S. aircraft carrier strike groups in the Pacific in the coming days.

Last week, CIA chief Mike Pompeo said North Korea could be only months away from developing the ability to hit the United States with nuclear weapons, a scenario Trump has vowed to prevent.

U.S. intelligence experts say Pyongyang believes it needs the weapons to ensure its survival and have been skeptical about diplomatic efforts, focusing on sanctions, to get Pyongyang to denuclearize.

The United States on Thursday imposed sanctions on seven North Korean individuals and three entities for “flagrant” human rights abuses, including killings, torture, forced labor and the hunting down of asylum seekers abroad.

In a speech last month at the United Nations, Trump threatened to destroy North Korea if necessary to defend the United States and allies. Kim has blasted Trump as “mentally deranged.”

Despite the rhetoric, White House officials say Trump is looking for a peaceful resolution. But all options, including military ones, are on the table.

“Do we have military options in defense for attack, if our allies are attacked? Of course we do. But everyone is out for a peaceful resolution,” Mattis told reporters traveling with him this week.

“No one’s rushing for war.”

Separately, North Korea released a South Korean fishing boat which had been found to be in North Korean waters illegally, state media said.

The crew of 10 – seven South Koreans and three Vietnamese – were released on Friday evening, a spokesman for South Korea’s coastguard told Reuters. The return of the boat, which had been reported as missing from Saturday, may have eased already strained relations between North and South.

The two sides are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North regularly threatens to destroy the South and the United States.

(Additional reporting by Christine Kim and James Pearson; Writing by Lincoln Feast; Editing by Clarence Fernandez and Nick Macfie)

Trump declares opioids a U.S. public health emergency

Trump declares opioids a U.S. public health emergency

By Yasmeen Abutaleb and Jeff Mason

WASHINGTON (Reuters) – U.S. President Donald Trump declared the opioid crisis a public health emergency on Thursday, stopping short of a national emergency declaration he promised months ago that would have freed up more federal money.

Responding to a growing problem wreaking havoc in rural areas, Trump’s declaration will redirect federal resources and loosen regulations to combat opioid abuse, senior administration officials said on a conference call with reporters.

But it does not mean there will be more money to combat the crisis. Some critics, including Democratic lawmakers, said the declaration was meaningless without additional funding.

“This epidemic is a national health emergency,” Trump said at the White House. “Nobody has seen anything like what’s going on now. As Americans, we cannot allow this to continue.”

The announcement disappointed some advocates and experts in the addiction fight, who said it was inadequate to fight a scourge that played a role in more than 33,000 deaths in 2015, according to the U.S. Centers for Disease Control and Prevention. The death rate has kept rising, estimates show.

Opioids, primarily prescription painkillers, heroin and fentanyl, are fueling the drug overdoses. More than 100 Americans die daily from related overdoses, according to the CDC.

A White House commission on the drug crisis had urged Trump to declare a national emergency. On Wednesday, the president told Fox Business Network he would do so.

Officials told reporters on the conference call that Federal Emergency Management Agency funds that would have been released under a national emergency are already exhausted from recent storms that struck Puerto Rico, Texas and Florida.

The administration would have to work with Congress to help provide additional funding to address drug abuse, they added.

Under Thursday’s declaration, treatment would be made more accessible for abusers of prescription painkillers, heroin and fentanyl, while ensuring fewer delays in staffing the Department of Health and Human Services to help states grapple with the crisis.

‘BAD ACTORS’

Trump said he would discuss stopping the flow of fentanyl, a drug 50 to 100 times more powerful than morphine, with Chinese President Xi Jinping during his visit to Asia next month.

In his remarks, Trump said the U.S. Postal Service and Department of Homeland Security were “strengthening the inspection of packages coming into our country to hold back the flood of cheap and deadly fentanyl, a synthetic opioid manufactured in China.”

He added he would consider bringing lawsuits against “bad actors” in the epidemic. Several states have sued opioid manufacturers for deceptive marketing. Congress is investigating the business practices of manufacturers.

The president also said the government should focus on teaching young people not to take drugs. “There is nothing desirable about drugs. They’re bad,” he said.

Thursday’s declaration also allows the Department of Labor to issue grants to help dislocated workers affected by the crisis. HIV/AIDS health funding would also be prioritized for those who need substance abuse treatment, officials said.

As a candidate, Trump promised to address the crisis, including by building a wall on the U.S.-Mexico border to stop the flow of illicit drugs, which he touched on in his speech.

Additional actions under the move would be announced in coming weeks by various agencies, officials said.

(Additional reporting by James Oliphant, Susan Heavey and Jason Lange; Editing by Kevin Drawbaugh and Peter Cooney)

House narrowly passes measure paving way for Trump tax cuts

House narrowly passes measure paving way for Trump tax cuts

By David Morgan and Susan Cornwell

WASHINGTON (Reuters) – The U.S. House of Representatives helped pave the way on Thursday for deep tax cuts sought by President Donald Trump and Republican leaders, but barely overcame a revolt within party ranks that could foreshadow trouble ahead for the tax overhaul.

The Republican-controlled House voted 216-212 to pass a budget blueprint for the 2018 fiscal year. The measure will enable the tax legislation, due to be introduced next week, to win congressional approval without any Democratic votes.

But House Republican leaders came within two votes of failure. Democrats were unified in their opposition, and 20 Republicans voted against the bill, many to express disapproval of a provision in Trump’s tax outline that would repeal an income tax deduction for state and local taxes.

Discord is also looming over a potential provision to scale back a popular tax-deferred U.S. retirement savings program. Both those provisions are aimed at offsetting revenue losses that would result from the planned sweeping tax cuts, particularly for companies.

Democrats have called the tax plan a giveaway to the rich and corporations that would swell the federal deficit.

Republicans are traditionally opposed to letting the deficit grow. But in a stark reversal of that stance, the party’s budget resolution, previously passed by the Senate, called for adding up to $1.5 trillion to federal deficits over the next decade to pay for the tax cuts.

The outline of the Republican plan announced last month would cut the corporate tax rate to 20 percent from 35 percent, the small business rate to 25 percent from up to 39.6 percent and the top individual rate to 35 percent from 39.6 percent.

Trump, who promised major tax cuts as a candidate last year, has asked Congress to pass the tax legislation by the end of the year. Even though his fellow Republicans control both the House and Senate, the president has been unable to secure passage of major legislation, having failed to secure a promised repeal of the Obamacare law.

Republicans are also looking for a signature achievement to tout as the 2018 congressional election year approaches.

“Big News – Budget just passed!” Trump wrote on Twitter.

Republican House Speaker Paul Ryan, who has said he wants the House to pass the tax overhaul by the Nov. 23 Thanksgiving holiday, said passage of the budget resolution was an “enormous step” toward that goal.

But he declined to take a position on the possibility of capping annual contributions into 401(k) plans, which for four decades have helped millions of Americans save for retirement by offering tax savings.

Trump and Kevin Brady, the Republican chairman of the tax-writing House Ways and Means committee, reopened the door to the possibility of such caps on Wednesday as Republicans scramble to find sources of revenue to cover the tax cuts.

Brady said he planned to introduce the tax bill next Wednesday and to begin committee deliberations on it the following week, on Nov. 6.

REVOLT FROM HIGH-TAX STATES

A meeting after the budget vote between Brady and Republicans opposing the elimination of the deduction for state and local taxes ended without a compromise, though Brady said he would work to find a solution.

“They made it clear. They need this problem solved before they vote ‘yes’ on tax reform,” Brady added.

Eliminating the deduction would hit middle-class voters in high-tax states like California, New York, Illinois, Pennsylvania and New Jersey.

Republican Representative John Katko of New York, leaving the meeting with Brady, said supporters of the deduction “stood firm, saying no as a group today to let them know we’re not kidding, and we also are going to let the Senate know if they try and take it (the deduction) out, they’re going to have a problem.”

The budget plan passed on Thursday will enable the 100-seat Senate to pass tax legislation with a simple majority rather than a 60-vote super-majority that would be tough to reach given solid Democratic opposition. While Republicans hold a comfortable majority in the House they have just a 52-48 margin in the Senate.

The White House and congressional Republicans excluded Democrats as they developed the plan, and it appeared unlikely a significant number of Democrats would get behind the proposal.

“Right here before our eyes, in this House, the Republicans are replacing the great American ladders of opportunity with the silver spoon of plutocracy and aristocracy. Their agenda raises taxes on the middle class. That is the fact,” top House Democrat Nancy Pelosi said during the debate on the budget measure.

Independent analysts forecast last month that corporations and the wealthiest Americans would benefit the most and many upper middle-income people would face higher taxes under the tax outline unveiled by the Republicans.

The proposal would cut taxes for companies and individuals by up to $6 trillion over the next decade, the analysts said.

(Reporting by David Morgan and Susan Cornwell; Additional reporting by Richard Cowan and Amanda Becker; Writing by Will Dunham; Editing by Frances Kerry)

Trump says Russia hurting U.S. efforts on North Korea nuclear issue

U.S. President Donald Trump speaks before awarding the Medal of Honor to Vietnam War Veteran, retired Army Capt. Gary Rose, during a ceremony in the East Room of the White House in Washington, U.S., October 23, 2017. REUTERS/Joshua Roberts

WASHINGTON (Reuters) – President Donald Trump said on Wednesday that Russia was hurting U.S. efforts to rid North Korea of nuclear weapons while China had been helpful.

In an interview with Fox Business Network, Trump said it would be easier to resolve the North Korea nuclear issue if the United States had a better relationship with Russia.

“China is helping us and maybe Russia’s going through the other way and hurting what we’re getting,” Trump said of the North Korea situation.

A series of weapons tests by North Korea and a string of increasingly bellicose exchanges between Trump and North Korean leader Kim Jong Un have ratcheted up tensions.

Trump has pressed China to help rein in North Korea’s nuclear program. China, North Korea’s sole major ally, accounts for more than 90 percent of trade with the isolated country.

Trump said in a tweet that he spoke with Chinese President Xi Jinping on Thursday and the conversation included North Korea.

U.S.-Russia relations have been strained over allegations Russia meddled in the 2016 U.S. presidential election, Moscow’s annexation of Crimea from Ukraine and its backing of the Syrian government.

“I think we could have a good relationship” with Russia, Trump said. “I think that North Korean situation would be easier settled.”

Trump said during last year’s campaign he hoped to improve relations with Moscow.

 

 

(Reporting by Eric Beech; Editing by Peter Cooney)

 

Trump to issue emergency declaration next week on opioids

Trump to issue emergency declaration next week on opioids

WASHINGTON (Reuters) – U.S. President Donald Trump said on Wednesday he would declare next week a national emergency on opioid abuse, a move that could give states access to federal funds to fight the drug crisis.

The United States is battling a surge in opioid-related deaths, including 33,000 lives lost in 2015, more than any year on record, according to federal data.

“The opioid is a tremendous emergency,” Trump told Fox Business Network. “Next week, I’m going to (be) declaring an emergency, (a) national emergency on drugs.”

Trump is expected to provide a preview of his plans for tackling drug demand and the opioid crisis in remarks on Thursday.

Trump said in August that he would declare opioid abuse a national emergency.

Opioids, primarily prescription painkillers, heroin and fentanyl – a drug 50 to 100 times more powerful than morphine – are fueling the drug overdoses.

The declaration by Trump could help unlock more support and resources to address the drug overdose epidemic, such as additional funding and expanded access to various forms of treatment, and it gives the government more flexibility in waiving rules and restrictions to expedite action.

(Reporting by Jason Lange; Editing by Peter Cooney)

Iran says defense capabilities not negotiable amid U.S. pressure

Iran says defense capabilities not negotiable amid U.S. pressure

BEIRUT (Reuters) – Iran’s defense capabilities are not negotiable, Supreme Leader Ayatollah Ali Khamenei said Wednesday in remarks made previously but which now come amid increased pressure from the U.S. government over Tehran’s ballistic missile program.

Ties between Iran and the United States have deteriorated under U.S. President Donald Trump and suffered another deep blow two weeks ago when he decided not to certify that Tehran is complying with a 2015 nuclear pact and warning he might ultimately terminate it.

Iran has reacted defiantly, dismissing Trump’s demands for the pact to be toughened up. Last week, Iran’s elite Revolutionary Guards, the most powerful military force in the country, said its ballistic missile program would accelerate despite U.S. and European Union pressure to suspend it.

“The defense capabilities and strength of the country are not negotiable or up for haggling,” Khamenei was cited as saying at a ceremony at the Imam Ali army officer’s academy in Tehran, according to state media.

The ramping up of rhetoric on both sides has raised the specter of a possible military confrontation between the two countries. In recent months, small boats from the Revolutionary Guards navy have swarmed close to American warships in the Gulf, prompting the U.S. navy to fire flares and warning shots.

Under the landmark 2015 deal between Iran and world powers, the Islamic Republic agreed to curbs on its nuclear program in exchange for the lifting of a number of sanctions.

The U.S. Senate is considering new legislation which could lead to Washington restoring sanctions on Iran should it test a ballistic missile able to carry a warhead or bar nuclear inspectors from any sites.

In response, Khamenei said last week that Tehran would stick to the nuclear accord with world powers as long as the other signatories respected it, but would “shred” the deal if Washington pulled out.

(Reporting By Babak Dehghanpisheh; Editing by Raissa Kasolowsky)

Trump to release JFK files, subject to ‘further information’

Roses lie on a marker outside the home where President John F. Kennedy was born 100 years ago on May 29, 1917, in Brookline, Massachusetts, U.S., May 29, 2017. REUTERS/Brian Snyder

WASHINGTON (Reuters) – U.S. President Donald Trump said on Saturday that, subject to receipt of further information, he planned to allow the opening of long-secret files on the November 1963 assassination of President John F. Kennedy that are scheduled for release next week.

Politico magazine earlier quoted Trump administration and other U.S. government officials as saying the president would almost certainly block the release of information from some of the thousands of classified files, which the U.S. National Archives is due to make public by an Oct. 26 deadline. (http://politi.co/2yGjMtr)

“Subject to the receipt of further information, I will be allowing, as President, the long blocked and classified JFK FILES to be opened,” Trump said in a tweet.

The Nov. 22 1963 assassination cut short “Camelot,” as the 1,000 days of the Kennedy presidency became known. Kennedy was 46 when he died and remains one of the most admired U.S. presidents.

Thousands of books, articles, TV shows, movies and documentaries have been produced about the assassination and surveys have shown that a majority of Americans still distrust official evidence that points to Lee Harvey Oswald as the sole killer.

Despite serious questions about the official inquest, and theories purporting that organized crime, Cuba or a cabal of U.S. security agents was involved, conspiracy theorists have yet to produce conclusive proof that Oswald acted in consort with anyone.

Over the years, the National Archives has released most documents related to the case, but a final batch remains and only Trump has the authority to decide whether some should continue to be withheld or released in redacted form.

The Washington Post and other media have quoted officials as saying that government agencies have lobbied Trump to withhold some of the documents, arguing that some of the more recent files could expose relatively recent intelligence and law enforcement operations.

Saturday’s Washington Post said Kennedy assassination experts do not think the last batch of papers contains any major bombshells, but may shed light on the activities of Oswald while he was traveling in Mexico City in late September 1963, and courting Cuban and Soviet spies.

(Reporting by David Brunnstrom; Editing by Lisa Von Ahn and Nick Zieminski)

Iran’s Guards flex muscle in Middle East despite Trump warning

FILE PHOTO: Members of Iran's Revolutionary Guards march during a military parade to commemorate the 1980-88 Iran-Iraq war in Tehran September 22, 2007. REUTERS/Morteza Nikoubazl/File Photo

By Babak Dehghanpisheh

BEIRUT (Reuters) – A week after U.S. President Donald Trump delivered a blistering speech about Iran’s Revolutionary Guards, the most powerful military and economic force in the Islamic Republic has shown it has no intention of curbing its activities in the Middle East.

In defiance of other world powers, Trump chose in a speech last Friday not to certify that Tehran is complying with a pact to curb Iran’s nuclear work and singled out the Islamic Revolutionary Guard Corps (IRGC), accusing Tehran of destabilizing the region.

A senior IRGC commander said after the speech Trump was “acting crazy” and was following U.S. strategy of increasing “the shadow of war in the region”.

Iran’s Shi’ite militia proxies have made formidable military gains in recent months in Syria as well as Iraq, stretching from northern Iraq to a string of smaller cities and this week, after the Trump speech, re-captured the oil-rich city of Kirkuk.

“In the short-run clearly Trump has increased the power and aggressiveness of the IRGC,” said Abbas Milani, the director of the Iranian Studies program at Stanford University.

“The IRGC can’t back down from a street fight. Their domestic and regional prestige is predicated on the fact that they fight a good fight and they don’t back down.”

The day after Trump spoke, the head of the Guards’ al Quds overseas operations, Major General Qassem Soleimani, traveled to Iraq’s Kurdistan region. He held talks about the escalating crisis between Kurdish authorities and the Iraqi government after a Kurdish independence referendum.

The niece of the late Kurdish leader Jalal Talabani, Alaa Talabani, told the al Hadath TV channel that Soleimani met with members of her family on Saturday. He had come to pay respects to Jalal, a former Iraqi president and founder of the Patriotic Union of Kurdistan (PUK) party who died this month.

Other Iraqi and Kurdish officials told Reuters Soleimani held meetings with Kurdish leaders to persuade them to retreat from Kirkuk ahead of the Iraqi army push into the city.

“I don’t deny that Mr. Qassem Soleimani gave us the advice to find a solution to Kirkuk,” she said. “He said Kirkuk should return to the (Iraqi) law and constitution and to have an agreement about Kirkuk and give up the intransigence about the referendum which was a decision not thought out.”

LIGHTNING ASSAULT

Within days, Iran’s mostly Shi’ite allies in Baghdad launched a lightning assault, pushing Kurdish fighters out of disputed territories such as Kirkuk and consequently strengthening Iran’s hand in Iraq.

Commanders of the Kurdish forces, known as the Peshmerga, have accused Iran of orchestrating the Shi’ite-led Iraqi central government’s push into areas under their control, a charge senior Iranian officials have denied.

A video posted by the Kurdish Rudaw channel online on Wednesday showed an Iraqi Shi’ite militiaman loyal to Iran hanging a picture of Iran’s Supreme Leader Ayatollah Ali Khamenei in the Kirkuk governorate office.

Iran, which has a large Kurdish minority, has reason to be wary of Iraqi Kurdish independence. It fears it might encourage its own Kurds, who have also pushed for separatism.

After the independence vote in Iraqi Kurdistan on September 25, videos posted online showed hundreds of people celebrating in the streets in the Kurdish areas of Iran.

FRONT-LINE PLAYER

Regional analysts say the emergence of Iran in Iraq, Syria, Kurdistan and Lebanon, where it wields influence through its allied Shi’ite Lebanese Hezbollah militia, means Tehran has become a front-line player in the region which Washington could not afford to ignore.

“Trump’s stupidity should not distract us from America’s deceitfulness … If the U.S. tears up the (nuclear) deal, we will shred it,” said Khamenei. “Americans are angry because the Islamic Republic of Iran has managed to thwart their plots in Lebanon, Syria, Iraq and other countries in the region.”

Speaking after Trump’s speech, Amir Ali Hajizadeh, head of the Guards’ aerospace division, said: “From the start of the Islamic revolution … (presidents) have increased the shadow of war in the region …

“Dear brothers and sisters today Trump is acting crazy to gain concessions through this method.”

The ramping up of tension could put the two countries on a collision course in the Gulf where clashes have only been narrowly avoided in recent months.

Small boats from the Revolutionary Guards’ navy veered close to U.S. naval vessels in the Gulf at least twice this year, prompting the U.S. military to fire warning shots and flares.

In August, an unarmed Iranian drone came within 100 feet (31 meters) of a U.S. Navy warplane, risking a crash, according to a U.S. official.

Some recent naval showdowns between Iran and the United States took place near the Strait of Hormuz, a waterway where up to 30 percent of global oil exports pass annually.

During the presidential campaign last September, Trump vowed that any Iranian vessels that harassed the U.S. Navy in the Gulf would be “shot out of the water”.

POTENTIAL FLASHPOINT

The Guards could also target U.S. forces in Iraq and Syria through tens of thousands of loyal Shi’ite militia fighters without directly acknowledging a role in any attacks.

“The IRGC can claim ignorance of Shi’ite militia attacks against the U.S. military,” said Ali Alfoneh, a senior fellow at the Atlantic Council who has done extensive research on the Guards.

In early October, an American soldier was killed in Iraq by an explosively formed penetrator, or EFP, a type of roadside bomb which was often used by Iran’s Shi’ite militia proxies in Iraq, according to the U.S. military.

“This is the first time that we’ve seen it used in this area,” U.S. Army Colonel Ryan Dillon, a coalition spokesman, said. Dillon said the U.S. military has not yet concluded who carried out the attack.

Dozens of American soldiers in Iraq were killed and injured by EFPs used by militia groups linked to Iran after the 2003 invasion of Iraq by U.S. forces, according to the U.S. military.

Asked about the threat posed by Shi’ite militias allied with Iran in Iraq and Syria, particularly after Trump’s speech, Dillon said: “We’re always assessing the threats no matter where they come from. During certain announcements or certain dates or when certain events happen, we make proper adjustments.”

Trump’s new plan, observers say, will also weaken a group that had made progress in curbing the Guards’ political and economic ambitions in recent years: Iranian President Hassan Rouhani and the pragmatist politicians in his cabinet.

Since becoming president in 2013, Rouhani and members of his cabinet repeatedly pushed back against the Guards’ economic influence and involvement in political matters.

Now, Rouhani’s push against the Guards has been tempered because of the hardening in Trump’s approach to Tehran, regional observers said. “What this has done is that even those who were critics are now defending the Revolutionary Guards,” said Nasser Hadian-Jazy, a political science professor at Tehran University.

(Reporting By Babak Dehghanpisheh and additional reporting by Maher Chmaytelli in Erbil, editing by Nick Tattersall and Peter Millership)