Trump sanctions fail to slow Turkey assault; Syrian troops move on Manbij

Smoke rises over the Syrian town of Ras al-Ain as seen from the Turkish border town of Ceylanpinar, Sanliurfa province, Turkey, October 15, 2019. REUTERS/Stoyan Nen

MANBIJ, Syria (Reuters) – Turkey ignored U.S. sanctions and pressed on with its assault on northern Syria on Tuesday, while the Russia-backed Syrian army roared into one of the most hotly contested cities abandoned by U.S. forces in Donald Trump’s retreat.

Reuters journalists accompanied Syrian government forces who entered the centre of the city of Manbij, a flashpoint where U.S. troops had previously conducted joint patrols with Turkey.

Russian and Syrian flags were flying from a building on the city outskirts, and from a convoy of military vehicles.

U.S. forces announced they had pulled out of the city.

A week after reversing U.S. policy and moving troops out of the way to allow Turkey to attack Washington’s Syrian allies, Trump announced a package of sanctions to punish Ankara.

But the measures – mainly a hike in steel tariffs and a pause in trade talks – were less robust than financial markets had expected, and Trump’s critics derided them as too feeble to have an impact.

The Turkish lira, which had fallen on the expectation of tougher U.S. measures, recovered after the sanctions were announced, as did its bond and stock markets, with traders noting that Trump had spared Turkish banks.

Trump’s unexpected decision to withhold protection from Syria’s Kurds after a phone call with Turkish President Tayyip Erdogan a week ago swiftly upended five years of U.S. policy in the Middle East.

The withdrawal gives a free hand to Washington’s adversaries in the world’s deadliest ongoing war, namely Syrian President Bashar al-Assad and his Russian and Iranian allies.

The United States announced on Sunday it was withdrawing its entire force of 1,000 troops from northern Syria. Its former Kurdish allies immediately forged a new alliance with Assad’s Russia-backed government, inviting the army into towns across the breadth of their territory.

TROOPS ENTER MANBIJ

Russian-backed Syrian forces moved swiftly to fill the void left by departing Americans from Manbij west of the Euphrates river, which Turkey has vowed to capture.

“We are out of Manbij,” said Colonel Myles B Caggins, spokesman for the U.S.-led coalition in Syria. Troops “are executing a deliberate withdrawal from northeast Syria.”

A group of journalists accompanied by Syrian army personnel journeyed into Manbij city where upon their arrival a group of people gathered, waving the Syrian flag and pictures of Assad.

However the reporters left when gunfire was heard and a group of some 10 young men in Kurdish YPG uniforms began breaking cameras and yelling.

Syrian state media said SDF fighters had opened fire on a march organised by the people of Manbij to welcome the army.

Trump’s pullout ends joint U.S.-Turkish patrols of the Manbij area under a deal aimed to persuade Turkey not to invade.

Syrian state television broadcast footage of what it said was government troops entering Manbij on Tuesday, under their new deal with the Kurds. A resident inside the city told Reuters the Syrian troops were on its outskirts. Turkey-backed Syrian fighters said they would continue their advance towards Manbij.

A Reuters cameraman on the Turkish frontier reported heavy bombardment on Tuesday morning of the Syrian border town of Ras al Ain, where a spokesman for the Kurdish-led Syrian Democratic Forces reported a fierce battle was taking place.

SANCTIONS ANNOUNCEMENT “FALLS VERY SHORT”

Trump has defended his reversal of U.S. policy as part of a plan to withdraw the United States from “endless” wars in the Middle East.

But his critics, including senior figures in his own Republican Party, cast it as a betrayal of the Kurds, loyal allies who lost thousands of fighters as the principal ground forces in Washington’s battle against Islamic State.

The Democratic speaker of the House of Representatives, Nancy Pelosi, said Trump’s sanctions were too little, too late.

“His announcement of a package of sanctions against Turkey falls very short of reversing that humanitarian disaster.”

Turkey says it aims to defeat the Kurdish YPG militia, which it sees as terrorists for their links to separatists in Turkey, and to create a “safe zone” where millions of Syrian refugees can be resettled.

The United Nations says 160,000 people have fled their homes as Turkish forces advance. The Kurdish administration puts the number of displaced at 270,000.

The U.N. Human Rights office said on Tuesday Turkey could be held responsible for war crimes by fighters under its direction, potentially including the assassination of Hevrin Khalaf, a leading Kurdish politician killed on the side of a highway on Saturday by gunmen who posted the incident on the Internet.

Turkish-backed fighters have denied blame for her murder.

Erdogan, who has pledged to continue military operations come what may, said Turkey was giving the world a chance to bring peace to the region.

“The international community missed its opportunity to prevent the Syrian crisis from pulling an entire region into a maelstrom of instability,” he wrote in the Wall Street Journal. “The European Union – and the world – should support what Turkey is trying to do.”

The Syrian army deployments into Kurdish-held territory evacuated by Washington are a victory for President Bashar al-Assad and his most powerful ally, Russia, giving them a foothold in the biggest remaining swath of the country that had been beyond their grasp.

Trump allies insisted Washington had not given its blessing to the Turkish offensive, and demanded a ceasefire.

“The United States of America simply is not going to tolerate Turkey’s invasion in Syria any further,” Vice President Mike Pence said. “We are calling on Turkey to stand down, end the violence and come to the negotiating table.”

Trump’s sanctions include reimposing steel tariffs and halting talks on a trade deal. But bilateral trade between Turkey and the United States is small – around a tenth the size of Turkey’s trade with Europe. Washington’s most effective form of economic leverage would be to hinder Turkey’s access to U.S. financial markets, a step Trump has so far avoided.

“The sanctions are not related to banking, so the markets will have a positive perception,” said Cem Tozge, asset management director at Ata Invest.

In a potentially more damaging blow, German carmaker Volkswagen said it was postponing a final decision on whether to build a 1 billion euro ($1.1 billion) plant in Turkey, citing concern over “current developments” after international condemnation of the incursion.

European countries have criticised the offensive but have limited their response so far to announcing suspensions of arms sales, although weapons account for only a small fraction of EU-Turkish trade.

Trump said U.S. troops would remain at a small garrison at Tanf in southern Syria “to continue to disrupt remnants” of Islamic State. The base on the southern border is hundreds of miles away from the Kurdish area in the north that had previously been the main U.S. theatre.

(Additional reporting by Ellen Francis and Tom Perry in Beirut, Tuvan Gumrukcu in Ankara, Can Sezer and Behiye Selin Taner in Istanbul; Writing by Peter Graff; editing by Mike Collett-White)

‘Border on fire’ as Turkey intensifies Syria campaign

By Daren Butler

ISTANBUL (Reuters) – Turkey stepped up its air and artillery strikes on Kurdish militia in northeast Syria on Friday, escalating an offensive that has drawn warnings of humanitarian catastrophe and turned Republican lawmakers against U.S. President Donald Trump.

The incursion, launched after Trump withdrew U.S. troops who had been fighting alongside Kurdish forces against Islamic State militants, has opened a new front in the eight-year-old Syrian civil war and drawn fierce international criticism.

In Washington, Trump – fending off accusations that he abandoned the Kurds, loyal allies of the United States – suggested that Washington could mediate in the conflict, while also raising the possibility of imposing sanctions on Turkey.

On Friday, Turkish warplanes and artillery struck around Syria’s Ras al Ain, one of two border towns that have been the focus of the offensive. Reuters journalists heard gunfire there from across the frontier in the Turkish town of Ceylanpinar.

A convoy of 20 armored vehicles carrying Turkish-allied Syrian rebels entered Syria from Ceylanpinar. Some made victory signs, shouting “Allahu akbar” (God is greatest) and waving Syrian rebel flags as they advanced towards Ras al Ain.

Some 120 km (75 miles) to the west, Turkish howitzers resumed shelling near the Syrian town of Tel Abyad, a witness said.

“In these moments, Tel Abyad is seeing the most intense battles in three days,” Marvan Qamishlo, a spokesman for the Kurdish-led Syrian Democratic Forces (SDF) said.

Overnight, clashes erupted at different points along the border from Ain Diwar at the Iraqi frontier to Kobani, more than 400 km to the west. Turkish and SDF forces exchanged shelling in Qamishli among other places, the SDF’s Qamishlo said.

“The whole border was on fire,” he said.

Turkish forces have seized nine villages near Ras al Ain and Tel Abyad, said Rami Abdulrahman, director of the Syrian Observatory for Human Rights, which monitors the war.

At least 32 fighters with the SDF and 34 Turkey-backed Syrian rebels have been killed in fighting, while 10 civilians have been killed, Abdulrahman said. The SDF said 22 of its fighters were killed on Wednesday and Thursday.

Turkey says it has killed hundreds of SDF fighters in the operation and one Turkish soldier has been killed.

In Syria’s al Bab, some 150 km west of the offensive, some 500 Turkish-backed Syrian fighters were set to head to Turkey to join the operation, CNN Turk reported. It broadcast video of them performing Muslim prayers in military fatigues, their rifles laid down in front of them, before departing for Turkey.

“HUMANITARIAN CATASTROPHE”

Turkey says the purpose of its assault is to defeat the Kurdish YPG militia, which it sees as an enemy for its links to insurgents in Turkey. It says it aims to set up a “safe zone” inside Syria, where it can resettle many of the 3.6 million refugees it has been hosting.

Turkey’s President Tayyip Erdogan criticized Europe for failing to support the Turkish offensive and threatened to send refugees to Europe if the EU did not back him.

European Council President Donald Tusk responded on Friday by chastising Erdogan for making the threat.

“Turkey must understand that our main concern is that their actions may lead to another humanitarian catastrophe,” he said.

The International Rescue Committee aid group says 64,000 people in Syria have fled in the first days of the campaign.

The Kurdish YPG is the main fighting element of the Syrian Democratic Forces (SDF) which have acted as the principal allies of the United States in a campaign that recaptured territory held by the Islamic State group.

The SDF now holds most of the territory that once made up Islamic State’s “caliphate” in Syria, and has been keeping thousands of Islamic State fighters in jail and tens of thousands of their family members in camps.

A camp sheltering more than 7,000 displaced people in northern Syria is to be evacuated and there are talks on moving a second camp for 13,000 people including Islamic State fighters’ families, after both were shelled, Kurdish-led authorities said.

Medecins Sans Frontieres said a hospital in Tel Abyad had been forced to shut after most of its staff fled from bombings over the past 24 hours.

RARE REPUBLICAN CRITICISM OF TRUMP

In the United States, Trump’s decision to withhold protection from the Kurds has been one of the few issues to prompt criticism from his fellow Republicans, including leading allies on Capitol Hill such as Senator Lindsey Graham.

Trump said in a Twitter post on Thursday: “We have one of three choices: Send in thousands of troops and win Militarily, hit Turkey very hard Financially and with Sanctions, or mediate a deal between Turkey and the Kurds!”.

“I hope we can mediate,” Trump said when asked about the options by reporters at the White House.

Without elaborating, he said the United States was “going to possibly do something very, very tough with respect to sanctions and other financial things” against Turkey.

Western countries’ rejection of the Turkish offensive creates a rift within the NATO alliance, in which Turkey is the main Muslim member.

NATO Secretary General Jens Stoltenberg said after talks with Foreign Minister Mevlut Cavusoglu in Istanbul that he expected Turkey to act with restraint in Syria. Cavusoglu said Ankara expected “strong solidarity” from the alliance.

Stoltenberg also told reporters the international community must find a sustainable solution for Islamic State prisoners in Syria.

French Foreign Minister Jean-Yves Le Drian has called for an emergency meeting of the U.S.-led coalition of more than 30 countries created to fight Islamic State. France’s European affairs minister said next week’s EU summit will discuss sanctions on Turkey over its action in Syria.

Russian President Vladimir Putin warned that Islamic State militants could escape from jail as a result of the Turkish offensive, the Interfax news agency reported.

(Reporting by Daren Butler and Tom Perry; Additional reporting by John Irish in Paris, Emma Farge in Geneva, Anton Kolodyazhnyy in Moscow, Jan Strupczewski in Brussels and Reuters correspondents in the region; Editing by Peter Graff)

Iranian president says U.S. offered to remove all sanctions on Iran in exchange for talks

FILE PHOTO: Iranian President Hassan Rouhani gestures at the conclusion of his address to the 69th United Nations General Assembly at the United Nations Headquarters in New York, September 25, 2014. REUTERS/Mike Segar/File Photo

By Babak Dehghanpisheh

GENEVA (Reuters) – The United States offered to remove all sanctions on Iran in exchange for talks but Tehran has not yet accepted the offer due to the current “toxic atmosphere”, Iranian President Hassan Rouhani said on Friday.

Rouhani, speaking on his return from the United Nations General Assembly in New York, said he met there with U.S. officials at the insistence of Germany, Britain and France.

“It was up for debate what sanctions will be lifted and they (the United States) had said clearly that we will lift all sanctions,” Rouhani said, according to his official website.

Iran was ready for negotiations but not in an atmosphere of sanctions and pressure, the Iranian president said.

“This action wasn’t in a manner that was acceptable, meaning that in the atmosphere of sanctions and the existence of sanctions and the toxic atmosphere of maximum pressure, even if we want to negotiate with the Americans in the 5+1 framework, no one can predict what the end and result of this negotiation will be,” he said.

Crude slipped on the report, adding to earlier losses caused by a faster-than-expected recovery in Saudi output, slowing Chinese economic growth, a Wall Street Journal report saying that Saudi Arabia had agreed a partial ceasefire in Yemen. Brent crude was trading below $62 a barrel. [O/R]

Rouhani did not meet U.S. President Donald Trump in New York and European and Gulf officials expect Washington to keep tightening the vice on Iran’s economy.

The United States and Iran are at odds over a host of issues, including the U.S. withdrawal from the 2015 Iran nuclear deal, U.S. accusations – denied by Tehran – that Iran attacked two Saudi oil facilities on Sept. 14, and Iran’s detention of U.S. citizens on what the United States regards as spurious grounds.

(Reporting by Babak Dehghanpisheh; Editing by Angus MacSwan)

Israeli minister urges unity government to stave off ‘blow-up’ in Iran tensions

FILE PHOTO: Israeli Energy Minister Yuval Steinitz speaks during an interview with Reuters in Cairo, Egypt January 14, 2019. REUTERS/Mohamed Abd El Ghany/File Photo

JERUSALEM (Reuters) – Israel’s energy minister on Friday warned tensions between Iran and the United States were reaching a breaking point and an Israeli unity government deal was needed to stave off the threat of conflict following an inconclusive election last week.

Washington has blamed Iran for a Sept. 14 attack on Saudi Arabia’s oil facilities, and on Thursday announced it would send radar systems and Patriot missiles to the kingdom to bolster its defenses. Iran denies carrying out the attack.

Yuval Steinitz, who is also a member of Prime Minister Benjamin Netanyahu’s security cabinet, warned “we are on the verge of the Iran situation blowing up”.

“(The) chances of an American-Iranian or Saudi-Iranian blow-up, or a blow-up in the Gulf which, if it happens, is liable to reach us too, is something that is very, very tangible and realistic,” Steinitz told Tel Aviv radio station 102 FM on Friday.

Steinitz, a member of Netanyahu’s right-wing Likud party, said the potential for a wider conflict “is another reason for the need to hasten and form a broad unity government now, and not to be dragged into months of boycotts and discussions.”

On Wednesday, Netanyahu was tapped to try to form the next coalition government after garnering marginally more support from lawmakers than his centrist rival, Benny Gantz, in a Sept. 17 election.

Neither leader was able on his own to put together a coalition with a ruling majority or reach a power-sharing deal for a unity government between their two parties.

However, with little appetite among Israeli voters for a third trip to the polls in less than a year if no government emerges, public pressure could grow for Netanyahu and Gantz to compromise and join forces.

(Reporting by Rami Ayyub and Dan Williams, Editing by William Maclean)

Khamenei says Iran should give up hope of European help against U.S. sanctions

DUBAI (Reuters) – Iranian Supreme leader Ayatollah Ali Khamenei said on Thursday European countries were unlikely to help Iran against U.S. sanctions, and Tehran “should give up all hope” in that regard, according to his official website.

Britain, France and Germany, parties to a 2015 nuclear deal with Iran, have tried to set up a trade mechanism to barter humanitarian and food goods with Iran after the United States withdrew from the deal last year and re-imposed sanctions. But the mechanism is still not operational.

Iran has repeatedly said it will ramp up its nuclear activities unless the European countries do more to protect its economy from the impact of the U.S. sanctions.

“Despite their promises, the Europeans have practically adhered to America’s sanctions and have not taken any action and are unlikely to do anything for the Islamic Republic in the future. So one should give up all hope on Europeans,” Khamenei was quoted as saying.

“There should be no trust in countries that have held the banner of hostility to (Iran’s) Islamic system, led by the United States and some European countries, because they are openly hostile to the Iranian people,” Khamenei said.

“The road to interaction and negotiations is open to all countries other than America and the Zionist regime (Israel),” Khamenei told members of a powerful clerical body.

(Reporting by Dubai newsroom; Editing by John Stonestreet and Peter Graff)

Iran ready to accept nuclear deal changes if U.S. returns, lifts sanctions: spokesman

Iran's President Hassan Rouhani speaks about the nuclear deal in Tehran, Iran May 8, 2018 in this still image taken from video. IRINN/Reuters TV via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. IRAN OUT. TV RESTRICTIONS: BROADCASTERS: No Use Iran. No Use BBC Persian. No Use Manoto. No Use VOA Persian. DIGITAL: No Use Iran. No Use BBC Persian. No Use Manoto. No Use VOA Persian. For Reuters customers only.

Iran ready to accept nuclear deal changes if U.S. returns, lifts sanctions: spokesman
DUBAI (Reuters) – Iran is willing to give reassurances on not seeking nuclear arms and accept changes to its 2015 nuclear accord with world power if the United States returns to the deal and lifts sanctions, a government spokesman said on Wednesday.

“If the sanctions are ended and there is a return to the (nuclear) accord, there is room for giving reassurances toward breaking the deadlock and the President (Hassan Rouhani) has even a proposal for small changes in the accord,” the spokesman, Ali Rabiei, said on state TV.

(Reporting by Dubai newsroom)

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)

U.S. Congress to advance ‘Hong Kong Human Rights and Democracy’ bill

By Patricia Zengerle

WASHINGTON (Reuters) – U.S. congressional committees are due to start voting next week on legislation supporting human rights in Hong Kong, with measures under consideration including annual reviews of the Chinese territory’s special economic status and the imposition of sanctions on those who undermine its autonomy.

House of Representatives Speaker Nancy Pelosi held a news conference on Wednesday with House members – Republicans and her fellow Democrats – as well as Joshua Wong, Denise Ho and other Hong Kong democracy activists to back the “Hong Kong Human Rights and Democracy Act of 2019.”

The activists have spent much of this week in Washington making their case for U.S. support, including testifying at a congressional hearing on Tuesday.

“Democrats and Republicans in the House and the Senate enthusiastically support this legislation,” Pelosi said. “We stand with … all who are fighting for a peaceful, hopeful future.”

Leaders of the House Foreign Affairs Committee said the committee was due to mark up – debate and vote on – the bill next week. It is expected to pass, which would send it for a vote by the full House.

A spokeswoman for the Senate Foreign Relations Committee said that committee was also working on its version of the legislation, hoping to hold its markup next week.

The bill’s text will not be final until it passes both houses of Congress, and it must be signed by President Donald Trump to become law.

The current version of the House bill calls for annual evaluations of whether Hong Kong still meets the conditions – including remaining autonomous – of the 1992 U.S. law granting it special economic status.

It also would require the Trump administration to identify and sanction anyone responsible for human rights abuses in Hong Kong, Republican Representative Chris Smith, one of the bill’s lead sponsors, told the news conference.

Trump has sent some mixed signals on the Hong Kong protests. In early August, he caused alarm among those sympathetic to the movement by describing the street demonstrations as riots.

Trump has since called on China to end the discord in a humanitarian way and said a crackdown could make his efforts to end a damaging trade war “very hard.”

Some industry groups worry that the legislation could threat then delicate trade talks. Backers rejected that concern.

“We cannot let commercial interests drive our policy,” Pelosi said.

(Reporting by Patricia Zengerle; Editing by Tom Brown)

Trump orders more Iran curbs, Saudi shows attack evidence

By Stephen Kalin and Parisa Hafezi

JEDDAH/DUBAI (Reuters) – U.S. President Donald Trump on Wednesday said he ordered a major increase in sanctions on Iran as Saudi Arabia displayed remnants of drones and missiles it said Tehran used in a crippling weekend attack on its oil facilities.

Trump gave no explanation in a brief Twitter posting announcing the order, but the initiative follows repeated U.S. assertions that the Islamic Republic was behind Saturday’s attack on the kingdom, a close U.S. ally.

“I have just instructed the Secretary of the Treasury to substantially increase sanctions on the country of Iran!,” he wrote.

Iran, however, again denied involvement in the Sept. 14 raids, which hit the world’s biggest crude processing facility and initially knocked out half of Saudi production.

“They want to impose maximum … pressure on Iran through slander,” Iran’s President Hassan Rouhani said.

“We don’t want conflict in the region … Who started the conflict?” he added, blaming Washington and its Gulf allies for the war in Yemen.

Yemen’s Houthi movement, an ally of Iran battling a Western-backed, Saudi-led coalition for more than four years, has claimed responsibility and said it used drones to assault state oil company Aramco’s sites.

However, the Saudi Defense Ministry held a news conference, displaying drone and missile debris it said was “undeniable” evidence of Iranian aggression. A total of 25 drones and missiles were used in the attacks launched from Iran not Yemen, the ministry spokesman added.

Saturday’s attack exposed the vulnerability of Saudi Arabia’s oil infrastructure and threw down a gauntlet to the United States, which wants to curb Tehran’s influence in the region.

Proof of Iranian responsibility could pressure Riyadh and Washington into a response, though both nations were stressing the need for caution.

Trump has said he does not want war and is coordinating with Gulf and European states.

Saudi Arabia’s Crown Prince Mohammed bin Salman said the hit on the world’s biggest crude exporter was a “real test of the global will” to confront subversion of the international order.

His envoy to London, Prince Khalid bin Bander, told the BBC the attack was “almost certainly” Iranian-backed, however: “We’re trying not to react too quickly because the last thing we need is more conflict in the region.”

“COMPELLING EVIDENCE”

U.S. Secretary of State Mike Pompeo was to meet Prince Mohammed in Jeddah on Wednesday to discuss the crisis before heading to the United Arab Emirates.

U.N. officials monitoring sanctions on Iran and Yemen were also heading to Saudi Arabia to investigate.

France, which is trying to salvage an international nuclear deal with Iran that Washington quit last year, said it wanted to establish the facts before reacting.

A U.S. official told Reuters the strikes originated in southwestern Iran. Three officials said they involved cruise missiles and drones, indicating a higher degree of complexity and sophistication than initially thought.

The officials did not provide evidence or explain what U.S. intelligence they were using for evaluating the attack, which cut 5% of global production.

Saudi Arabia said on Tuesday the 5.7 million barrels per day of output lost would be fully restored by the end of the month.

Oil prices fell after the Saudi reassurances, having surged more than 20% at one point on Monday – the biggest intra-day jump since the 1990-91 Gulf War. [O/R]

Saudi Arabia’s finance minister told Reuters on Wednesday the attack had no impact on revenues and Aramco was continuing to supply markets without interruption.

U.S. efforts to bring about a U.N. Security Council response look unlikely to succeed as Russia and China have veto powers and are expected to shield Iran.

Russian President Vladimir Putin, who has offered to sell Riyadh defense systems, called for a “thorough and impartial” probe during a phone call with Prince Mohammed.

The assault exposed serious gaps in Saudi air defense despite billions of dollars spent on Western military hardware and repeated attacks on vital assets during its four-and-a-half year foray into the Yemen war.

“The attack is like Sept. 11th for Saudi Arabia, it is a game changer,” said one Saudi security analyst.

IRAN-U.S. CONFLICT

Already frayed U.S.-Iran ties deteriorated further when Trump quit the nuclear pact and reimposed sanctions, severely hurting the Iranian economy. Iran has ruled out talks with Washington unless it returns to the pact.

Trump said he is not looking to meet Rouhani during a U.N. event in New York this month. Rouhani and his foreign minister may not attend the General Assembly at all unless U.S. visas are issued in the coming hours, state media reported Wednesday.

Washington and its Gulf allies want Iran to stop supporting regional proxies, including in Yemen, Iraq and Lebanon.

Despite years of air strikes against them, the Houthi movement boasts drones and missiles able to reach deep into Saudi Arabia, the result of an arms race since the Western-backed coalition intervened in Yemen in March 2015.

Iran’s clerical rulers support the Houthis, who ousted Yemen’s internationally recognized government from power in the capital Sanaa in late 2014. But Tehran denies it actively supports them with military and financial support.

Iran maintains the largest ballistic and cruise missile capabilities in the Middle East that could overwhelm virtually any Saudi missile defense system, according to think-tank CSIS, given the geographic proximity of Tehran and its proxy forces.

But even more limited strikes have proved too much for Saudi Arabia, including recent ones claimed by the Houthis on a civilian airport, oil pumping stations and the Shaybah oilfield.

(Reporting by Parisa Hafezi in Dubai and Stephen Kalin in Jeddah; Additional reporting by Guy Faulconbridge in London, Michelle Nichols in New York, Rania El Gamal, Davide Barbuscia and Marwa Rashad in Riyadh, Asma Alsharif and Sylvia Westall in Dubai, Alaa Swilam and Hisham El Saba in Cairo, Maria Kiselyova in Moscow; Tim Kelly in Tokyo, John Irish and Sudip Kar-Gupta in Paris, Phil Stewart and Steve Holland in Washington; Writing by Ghaida Ghantous and Andrew Cawthorne; Editing by Andrew Cawthorne and William Maclean)

Iran says U.S. should avoid ‘warmongers’ after Bolton departure

Iranian President Hassan Rouhani speaks during the cabinet meeting in Tehran, Iran, September 11, 2019. Official President website/Handout via REUTERS

By Parisa Hafezi

DUBAI (Reuters) – Iran said on Wednesday Washington should distance itself from “warmongers” after the resignation of hawkish White House National Security Adviser John Bolton, and Tehran stood by its demand that sanctions be lifted before any talks.

The departure of Bolton removes one of the strongest advocates of a hard line towards Iran from President Donald Trump’s White House and raises the prospect of steps to open up negotiations after more than a year of escalating tension.

“America should understand that … it should distance itself from warmongers,” Iran’s semi-official Tasnim news agency quoted President Hassan Rouhani as saying on Wednesday, without mentioning Bolton.

“Iran’s policy of resistance will not change as long as our enemy (the United States) continues to put pressure on Iran,” said Rouhani, a pragmatist who won two landslide elections in Iran on promises to open it up to the world.

Last year, the United States pulled out of an international accord between Iran and world powers under which Tehran accepted curbs on its nuclear program in return for access to world trade.

Washington says the agreement reached by Trump’s predecessor Barack Obama was too weak because many of its terms expire in a decade and it does not cover non-nuclear issues such as Iran’s missile program and regional behavior.

The White House has followed what the administration calls a policy of “maximum pressure”, including sanctions aimed at halting all Iranian oil exports, saying its ultimate aim is to push Tehran to the table for talks on a new, tougher deal.

Immediately after Bolton’s departure, U.S. Secretary of State Mike Pompeo said on Tuesday that Trump could meet with Rouhani at an upcoming U.N, meeting with “no preconditions”.

“SIGH OF RELIEF”

Iran has rejected talks unless sanctions are lifted first. It said on Wednesday that Bolton’s exit had not changed that position.

“The departure of … Bolton from President Donald Trump’s administration will not push Iran to reconsider talking with the U.S.,” Iran’s U.N. envoy, Majid Takhteravanchi, was quoted as saying by state news agency IRNA.

Foreign Minister Mohammed Javad Zarif slammed the United States for ordering new sanctions on Iran despite Bolton’s departure.

“As the world … was breathing a sigh of relief over the ouster of #B_Team’s henchman in the White House, (Washington) declared further escalation of #EconomicTerrorism (sanctions) against Iran,” Zarif tweeted. “Thirst for war —maximum pressure— should go with the warmonger-in-chief (Bolton).”

Zarif has often said that a so-called “B-team” including Bolton could goad Trump into conflict with Tehran.

The United States on Tuesday announced sanctions on a “wide range of terrorists and their supporters”, including Iran’s Revolutionary Guards.

Iran says it hopes to save the deal but cannot do so indefinitely if it gets none of its economic benefits. It has responded to U.S. sanctions with steps to reduce its compliance with the accord and has said it could eventually leave it unless other parties shield its economy from penalties.

“Iran’s commitments to the nuclear deal are proportional to other parties and we will take further steps if necessary,” Rouhani said.

Iran started using advanced centrifuges last week to ramp up output of enriched uranium and reduced its commitments to the nuclear deal, but said it was giving European countries another two months to come up with a plan to protect its economy.

France has proposed giving Iran a multi-billion dollar credit line which would shield it from some impact of U.S. sanctions, although any such deal would require the Trump administration’s tacit approval.

(This story was refiled to correct spelling of ‘weak’ in paragraph 6)

(Additional Reporting by Tuqa Khalid; Writing by Parisa Hafezi; Editing by Peter Graff/William Maclean)