Iran says U.S. arms embargo push at U.N. will fail – TV

DUBAI (Reuters) – U.S. efforts to get the U.N. Security Council to extend an arms embargo on Tehran would fail, Iranian President Hassan Rouhani said in a televised speech on Wednesday, a day after U.S. officials circulated a revised proposal.

Washington streamlined its bid on Tuesday to win more support in the 15-member Security Council but it is unlikely to overcome opposition by veto powers Russia and China to extending the weapons embargo that ends in October under Iran’s 2015 nuclear deal with six world powers.

“Until today, the U.S. has failed politically, and it will fail again…if such a resolution is passed…Its initiators will be responsible for the consequences,” said Rouhani, without elaborating on what Tehran’s reaction could be.

The new U.S. resolution would extend Iran’s arms ban “until the Security Council decides otherwise,” stating it is “essential to the maintenance of international peace and security”.

The previous U.S. draft resolution was described by diplomats and analysts as “maximalist.” It would have required countries to inspect cargo going to or coming from Iran and included an annex of individuals and entities for targeted sanctions.

Separately, Iranian Foreign Minister Mohammad Javad Zarif said the revised U.S. draft was a “very illegal” resolution.

“I am certain that the Security Council will reject (it).”

Although U.S. President Donald Trump exited the nuclear deal in 2018, Washington has threatened to use a provision in the accord to trigger a return of all U.N. sanctions on Iran if the Security Council does not extend the arms embargo indefinitely.

Renewed sanctions – a move known as “snapback” – would likely kill the nuclear deal, under which Iran agreed to curb its sensitive uranium enrichment program in exchange for lifting most sanctions on Tehran.

Washington has reimposed harsh economic and financial sanctions on the Islamic Republic since 2018. In retaliation, Iran has gradually scaled back its commitments set by the nuclear deal.

(Writing by Parisa Hafezi; Editing by Mark Heinrich)

U.S. Iran envoy Brian Hook stepping down as key U.N. arms embargo vote looms

By Humeyra Pamuk and Michelle Nichols

(Reuters) – Top U.S. envoy for Iran Brian Hook is leaving his post and Elliott Abrams, the U.S. special representative for Venezuela, will add Iran to his role “following a transition period” with Hook, U.S. Secretary of State Mike Pompeo said on Thursday.

Hook’s surprise departure comes at a critical time when Washington has been intensely lobbying at the United Nations to extend an arms embargo on Iran and as the U.N. Security Council prepares to hold a vote on the U.S. resolution next week.

“We’re going to continue to make the case for this,” Hook told reporters on Thursday morning, hours before his departure was announced. “We hope that the council can find a way.”

It was not immediately clear when Hook’s tenure would formally end and whether he would see through the vote or not.

Pompeo did not give a reason for Hook’s decision to leave but wrote in a tweet that Hook was moving on to the private sector. He described him as a “trusted adviser and a good friend” who has achieved “historic results” in countering Tehran and secured the release of U.S. citizens detained by Iran.

Hook, 52, was appointed to the top Iran role at the State Department in late 2018 and has been instrumental in Washington’s intensifying pressure campaign on Tehran after President Donald Trump pulled out of the 2015 nuclear deal between Iran and the world powers.

Opponents criticized Hook and the administration for overly harsh and indiscriminate sanctions, which they said were hurting ordinary Iranians and failing to change the behavior of the Iranian government.

The U.S. bid at the Security Council to extend the arms embargo is a key test that some diplomats say will likely fail as it lacks the necessary support and veto powers Russia and China have already signaled their opposition.

If the United States is unsuccessful in its bid, it has threatened to trigger a return of all U.N. sanctions under a process known as snapback. Some diplomats have suggested Washington will likely start the snapback process, which could take up to 30 days, by the end of August.

Abrams, 72, a Republican foreign policy veteran, was named U.S. special representative for Venezuela in January 2019 and has led a hard-line approach aimed at ousting Venezuelan President Nicolas Maduro.

U.S. officials have said privately that Trump has been frustrated by the failure to remove Maduro, who retains the support of the Venezuelan military, as well from Russia, China, Cuba and Iran.

Abrams has recently been dealing with U.S. concerns about a growing alliance between Iran and Venezuela, both OPEC members under heavy U.S. sanctions. Iran in recent months has sent fuel tankers to gasoline-short Venezuela, drawing U.S. ire.

(Reporting by Humeyra Pamuk; additional reporting by Matt Spetalnick; writing by Michelle Nichols; editing by Diane Craft, Dan Grebler and Jonathan Oatis)

Crisis-weary Lebanon braces for Hariri tribunal verdict

By Tom Perry

BEIRUT (Reuters) – Fifteen years after a truck bomb killed Lebanon’s former Sunni leader Rafik al-Hariri in Beirut, triggering regional upheaval, a U.N.-backed court trying four suspects from Shi’ite Hezbollah delivers a verdict on Friday that could shake the country again.

The defendants, members of the powerful Iran-backed group, have been tried in absentia on charges of planning and arranging the 2005 bombing which killed the former prime minister who spearheaded Lebanon’s reconstruction after its long civil war.

Hariri’s assassination prompted mass protests in Beirut and a wave of international pressure which forced Syria to end its 29-year military presence in Lebanon after the U.N. investigator linked it with the bombing.

The assassination also inflamed political and sectarian tensions inside Lebanon and across the Middle East, particularly when investigators started probing potential Hezbollah links to the death of a politician who was backed by the West as well as Sunni Gulf Arab states opposed to Tehran.

Hezbollah, which is both a political party in Lebanon’s government and a heavily armed guerrilla group, denies any role in Hariri’s killing and dismisses the Netherlands-based tribunal as politicized.

Few expect the defendants to be handed over if convicted, but any guilty verdicts could pose a problem to the government and deepen rifts unresolved since the 1975-1990 civil war. The country is already reeling from the worst economic crisis in decades and a deepening COVID-19 outbreak.

Hezbollah has been designated a terrorist organization by the United States, Canada, Germany, Britain, Argentina and Honduras as well as the Sunni Muslim Gulf Cooperation Council (GCC), which includes Saudi Arabia, the UAE, Bahrain and Kuwait. The EU classifies Hezbollah’s military wing as a terrorist group, but not its political wing.

Hariri’s supporters, including his son Saad who subsequently also served as prime minister, say they are not seeking revenge or confrontation, but that the court verdict must be respected.

“We… look forward to August 7 being a day of truth and justice for Lebanon and a day of punishment for the criminals,” Saad Hariri said last week.

“AVOIDING STRIFE”

Hariri stepped down as prime minister in October after failing to address demands of protesters demonstrating against years of corruption by a ruling elite which has driven Lebanon to its current financial crisis.

His successor Hassan Diab, backed by Hezbollah and its allies, says the country must avoid further turmoil over the tribunal verdicts. “Confronting strife is a priority,” Diab tweeted last week.

In the Feb. 14, 2005 bombing, a truck laden with 3,000 kg of high-grade explosives blew up as Rafik Hariri’s motorcade passed Beirut’s waterfront Saint Georges hotel, killing him and 21 other people and leaving a huge crater in the road.

Salim Jamil Ayyash, Hassan Habib Merhi, Assad Hassan Sabra and Hussein Hassan Oneissi are charged with conspiracy to commit a terrorist attack. Ayyash is charged with committing a terrorist act, homicide and attempted homicide.

Prosecutors said data culled from telephone networks showed that the defendants called each other from dozens of mobile phones to monitor Hariri in the months before the attack and to coordinate their movements on the day itself.

The men have not been seen in public for years.

Hezbollah has often questioned the tribunal’s integrity and neutrality, saying its work had been tainted by false witnesses and reliance on telephone records that Israeli spies arrested in Lebanon could have manipulated.

“It is Hezbollah’s right to have doubts about the court, which transformed into political score-settling far from the truth,” said Salem Zahran, an analyst with links to Hezbollah leaders. Any verdict “has no value” to the group, he said.

Nabil Boumonsef, deputy editor-in-chief of Lebanon’s An-Nahar newspaper, said neither Saad Hariri nor Hezbollah chief Sayyed Hassan Nasrallah wanted to escalate tensions.

But he expected Hariri to call for the defendants to be handed over if found guilty – which would leave Hezbollah on the defensive politically despite its military strength. If the group refused to surrender them it could put the government which it helped put together in difficulty.

As it tries to tackle the deep economic crisis, a guilty verdict could also jeopardise Lebanon’s efforts, which have been supported by France, to win international aid.

“France… will have to take a position on Hezbollah after the verdict comes out on Aug. 7,” Boumonsef said.

France hosted a donor meeting in Paris in 2018 when Beirut won more than $11 billion in pledges for infrastructure investment. Foreign Minister Jean-Yves Le Drian told Lebanese leaders in Beirut last month that Paris was ready to mobilize international support if Lebanon moved ahead with reform.

(Writing by Dominic Evans; editing by Philippa Fletcher)

Ukraine: it’s too early to blame human error for downing of passenger plane in Iran

KYIV (Reuters) – Ukraine’s foreign minister said on Tuesday it was soon to blame human error for the shooting down of a Ukrainian passenger airliner near Tehran in January, challenging the findings of Iran’s Civil Aviation Organisation (CAO).

The CAO said in an interim report that the plane was accidentally downed, killing 176 people on board, because of a misalignment of a radar system and lack of communication between the air defense operator and his commanders.

But Ukrainian Foreign Minister Dmytro Kuleba told an online briefing that many questions remained unanswered.

“I want to clearly emphasize: it is early to say that the plane was shot down as a result of human error, as the Iranian side claims,” he said. “We have many questions, and we need a large number of authoritative, unbiased, objective answers about what happened.”

Iran’s Revolutionary Guards shot down the Ukraine International Airlines flight with a ground-to-air missile on Jan. 8 shortly after the plane took off from Tehran. Iran later called it a “disastrous mistake” by forces who were on high alert during a confrontation with the United States.

Tehran last month said it would send the black box flight recorders from the downed airliner to France for analysis and that experts from the United States, Canada, France, Britain and Ukraine would take part in the decoding.

Kuleba said an Iranian delegation was due to arrive in Kiev later this month to discuss compensation. Ukrainian President Volodymyr Zelenskiy said in February Kiev was not satisfied with the size of compensation Iran had offered.

(Reporting by Pavel Polityuk, Editing by Timothy Heritage)

Iran lauds arms supply to Palestinians against ‘tumor’ Israel

By Parisa Hafezi

DUBAI (Reuters) – Iran’s Supreme Leader on Friday denounced Israel as a “tumor” to be removed and hailed Tehran’s supply of arms to Palestinians, drawing swift condemnation from the United States, European Union and Israel.

Opposition to Israel is a core belief for Shi’ite Muslim-led Iran. The Islamic Republic supports Palestinian and Lebanese armed groups opposed to peace with Israel, which Tehran refuses to recognize.

“The Zionist regime (Israel) is a deadly, cancerous tumor in the region. It will undoubtedly be uprooted and destroyed,” Supreme Leader Ayatollah Ali Khamenei said in an online speech.

The United States and European Union rejected the comments.

U.S. Secretary of State Mike Pompeo on Twitter dismissed them as “disgusting and hateful anti-Semitic remarks” that did not represent the tradition of tolerance of ordinary Iranians.

EU foreign policy chief Josep Borrell said they were “totally unacceptable and represent a deep source of concern”.

Although leaders of Palestinian militant groups in Gaza, including Hamas and Islamic Jihad, have frequently praised Iran’s financial and military support, Khamenei had not himself previously given public confirmation of Tehran’s weapons supply.

“Iran realized Palestinian fighters’ only problem was lack of access to weapons. With divine guidance and assistance, we planned, and the balance of power has been transformed in Palestine, and today the Gaza Strip can stand against the aggression of the Zionist enemy and defeat it,” he said.

Israeli Defence Minister and Alternate Prime Minister Benny Gantz said: “The State of Israel has great challenges in a variety of arenas. Khamenei’s statement that Israel is a ‘cancerous tumor’ illustrates this more than anything.”

He said on Facebook: “I do not suggest anyone to test us …We will be prepared for all threats, and by any means.”

In a statement described as a response to Khamenei, Prime Minister Benjamin Netanyahu said: “Those that invoke the threat of destruction against Israel put themselves in similar danger.”

RALLIES CANCELLED

Zeyad al-Nakhala, chief of Palestinian Islamic Jihad, which has publicly admitted getting Iranian arms and funds, praised Khamenei’s comments. “We are ready for a long jihad and victory is granted,” he said in remarks distributed by the group.

Iranian officials have repeatedly called for an end to Israel, including by a referendum that would exclude most of its Jews while including Palestinians in the region and abroad.

Khamenei suggested global attention on the coronavirus crisis had helped obscure wrongs done to Palestinians. “The long-lasting virus of Zionists will be eliminated,” he added.

Khamenei was speaking on Iran’s annual Quds Day, which uses the Arabic name for Jerusalem, held on the last Friday of the Muslim fasting month of Ramadan.

Iran cancelled nationwide Quds Day rallies due to coronavirus. Iran is one of the most affected countries in the region with 7,300 deaths and a total of 131,652 infections.

Khamenei also denounced what he called treason by “political and cultural mercenaries in Muslim countries” helping Zionists to downplay the Palestine issue, an apparent reference to some Arab states including Iran’s regional rival Saudi Arabia.

(Additional reporting by Rami Ayyub in Tel Aviv, Nidal al-Mughrabi in Gaza and Dan Williams in Jerusalem; Writing by Parisa Hafezi; Editing by William Maclean/Mark Heinrich)

Thousands of Iranians mark revolution anniversary amid peak tensions with U.S.

DUBAI (Reuters) – Tens of thousands of Iranians poured into the streets of Tehran and other cities on Tuesday morning to commemorate the 41st anniversary of the Islamic revolution, against a backdrop of escalating tensions with the United States.

State TV showed video footage of rallies in at least half a dozen cities outside the capital, including Mashhad, Ahvaz and Kerman, with people holding signs that read, “Death to America” and “Death to Israel”.

Iran almost got into a full-blown conflict with the United States last month after a U.S. drone strike killed top Iranian military commander Qassem Soleimani in Baghdad on Jan. 3, prompting Iran to retaliate with a missile barrage against a U.S. base in Iraq days later.

Tensions spiked between Iran and the United States after U.S. President Donald Trump withdrew from a multilateral nuclear deal with Iran in 2018 and reimposed sanctions in a bid to pressure Tehran to negotiate over its ballistic missile program and ties with regional proxy groups.

Missiles were put on display as part of the anniversary celebrations, according to the Tasnim news agency. Iran’s state TV showed archival footage of missile launches and underground missile storage facilities as part of its anniversary coverage.

The missile program is not intended for attacks on neighboring countries, Iranian President Hassan Rouhani said on Monday.

(Reporting by Babak Dehghanpisheh; Editing by Stephen Coates)

Recording shows Iran knew immediately it had shot down plane: Zelenskiy

By Natalia Zinets and Babak Dehghanpisheh

KIEV/DUBAI (Reuters) – A leaked audio recording of an Iranian pilot talking to the control tower in Tehran shows that Iran knew immediately it had shot down a Ukrainian airliner last month, despite denying it for days, Ukraine’s president Volodymyr Zelenskiy said.

On the recording, played on a Ukrainian television station late on Sunday, the pilot of another plane can be heard saying he saw “the light of a missile” in the sky before Ukrainian International Airways flight 752 crashed in an explosion.

Tehran blamed the Ukrainian authorities for leaking what it described as confidential evidence, and said it would no longer share material with Ukraine from the investigation into the crash.

All 176 people aboard the flight were killed when the plane crashed shortly after takeoff en route from Tehran to Kiev on Jan. 8.

The leaked audio “proves that the Iranian side knew from the start that our plane had been hit by a missile,” Zelenskiy said in a television interview.

“He says that ‘it seems to me that a missile is flying’, he says it in both Persian and English, everything is fixed there,” Zelenskiy said.

After denying blame for three days, Iran acknowledged shooting the plane down, saying it had done so by mistake while under high alert, hours after it had fired at U.S. targets in retaliation for a U.S. strike that killed an Iranian general.

Iran has said it worked as quickly as possible to determine what happened to the plane. The Iranian commander who first acknowledged the plane had been shot down said he informed the authorities on the day of the crash.

Iran has faced pressure from Ukraine and other countries whose citizens were on board the flight to send evidence abroad for international investigations.

The Iranian official in charge of accident investigations at Iran’s Civil Aviation Organization called it a “strange move” by Ukraine to release the confidential recording.

“This action by the Ukrainians led to us not sharing any more evidence with them,” the official, Hassan Rezaifar said, according to the semi-official Mehr news agency.

In the recording, a pilot for Aseman, an Iranian airline, can be heard radioing the control tower that he has seen what he believes is a missile.

“Is this an active area? There’s lights like a missile. Is there anything?” the pilot says.

“Nothing has been reported to us. What’s the light like?” the controller replies. The pilot says: “It’s the light of a missile.”

The control tower can be heard trying and failing to raise the Ukrainian airliner on the radio. The pilot of the Iranian plane then says he has seen “an explosion. In a very big way, we saw it. I really don’t know what it was.”

Ukraine International Airways said in a statement the recording provided “yet more proof that the UIA airplane was shot down with a missile, and there were no restrictions or warnings from dispatchers of any risk to flights of civilian aircraft in the vicinity of the airport.”

Rezaifar, the Iranian aviation official, said in the Mehr report that the Ukraine investigation team, as well as all other foreigners involved in the investigation, have left Iran.

(Reporting by Babak Dehghanpisheh, Natlia Zinets and Pavel Polityuk; Writing by Peter Graff, Editing by William Maclean)

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

By Herbert Lash and Marc Jones

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SCRAMBLE TO SAFETY

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

 

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

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

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

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

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

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

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

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

Rock-throwing Iraqi militias quit U.S. embassy after protests

By Ahmed Aboulenein

BAGHDAD (Reuters) – Supporters of Iranian-backed Iraqi paramilitary groups who stormed the U.S. embassy’s perimeter and hurled rocks in two days of protests withdrew on Wednesday after Washington dispatched extra troops and threatened reprisals against Tehran.

The demonstrators, angry at U.S. air strikes against the Tehran-backed Kataib Hezbollah group that killed at least 25 people, threw stones at the building while U.S. forces stationed on the rooftops fired tear gas to disperse them.

But by mid-afternoon, most appeared to have obeyed a call to withdraw, issued by the Popular Mobilization Forces (PMF) umbrella group of mainly Shi’ite militia, which said the demonstrators’ message had been heard.

Young men used palm tree branches to sweep the street in front of the embassy compound, while others packed up equipment and vans arrived to take people away. Some left to set up a protest camp in front of a nearby hotel.

Iraq’s military said all protesters had left by the evening.

The protests mark a new turn in the shadow war between Washington and Tehran playing out across the Middle East.

U.S. President Donald Trump, who faces re-election in 2020, on Tuesday threatened to retaliate against Iran but said later he did not want war.

The unrest followed U.S. air raids on Sunday against Kataib Hezbollah bases in retaliation for missile attacks that killed a U.S. contractor in northern Iraq last week.

On Tuesday, crowds chanted ‘Death to America!’, lit fires, and smashed surveillance cameras. They breached an outer perimeter of the embassy but did not enter the main compound.

BIGGEST U.S. EMBASSY

The huge embassy, built along the banks of the Tigris River in central Baghdad’s fortified “green zone” during American occupation following the 2003 invasion that toppled Saddam Hussein, is the biggest U.S. diplomatic mission in the world.

Washington said its diplomats were safe and was rushing hundreds of extra troops to the region.

The embassy said all public consular operations were suspended and all future appointments canceled.

The anti-American action comes after months of protests in Iraq against the government and the Iran-backed militias which support it. Many Iraqis complain their country has become a battlefield for a proxy war for influence between Washington and Tehran, and their leaders are too beholden to outside powers.

Iraq’s government has long faced frictions in its close relations with the two foes. Trump spoke to Prime Minister Adel Abdul Mahdi on Tuesday and demanded Iraq protect the embassy.

Iran’s Supreme Leader Ayatollah Ali Khamenei on Wednesday condemned the U.S. attacks. Iran summoned a Swiss envoy, who represents U.S. interests in Tehran, to complain about what it described as “warmongering” words from Washington.

Trump accused Iran of orchestrating the violence.

U.S. officials said 750 extra troops would initially be based out of Kuwait and as many as 4,000 troops could be sent to the region in coming days.

More than 5,000 U.S. troops are stationed in Iraq supporting local forces. The air strikes have galvanized calls inside Iraq to expel them.

Many in the crowd outside the embassy said ending Washington’s presence in Iraq was their main goal.

‘DEVIL’S DEN’

Despite decades of enmity between Iran and the United States, Iran-backed militias and U.S. forces found themselves on the same side during Iraq’s 2014-2017 war against Islamic State fighters, with both powers helping the government recapture territory from militants who had overrun a third of Iraq.

Since then, U.S. troops have yet to leave, while the Iran-backed militias have been incorporated into the security forces.

Prime Minister Adel Abdul Mahdi, who has announced plans to step down in the face of anti-government protests in which more than 450 people were killed, is backed by Iran and its allies.

The militia may have decided to pull back from the embassy to avoid making him look weak or to avert clashes with government forces.

Overnight, demonstrators had pitched tents and camped outside the embassy walls, then brought food, cooking equipment and mattresses during the morning, indicating plans to stay before the withdrawal call.

“Our sit-in is eternal, until this devil’s den is closed off forever, but don’t give anyone an excuse to make your protest violent. Don’t clash with security,” one protest leader told the crowd from a stage erected at the embassy before the departure.

Young men, some in fatigues, waved militia flags and chanted “Death to America” as Apache helicopters circled above.

The embassy’s outer walls bore scorch marks and graffiti.

“Iraq is not safe for America and its followers,” one read.

(Reporting by Ahmed Aboulenein; Editing by Angus MacSwan, Peter Graff and Andrew Cawthorne)

Special report: ‘Time to take out our swords’ – Inside Iran’s plot to attack Saudi Arabia

By Reuters staff

(Reuters) – Four months before a swarm of drones and missiles crippled the world’s biggest oil processing facility in Saudi Arabia, Iranian security officials gathered at a heavily fortified compound in Tehran.

The group included the top echelons of the Islamic Revolutionary Guard Corps, an elite branch of the Iranian military whose portfolio includes missile development and covert operations.

The main topic that day in May: How to punish the United States for pulling out of a landmark nuclear treaty and re-imposing economic sanctions on Iran, moves that have hit the Islamic Republic hard.

With Major General Hossein Salami, leader of the Revolutionary Guards, looking on, a senior commander took the floor.

“It is time to take out our swords and teach them a lesson,” the commander said, according to four people familiar with the meeting.

Hard-liners in the meeting talked of attacking high-value targets, including American military bases.

Yet, what ultimately emerged was a plan that stopped short of direct confrontation that could trigger a devastating U.S. response. Iran opted instead to target oil installations of America’s ally, Saudi Arabia, a proposal discussed by top Iranian military officials in that May meeting and at least four that followed.

This account, described to Reuters by three officials familiar with the meetings and a fourth close to Iran’s decision making, is the first to describe the role of Iran’s leaders in plotting the Sept. 14 attack on Saudi Aramco, Saudi Arabia’s state-controlled oil company.

These people said Iran’s Supreme Leader Ayatollah Ali Khamenei approved the operation, but with strict conditions: Iranian forces must avoid hitting any civilians or Americans.

Reuters was unable to confirm their version of events with Iran’s leadership. A Revolutionary Guards spokesman declined to comment. Tehran has steadfastly denied involvement.

Alireza Miryousefi, spokesman for the Iranian Mission to the United Nations in New York, rejected the version of events the four people described to Reuters. He said Iran played no part in the strikes, that no meetings of senior security officials took place to discuss such an operation, and that Khamenei did not authorize any attack.

“No, no, no, no, no, and no,” Miryousefi said to detailed questions from Reuters on the alleged gatherings and Khamenei’s purported role.

The Saudi government communications office did not respond to a request for comment.

The U.S. Central Intelligence Agency and Pentagon declined to comment. A senior Trump administration official did not directly comment on Reuters’ findings but said Tehran’s “behavior and its decades-long history of destructive attacks and support for terrorism are why Iran’s economy is in shambles.”

Yemen’s Iran-aligned Houthi rebels, at the center of a civil war against Saudi-backed forces, claimed responsibility for the assault on Saudi oil facilities. That declaration was rebuffed by U.S. and Saudi officials, who said the sophistication of the offensive pointed to Iran.

Saudi Arabia was a strategic target.

The kingdom is Iran’s principal regional rival and a petroleum giant whose production is crucial to the world economy. It is an important U.S. security partner. But its war on Yemen, which has killed thousands of civilians, and the brutal murder of Washington-based journalist Jamal Khashoggi by Saudi agents last year, have strained its relations with U.S. lawmakers. There was no groundswell of support in Congress for military intervention to aid the Saudis after the attack.

The 17-minute strike on two Aramco installations by 18 drones and three low-flying missiles revealed the vulnerability of the Saudi oil company, despite billions spent by the kingdom on security. Fires erupted at the company’s Khurais oil installation and at the Abqaiq oil processing facility, the world’s largest.

The attack temporarily halved Saudi Arabia’s oil production and knocked out 5% of the world’s oil supply. Global crude prices spiked.

The assault prompted U.S. Secretary of State Mike Pompeo to accuse Iran of an “act of war.” In the aftermath, Tehran was hit with additional U.S. sanctions. The United States also launched cyber attacks against Iran, U.S. officials told Reuters.

SCOURING TARGETS

The plan by Iranian military leaders to strike Saudi oil installations developed over several months, according to the official close to Iran’s decision making.

“Details were discussed thoroughly in at least five meetings and the final go ahead was given” by early September, the official said.

All of those meetings took place at a secure location inside the southern Tehran compound, three of the officials told Reuters. They said Khamenei, the supreme leader, attended one of the gatherings at his residence, which is also inside that complex.

Other attendees at some of those meetings included Khamenei’s top military advisor, Yahya Rahim-Safavi, and a deputy of Qasem Soleimani, who heads the Revolutionary Guards’ foreign military and clandestine operations, the three officials said. Rahim-Safavi could not be reached for comment.

Among the possible targets initially discussed were a seaport in Saudi Arabia, an airport and U.S. military bases, the official close to Iran’s decision making said. The person would not provide additional details.

Those ideas were ultimately dismissed over concerns about mass casualties that could provoke fierce retaliation by the United States and embolden Israel, potentially pushing the region into war, the four people said.

The official close to Iran’s decision making said the group settled on the plan to attack Saudi Arabia’s oil installations because it could grab big headlines, inflict economic pain on an adversary and still deliver a strong message to Washington.

“Agreement on Aramco was almost reached unanimously,” the official said. “The idea was to display Iran’s deep access and military capabilities.”

The attack was the worst on Middle East oil facilities since Saddam Hussein, the late Iraqi strongman, torched Kuwait’s oil fields during the 1991 Gulf crisis.

U.S. Senator Martha McSally, an Air Force combat veteran and Republican lawmaker who was briefed by U.S. and Saudi officials, and who visited Aramco’s Abqaiq facility days after the attack, said the perpetrators knew precisely where to strike to create as much damage as possible.

“It showed somebody who had a sophisticated understanding of facility operations like theirs, instead of just hitting things off of satellite photos,” she told Reuters. The drones and missiles, she added, “came from Iranian soil, from an Iranian base.”

A Middle East source, who was briefed by a country investigating the attack, said the launch site was the Ahvaz air base in southwest Iran. That account matched those of three U.S. officials and two other people who spoke to Reuters: a Western intelligence official and a Western source based in the Middle East.

Rather than fly directly from Iran to Saudi Arabia over the Gulf, the missiles and drones took different, circuitous paths to the oil installations, part of Iran’s effort to mask its involvement, the people said.

Some of the craft flew over Iraq and Kuwait before landing in Saudi Arabia, according to the Western intelligence source, who said that trajectory provided Iran with plausible deniability.

“That wouldn’t have been the case if missiles and drones had been seen or heard flying into Saudi Arabia over the Gulf from a south flight path” from Iran, the person said.

Revolutionary Guards commanders briefed the supreme leader on the successful operation hours after the attack, according to the official close to the country’s decision making.

Images of fires raging at the Saudi facilities were broadcast worldwide. The country’s stock market swooned. Global oil prices initially surged 20%. Officials at Saudi Aramco gathered in what was referred to internally as the “emergency management room” at the company’s headquarters.

One of the officials who spoke with Reuters said Tehran was delighted with the outcome of the operation: Iran had landed a painful blow on Saudi Arabia and thumbed its nose at the United States.

SIZING UP TRUMP

The Revolutionary Guards and other branches of the Iranian military all ultimately report to Khamenei. The supreme leader has been defiant in response to Trump’s abandonment last year of the Joint Comprehensive Plan of Action, commonly called the Iran nuclear deal.

That 2015 accord with five permanent members of the U.S. Security Council – the United States, Russia, France, China and the United Kingdom – as well as Germany, removed billions of dollars’ worth of sanctions on Iran in exchange for Tehran’s curbing its nuclear program.

Trump’s demand for a better deal has seen Iran launch a two-pronged strategy to win relief from sweeping sanctions reimposed by the United States, penalties that have crippled its oil exports and all but shut it out of the international banking system.

Iranian President Hassan Rouhani has signaled a willingness to meet with American officials on condition that all sanctions be lifted. Simultaneously, Iran is flaunting its military and technical prowess.

In recent months, Iran has shot down a U.S. surveillance drone and seized a British oil tanker in the Strait of Hormuz, the narrow channel through which about a fifth of the world’s oil moves. And it has announced it has amassed stockpiles of enriched uranium in violation of the U.N agreement, part of its vow to restart its nuclear weapons program.

The Aramco attacks were an escalation that came as Trump had been pursuing his long-stated goal of extricating American forces from the Middle East. Just days after announcing an abrupt pullout of U.S. troops in northern Syria, the Trump administration on Oct. 11 said it would send fighter jets, missile-defense weaponry and 2,800 more troops to Saudi Arabia to bolster the kingdom’s defenses.

“Do not strike another sovereign state, do not threaten American interests, American forces, or we will respond,” U.S. Defense Secretary Mark Esper warned Tehran during a press briefing.

Still, Iran appears to have calculated that the Trump administration would not risk an all-out assault that could destabilize the region in the service of protecting Saudi oil, said Ali Vaez, director of the Iran Project at the International Crisis Group, a nonprofit working to end global conflict.

In Iran, “hard-liners have come to believe that Trump is a Twitter tiger,” Vaez said. “As such there is little diplomatic or military cost associated with pushing back.”

The senior Trump administration official disputed the suggestion that Iran’s operation has strengthened its hand in working out a deal for sanctions relief from the United States.

“Iran knows exactly what it needs to do to see sanctions lifted,” the official said.

The administration has said Iran must end support for terrorist groups in the Middle East and submit to tougher terms that would permanently snuff its nuclear ambitions. Iran has said it has no ties to terrorist groups.

Whether Tehran accedes to U.S. demands remains to be seen.

In one of the final meetings held ahead of the Saudi oil attack, another Revolutionary Guards commander was already looking ahead, according to the official close to Iran’s decision making who was briefed on that gathering.

“Rest assured Allah almighty will be with us,” the commander told senior security officials. “Start planning for the next one.”

(Writing by Michael Georgy; Editing by Marla Dickerson)