Iran distances itself further from nuclear deal, alarming Russia, France

Iran distances itself further from nuclear deal, alarming Russia, France
By Parisa Hafezi

DUBAI (Reuters) – Iran has stepped up activity at its underground Fordow nuclear plant, state TV said on Wednesday, a move France said showed for the first time that Tehran explicitly planned to quit a deal with world powers that curbed its disputed nuclear work.

In another development that could also aggravate tensions between Iran and the West, diplomats said Iran briefly held an inspector for the U.N. nuclear watchdog and seized her travel documents, with some describing this as harassment.

The incident involving an International Atomic Energy Agency’s (IAEA) inspector appeared to be the first of its kind since Tehran’s landmark deal with major powers was struck in 2015, imposing restraints on its uranium enrichment program in return for the lifting of international sanctions.

Iran’s decision to inject uranium gas into centrifuges at Fordow, a move that further distances Iran from the accord, was described by Moscow as extremely alarming. Iran once hid Fordow from the IAEA until its exposure by Western spies in 2009.

“With the presence of inspectors from the International Atomic Energy Agency, Iran started injecting (uranium) gas into centrifuges in Fordow,” TV reported.

A central aim of the agreement was to extend the time the Islamic Republic would need to assemble a nuclear weapon, if it chose to do so, to a year from about 2-3 months. Iran has repeatedly denied any such intention.

The 2015 deal bans Fordow from producing nuclear material. But, with feedstock gas entering its centrifuges, the facility – built inside a mountain – will move from the permitted status of research plant to being an active nuclear site.

A spokesman for Iran’s Atomic Energy Organization, Behrouz Kamalvandi, told state TV later that the injection of uranium gas would start at midnight (2030 GMT). He said the centrifuges there would enrich uranium up to 4.5% fissile purity. Ninety percent purity is required for bomb-grade fuel.

President Hassan Rouhani, an architect of the 2015 deal, blamed Washington for Iran’s rolling back of its commitments, saying Fordow would soon fully resume uranium enrichment work.

“Iran’s fourth step in reducing its commitments under the JCPOA (the 2015 nuclear deal) by injecting gas to 1,044 centrifuges begins today. Thanks to U.S. policy and its allies, Fordow will soon be back to full operation,” Rouhani tweeted.

Last year, U.S. President Donald Trump exited the deal, saying it was flawed to Iran’s advantage. Washington has since renewed and intensified sanctions on Iran, slashing its economically vital crude oil sales by more than 80%.

“PROFOUND SHIFT”

Speaking in China, French President Emmanuel Macron called Iran’s latest move “grave”, saying it explicitly signaled Iran’s intent for the first time to leave the deal.

“I think that for the first time, Iran has decided in an explicit and blunt manner to leave the JCPOA, which marks a profound shift,” said Macron, who has been at the forefront of efforts by European signatories to salvage the deal after the United States withdrew.

When asked whether Paris would support triggering a dispute mechanism enshrined in the deal, Macron said technical and ministerial meetings would be held to discuss the wider implications of Iran’s actions.

In Moscow, Russian Foreign Minister Sergei Lavrov said events unfolding around the nuclear deal were deeply disturbing and called on Iran to stick to the terms of the deal.

But he added that Moscow understood why Tehran was cutting back on its commitments, and blamed the situation on the U.S. decision to pull out of the pact.

Responding to Washington’s “maximum pressure” policy, Iran has bypassed the restrictions of the deal step-by-step – including by breaching both its cap on stockpiled enriched uranium and on the fissile level of enrichment.

“Iran has taken its fourth step to decrease its nuclear commitments to the deal in reaction to the increased U.S. pressure and inactivity of European parties to the deal to save it,” Iranian state TV added.

SPEEDING UP ENRICHMENT

In Vienna, the U.N. nuclear watchdog said IAEA inspectors remained on the ground in Iran and would report back on relevant activities.

Iranian authorities said on Tuesday that Tehran will enrich uranium to 5% at Fordow, which will further complicate the chances of saving an accord that European powers, Russia and the European Union have urged Iran to respect.

The agreement capped the level of purity to which Iran can enrich uranium at 3.67% – suitable for civilian power generation and far below the 90% threshold of nuclear weapons grade.

On Monday, Iran said it had accelerated enrichment by doubling the number of advanced IR-6 centrifuges in operation, adding that it was working on “a prototype called the IR-9, which works 50 times faster than IR-1 centrifuges”.

The deal, under which international sanctions against Iran were lifted, was tailored to extend the “breakout time” – how long Iran would need to accumulate enough fissile material for a nuclear bomb.

Iran has given another two-month deadline to Britain, France and Germany to salvage the deal. Leaving room for diplomacy, Tehran says talks are possible if Washington lifts all the sanctions and itself returns to the nuclear deal.

The incident involving the IAEA inspector is due to be discussed at a meeting of the agency’s 35-nation Board of Governors on Thursday convened at short notice to discuss “two safeguards matters” not specified in the agenda.

“The agency wants to show how seriously they are taking this. It is a potentially damaging precedent,” one Western official said. An IAEA spokesman and Iran’s ambassador to the U.N. watchdog declined to comment.

(Additional reporting by Marine Pennetier, Maria Kiselyova, Francois Murphy and John Irish; Writing by Parisa Hafezi; Editing by William Maclean and Mark Heinrich)

Iran develops advanced machines to speed up enrichment: official

Iran develops advanced machines to speed up enrichment: official
By Parisa Hafezi

DUBAI (Reuters) – Iran said on Monday it would take another step away from the 2015 nuclear deal by developing centrifuges to speed up its uranium enrichment, its nuclear chief Ali Akbar Salehi said.

“Today, we are witnessing the launch of the array of 30 IR-6 centrifuges,” Salehi, who heads Iran’s Atomic Energy Organization, told state television. “Iran now is operating 60 IR-6 advanced centrifuges. It shows our capacity and determination.”

Under the agreement between Iran and world powers, Tehran is only allowed to enrich uranium with just over 5,000 of its first-generation IR-1 centrifuges. An IR-6 centrifuge can enrich uranium 10 times faster than the IR-1s.

“Our scientists are working on a prototype called the IR-9, that works 50 times faster than the IR-1s,” Salehi said.

The deal was aimed at extending the time Iran would need to obtain enough fissile material for a nuclear bomb, if it sought one – something sometimes referred to as “breakout time” to about a year from 2-3 months. Iran denies ever having sought to build a nuclear bomb.

The U.N. nuclear watchdog said in September that Iran had informed the agency about making modifications to accommodate cascades – or interconnected clusters – of 164 of the IR-2m and IR-4 centrifuge. Cascades of the same size and type were scrapped under the deal.

Tensions have risen between Tehran and Washington since last year when U.S. President Donald Trump withdrew from the accord under which Iran had agreed to rein in its nuclear program in exchange for relief from economic sanctions.

The United States has since renewed and intensified its sanctions, slashing Iran’s crude oil sales by more than 80%.

Responding to Washington’s “maximum pressure”, Iran has breached the restrictions of the deal step-by-step and has rejected the United States’ demand that a far-reaching deal should be negotiated.

Tehran, however, has left room for diplomacy by saying that talks are possible if Washington lifts all the sanctions and returns to the nuclear deal.

Iran has said it might take further steps in November if European parties to the pact fail to shield its economy from U.S. penalties.

While steps taken by Iran so far do not make a big difference to that breakout time for now, it further complicates the prospects of saving the accord by the European parties to the deal, who have criticized Trump for exiting it.

(Additional reporting by John Irish in Paris; Writing by Parisa Hafezi, Editing by Angus MacSwan)

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)

Netanyahu: Iran had secret nuclear weapons development site in Abadeh

Israeli Prime Minister Benjamin Netanyahu speaks at a news conference in Jerusalem September 9, 2019. REUTERS/Ronen Zvulun

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Monday that Iran had been developing nuclear weapons at a secret site near the city of Abadeh, but that Tehran destroyed the facility after learning it had been exposed.

It was the first time Netanyahu had identified the site, which, he said, was discovered in a trove of Iranian documents Israel previously obtained and disclosed last year.

“In this site, Iran conducted experiments to develop nuclear weapons,” Netanyahu said in broadcast remarks, showing an aerial picture of several small buildings, including their coordinates, that he said were taken at the Abadeh facility late in June 2019.

“When Iran realized that we uncovered the site, here’s what they did,” he said, showing a picture from a month later in which the buildings no longer appeared. “They destroyed the site. They just wiped it out.”

Netanyahu’s comments followed a Reuters report revealing that the International Atomic Energy Agency found traces of uranium at a different site in Iran that the Israeli leader had first pointed to during a speech last year at the United Nations.

Iran had yet to explain the traces of uranium at that site, though it denies ever having sought a nuclear weapon.

Netanyahu, who strongly opposed a 2015 nuclear deal between Iran and world powers, made the remarks in a televised speech about a week before a general election in Israel in which he is in a tight race to win another term.

“I call on the international community to wake up, to realize that Iran is systematically lying,” Netanyahu said.

“The only way to stop Iran’s march to the bomb, and its aggression in the region, is pressure, pressure and more pressure.”

(Reporting by Ari Rabinovitch,; Editing by Stephen Farrell and Jonathan Oatis)

U.S. unsure about circumstances of tanker towed to Iran

FILE PHOTO: A British Royal Navy patrol vessel guards the oil supertanker Grace 1, that's on suspicion of carrying Iranian crude oil to Syria, as it sits anchored in waters of the British overseas territory of Gibraltar, historically claimed by Spain, July 4, 2019. REUTERS/Jon Nazca

DUBAI (Reuters) – U.S. officials say they are unsure whether an oil tanker towed into Iranian waters was seized by Iran or rescued after facing mechanical faults as Tehran asserts, creating a mystery at sea at a time of high tension in the Gulf.

The MT Riah disappeared from ship tracking maps when its transponder was switched off in the Strait of Hormuz on July 14. Its last position was off the coast of the Iranian island of Qeshm in the strait.

Iran says it towed a vessel into its waters from the strait after the ship issued a distress call. Although Tehran did not name the vessel, the Riah is the only ship whose recorded movements appear likely to match that description.

A U.S. official, speaking on the condition of anonymity, said it appeared that the tanker was in Iranian territorial waters, but it was not clear whether that was because Iran had seized it or rescued it.

The mystery comes at a time when Washington has called for greater security for ships in the Gulf.

Iran has threatened to retaliate for the British seizure of an Iranian oil tanker accused of violating sanctions on Syria. Iran’s Supreme Leader Ayatollah Ali Khamenei has branded the British action “piracy”.

The United States has also blamed Iran for attacks on tankers in the Gulf since May, which Tehran denies.

Shipping experts say U.S. sanctions on Iran intended to halt its oil exports have led to a rise in unusual tanker movements away from shipping lanes, with Iran seeking covert ways to export its oil. Increasingly, ships are switching off location transponders, transferring oil at sea and concealing their routes. Iran has also become more dependent on a fleet of aging ships, and some have had to be towed for emergency repairs.

Adding to the riddle of the missing ship was difficulty establishing who owns it, which no country or company has so far publicly claimed. Initial reports described it as Emirati. However, an Emirati official told Reuters the tanker was neither owned nor operated by the UAE.

The tanker’s registered manager is Prime Tankers in the UAE. That company told Reuters it had sold the tanker to another UAE-based company, Mouj al-Bahar. An employee at Mouj al-Bahar told Reuters that the firm did not own it but had been managing the vessel up to two months ago, and that it was now under the management of a company called KRB Petrochem. Reuters could not reach KRB Petrochem for comment.

(Reporting by Dubai newsroom, Parisa Hafezi, Ghaida Ghantous and Alex Cornwell; Writing by Lisa Barrington; Editing by Peter Graff)

Netanyahu says Trump knew in advance of Israel’s Iran archive mission

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu attends the weekly cabinet meeting in Jerusalem, June 30, 2019. Oded Balilty/Pool via REUTERS/File Photo

JERUSALEM (Reuters) – Israeli Prime Minister Benjamin Netanyahu said on Tuesday that he informed U.S. President Donald Trump in advance of what Israel has described as a spy mission in Tehran last year to capture a secret Iranian nuclear archive.

Netanyahu said in April 2018 that Mossad operatives had spirited thousands of hidden documents out of Tehran that proved Iran had previously pursued a nuclear weapons program. Trump cited the Israeli findings in his decision, a month later, to quit a 2015 deal that had scaled down Iran’s nuclear project.

Iran denies ever seeking nuclear weapons and has accused Israel of faking the Tehran mission and documents trove.

Awarding an Israeli national security prize on Tuesday to the Mossad team credited with the so-called “Atomic Archive” capture, Netanyahu said he had discussed the planned operation with Trump when they met at the Davos forum in January 2018.

“He asked me if it was dangerous. I told him that there was a danger to it that was not negligible, but that the outcome justified the risk,” Netanyahu said at the closed-door ceremony, according to a transcript issued by his office.

Netanyahu said that, when he later presented main findings from an Israeli analysis of the documents to Trump at the White House, the president “voiced his appreciation for the boldness”.

“I have no doubt that this helped to validate his decision to withdraw from this dangerous (Iran nuclear) deal,” he said.

With the United States having reimposed sanctions on Iran, tensions have been soaring in the Gulf in recent weeks.

Mossad officials have said the Tehran mission took place in February 2018, but have not given details on how the documents were brought out to Israel.

Six Mossad officers – four men and two women – received Tuesday’s prize for leading the mission, which also involved “hundreds” of others, the intelligence agency’s director, Joseph (Yossi) Cohen, told an international security forum this week.

(Writing by Dan Williams; Editing by Mark Heinrich)

Trump blames Iran for tanker attacks, stoking fears of confrontation

Still image taken from a video appears to show two tankers at sea, one of which has a large plume of dark smoke in the Gulf of Oman. PRESS TV/IRIB/via REUTERS

By Parisa Hafezi and Makini Brice

DUBAI/WASHINGTON (Reuters) – U.S. President Donald Trump blamed Iran on Friday for attacks on two oil tankers at the entrance to the Gulf despite Tehran’s denials, stoking fears of a confrontation in the vital oil shipping route.

Iran has dismissed earlier U.S. charges that it was behind Thursday’s attacks that crippled two tankers. It has previously suggested it could block the Strait of Hormuz, the main route out for Middle Eastern oil, if its own exports were halted.

Thursday’s blasts followed similar attacks a month earlier on four tankers, which Washington also blamed on Tehran.

They come at a time of escalating confrontation between the United States and Iran. Last month Washington sharply tightened sanctions against Tehran, which in response has threatened to step up its nuclear activity.

Asked how he planned to address Tehran and prevent any further incidents, Trump told Fox News: “We’re going to see.” He also said that any move to close the Strait of Hormuz would not last long.

Nevertheless, Trump, who last year pulled the United States out of an agreement between world powers and Tehran to curb Iran’s nuclear program in return for the lifting of sanctions, said that he was open to negotiations with Iran.

“We want to get them back to the table,” Trump said. “I’m ready when they are.” He added that he was in “no rush”.

Iran has repeatedly said it will not re-enter talks with the United States unless it reverses Trump’s decision to withdraw from the nuclear deal.

The U.S. military released a video on Thursday it said showed Iran’s Revolutionary Guards were behind the blasts that struck the Norwegian-owned Front Altair and the Japanese-owned Kokuka Courageous in the Gulf of Oman, at the mouth of the Gulf.

Iran said the video proved nothing and that it was being made into a scapegoat.

“These accusations are alarming,” Foreign Ministry spokesman Abbas Mousavi said.

Iran has accused the United States and its regional allies such as Saudi Arabia and the United Arab Emirates of “warmongering” by making accusations against it.

Tehran and Washington have both said they have no interest in starting a war. But this has done little to assuage concerns that the two arch-foes could stumble into a conflict.

Oil prices surged on Thursday, reflecting the jitters, although they have since given up some of those gains.

U.N. Secretary-General Antonio Guterres told the U.N. Security Council on Thursday the world could not afford “a major confrontation in the Gulf region”.

China, the European Union and others have called for restraint from all sides. In a notable signal that close U.S. allies are wary of Washington’s position, Germany said the U.S. video was not enough to apportion blame for Thursday’s attack.

The U.S. military said black-and-white footage it filmed from a U.S. aircraft showed Iran’s Guards on one of their patrol boats drawing up to the Kokuka Courageous and removing an unexploded limpet mine from its hull.

Britain said it took the matter “extremely seriously” and, if Iran was involved, “it is a deeply unwise escalation”.

The Japanese-owned tanker, abandoned by its crew, was being towed to a port in the United Arab Emirates on Friday, after a Dutch firm said it had been appointed to salvage the ships.

The second tanker, the Front Altair, which was set ablaze by a blast, was still languishing at sea, although the fire that had charred the hull had been put out.

“ALARMING”

Last month Washington revoked waivers that had allowed some countries to continue importing Iranian oil, effectively ordering all countries to blacklist Iran or face sanctions themselves.

Iran’s crude exports fell to about 400,000 barrels per day (bpd) in May from 2.5 million bpd in April 2018, starving Iran’s economy of its main source of revenues.

Iran says it is still abiding by the terms of the nuclear deal, but cannot do so indefinitely unless it receives some of the economic benefits that were promised. Last month it said it would boost enrichment of uranium, a move that could potentially lead to it building up a stockpile prohibited under the deal.

Washington has also blamed Iran or its proxies for attacks on May 12 that crippled four oil tankers in the same area, and has said Tehran was behind May 14 drone strikes on two Saudi oil-pumping stations. Tehran has denied all those charges.

There have been conflicting accounts of the cause of Thursday’s blasts. An initial report that Kokuka Courageous was struck by a torpedo was dismissed by a source familiar with the issue. The owner of the tanker, which carried methanol, later said it was hit by two “flying objects”.

A source has said a magnetic mine could have caused the explosion on Front Altair, which had a cargo of naphtha.

“UNWISE ESCALATION”

Iranian TV showed 23 crew in Iran believed to be from Front Altair on Friday, and said its experts would assess whether they could return to the ship. The crew from Kokuka Courageous were picked up and handed to a U.S. Navy ship on Thursday.

The Trump administration said in May it would send troops and other forces to the Middle East, citing Iranian threats, a move Tehran has called “psychological warfare”.

The administration argues that the nuclear deal, negotiated under Trump’s predecessor Barack Obama, was too limited, and says re-imposing sanctions will force Tehran back to the table to make more concessions.

Most U.S. allies in Europe and Asia disagree and say pulling out of the deal was a mistake that will empower hardliners in Iran and hurt the pragmatic faction that promised Iranians economic benefits in return for opening up to the world.

Thursday’s attack took place while Prime Minister Shinzo Abe of Japan – a big buyer of Iranian oil until it was forced by the new U.S. sanctions to stop – was visiting Tehran on a peacemaking mission, bringing a message from Trump.

Iran dismissed Trump’s message, details of which were not made public. “I do not see Trump as worthy of any message exchange, and I do not have any reply for him, now or in future,” Iranian Supreme Leader Ali Khamenei said.

(Reporting by Parisa Hafez, Maher Chmaytelli and Ghaida Ghantous in Dubai, Makini Brice, Susan Heavey, Phil Stewart and Lesley Wroughton in Washington; Bart Meijer in Amsterdam; Victoria Klesty in Oslo; Writing by Edmund Blair and Peter Graff; Editing by Janet Lawrence and Gareth Jones)

China defies U.S. pressure as EU parts ways with Iranian oil

A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf, Iran, July 25, 2005. REUTERS/Raheb Homavandi/File Photo

By Chen Aizhu and Florence Tan

BEIJING/SINGAPORE (Reuters) – China, seeking to skirt U.S. sanctions, will use oil tankers from Iran for its purchases of that country’s crude, throwing Tehran a lifeline while European companies such as France’s Total are walking away due to fear of reprisals from Washington.

The United States is trying to halt Iranian oil exports in an effort to force Tehran to negotiate a new nuclear agreement and to curb its influence in the Middle East.

China, which has cut imports of U.S. crude amid a trade war with Washington, has said it opposes unilateral sanctions and defended its commercial ties with Iran.

On Monday, sources told Reuters Chinese buyers of Iranian oil were beginning to shift their cargoes to vessels owned by National Iranian Tanker Co (NITC) for nearly all their imports.

The shift demonstrates that China, Iran’s biggest oil customer, wants to keep buying Iranian crude despite the sanctions, which were reimposed after the United States withdrew in May from a 2015 agreement to halt Iran’s nuclear program.

“The shift started very recently, and it was almost a simultaneous call from both sides,” said one source, a senior Beijing-based oil executive, who asked not to be identified as he is not allowed to speak publicly about commercial deals.

Tehran used a similar system between 2012 and 2016 to circumvent Western-led sanctions, which had curtailed exports by making it virtually impossible to obtain shipping insurance for business with Iran.

Iran, OPEC’s third-largest oil producer, relies on sales of crude to China, Japan, South Korea, India and the EU to generate the lion’s share of budget revenues and keep its economy afloat.

The United States has asked buyers of Iranian oil to cut imports from November. Japan, South Korea, India and most European countries have already slashed operations.

French oil major Total, previously one of the biggest European buyers of Iranian oil, has said it had no choice but to halt imports and abandon Iranian projects to safeguard its operations in the United States.

On Monday, Iranian Oil Minister Bijan Zanganeh said Total had officially left Iran’s South Pars gas project.

Total later confirmed it had notified the Iranian authorities of its withdrawal from South Pars after it failed to obtain a waiver from U.S. sanctions.

Iranian officials had earlier suggested China’s state-owned CNPC could take over Total’s stake and Zanganeh said the process to replace the French company was under way.

“As for the future of Total’s share, we have not been informed of an official CNPC position, but as we have always said, CNPC, a Chinese state-owned company, has the right to resume our participation if it decides so,” Total said in an emailed statement.

WALK AWAY

French President Emmanuel Macron has repeatedly called for safeguarding the Iranian nuclear deal and defended the interests of EU companies in Iran.

But most European companies have conceded that they would be forced to walk away from Tehran for fear of sanctions and losing access to operations that require U.S. dollars.

The first round of U.S. sanctions, which included cutting off Iran and any businesses that trade with it from the U.S. financial system, went into effect on Aug. 7.

A ban on Iranian oil purchases will start in November. Insurers, which are mainly U.S.- or European-based, have begun winding down their Iranian business to comply with the sanctions.

To safeguard their supplies, state oil trader Zhuhai Zhenrong Corp and Sinopec Group, Asia’s biggest refiner, have activated a clause in long-term supply agreements with National Iranian Oil Corp (NIOC) that allows them to use NITC-operated tankers, four sources with direct knowledge of the matter said.

The price for oil under the long-term deals has been changed to a delivered ex-ship basis from the previous free-on-board terms, meaning Iran will cover all costs and risks of delivering the crude as well as handling the insurance, they said.

In July, all 17 tankers chartered to carry oil from Iran to China were operated by NITC, according to shipping data on Thomson Reuters Eikon. In June, eight of 19 vessels chartered were Chinese-operated.

Last month, those tankers loaded about 23.8 million barrels of crude oil and condensate destined for China, or about 767,000 barrels per day (bpd). In June, the loadings were 19.8 million barrels, or 660,000 bpd.

In 2017, China imported an average of 623,000 bpd, according to customs data.

Sinopec declined to comment. A spokesperson for Nam Kwong Group, the parent of Zhenrong, declined to comment.

NIOC did not respond to an email seeking comment. An NITC spokesman said it would forward a request from Reuters for a comment to the country’s Ministry of Culture and Islamic Guidance.

It was not immediately clear how Iran would provide insurance for the Chinese oil purchases, worth some $1.5 billion a month. Insurance usually includes cover for the oil cargoes, third-party liability, and pollution.

(Additional reporting by Parisa Hafezi in Ankara and Cyril Altmeyer in Paris; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

Israel threatens ‘harsh response’ to any Syrian forces in demilitarized Golan

People walk near the Israel-Syria border line as it is seen from the Israeli-occupied Golan Heights, Israel July 7, 2018. REUTERS/Ronen Zvulun

JERUSALEM (Reuters) – Israel threatened a “harsh response” on Monday to any attempt by Syrian forces advancing against southern rebel areas to deploy in a Golan Heights frontier zone that was demilitarized under a 44-year-old U.N. monitored truce between the neighboring foes.

Syrian government forces backed by Russia have launched an offensive in the southern Deraa province and are widely expected to move on rebel-held Quneitra, which is within a part of the Syrian Golan covered by the armistice.

Israel worries that Syria’s President Bashar al-Assad could let its enemies Iran and Hezbollah move forces into the area, giving them a foothold near its border. Tehran and the Lebanese group both back Assad in the complex conflict.

“For our part we will sanctify the 1974 disengagement agreement, and there too we will insist that every last letter be abided by, and any violation with meet a harsh response from the State of Israel,” Defence Minister Avigdor Lieberman told his parliamentary faction in broadcast remarks.

Assad’s conduct in southern Syria is expected to come up in talks in Moscow on Wednesday between Israeli Prime Minister Benjamin Netanyahu and Russian President Vladimir Putin.

Russia, whose 2015 intervention in the Syrian civil war turned the tide in Assad’s favor, has largely turned a blind eye to repeated Israeli air strikes in Syria targeting suspected Iranian or Hezbollah emplacements and arms transfers.

But diplomats on both sides say Russia has made clear that it would oppose any Israeli action endangering Assad’s rule.

On Sunday night, Syria said its air defense repelled an Israeli sorties against the T4 air base in Homs province, where seven Iranian Revolutionary Guards Corps personnel died in an April 9 attack that Damascus and Tehran also blamed on Israel.

Israel, in keeping with its customary reticence on such operations, declined all comment.

“Regarding yesterday – I read about it in the newspapers today and I have nothing to add,” Lieberman said on Monday.

“Perhaps just one thing, that our policy has not changed. We will not allow Iran’s entrenchment in Syria and we will not allow Syrian soil to be turned into a vanguard against the State of Israel. Nothing has changed. There is nothing new.”

(Writing by Dan Williams; Editing by Toby Chopra and Andrew Heavens)

Only Syrian army should be on country’s southern border: Russia

Russian Foreign Minister Sergei Lavrov attends a meeting with his counterpart from Mozambique Jose Pacheco in Moscow, Russia May 28, 2018. REUTERS/Sergei Karpukhin

MOSCOW/BEIRUT (Reuters) – Russia said on Monday only Syrian army troops should be on the country’s southern border with Jordan and Israel, after Washington warned of “firm measures” over truce violations in the region.

Rebels control stretches of southwest Syria, bordering the Israeli-occupied Golan Heights, while Syrian army troops and allied Iran-backed militias hold nearby territory.

The United States has voiced concern about reports of an impending Syrian army offensive in a “de-escalation zone” in the southwest, warning Damascus it would respond to breaches.

“Of course, the withdrawal of all non-Syrian forces must be carried out on a mutual basis, this should be a two-way street,” Russian Foreign Minister Sergei Lavrov told a news conference in on Monday.

“The result of this work which should continue and is continuing should be a situation when representatives of the Syrian Arab Republic’s army stand at Syria’s border with Israel,” he said.

Jordan said on Monday it was discussing south Syria with Washington and Moscow, and all three agreed on the need to preserve the ceasefire, which reduced violence since they brokered it last year.

Israel has raised the alarm about Iran’s expanding clout in the seven-year conflict, calling on Monday for its arch-foe to be denied any military presence in Syria. Washington has also demanded Tehran withdraw all forces under its command from Syria.

“We believe that there is no place for any Iranian military presence, anywhere in Syria,” Prime Minister Benjamin Netanyahu told his parliamentary faction on Monday.

Israeli Defense Minister Avigdor Lieberman will meet Russian Defense Minister Sergei Shoigu in Moscow on Thursday.

This month, Israel said it launched intensive airstrikes in Syria after what it described as Iranian rocket fire from the south into the Golan.

A senior Israeli official made clear that Netanyahu’s government would not deem the exclusion of Iranian forces from the border region sufficient.

“When you consider the advanced weapon systems – surface to surface missiles and anti aircraft systems – that the Iranians want to deploy in Syria, it becomes clear that they must be prevented from doing so in all of Syria and not only within a limited distance from the Israeli border,” Chagai Tzuriel, director-general of the intelligence ministry, told Reuters.

Moscow, Syrian President Bashar al-Assad’s ally, brokered a string of de-escalation zones for insurgent enclaves last year, though fighting raged on in some. With the support of Russia and Iran, the Syrian army mounted an offensive on the eastern Ghouta enclave and seized it in April.

The southwest region is home to tens of thousands of people and forms a center of the insurgency.

Syrian state media has reported leaflet drops on rebel territory there urging fighters to accept government rule, and a UK-based monitor has reported army movements into the south – two signs of a potential military offensive.

(Reporting by Ellen Francis in Beirut, Suleiman al-Khalidi in Amman, Maria Kiselyova and Tom Balmforth in Moscow, and Dan Williams in Jerusalem; Writing by Ellen Francis; Editing by Toby Chopra)