Trump to name Republican media firm owner to run communications: reports

President Donald Trump

WASHINGTON (Reuters) – U.S. President Donald Trump is poised to tap a Republican media relations firm owner to oversee his White House communications, according to media reports on Friday.

Crossroads Media founder Mike Dubke is expected to be named White House communications director, CNN, NBC and Fox News reported, a move that could help spokesman Sean Spicer, who has handled both duties since Trump took office last month.

Reuters could not immediately confirm the reports, and Crossroads Media did not immediately respond to a request for comment.

CNN, citing two administration officials, said the announcement could come as soon as Friday, adding that Dubke did not respond to a request for comment.

The appointment would help round out Trump’s communications team, which also includes Hope Hicks, director of strategic communications, and Dan Scavino, director of social media.

Trump’s previous choice to serve as director of communications, Jason Miller, declined the job in December.

Dubke’s appointment could help shore up Trump’s messaging efforts.

Spicer and Trump adviser Kellyanne Conway gave differing accounts on Monday before Michael Flynn resigned from his post as national security adviser amid controversy over his contacts with Russia. Conway told a television network that Flynn had Trump’s full confidence, while Spicer soon after told reporters that Trump was evaluating Flynn.

Conway also publicly endorsed Ivanka Trump products in a recent television interview, prompting a call by the Office of Government Ethics for disciplinary action for appearing to violate government ethics rules.

A graduate of Hamilton College in New York, Dubke helped launch another communications firm in Virginia, the Black Rock Group, according to Crossroads’ website.

(Writing by Susan Heavey; Editing by Phil Berlowitz)

Trump to welcome Netanyahu as Palestinians fear U.S. shift

Benjamin Netanyahu

By Luke Baker

WASHINGTON (Reuters) – President Donald Trump prepared to host Israeli Prime Minister Benjamin Netanyahu on Wednesday for talks that could shape the contours of future Middle East policy, as Palestinians warned the White House not to abandon their goal of an independent state.

For decades, the idea of creating a Palestine living peacefully alongside Israel has been a bedrock U.S. position, though the last negotiations broke down in 2014.

But in a potential shift, a senior White House official said on Tuesday that peace did not necessarily have to entail Palestinian statehood, and Trump would not try to “dictate” a solution.

As Trump and Netanyahu prepared to meet, a senior Palestinian official disclosed that on Tuesday, CIA director Mike Pompeo held talks with Palestinian President Mahmoud Abbas in Ramallah, the seat of the Palestinian government in the occupied West Bank.

“(It was) the first official meeting with a high-profile member of the American administration since Trump took office,” said the official, who spoke on condition of anonymity and declined to disclose details of the discussion.

Netanyahu committed, with conditions, to the two-state goal in a speech in 2009 and has broadly reiterated the aim since. But he has also spoken of a “state minus” option, suggesting he could offer the Palestinians deep-seated autonomy and the trappings of statehood without full sovereignty.

Palestinians reacted with alarm to the possibility that Washington might ditch its support for an independent Palestinian nation.

“If the Trump Administration rejects this policy it would be destroying the chances for peace and undermining American interests, standing and credibility abroad,” Hanan Ashrawi, a senior member of the Palestine Liberation Organization, said in response to the U.S. official’s remarks.

“Accommodating the most extreme and irresponsible elements in Israel and in the White House is no way to make responsible foreign policy,” she said in a statement.

Husam Zomlot, strategic adviser to Abbas, said the Palestinians had not received any official indication of a change in the U.S. stance.

“NO GAPS”

For Netanyahu, the talks with Trump will be an opportunity to reset ties after a frequently combative relationship with Democrat Barack Obama.

The prime minister, under investigation at home over allegations of abuse of office, spent much of Tuesday huddled with advisers in Washington preparing for the talks. Officials said they wanted no gaps to emerge between U.S. and Israeli thinking during the scheduled two-hour Oval Office meeting.

Trump, who has been in office less than four weeks and has already been immersed in problems including the forced resignation of his national security adviser, brings with him an unpredictability that Netanyahu’s staff hope will not impinge on the discussions.

During last year’s election campaign, Republican candidate Trump was relentlessly pro-Israel in his rhetoric, promising to move the U.S. embassy from Tel Aviv to Jerusalem, backing David Friedman, an ardent supporter of Jewish settlements, as his Israeli envoy and saying that he would not put pressure on Israel to negotiate with the Palestinians.

That tune, which was music to Netanyahu’s ears and to the increasingly restive right-wing within his coalition, has since changed, making Wednesday’s talks critical for clarity.

Trump appears to have put the embassy move on the backburner, at least for now, after warnings about the potential for regional unrest, including from Jordan’s King Abdullah.

And rather than giving Israel free rein on settlements, the White House has said building new ones or expanding existing ones beyond their current borders would not be helpful to peace.

That would appear to leave Israel room to build within existing settlements without drawing U.S. condemnation, in what is the sort of gray area the talks are expected to touch on.

For the Palestinians, and much of the rest of the world, settlements built on occupied land are illegal under international law. Israel disputes that, but faces increasing criticism over the policy from allies, especially after Netanyahu’s announcement in the past three weeks of plans to build 6,000 new settler homes in the West Bank and East Jerusalem.

(Additional reporting by Matt Spetalnick and Steve Holland in Washington and Maayan Lubell and Jeffrey Heller in Jerusalem; Editing by Mark Trevelyan)

Trump national security aide Flynn resigns over Russian contacts

National Security adviser Michael Flynn

By Steve Holland and John Walcott

WASHINGTON (Reuters) – President Donald Trump’s national security adviser, Michael Flynn, resigned late on Monday after revelations that he had discussed U.S. sanctions on Russia with the Russian ambassador to the United States before Trump took office and misled Vice President Mike Pence about the conversations.

Flynn’s resignation came hours after it was reported that the Justice Department had warned the White House weeks ago that Flynn could be vulnerable to blackmail for contacts with Russian ambassador Sergey Kislyak before Trump took power on Jan. 20.

Flynn’s departure was a sobering development in Trump’s young presidency, a 24-day period during which his White House has been repeatedly distracted by miscues and internal dramas.

The departure could slow Trump’s bid to warm up relations with Russian President Vladimir Putin.

Flynn submitted his resignation hours after Trump, through a spokesman, pointedly declined to publicly back Flynn, saying he was reviewing the situation and talking to Pence.

Flynn had promised Pence he had not discussed U.S. sanctions with the Russians, but transcripts of intercepted communications, described by U.S. officials, showed that the subject had come up in conversations between him and the Russian ambassador.

Such contacts could potentially be in violation of a law banning private citizens from engaging in foreign policy, known as the Logan Act.

Pence had defended Flynn in television interviews and was described by administration officials as upset about being misled.

“Unfortunately, because of the fast pace of events, I inadvertently briefed the vice president-elect and others with incomplete information regarding my phone calls with the Russian ambassador. I have sincerely apologized to the president and the vice president, and they have accepted my apology,” Flynn said in his resignation letter.

Retired General Keith Kellogg, who has been chief of staff of the White House National Security Council, was named the acting national security adviser while Trump determines who should fill the position.

Kellogg, retired General David Petraeus, a former CIA director, and Robert Harward, a former deputy commander of U.S. Central Command, are under consideration for the position, a White House official said. Harward was described by officials as the leading candidate.

A U.S. official confirmed a Washington Post report that Sally Yates, the then-acting U.S. attorney general, told the White House late last month that she believed Flynn had misled them about the nature of his communications with the Russian ambassador.

She said Flynn might have put himself in a compromising position, possibly leaving himself vulnerable to blackmail, the official said. Yates was later fired for opposing Trump’s temporary entry ban for people from seven mostly Muslim nations.

CHANGE LESS LIKELY?

A U.S. official, describing the intercepted communications, said Flynn did not make any promises about lifting the sanctions.

But he did indicate that sanctions imposed by President Barack Obama on Russia for its Ukraine incursion “would not necessarily carry over to an administration seeking to improve relations between the U.S. and Russia,” the official said.

Flynn, a retired U.S. Army lieutenant general, was an early supporter of Trump and shares his interest in shaking up the establishment in Washington. He frequently raised eyebrows among Washington’s foreign policy establishment for trying to persuade Trump to warm up U.S. relations with Russia.

A U.S. official said Flynn’s departure, coupled with Russia’s aggression in Ukraine and Syria and Republican congressional opposition to removing sanctions on Russia, removes Trump’s most ardent advocate of taking a softer line toward Putin.

Flynn’s leaving “may make a significant course change less likely, at least any time soon,” the official said.

Another official said Flynn’s departure may strengthen the hands of some cabinet secretaries, including Defense Secretary Jim Mattis and Secretary of State Rex Tillerson.

However, the second official said, Flynn’s exit could also reinforce the power of presidential aides Steve Bannon and Stephen Miller, whom he described as already having the president’s ear.

Congressional Democrats expressed alarm at the developments surrounding Flynn and called for a classified briefing by administration officials to explain what had happened.

“We are communicating this request to the Department of Justice and FBI this evening,” said Democratic representatives John Conyers of Michigan and Elijah Cummings of Maryland.

U.S. Representative Adam Schiff of California, ranking Democrat on the House Permanent Select Committee on Intelligence, said Flynn’s departure does not end the questions over his contacts with the Russians.

“The Trump administration has yet to be forthcoming about who was aware of Flynn’s conversations with the ambassador and whether he was acting on the instructions of the president or any other officials, or with their knowledge,” Schiff said.

The committee’s chairman, Republican Devin Nunes, thanked Flynn for his service.

“Washington D.C. can be a rough town for honorable people, and Flynn — who has always been a soldier, not a politician —deserves America’s gratitude and respect,” he said.

(Additional reporting by Emily Stephenson; Editing by Peter Cooney, Robert Birsel)

Israeli PM seeks ‘no gaps’ with Trump ahead of White House talks

Israeli Prime Minister Benjamin Netanyahu

By Luke Baker

WASHINGTON (Reuters) – Prime Minister Benjamin Netanyahu, preparing for his first meeting with President Donald Trump at the White House, will work with advisers on Tuesday to align Israeli and U.S. thinking on the Middle East and ensure “no gaps” remain.

Staff have cleared most of Tuesday for discussions with Israel’s ambassador to the United States, Ron Dermer, and other senior advisers ahead of Wednesday’s Oval Office meeting. The only event of the day is an evening meeting with U.S. Secretary of State Rex Tillerson.

“There isn’t going to be any daylight, no gaps,” one adviser said as the prime minister left for Washington, the first time Netanyahu, the head of a right-wing coalition, has overlapped with a Republican in the White House in four terms in office.

Those reassurances came as Netanyahu took a cautious line on whether he would support a two-state solution to the Israeli-Palestinian conflict, the bedrock of U.S. diplomacy for two decades, when he sits down with Trump.

During the presidential campaign, Trump was often unabashedly pro-Israel, promising to move the U.S. embassy from Tel Aviv to Jerusalem, backing David Friedman, a supporter of settlements, as his envoy to Israel, and saying that he wouldn’t apply pressure for talks with the Palestinians.

But in the three-and-a-half weeks since taking office, positions have shifted. The embassy transfer has been put on hold as the fallout from such a move, not least the potential for unrest across the Middle East, has been explained, including by Jordan’s King Abdullah during an impromptu visit.

When it comes to settlements, Trump has laid out a more nuanced position, saying that while he does not see them as an obstacle to peace, building new ones or expanding existing ones beyond their current boundaries is “not good”.

And rather than no pressure for peace talks, Trump has said he wants to have a go at the “ultimate deal”. In an interview with newspaper Israel Hayom last week, he urged Israel to act “reasonably” in the Middle East peace process.

LEADERS IN LOCKSTEP

For Netanyahu, under investigation at home in two criminal cases involving allegations of abuse of office, ensuring he and Trump are in lockstep is critical to putting the friction of the Obama administration behind him and laying the ground for a more fruitful relationship with the United States.

At a time when the Middle East is in turmoil and Palestinian politics is fractured by long-standing divisions between the Western-backed Fatah party and the Islamist group Hamas, Israeli officials argue that the time is not ripe for peace.

But while Netanyahu has announced plans for 6,000 more settlement homes, he is also uneasy about pressure from the far-right in his coalition for more dramatic steps, such as the annexation of parts of the West Bank, which the Palestinians want for their own state together with Gaza and East Jerusalem, or the rejection of a Palestinian state altogether.

Netanyahu’s task during the scheduled two-hour meeting with Trump will be to find common ground on both the settlements issue and the prospects for a two-state solution to the conflict: Israel and a Palestine side by side and at peace.

The prime minister committed to the two-state goal in 2009 and has reiterated the position since. But on Monday, a senior minister in his cabinet said no ministers, foremost Netanyahu, truly believed in the emergence of a Palestinian state.

Officials with Netanyahu declined to comment on the remark. But Netanyahu has spoken of a “state minus”, something short of full sovereignty for the Palestinians. It was unclear if the contours of that idea would be discussed with Trump.

As well as Palestinian issues, the two leaders will discuss regional stability and the threat from Iran, with both intent on re-examining and strengthening the nuclear deal with Tehran.

“The alliance between Israel and America has always been extremely strong and it’s about to get even stronger,” Netanyahu said as he prepared to leave Israel on Monday.

“Donald Trump and I see eye-to-eye on the dangers emanating from the region but also on the opportunities. We’ll talk about both as well as upgrading the relations between Israel and the United States in many, many fields.”

Aside from Trump and Tillerson, Netanyahu will meet Senate Majority Leader Mitch McConnell, Senate Minority Leader Chuck Schumer, House Speaker Paul Ryan and Vice President Mike Pence during the Feb. 13-16 visit.

(Writing by Luke Baker; Editing by Mary Milliken)

Analysis: Trump’s hostility to help keep Iran’s Rouhani in office, but make his life harder

Iran President

By Parisa Hafezi

ANKARA (Reuters) – Donald Trump’s bellicose rhetoric towards Iran now appears likely to help keep President Hassan Rouhani in office for another term, but will make it harder for the Iranian leader’s team of moderates to govern.

With an election due in three months and a hostile new administration in the White House, Iran’s hardliners seem to have backed off from trying to reclaim the presidency for their faction, at least for now.

No single candidate has emerged as a potential hardline champion to challenge the relative moderate Rouhani in the vote. Instead, officials speak of ideological rivals uniting behind him as best suited to deal with a Trump presidency.

“To protect the Islamic Republic against foreign threats we need to put aside our disputes and unite against our enemy,” said a senior official speaking on condition of anonymity like other figures within Iran contacted for this story.

“Under the current circumstances, Rouhani seems the best option for the establishment.”

Still, Rouhani’s supporters worry that even though hardliners no longer seem intent on removing him, they will take advantage of confrontation with the Trump administration to weaken the president at every turn.

“To cement their grip in power, hardliners will do whatever they can to provoke Trump. From missile tests to fiery speeches,” said a former senior official, close to Rouhani.

“By making Rouhani a lame-duck president, they will try to prevent any change in the balance of power in Iran.”

Rouhani, elected in a landslide in 2013 on a pledge to reduce Iran’s isolation, is the face of Tehran’s deal with the Obama administration to curb Iran’s nuclear program in return for the lifting of U.S. and European sanctions.

Trump and other U.S. Republicans have frequently disparaged that deal, as have hardliners in Iran.

For now, the Iranian hardliners appear to have concluded that they still need Rouhani in office, if only so Washington rather than Tehran will be blamed if the deal collapses, said Iran analyst Ali Vaez of the International Crisis Group.

“With the deal in jeopardy, the system will be in vital need of Rouhani’s team of smiling diplomats and economic technocrats to shift the blame to the U.S. and keep Iran’s economy afloat,” said Vaez.

But ultimately, said analyst Meir Javedanfar, any atmosphere of heightened tension with Washington benefits the hardliners and weakens the moderates in Iran.

“Now with Trump in charge, Iran’s hardliners can sleep easy as they thrive on threats and intimidation from the U.S., it feeds their narrative,” said Javedanfar, an Iranian-born Israeli lecturer on Iran at Israel’s Interdisciplinary Center Herzliya.

PRESERVATION

Under Iran’s theocratic governing system, the elected president is subordinate to the unelected supreme leader, 77-year-old Ayatollah Ali Khamenei, a hardliner in power since succeeding revolutionary founder Ruhollah Khomeini in 1989.

A hardline watchdog body can control the elected government by vetting candidates before they stand and by vetoing policies.

Khamenei uses anti-American sentiment as the glue to hold together the faction-ridden leadership, but he will not risk a total collapse in relations with Washington that might destabilize Iran, say Iranian officials.

“The leader’s top priority has always been preserving the Islamic Republic … A hardline president might intensify tension between Tehran and America,” said an official close to Khamenei’s camp.

Rouhani’s efforts to open up Iran to less hostile relations with the West still have to be couched in the rhetoric of anti-Americanism that has been a pillar of Iranian rule since the Islamic Revolution of 1979.

On Friday, hundreds of thousands marked the anniversary of the revolution, taking to the streets chanting slogans that include “Death to America”. At such events, Rouhani can strike a note that sounds as hardline as anyone. [ID:nL5N1FV1SX]

“We all are followers of our leader Khamenei,” Rouhani said in a speech that cast his own re-election bid as an opportunity for Iranians to demonstrate their defiance of Washington. “Our nation will give a proper answer to all those threats and pressures in the upcoming election.”

For his part, Khamenei said in a speech earlier this week that Trump had shown “the real face of America”, echoing the hardline Iranian criticism of the Obama administration’s comparatively accommodating stance as insincere or devious.

Khamenei dismissed a Trump administration threat to put Iran “on notice” for carrying out missile tests. But he also avoided signaling a break with the nuclear accord, and the speech was interpreted as a sign that he will stick by Rouhani for now.

“The leader’s speech showed that the leadership has agreed on a less confrontational line. They prefer to wait and see Trump’s actions and not to act based on his rhetoric,” said Tehran-based political analyst Saeed Leylaz.

Ordinary Iranian voters also seem inclined to keep Rouhani in power. Many complain that they have still seen few economic benefits from the lifting of sanctions, and those who hoped Rouhani would reform restrictive social policies say they are disappointed by the lack of meaningful change so far.

Nevertheless, there seems to be little appetite to reverse course at the election and restore power to a confrontational hardliner like Rouhani’s predecessor Mahmoud Ahmadinejad.

“I did not want to vote. Nothing has changed under Rouhani. But now I have to choose between bad and worse in Iran. We cannot afford a hardline president when Trump is in power,” said high-school teacher Ghamze Rastgou in Tehran.

(Editing by Peter Graff)

Eight countries sign up to counter Trump’s global anti-abortion move

Sweden's Deputy Prime Minister

STOCKHOLM (Reuters) – Eight countries have joined an initiative to raise millions of dollars to replace shortfalls caused by President Donald Trump’s ban on U.S.-funded groups around the world providing information on abortion, Sweden’s deputy prime minister said.

Isabella Lovin told Reuters a conference would be held on March 2 in Brussels to kick-start the funding initiative to help non-governmental organizations whose family planning projects could be affected.

The Netherlands announced in January the launch of a global fund to help women access abortion services, saying Trump’s “global gag rule” would cause a funding shortfall of $600 million over the next four years.

Sweden, Denmark, Belgium, Luxemburg, Finland, Canada and Cape Verde have all lent their support, Lovin said.

“(The gag order) could be so dangerous for so many women,” said Lovin who posed for a photograph this month with seven other female officials signing an environmental bill, in what was seen a response to a photograph of Trump signing the gag order in the White House with five male advisors.

The global gag rule, which affects U.S. non-governmental organizations working abroad, is one that incoming presidents have used to signal their positions on abortion rights. It was created under U.S. President Ronald Reagan in 1984.

Trump signed it at a ceremony in the White House on his fourth day in office. Barack Obama lifted the gag rule in 2009 when he took office.

“If women don’t have control over their bodies and their own fate it can have very serious consequences for global goals of gender rights and global poverty eradication,” Lovin said.

(Reporting by Alistair Scrutton; Editing by Robin Pomeroy)

U.S. to issue new Iran sanctions, opening shot in get-tough strategy: sources

ballistic missile tested in Iran

By Arshad Mohammed, Matt Spetalnick and Jonathan Landay

WASHINGTON (Reuters) – U.S. President Donald Trump is poised to impose new sanctions on multiple Iranian entities, seeking to ratchet up pressure on Tehran while crafting a broader strategy to counter what he sees as its destabilizing behavior, people familiar with the matter said on Thursday.

In the first tangible action against Iran since Trump took office on Jan. 20, the administration, on the same day he insisted that “nothing is off the table,” prepared to roll out new measures against more than two dozen Iranian targets, the sources said. The announcement is expected as early as Friday, they added.

The new sanctions, which are being taken under existing executive orders covering terrorism and weapons of mass destruction, may mark the opening shot in a more aggressive policy against Iran that Trump promised during the 2016 presidential campaign, the sources, who had knowledge of the administration’s plans, said.

But the package, targeting both entities and individuals, was formulated in a way that would not violate the 2015 Iran nuclear deal negotiated between Iran and six world powers including Trump’s predecessor, Barack Obama, they added.

The sources said the new sanctions had been in the works for some time and that Iran’s decision to test-fire a ballistic missile on Sunday helped trigger Trump’s decision to impose them, although Washington has not accused Iran of violating the nuclear deal.

The White House declined comment.

A U.S. State Department official said: “As standard policy, we do not preview sanction decisions before they are announced.”

The White House signaled a tougher stance toward Iran on Wednesday when Michael Flynn, Trump’s national security adviser, said he was putting Iran “on notice” after the missile test and senior U.S. officials said the administration was reviewing how to respond.

A top adviser to Iranian Supreme Leader Ayatollah Ali Khamenei said his country would not yield to “useless” U.S. threats from “an inexperienced person” over its ballistic missile program. The adviser, Ali Akbar Velayati, did not identify a specific U.S. official in his comments.

STILL-EVOLVING PLAN

The impact of the new sanctions will be more symbolic than practical, especially as the move does not affect the lifting of broader U.S. and international sanctions that took place under the nuclear deal. Also, few of the Iranian entities being targeted are likely to have U.S. assets that can be frozen, and U.S. companies, with few exceptions, are barred from doing business with Iran.

But the administration is working with congressional staffers and outside experts on a still-evolving broader plan aimed at hitting Iran’s pressure points, including its already restricted nuclear program, missile development and support of militant groups in the region, several sources said.

Leading a chorus of Republican calls for new sanctions, Paul Ryan, the speaker of the House of Representatives, said the United States should stop “appeasing” Tehran. “I would be in favor of additional sanctions on Iran,” he told reporters.

Options that may be among the first to be implemented include sanctioning Iranian industries that contribute to missile development and designating as a terrorist group the Islamic Revolutionary Guard Corps, which has been blamed by U.S. officials for fueling regional proxy wars. The designation could also dissuade foreign investment because it oversees a sprawling business empire.

Another approach would be “zero tolerance” for any Iranian violations of the nuclear deal, by taking a stricter interpretation of the terms than the Obama administration.

That could include U.S. opposition to Iranian requests for waivers from restrictions requiring the approval of a committee comprising the United States and its negotiating partners, Russia, China, Britain, France and Germany, the sources said.

“Michael Flynn did not put Iran on notice as mere empty words,” said Mark Dubowitz, an Iran sanctions expert and head of the conservative Washington-based Foundation for Defense of Democracies who is advising the Trump administration. “Iran’s continued missile and terrorism activities will lead to dozens of new U.S. designations and tough new congressional sanctions.”

Some experts questioned how quickly the administration could develop the new strategy as many of the technical specialists on Iran have left the government.

‘NOTHING IS OFF THE TABLE’

Trump’s declaration that nothing had been ruled out in response to Iran appears to leave open the possibility of military action, although experts said both sides would take care to avoid armed confrontation in the oil-rich Gulf. Still, the U.S. threats of reprisals, coupled with Iran’s defiant reaction, could dangerously ratchet up tensions.

Every recent U.S. president, including Obama, a Democrat, has said U.S. military options were not off the table to prevent Iran from getting a nuclear weapon. Trump has gone much further in his rhetoric, especially in criticizing the Iran deal as weak and ineffective.

Since taking office, Trump and his aides have not repeated campaign rhetoric about tearing up the deal. He may instead be trying to force Iran to either renegotiate the terms or pull out unilaterally, thereby shouldering the blame internationally.

Defenders of the deal said there was little chance Iran could be goaded back to the negotiating table and warned that too stringent an approach could escalate into a confrontation and embolden Iranian hardliners.

In the latest move, one source, who spoke on condition of anonymity, said about eight Iranian entities were to be sanctioned or designated, for terrorism-related activities and about 17 for ballistic missile-related activities under separate existing U.S. executive orders. The source declined to name the entities, which were targeted under executive orders signed by President George W. Bush in 2001 and 2005.

Sanctions designations can lead to asset freezes, travel bans and other penalties.

Republican lawmakers said they were working with the Trump administration to push back on Iran without risking the collapse of the deal, widely supported internationally.

Senator Bob Corker, chairman of the Senate Foreign Relations Committee, told Reuters that his panel was “in the early stages” of working on legislation on Iran.

(Additional reporting by Patrica Zengerle, Ayesha Rascoe, Roberta Rampton in Washington and Parisa Hafezi in Ankara; Writing by Matt Spetalnick and Patricia Zengerle; Editing by Yara Bayoumy and Peter Cooney)

Israel interprets U.S. settlements statement as green light

rainbow over Israeli settlement

By Luke Baker

JERUSALEM (Reuters) – Israeli officials welcomed on Friday what they took as U.S. consent to expand existing settlements, after the White House reversed a long-standing policy of condemning building on occupied land.

In its first substantive announcement on the Israeli-Palestinian conflict, the Trump administration said it did not see existing settlements hampering peace with the Palestinians, although it recognized that “expansion of existing settlements beyond their current borders may not be helpful in achieving that goal.”

At one level, that appeared to be an attempt to rein in Prime Minister Benjamin Netanyahu, who has announced wide-ranging settlement expansion plans since the Jan. 20 inauguration, including around 6,000 new homes.

But on closer reading, the statement was a softening of policy from the Obama administration and even that of George W. Bush, because it does not view settlements as an obstacle to peace or rule out their expansion within existing blocs.

“Netanyahu will be happy,” a senior Israeli diplomat said in a text message. “Pretty much carte blanche to build as much as we want in existing settlements as long as we don’t enlarge their physical acreage. No problem there.”

Israel’s deputy foreign minister, Tzipi Hotovely from the right-wing of Netanyahu’s Likud party, interpreted it in a similar way, saying construction in the occupied West Bank and East Jerusalem, which the Palestinians want for their own state together with Gaza, would go on unhindered.

“It is also the opinion of the White House that settlements are not an obstacle to peace and, indeed, they have never been an obstacle to peace,” she said. “Therefore, the conclusion is that more building is not the problem.”

Israel seized the West Bank and East Jerusalem in the 1967 Middle East war. The 50th anniversary of the occupation, which Israel marks as a reunification of Jerusalem, is in June.

There was no immediate comment from the Palestinians.

DOUBLE BENEFITS

Since taking office, President Trump has largely kept quiet on the Israeli-Palestinian issue, making no comment in response to Netanyahu’s announcements for thousands more settler homes, a silence interpreted as endorsement. During the campaign, Trump said he would not interfere or push Israel to negotiate on a two-state solution to the conflict.

He has nominated David Friedman as ambassador to Israel, a religious Jew who has raised money for the settlements and supports moving the U.S. embassy from Tel Aviv to Jerusalem. Trump supported that idea during the election campaign, but it has been put on the back-burner in recent weeks.

Under Barack Obama, the White House maintained a firm anti-settlements line, calling them illegitimate and an obstacle to peace. Most of the world considers settlements illegal under international law, a position Israel rejects.

The European Union and Britain issued statements this week criticizing Netanyahu’s settlement plans, which they see as further breaking up the West Bank and undermining the possibility of a contiguous Palestinian state ever emerging.

Netanyahu, who will visit Trump in Washington on Feb. 15, may see the White House statement as doubly beneficial.

As well as not ruling out building within existing blocs, which Israel hopes to retain in any final agreement with the Palestinians, it may allow him to silence far-right voices in his own coalition calling for much greater settlement growth and annexation of parts of the West Bank.

Trump has effectively set a limit on how far-ranging settlement-building can be, so Netanyahu will be able to tell the far-right their ambitions are out of the question.

At the same time, Netanyahu may have to curtail some of the plans he himself has announced in recent days.

While most of the 6,000 settler homes he has promised are in existing blocs, many are not and may have to be scrapped if he wants to adhere to the White House line. He may also have to rethink a pledge this week to build the first new West Bank settlement since the 1990s.

(Additional reporting by Ori Lewis; Editing by Tom Heneghan and Robin Pomeroy)

U.S. Treasury holds debt auctions steady, plans cyber test

dollar note

By Jason Lange

WASHINGTON (Reuters) – The U.S. Treasury announced on Wednesday it will hold the size of coupon auctions steady in the upcoming quarter when it conducts a small “contingency auction” that an official said would test its ability to borrow following a cyber attack.

It was unclear how much of a role, if any, the White House had in crafting the Treasury’s quarterly debt policy statement, which was the first since President Donald Trump took office last month.

The U.S. Senate has yet to confirm Trump’s Treasury secretary nominee, Steven Mnuchin. Several Treasury officials from the Obama administration have left, with their positions filled on a temporary basis by career bureaucrats or political appointees from the last administration.

The latest policy statement was made by Monique Rollins, Treasury’s acting assistant secretary for financial markets and a holdover from the Obama administration. A Treasury official told reporters separately that the new political leadership was aware of the debt policies announced on Wednesday.

Rollins said in the policy statement that Treasury plans to offer $62 billion in notes and bonds next week, raising approximately $17 billion in new cash.

The contingency test was part of regular auction infrastructure testing, Rollins said.

The Treasury official who briefed reporters separately said the test would gauge the government’s ability to borrow money if a cyber attack disrupted normal auctions.

On future coupon sizes, Rollins said the department “will continue to monitor projected financing needs and make appropriate adjustments as necessary.”

(Reporting by Jason Lange; Editing by Paul Simao)

Trump, South Korea’s Hwang agree to strengthen defenses against North Korea: White House

South Korea leader

WASHINGTON (Reuters) – U.S. President Donald Trump and South Korean Acting President Hwang Kyo-ahn agreed to take steps to strengthen joint defense capabilities to defend against North Korea’s nuclear threat, the White House said on Sunday after a telephone call between the two leaders.

“President Trump reiterated our ironclad commitment to defend (South Korea), including through the provision of extended deterrence, using the full range of military capabilities,” the White House said in a statement.

It also said Trump and Hwang discussed the upcoming visit by the new U.S. defense secretary to Japan and South Korea, where shared concerns about North Korea will top the agenda.

The United States and South Korea have agreed to deploy a Terminal High Altitude Area Defense (THAAD) system designed to protect against North Korea’s growing nuclear and ballistic capabilities despite objections from China, which says the radar could penetrate Chinese territory.

North Korean leader Kim Jong Un said on Jan. 1 his country was close to test-launching an intercontinental ballistic missile (ICBM), and state media has said a launch could come at any time.

North Korea has maintained its nuclear and missile programs in violation of repeated rounds of international sanctions.

(Reporting by Lesley Wroughton; Editing by Lisa Von Ahn and Will Dunham)