Iran Nuclear Deal: USA remains out under Biden; Russia and Iran collaborating on nuclear items
Escobar man @ZoeGodPEPE ESCOBAR: War on Iran & Calling America's Bluff
Vast swathes of the West seem not to realize that if the Strait of Hormuz is shut down a global depression will follow, writes Pepe Escobar.
By Pepe Escobar
Special to Consortium News
The Trump administration once again has graphically demonstrated that in the young, turbulent 21st century, “international law” and “national sovereignty” already belong to the Realm of the Walking Dead.
As if a deluge of sanctions against a great deal of the planet was not enough, the latest “offer you can’t refuse” conveyed by a gangster posing as diplomat, Consul Minimus Mike Pompeo, now essentially orders the whole planet to submit to the one and only arbiter of world trade: Washington.
First the Trump administration unilaterally smashed a multinational, UN-endorsed agreement, the JCPOA, or Iran nuclear deal. Now the waivers that magnanimously allowed eight nations to import oil from Iran without incurring imperial wrath in the form of sanctions will expire on May 2 and won’t be renewed.
The eight nations are a mix of Eurasian powers: China, India, Japan, South Korea, Taiwan, Turkey, Italy and Greece.
Apart from the trademark toxic cocktail of hubris, illegality, arrogance/ignorance and geopolitical/geo–economic infantilism inbuilt in this foreign policy decision, the notion that Washington can decide who’s allowed to be an energy provider to emerging superpower China does not even qualify as laughable. Much more alarming is the fact that imposing a total embargo of Iranian oil exports is no less than an act of war.
Ultimate Neocon Wet Dream
Those subscribing to the ultimate U.S, neocon and Zionist wet dream – regime change in Iran – may rejoice at this declaration of war. But as Professor Mohammad Marandi of the University of Tehran has elegantly argued, “If the Trump regime miscalculates, the house can easily come crashing down on its head.”
Reflecting the fact Tehran seems to have no illusions regarding the utter folly ahead, the Iranian leadership — if provoked to a point of no return, Marandi additionally told me — can get as far as “destroying everything on the other side of the Persian Gulf and chasing the U.S. out of Iraq and Afghanistan. When the U.S. escalates, Iran escalates. Now it depends on the U.S. how far things go.”
This red alert from a sensible academic perfectly dovetails with what’s happening with the structure of the Islamic Revolutionary Guard Corps (IRGC) — recently branded a “terrorist organization” by the United States. In perfect symmetry, Iran’s Supreme National Security Council also branded the U.S. Central Command — CENTCOM — and “all the forces connected to it” as a terrorist group.
The new IRGC commander-in-chief is Brigadier General Hossein Salami, 58. Since 2009 he was the deputy of previous commander Mohamamd al-Jafari, a soft spoken but tough as nails gentleman I met in Tehran two years ago. Salami, as well as Jafari, is a veteran of the Iran-Iraq war; that is, he has actual combat experience. And Tehran sources assure me that he can be even tougher than Jafari.
In tandem, IRGC Navy Commander Rear Admiral Alireza Tangsiri has evoked the unthinkable in terms of what might develop out of the U.S. total embargo on Iran oil exports; Tehran could block the Strait of Hormuz.
Western Oblivion
Vast swathes of the ruling classes across the West seem to be oblivious to the reality that if Hormuz is shut down, the result will be an absolutely cataclysmic global economic depression.
Warren Buffett, among other investors, has routinely qualified the 2.5 quadrillion derivatives market as a weapon of financial mass destruction. As it stands, these derivatives are used — illegally — to drain no less than a trillion U.S. dollars a year out of the market in manipulated profits.
Considering historical precedents, Washington may eventually be able to set up a Persian Gulf of Tonkin false flag. But what next?
If Tehran were totally cornered by Washington, with no way out, the de facto nuclear option of shutting down the Strait of Hormuz would instantly cut off 25 percent of the global oil supply. Oil prices could rise to over $500 a barrel, to even $1000 a barrel. The 2.5 quadrillion of derivatives would start a chain reaction of destruction.
Unlike the shortage of credit during the 2008 financial crisis, the shortage of oil could not be made up by fiat instruments. Simply because the oil is not there. Not even Russia would be able to re-stabilize the market.
It’s an open secret in private conversations at the Harvard Club – or at Pentagon war-games for that matter – that in case of a war on Iran, the U.S. Navy would not be able to keep the Strait of Hormuz open.
Russian SS-NX-26 Yakhont missiles — with a top speed of Mach 2.9 — are lining up the Iranian northern shore of the Strait of Hormuz. There’s no way U.S. aircraft carriers can defend a barrage of Yakhont missiles.
Then there are the SS-N-22 Sunburn supersonic anti-ship missiles — already exported to China and India — flying ultra-low at 1,500 miles an hour with dodging capacity, and extremely mobile; they can be fired from a flatbed truck, and were designed to defeat the U.S. Aegis radar defense system.
What Will China Do?
The full–frontal attack on Iran reveals how the Trump administration bets on breaking Eurasia integration via what would be its weakeast node; the three key nodes are China, Russia and Iran. These three actors interconnect the whole spectrum; Belt and Road Initiative; the Eurasia Economic Union; the Shanghai Cooperation Organization; the International North-South Transportation Corridor; the expansion of BRICS Plus.
So there’s no question the Russia-China strategic partnership will be watching Iran’s back. It’s no accident that the trio is among the top existential “threats” to the U.S., according to the Pentagon. Beijing knows how the U.S. Navy is able to cut it off from its energy sources. And that’s why Beijing is strategically increasing imports of oil and natural gas from Russia; engineering the “escape from Malacca” also must take into account a hypothetical U.S. takeover of the Strait of Hormuz.
Night view of coast of Oman, including Strait of Hormuz. (Intl Space Station photo via Wikimedia)
A plausible scenario involves Moscow acting to defuse the extremely volatile U.S.-Iran confrontation, with the Kremlin and the Ministry of Defense trying to persuade President Donald Trump and the Pentagon from any direct attack against the IRGC. The inevitable counterpart is the rise of covert ops, the possible staging of false flags and all manner of shady Hybrid War techniques deployed not only against the IRGC, directly and indirectly, but against Iranian interests everywhere. For all practical purposes, the U.S. and Iran are at war.
Within the framework of the larger Eurasia break-up scenario, the Trump administration does profit from Wahhabi and Zionist psychopathic hatred of Shi’ites. The “maximum pressure” on Iran counts on Jared of Arabia Kushner’s close WhatsApp pal Mohammad bin Salman (MbS) in Riyadh and MbS’s mentor in Abu Dhabi, Sheikh Zayed, to replace the shortfall of Iranian oil in the market. Bu that’s nonsense — as quite a few wily Persian Gulf traders are adamant Riyadh won’t “absorb Iran’s market share” because the extra oil is not there.
Much of what lies ahead in the oil embargo saga depends on the reaction of assorted vassals and semi-vassals. Japan won’t have the guts to go against Washington. Turkey will put up a fight. Italy, via Salvini, will lobby for a waiver. India is very complicated; New Delhi is investing in Iran’s Chabahar port as the key hub of its own Silk Road, and closely cooperates with Tehran within the INSTC framework. Would a shameful betrayal be in the cards?
China, it goes without saying, will simply ignore Washington.
Iran will find ways to get the oil flowing because the demand won’t simply vanish with a magic wave of an American hand. It’s time for creative solutions. Why not, for instance, refuel ships in international waters, accepting gold, all sorts of cash, debit cards, bank transfers in rubles, yuan, rupees and rials— and everything bookable on a website?
Now that’s a way Iran can use its tanker fleet to make a killing. Some of the tankers could be parked in— you got it — the Strait of Hormuz, with an eye on the price at Jebel Ali in the UAE to make sure this is the real deal. Add to it a duty free for the ships crews. What’s not to like? Ship owners will save fortunes on fuel bills, and crews will get all sorts of stuff at 90 percent discount in the duty free.
And let’s see whether the EU has grown a spine — and really turbo-charge their Special Purpose Vehicle (SPV) alternative payment network conceived after the Trump administration ditched the JCPOA. Because more than breaking up Eurasia integration and implementing neocon regime change, this is about the ultimate anathema; Iran is being mercilessly punished because it has bypassed the U.S. dollar on energy trade.
Pepe Escobar, a veteran Brazilian journalist, is the correspondent-at-large for Hong Kong-based Asia Times. His latest book is “2030.” Follow him on Facebook.
ZoeGod
I’m from Brooklyn a place where stars are born.
With Bolton, Pompeo and Pence all blood thirsty Iran hawks in the helm and with no McMaster, Mattis and Tillerson to stop this madness I will say we are getting really close to a war with Iran. I would say there is a 65% chance of war. If sanctions against countries who buy oil from Iran don’t work the last option is a naval embargo.
Json
Superstar
If China pulls up what is Trump gonna do?
China and Russia both know Trump and the US aren’t ready for another long war with Iraq and Afghanistan still going.
If Trump isn’t going to pull up in Venezuela ,which is his own backyard, he ain’t pulling it in theirs.
DrBanneker
Space is the Place
Fixed. Crazy thing is I seriously doubt anyone in the US military or IDF wants this madness which makes it that much crazier. Benny Gantz wasn't pro-Palestinian but they hopefully would have quashed this mess. Now it looks like full speed ahead.
I hate saying that countries like China and Russia are the adults in the room but at this point, but that's basically where we are.
ADevilYouKhow
Rhyme Reason
It’s up to Iran
Trouble at home may change Biden's hand in Iran nuke talksIt’s up to Iran
By ELLEN KNICKMEYER
January 18, 2021
In this photo released on Saturday, Jan. 16, 2021, by the Iranian Revolutionary Guard, missiles are launched in a drill in Iran. Iran’s paramilitary Revolutionary Guard conducted a drill Saturday launching anti-warship ballistic missiles at a simulated target in the Indian Ocean, state television reported, amid heightened tensions over Tehran’s nuclear program and a U.S. pressure campaign against the Islamic Republic. (Iranian Revolutionary Guard/Sepahnews via AP)
A lot of the characters are the same for President-elect Joe Biden but the scene is far starker as he reassembles a team of veteran negotiators to get back into the 2015 nuclear deal with Iran.
President Donald Trump worked to blow up the multinational deal to contain Iran’s nuclear program during his four years in office, gutting the diplomatic achievement of predecessor Barack Obama in favor of what Trump called a maximum pressure campaign against Iran.
Down to Trump’s last days in office, accusations, threats and still more sanctions by Trump and Secretary of State Mike Pompeo, and Iran’s decision to spur uranium enrichment and seize a South Korean tanker, are helping to keep alive worries that regional conflict will erupt. Iran on Friday staged drills, hurling volleys of ballistic missiles and smashing drones into targets, further raising pressure on the incoming American president over a nuclear accord.
Even before the Capitol riot this month, upheaval at home threatened to weaken the U.S. hand internationally, including in the Middle East’s nuclear standoff. Political divisions are fierce, thousands are dying in the pandemic and unemployment remains high.
Biden and his team will face allies and adversaries wondering how much attention and resolution the U.S. can bring to bear on the Iran nuclear issue or any other foreign concern, and whether any commitment by Biden will be reversed by his successor.
“His ability to move the needle is ... I think hampered by the doubt about America’s capacity and by the skepticism and worry about what comes after Biden,” said Vali Nasr, a professor at Johns Hopkins University School of Advanced International Studies. Nasr was an adviser on Afghanistan during the first Obama administration.
Biden’s pick for deputy secretary of state, Wendy Sherman, acknowledged the difficulties in an interview with a Boston news show last month before her nomination.
“We’re going to work hard at this, because we have lost credibility, we are seen as weaker” after Trump, said Sherman, who was Barack Obama’s lead U.S. negotiator for the 2015 Iran nuclear agreement. She was speaking of U.S. foreign objectives overall, including the Iran deal.
Biden’s first priority for renewed talks is getting both Iran and the United States back in compliance with the nuclear deal, which offered Iran relief from sanctions in exchange for Iran accepting limits on its nuclear material and gear.
“If Iran returns to compliance with the deal, we will do so as well,” a person familiar with the Biden transition team’s thinking said, speaking on condition of anonymity because the person was not authorized to speak on the record. “It would be a first step.”
But Biden also faces pressure both from Democrats and Republican opponents of the Iran deal. They don’t want the U.S. to throw away the leverage of sanctions until Iran is made to address other items objectionable to Israel, Sunni Arab neighbors, and the United States. That includes Iran’s ballistic missiles and substantial and longstanding intervention in Syria, Yemen, Lebanon and Iraq. Biden promises to deal with all that too.
Getting back into the original deal “is the floor and not the ceiling” for the Biden administration on Iran, the person familiar with the incoming administration’s thinking on it said. “It doesn’t stop there.”
“In an ideal world it would be great to have a comprehensive agreement” at the outset, said Rep. Gerry Connolly, a Virginia Democrat on the House Foreign Affairs Committee. “But that’s not how these negotiations work.”
Connolly said he thought there was broad support in Congress for getting back into the deal.
Richard Goldberg, a senior adviser for the Foundation for Defense of Democracies institute who worked as an Iran adviser for the Trump administration in 2019 and this year, questioned that.
Lawmakers in Congress will balk at lifting sanctions on Iran’s Revolutionary Guard and other Iranian players the U.S. regards as supporters of terrorism, and balk, too, at giving up on financial pressure meant to block Iran from moving closer to nuclear weapons, Goldberg predicts.
“This is a real wedge inside the Democratic Party,” Goldberg said.
Sanctions by Trump, who pulled the U.S. out of the accord in 2018, mean that Iran’s leaders are under heavier economic and political pressure at home, just as Biden is. The United States’ European allies will be eager to help Biden wrack up a win on the new Iran talks if possible, Nasr said. Even among many non-U.S. allies, “they don’t want the return of Trump or Trumpism.”
Biden served as Obama’s main promoter of the 2015 accord with lawmakers once the deal was brokered. He talked for hours to skeptics in Congress and at a Jewish community center in Florida. Then, Biden hammered home Obama’s pledge that America ultimately would do everything in its power to keep Iran from getting nuclear weapons, if diplomacy failed.
Besides tapping Sherman for his administration, Biden has called back William Burns, who led secret early talks with Iran in Oman, as his CIA director. He’s selected Iran negotiators Anthony Blinken and Jake Sullivan as his intended secretary of state and national security adviser respectively, among other 2015 Iran players.
It’s not yet clear if Biden will employ Sherman as his principal diplomatic manager with Iran, or someone else, or whether he will designate a main Iran envoy. Sherman has also been instrumental in U.S. negotiations with North Korea.
The Obama’s administration’s implicit threat of military action against Iran if it kept moving toward a weapons-capable nuclear program could look less convincing than it did five years ago, given the U.S. domestic crises.
A new Middle East conflict would only make it harder for Biden to find the time and money to deal with pressing problems, including his planned $2 trillion effort to cut climate-damaging fossil fuel emissions.
“If war with Iran became inevitable it would upend everything else he’s trying to do with his presidency,” said Karim Sadjadpour, an expert on Iran and U.S. Middle East policy at the Carnegie Endowment for International Peace. “Biden and his team are very mindful of this. Their priorities are domestic.”