U.S. sanctions Iran’s central bank, fund after Saudi oil attack

The United States on Friday imposed another round of sanctions on Tehran, including on Iran’s central bank and a development fund, following last week’s attacks on oil facilities in Saudi Arabia that Riyadh and U.S. officials have blamed on Iran.

President Donald Trump outlined the action to reporters at the White House on Friday after first announcing his plan for further sanctions earlier this week on Twitter. 

Iran denies involvement in the attacks, which initially halved oil output from Saudi Arabia, the world’s largest petroleum exporter. Responsibility was claimed by Yemen’s Houthi movement, an Iran-aligned group fighting a Saudi-led alliance in Yemen’s civil war.

Analysts cast doubt on how hard the new measures would hit Tehran given that earlier sanctions have already dried up Iranian oil revenues and cut Iranian banks’ ties to the financial world.

And Republican Senator Lindsey Graham called on the Pentagon to present Trump with a wide range of options that would punish Iran and warned that the United States has “lost deterrence” with Tehran. 

The fresh sanctions target the Central Bank of Iran, the National Development Fund of Iran and Etemad Tejarate Pars Co, an Iranian company that U.S. officials said is used to conceal financial transfers for Iranian military purchases, the U.S. Treasury Department said in a statement.

“These are the highest sanctions ever imposed on a country,” Trump said. “It’s too bad what’s happening with Iran. It’s going to hell, doing poorly, practically broke, they are broke,” he said. Treasury Secretary Steve Mnuchin said Washington had now cut off “all source of funds to Iran.”

Trump pulled the United States out of a 2015 nuclear deal with Iran last year and ramped up sanctions to strangle oil exports, a mainstay of the economy. The move dismantled part of former President Barack Obama’s legacy and upset U.S. allies who were party to the agreement, which was designed to restrict Tehran’s pathway to a nuclear bomb in exchange for sanctions relief.

Amir Paivar, a London-based market analyst, said that while targeting a central bank seems important the latest move was mostly cosmetic.

“Iran’s oil export proceeds are usually deposited in Central Bank accounts around the world, therefore the bank has central importance,” Amir Paivar, a London-based market analyst said. 

“But with Iran’s oil exports at a minimum, and with global banks not working with Iranian counterparts, designating the Central Bank again is little more than cosmetic.”

Trump’s wide range of sanctions are part of a U.S. campaign to increase economic pressure on Tehran over its nuclear program and regional ambitions and was championed by former national security adviser John Bolton, who was ousted this month.

Previous U.S. sanctions have also targeted Iran’s foreign minister, its Islamic Revolutionary Guards Corps, space agencies, and various networks Washington has said helped boost Iran’s nuclear program, among others.

“Regardless of transparent attempts to shift blame, the evidence points to Iran—and only Iran,” U.S. Secretary of State Mike Pompeo said in a statement following the announcement.

[Reuters]

Pentagon will deploy US forces to the Middle East after attack on Saudi Arabia oil facilities

The Pentagon will deploy U.S. forces to the Middle East on the heels of strikes on Saudi Arabian oil facilities, U.S. Secretary of Defense Mark Esper announced Friday.

“The president has approved the deployment of U.S. forces which will be defensive in nature and primarily focused on air and missile defense,” Esper said, adding that Saudi Arabia requested the support. “We will also work to accelerate the delivery of military equipment to the Kingdom of Saudi Arabia and the UAE to enhance their ability to defend themselves,” he added.

President Trump has said that it “certainly looks” as if Iran appears to be responsible for the attack, but that he wants to avoid war.

Esper reiterated that the United States does not seek a conflict with Iran and called on Tehran to return to diplomatic channels. He also said that there could be additional U.S. deployments if the situation were to escalate.

On Thursday, the Pentagon called the recent strikes on the Saudi Arabian oil facilities as “sophisticated” and represented a “dramatic escalation” in tensions within the region.

“This has been a dramatic escalation of what we have seen in the past. This was a number of airborne projectiles, was very sophisticated, coordinated and it had a dramatic impact on the global markets,” Pentagon spokesman Jonathan Hoffman said, adding that the strike is an international problem.

A CNBC crew visiting the Khurais site that was attacked saw melted pipes and burnt areas which crews were busy repairing. Officials said that 30% of the facility was back up and running within 24 hours, and that full production at Khurais would be reached before the end of September.

The strikes on the world’s largest crude-processing plant and oil field forced the kingdom to shut down half of its production operations. What’s more, the event triggered the largest spike in crude prices in decades and renewed concerns of a budding conflict in the Middle East. All the while, Iran maintains that it was not behind the attacks.

On Wednesday, Saudi Arabia’s defense ministry said that drone and missile debris recovered by investigators shows Iranian culpability. Saudi coalition spokesman Col. Turki al-Maliki said during a press briefing in Riyadh that all military components retrieved from the oil facilities “point to Iran.”

The latest confrontation follows a string of attacks in the Persian Gulf in recent months.

In June, U.S. officials said an Iranian surface-to-air missile shot down an American military surveillance drone over the Strait of Hormuz. Iran said the aircraft was over its territory. Hours later, Trump said Iran made a “very big mistake” by shooting down the spy drone. The downing came a week after the U.S. blamed Iran for attacks on two oil tankers in the Persian Gulf region and after four tankers were attacked in May.

The U.S. in June slapped new sanctions on Iranian military leaders blamed for shooting down the drone. The measures also aimed to block financial resources for Iran’s Supreme Leader Ayatollah Ali Khamenei.

Though Trump has threatened to bring military action or even “fire and fury” against American adversaries, he has also said he does not want to throw the U.S. into another prolonged military conflict. In a tweet Tuesday, Trump called his measured response to the strikes “a sign of strength that some people just don’t understand!”

[CNBC]

Trump threatens to dump thousands of ISIS fighters into Europe

President Donald Trump on Wednesday threatened to dump thousands of Islamic State prisoners in Europe if the countries they originated from refused to take them back in.

Speaking with reporters at the White House, Trump specifically mentioned France and Germany as two countries where its citizens who pledged their loyalty to the Islamic State, the terrorist group also known as ISIS, could be dropped off.

“We’re holding thousands of ISIS fighters right now, and Europe has to take them,” Trump said. “If Europe doesn’t take them, I’ll have no choice but to release them into the countries from which they came, which is Germany and France and other places.”

Trump’s suggestion for the US to release the prisoners comes amid plans to reduce its 2,000 troops in Syria, stoking fears of a rekindling of the jihadist movement throughout the country and beyond and ultimately hurting the global fight against ISIS.

This leaves a precarious situation for the Syrian Democratic Forces, a US-backed Kurdish group that relies on the presence of US personnel – and has the responsibility of holding thousands of prisoners in makeshift facilities.

The SDF is detaining the lion’s share of ISIS fighters. The SDF had detained 9,000 militants in Syria by April, according to US military officials. The military also estimated that 1,000 of them hailed from 50 countries.

A recent inspector general’s report from the international task force battling ISIS noted that the reduction in US forces reduced the task force’s ability to maintain “visibility” at a refugee camp, which “created conditions that allow ISIS ideology to spread ‘uncontested.'”

The US State Department counterterrorism coordinator Nathan Sales said the US was urging other nations to repatriate the ISIS fighters and prosecute them.

“Across the coalition, we need to prosecute ISIS leaders, fighters, financiers, and facilitators for the crimes they’ve committed,” Sales said earlier in August. “That includes building the law-enforcement capacity of partner states that have the will to act but might lack the resources or expertise to do so. It also means repatriating and prosecuting foreign terrorist fighters.”

About 1,050 Germans joined the Islamic State in the Middle East after 2013, and about 1,190 French citizens joined the group, according to Soufan Center, the global security nonprofit group. Following the collapse of ISIS’ bastions in Iraq and Syria, scores of these foreign nationals were either killed or captured by coalition forces – leaving many of the prisoners’ fates in limbo as their governments debate on their status.

In June, France passed legislation to repatriate French jihadists on a case-by-case basis – 12 French and two Dutch orphans whose parents were militants were transported to France. Germany also considered children as “victims” and has allowed them to be repatriated.

[Business Insider]

Donald Trump Keeps Telling World Leaders The Same Bizarre Story About Kim Jong Un

It has become Donald Trump’s anecdote of choice for world leaders. At the last two G7 summit meetings — which bring together the heads of government of Germany, France, Italy, Japan, Canada, the UK and the US — the president has launched into the same lengthy monologue about what a “great guy” Kim Jong Un is.

The story got its latest outing at last month’s summit in Biarritz, France, as the world leaders were gathered around the table for the formal meeting. When the discussion turned to North Korea — which had spent much of the month firing short-range ballistic missiles into the Sea of Japan in a serious threat to stability in the region — Trump went off on a tangent, spending some 10 minutes rambling about his great relationship with Kim, leaving the other G7 leaders mostly speechless, three sources with direct knowledge of the discussions told BuzzFeed News.

All the leaders — apart from new British prime minister Boris Johnson, who was making his G7 debut — had heard Trump tell the exact same story the same way the last time they all gathered round the summit table, in Canada last year.

Central to Trump’s bizarre riff is the series of “Little Rocket Man” tweets the president directed at Kim two years ago.

The story goes like this:

When Trump first met Kim, in Singapore in June last year, the two men talked about the tweets that Trump had posted in 2017, nicknaming the North Korean leader “Little Rocket Man.”

In Trump’s retelling, during a back-and-forth exchange about the name-calling the two men had engaged in over many months before the meeting in Singapore — “You called me fat… and then you called me this,” — Kim asks Trump why he’d called him that.

“Don’t you know Elton John? It’s a great song,” the president, who is a big fan of the British musician, says.

To which Kim responds, “But you called me ‘little.’”

Then comes Trump’s punchline: “That’s what he didn’t like!”

Trump repeating the same anecdote about Elton John and a brutal dictator to a bemused set of world leaders sounds like the latest Twitter joke about America’s president — just another Gorilla Channel moment on the blurry edge of panic and dark humor.

But Trump’s G7 soliloquy is not a parody. And it captures a more serious truth of the Trump administration: the president, viewed from afar as a dangerous buffoon by his liberal critics, often elicits a similar response from other world leaders who deal with him up close.

The real-life outbursts behind the closed doors of a high-level summit are not very different to what people see on his Twitter feed. While one source dryly described the ramblings on Kim as “very entertaining,” they’re laughing at him, not with him, and it is behavior like this that has dramatically undermined the president’s global political power at a time when the US is trying to build support for action against China and Iran.

Trump’s words and views about Kim in private are not too dissimilar to those he has expressed many times before in public, another G7 source noted.

The president has consistently praised the North Korean dictator and has often adopted warm words to paint their relationship. He even justified North Korea’s recent missile tests.

After firing John Bolton, his national security adviser, last week, Trump told White House reporters that Kim “wanted nothing to do with” Bolton. “I don’t blame Kim Jong Un,” the president said.

But a source emphasized the absurdity of Trump departing on a strange tangent in the middle of serious G7 discussions to wax lyrical about Kim.

Trump described Kim as “brutal” but at the same time explained “what a great guy he was,” the source recalled. Trump then went on to tell the other leaders how Kim had risen to power aged only 25 in a difficult environment.

“He is so fascinated with him,” a source said. “He has a childish fascination with brutality,” they added, before speculating that in part this was possibly a convoluted way for Trump to express how tough he was in dealing with Kim.

His remarks had no coherent thread or real purpose, according to the source.

Johnson, the UK prime minister, briefly tried to engage, the source said. “The other leaders just sat back, and didn’t know what to say.”

The White House has been approached for comment.

[Buzzfeed]

Trump Unwilling to Meet With Iran With ‘No Conditions,’ Contradicting Pompeo, Mnuchin and Himself

President Donald Trump said it was “fake news” to say he was willing to meet with Iran with “no conditions” – contradicting both his senior officials and himself.

Earlier this week, both Secretary of State Mike Pompeo and Secretary of the Treasury Steven Mnuchin said Trump was willing to sit down with the Iranian president with “no conditions” or “no preconditions.”

“As of now, there is no plan for the president to meet with him, although the president has said that he is prepared to meet with no conditions,” Mnuchin told CNBC.

“He is prepared to meet with no preconditions,” Pompeo said earlier this week about Trump potentially meeting Iranian President Hassan Rouhani at a U.N. summit.

Trump appeared to be disputing these comments made by Mnuchin and Pompeo … but Trump himself has also said he would meet Rouhani with “no preconditions.”

“I’m ready to meet anytime they want to … no preconditions, if they want to meet, I’ll meet,” Trump said in July 2018.

[Mediaite]

Trump says US ‘locked and loaded’ after attack on Saudi oil supply

President Donald Trump said the United States is “locked and loaded” after an attack on Saudi Arabia’s oil supply, but his administration is waiting on Riyadh to determine who launched the strikes before proceeding on a course of action.

“There is reason to believe that we know the culprit, are locked and loaded depending on verification,” Trump said in a post on Twitter.

Trump said he authorized the release of oil from the U.S. strategic petroleum reserve to keep the market well supplied.

Attacks crippled the heart of Saudi oil production over the weekend, hitting the world’s largest crude processing facility and the kingdom’s second-largest oilfield. Aramco, Saudi’s national oil company, was forced to cut production by 5.7 million barrels per day or about 50%. That is equivalent to about 5% of the global oil supply.

Oil futures spiked after the weekend attack. U.S. West Texas Intermediate crude futures popped $6.4, or 11.67%, to $61.23 per barrel. Brent crude futures jumped $7.89, or 13.3% to $68.07.

Yemen’s Houthi rebels claimed responsibility for the attack, but the U.S. has pointed the finger at Iran. Secretary of State Mike Pompeo accused Tehran of launching an “unprecedented attack on the world’s energy supply.”

Iran has dismissed those allegations as “meaningless,” “not comprehensible” and “pointless.”

Foreign Minister Javad Zarif called on the Trump administration to hold talks. But Trump tweeted on Sunday saying: “The Fake News is saying that I am willing to meet with Iran, ‘No Conditions.’ That is an incorrect statement (as usual!).”

Tensions between the U.S. and Iran have escalated significantly since Trump pulled out of an international agreement that aimed to keep Tehran from developing a nuclear weapon. Trump thought the deal wasn’t tough enough and has slapped sanctions back on the Islamic Republic.

Trump came close to launching military strikes against Iran in June after the Islamic Republic shot down a U.S. drone. The president said he called off those strikes over concern about the loss of life they would cause. Four weeks later, Trump said the U.S. navy destroyed an Iranian drone, though Tehran denied that was the case.

Washington has also accused Iran of attacking and seizing oil tankers in the Persian Gulf, allegations Tehran rejects.

[NBC News]

Trump Flirts With $15 Billion Bailout for Iran

President Donald Trump has left the impression with foreign officials, members of his administration, and others involved in Iranian negotiations that he is actively considering a French plan to extend a $15 billion credit line to the Iranians if Tehran comes back into compliance with the Obama-era nuclear deal.

Trump has in recent weeks shown openness to entertaining President Emmanuel Macron’s plan, according to four sources with knowledge of Trump’s conversations with the French leader. Two of those sources said that State Department officials, including Secretary Mike Pompeo, are also open to weighing the French proposal, in which the Paris government would effectively ease the economic sanctions regime that the Trump administration has applied on Tehran for more than a year.

The deal put forward by France would compensate Iran for oil sales disrupted by American sanctions. A large portion of Iran’s economy relies on cash from oil sales. Most of that money is frozen in bank accounts across the globe. The $15 billion credit line would be guaranteed by Iranian oil. In exchange for the cash, Iran would have to come back into compliance with the nuclear accord it signed with the world’s major powers in 2015. Tehran would also have to agree not to threaten the security of the Persian Gulf or to impede maritime navigation in the area. Lastly, Tehran would have to commit to regional Middle East talks in the future. 

While Trump has been skeptical of helping Iran without preconditions in public, the president has at least hinted at an openness to considering Macron’s pitch for placating the Iranian government—a move intended to help bring the Iranians to the negotiating table and to rescue the nuclear agreement that Trump and his former national security adviser John Bolton worked so hard to torpedo.

At the G7 meeting in Biarritz, France last month, Trump told reporters that Iran might need a “short-term letter of credit or loan” that could “get them over a very rough patch.”

Iranian Prime Minister Javad Zarif made a surprise appearance at that meeting. To Robert Malley, who worked on Iran policy during the Obama administration, that visit indicated that “Trump must have signaled openness to Macron’s idea, otherwise Zarif would not have flown to Biarritz at the last minute.” 

“Clearly, Trump responded to Macron in a way that gave the French president a reason to invite Zarif, and Zarif a reason to come,” he said.

The French proposal would require the Trump administration to issue waivers on Iranian sanctions. That would be a major departure from the Trump administration’s so-called “maximum pressure” campaign to exact financial punishments on the regime in Tehran. Ironically, during his time in office, President Barack Obama followed a not-dissimilar approach to bring the Iranians to the negotiating table, throttling Iran’s economy with sanctions before pledging relief for talks. The negotiations resulted in the Iran nuke deal that President Trump called “rotten”—and pulled the U.S. out of during his first term.

Trump’s flirtations with—if not outright enthusiasm toward—chummily sitting down with foreign dictators and America’s geopolitical foes are largely driven by his desire for historic photo ops and to be seen as the dealmaker-in-chief. It’s a desire so strong that it can motivate him to upturn years of his own administration’s policymaking and messaging.

And while President Trump has not agreed to anything yet, he did signal a willingness to cooperate on such a proposal at various times throughout the last month, including at the G7 meeting in Biarritz, France, according to four sources with knowledge of the president’s conversations about the deal.

Several sources told The Daily Beast that foreign officials are expecting Trump to either agree to cooperate on the French deal or to offer to ease some sanctions on Tehran. Meanwhile, President Trump is also considering meeting Iranian President Hassan Rouhani on the sidelines of the United Nations General Assembly in September. 

“I do believe they’d like to make a deal. If they do, that’s great. And if they don’t, that’s great too,” Trump told reporters Wednesday. “But they have tremendous financial difficulty, and the sanctions are getting tougher and tougher.” When asked if he would ease sanctions against Iran in order to get a meeting with Iran Trump simply said: “We’ll see what happens. I think Iran has a tremendous, tremendous potential.”

Spokespeople for the State Department, White House, and Treasury did not provide comment for this story. A spokesperson for the National Security Council simply referred The Daily Beast to Trump’s Wednesday comments on Iran. Bolton didn’t comment on Wednesday, either.

Trump’s willingness to discuss the credit line with the French, the Iranians and also Japanese President Shinzo Abe frustrated Bolton, who had for months urged Trump not to soften his hard line against the regime in Tehran

Bolton, who vociferously opposed the Macron proposal, departed the Trump administration on explicitly and mutually bad terms on Tuesday. On Bolton’s way out of the door, Trump and senior administration officials went out of their way to keep publicly insisting he was fired, as Bolton kept messaging various news outlets that Trump couldn’t fire him because he quit. The former national security adviser and lifelong hawk had ruffled so many feathers and made so many enemies in the building that his senior colleagues had repeatedly tried to snitch him out to Trump for allegedly leaking to the media. 

On Tuesday afternoon, Bolton messaged The Daily Beast to say that allegations about him being a leaker were “flatly incorrect.

At a press briefing held shortly after Bolton’s exit on Tuesday, neither Secretary of State Mike Pompeo nor Treasury secretary Steve Mnuchin showed much sympathy for Bolton’s falling star in Trumpworld. “There were many times Ambassador Bolton and I disagreed,” Pompeo told reporters. “That’s to be sure, but that’s true with a lot of people with whom I interact.”

According to those who know Pompeo well, the secretary’s public statement was a glaring understatement.

[The Daily Beast]

‘I don’t blame Kim Jong Un’: In dismissing Bolton, Trump sides with North Korean leader — again

Having ousted John Bolton from the White House, President Trump delivered a kick to his former national security adviser to illustrate just how far he had fallen. North Korean leader Kim Jong Un, the president said, “wanted nothing to do with” him during diplomatic talks over the past 17 months.

“I don’t blame Kim Jong Un,” he told reporters in the Oval Office.

Trump’s remarks on Wednesday revealed lingering resentment that, in his view, Bolton had threatened to derail the United States’ historic first summit with Kim last year by taking an unnecessarily provocative position in suggesting that Pyongyang must follow the “Libya model” and relinquish all of its nuclear weapons under any prospective deal.

Trump’s willingness to publicly side with Kim over a recently departed senior aide marked the latest in a string of extraordinary episodes in which he has aligned himself with one of the world’s most brutal dictators against individual Americans, the intelligence community, the military and U.S. allies.

Since the second U.S.-North Korea summit in Hanoi in February collapsed without a deal, Trump has sought to rekindle dormant bilateral negotiations by flattering Kim — but also by offering him political cover on a list of provocations that cut against U.S. interests.

This summer alone, the president has:

●Reiterated his belief that joint U.S.-South Korea military drills are “ridiculous and expensive” — this time after receiving a personal letter from Kim complaining about the exercises.

●Declared that the North’s testing of short-range missiles did not violate an agreement with Kim, prompting Japanese Prime Minister Shinzo Abe to call the tests a clear violation of U.N. Security Council resolutions.

●Endorsed, while on a state visit to Tokyo, North Korean state media’s mockery of former vice president Joe Biden as a “fool of low IQ,” saying he agreed.

●Stated that he would not have authorized using Kim’s family members as spies against the regime amid reports that the CIA had cultivated the dictator’s half brother as an intelligence asset. (Kim Jong Nam was assassinated in Malaysia in 2017, at the North Korean leader’s direction, according to South Korea’s spy agency.)

Former U.S. officials said Trump’s approach with Kim fits his pattern of trying to maintain good personal relationships with hostile foreign leaders in hope that it will pay off at the negotiating table. Yet they emphasized that the strategy has not led to breakthroughs on Trump’s biggest foreign policy initiatives, including an effort to secure a trade deal with China.

“It’s his idea that you have to be utterly obsequious with your negotiating partner to suggest you’re a good guy and they should deal with you,” said Christopher Hill, who served as the lead negotiator in the George W. Bush administration during the Six Party Talks with North Korea. “Of course, he’s got very little to show for it. The North Koreans have just pocketed it.”

Although Trump has emphasized that Kim has abided by a private pledge in Singapore to refrain from testing nuclear weapons and long-range ballistic missiles, experts say the North has improved the accuracy and maneuverability of its short-range arsenal.

Trump is trying to extort Ukraine to interfere in the 2020 election

The Washington Post editorial board published an alarming op-ed this week that claims President Donald Trump is trying to “extort” the government of Ukraine to help his 2020 presidential campaign dig up dirt on current Democratic frontrunner Joe Biden.

According to the editorial, Trump so far has refused to grant new Ukrainian President Volodymyr Zelensky a visit at the White House and has mulled suspending $250 million in military aid to the country.

While some critics of the administration have claimed that this move is designed to help Russian President Vladimir Putin, the Post’s editors claim they have knowledge that the president’s motives are even more nefarious.

We’re reliably told that the president… is attempting to force Mr. Zelensky to intervene in the 2020 U.S. presidential election by launching an investigation of the leading Democratic candidate, Joe Biden,” the editors write. “Mr. Trump is not just soliciting Ukraine’s help with his presidential campaign; he is using U.S. military aid the country desperately needs in an attempt to extort it.”

The editorial also speculates that the White House may be holding a grudge against Ukraine after a Ukrainian legislator uncovered damning information about the activities of former Trump campaign chairman Paul Manafort, who has since been convicted on money laundering charges related to his work as a lobbyist in the country.

Read the whole editorial here.

[Raw Story]

Trump congratulates Poland as it commemorates Nazi invasion

President Trump is known to make the odd comment here and there about foreign nations, often because he doesn’t seem particularly versed in what’s happening in them. But even by his standards, this was quite a weekend.

Trump was asked Sunday about the trip to Poland he canceled to monitor Hurricane Dorian. Asked if he had a message for that country, which was commemorating the anniversary of the start of World War II, Trump decided to … congratulate it?

Q: Mr. President, do you have a message for Poland on the 80th anniversary of the Second World War?

TRUMP: I do have a great message for Poland. And we have Mike Pence, our Vice President, is just about landing right now. And he is representing me. I look forward to being there soon.

But I just want to congratulate Poland. It’s a great country with great people. We also have many Polish people in our country; it could be 8 million. We love our Polish friends. And I will be there soon.

For those not versed in World War II history, Sunday was the anniversary of the day Nazi Germany invaded Poland, which led France and Great Britain to declare war two days later (i.e. 80 years ago Tuesday). Poland would wind up losing nearly one-fifth of its population in the war, according to estimates.

As such, it was more of a day for somber remembrance than a day of triumph. The German president asked for Poland’s forgiveness, for instance. And Trump’s comment struck a significantly different tone than the man sent to Poland in his stead, Vice President Pence.

[Washington Post]

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