Israeli spymaster sees ‘one-time’ chance for peace with Arabs sharing Iran worries

FILE PHOTO: Mossad director Joseph (Yossi) Cohen gestures as he addresses a budgeting conference hosted by Israel's Finance Ministry in Jerusalem October 22, 2018. REUTERS/Ronen Zvulun/File Photo

By Dan Williams

HERZLIYA, Israel (Reuters) – Israel and U.S.-aligned Arab countries have a unique chance to forge a regional peace deal given their shared worries about Iran, the chief of Israel’s Mossad spy service said on Monday.

In a rare public appearance, Joseph (Yossi) Cohen said his agency had formed a task force designed to spot peacemaking opportunities in a region where only two Arab states, Egypt and Jordan, have full diplomatic relations with Israel.

“The Mossad today espies a rare opportunity, perhaps for the first time in Middle East history, to arrive at a regional understanding that would lead to a comprehensive peace accord,” he told the Herzliya Conference, an annual international security forum near Tel Aviv.

“Common interests, the fight against rivals such as Iran and jihadist terrorism, the close relations with the White House, and channels of communication with the Kremlin all combine to create what might be a one-time window of opportunity,” he said.

The United States convened Arab and other dignitaries in Bahrain last week to encourage investment in the Palestinian economy that might help renew peace talks with Israel. 

The Palestinians, seeing a pro-Israel bias in the Trump administration and a ruse to deny them their goal of full statehood, boycotted the Manama meeting. Israel, which sent only a non-official delegation, saw in the event a chance to bolster its wider ties to the Arab world.

Cohen, whose speech alluded to the Palestinians only in the context of threats against Israel from the armed factions, said many Arab countries “cannot stand Iran’s thuggish behavior”.

He cited Iran’s nuclear program, assistance for guerrillas in Lebanon, Syria, Yemen and elsewhere, and alleged responsibility for a recent spate of sabotage strikes on oil tankers in the Gulf. Iran denies any role in those incidents.

RAPPROCHEMENT PUSH

Cohen said Israel’s warming of relations with Oman, which Prime Minister Benjamin Netanyahu visited last October, followed “a lengthy covert effort by the Mossad” to seek out closer ties.

He pointed to what he termed “an expanding group of responsible, serious countries” – which he did not name – in the region that have channels of communication with Israel despite no formal relations, and cooperate with it in various ways.

Israeli Foreign Minister Israel Katz made a rare visit to Abu Dhabi, which does not have officials ties with Israel, for a two-day U.N. climate meeting on Sunday and Monday. While there, he met with an unnamed Emirati official to discuss bilateral ties as well as the Iranian threat, his office said.

Iran announced on Monday it had amassed more low-enriched uranium than permitted under its 2015 deal with major powers, its first major step in violation of the deal since the United States pulled out of it more than a year ago.

Cohen reaffirmed Israel’s policy that it would not allow its arch-foe to get a bomb. ”The Mossad or the State of Israel did not sign the nuclear deal (and) will do everything to ensure that Iran will never have nuclear weaponry,” he said.

Iran denies ever seeking to acquire a nuclear bomb.

“Currently, it’s about uranium enrichment at a relatively low percentage, and in amounts that are not large. The threat is to step up enrichment and increase the amounts,” Cohen said, speaking before news of the enrichment breach.

“Just imagine what will happen if the material stockpiled by the Iranians becomes fissionable, at military-enrichment grade, and then an actual bomb. The Middle East, and then the entire world, will be a different place. Therefore, the world must not allow this to happen.”

(Editing by Jeffrey Heller, William Maclean and Andrew Cawthorne)

Iran says it has breached 2015 nuclear deal’s stockpile limit

FILE PHOTO: Iran's Foreign Minister Mohammad Javad Zarif sits for an interview with Reuters in New York, New York, U.S. April 24, 2019. REUTERS/Carlo Allegri/File Photo

By Parisa Hafezi and Francois Murphy

DUBAI/VIENNA (Reuters) – Iran has breached the limit of its enriched uranium stockpile set in a 2015 deal with major powers, Foreign Minister Mohammad Javad Zarif said on Monday, according to the ISNA news agency, defying a warning by European co-signatories to stick to the deal despite U.S. sanctions.

Zarif confirmed that Iran had exceeded the relevant limit of 300 kg of uranium hexafluoride (UF6), but Foreign Ministry spokesman Abbas Mousavi said Iran’s steps to decrease its commitments to the nuclear deal were “reversible”.

The International Atomic Energy agency (IAEA) said that its inspectors were verifying whether Iran had accumulated more enriched uranium than allowed.

“Our inspectors are on the ground and they will report to headquarters as soon as the LEU (low-enriched uranium) stockpile has been verified, a spokesman for the U.N. agency said.

Enriching uranium to a low level of 3.6% fissile material is the first step in a process that could eventually allow Iran to amass enough highly-enriched uranium to build a nuclear warhead.

Last Wednesday, the IAEA verified that Iran had roughly 200 kg of low-enriched uranium, just below the deal’s 202.8 kg limit, three diplomats who follow the agency’s work told Reuters. A quantity of 300 kg of UF6 (uranium hexafluoride) corresponds to 202.8 kg of LEU.

After talks on Friday in Vienna, Iran said European countries had offered too little in the way of trade assistance to persuade it to back off from its plan to breach the limit, a riposte to U.S. President Donald Trump’s decision last year to quit the deal and reimpose economic sanctions.

Mousavi urged them on Monday to step up their efforts. “Time is running out for them to save the deal,” state TV quoted him as saying.

The deal between Iran and six world powers lifted most international sanctions against Iran in return for restrictions on its nuclear work aimed at extending the time Iran would need to produce a nuclear bomb, if it chose to, from roughly 2-3 months to a year.

ISRAEL WORRIED

Iran says its nuclear program is solely for peaceful purposes, including generating power. Its regional adversary Israel, which Iran does not recognize, says the program presents it with an existential threat.

Joseph Cohen, head of the Israeli intelligence agency Mossad, urged the international community to stop Iran from “stepping up enrichment”.

“Just imagine what will happen if the material stockpiled by the Iranians becomes fissionable, at military enrichment grade, and then an actual bomb,” he told the Herzliya security conference before Zarif’s announcement.

“The Middle East, and then the entire world, will be a different place. Therefore, the world must not allow this to happen.”

In May, Washington piled pressure on Tehran by ordering all countries to halt imports of Iranian oil, and tensions have been growing in the Gulf ever since.

Washington has dispatched extra forces to the Middle East, and U.S. fighter jets came within minutes of conducting air strikes on Iran last month after Tehran downed an unmanned American drone.

In a speech on Monday broadcast on state TV, Iranian Zarif said: “Iran will never yield to pressure from the United States … If they want to talk to Iran, they should show respect …

“Never threaten an Iranian … Iran has always resisted pressure, and has responded with respect when respected.”

Trump has called for negotiations with Iran with “no preconditions”, but Tehran has ruled out talks until the United States returns to the nuclear pact and drops its sanctions.

(Additional reporting by Babak Dehghanpisheh in Geneva; Francois Murphy in Vienna, Jeffrey Heller in Jerusalem; Writing by Parisa Hafezi; Editing by Kevin Liffey)

U.S. seeks funds for Middle East peace plan but details are vague and Palestinians unhappy

Palestinians burn a picture of U.S. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, and representations of Israeli flags during a protest against Bahrain's workshop for U.S. Middle East peace plan, in Gaza City, June 25, 2019. REUTERS/Mohammed Salem

By Matt Spetalnick

MANAMA (Reuters) – The Trump administration prepared to launch its $50 billion economic formula for Israeli-Palestinian peace in Bahrain on Tuesday but the Palestinian leadership reiterated its disdain for the plan and Saudi Arabia, envisaged as one of its main bank-rollers, also indicated some reservations.

Bahraini armoured vehicle takes up position on bridge leading to Manama’s Four Seasons hotel for first day of U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

Bahraini armoured vehicle takes up position on bridge leading to Manama’s Four Seasons hotel for first day of U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

The two-day international meeting, led by Trump’s son-in-law and senior advisor Jared Kushner, has been billed as the first part of Washington’s broader political blueprint to resolve the Israeli-Palestinian conflict.

But the political details of the plan, which has been almost two years in the making, remain a secret. Neither the Israeli nor Palestinian governments will attend the curtain-raising event in Manama, which Lebanon and Iraq are staying away from.

Palestinian President Mahmoud Abbas, whose Palestinian Authority exercises limited self-rule in the Israeli-occupied West Bank, was scathing about its prospects of success.

“Money is important. The economy is important. But politics are more important. The political solution is more important.”

Washington will be hoping that attendees in Manama such as wealthy Gulf states will show a concrete interest in the plan, which expects donor nations and investors to contribute $50 billion to Palestinian territories, Jordan, Egypt and Lebanon.

Saudi Arabia – a close U.S. ally which shares a common foe with Israel in Iran – voiced support on Tuesday for “international efforts aimed at improving prosperity, investment and economic growth in the region”.

But Riyadh reiterated that any peace deal should be based on the Saudi-led Arab peace initiative that has been the Arab consensus on the necessary elements for a deal since 2002.

That plan calls for a Palestinian state drawn along borders which predate Israel’s capture of territory in the 1967 Middle East war, as well as a capital in East Jerusalem and refugees’ right of return – points rejected by Israel.

Kushner said the plan would not adhere to the Arab initiative. “It will be somewhere between the Arab Peace Initiative and between the Israeli position,” he told Al Jazeera TV in an interview to air on Tuesday.

Chief Palestinian negotiator Saeb Erekat said Kushner is “committed to the initiatives of Israel’s colonial settlement councils.”

Israeli Prime Minister Benjamin Netanyahu, a close Trump ally, said Israel was open to the plan. “We’ll hear the American proposition, hear it fairly and with openness,” he said on Sunday.

White House senior adviser Jared Kushner and Treasury Secretary Steven Mnuchin arrive at Manama's Four Seasons hotel, the venue for the U.S.-hosted "Peace to Prosperity" conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

White House senior adviser Jared Kushner and Treasury Secretary Steven Mnuchin arrive at Manama’s Four Seasons hotel, the venue for the U.S.-hosted “Peace to Prosperity” conference, in Manama, Bahrain, June 25, 2019. REUTERS/Matt Spetalnick

Expectations for success are low. The Trump team concedes the economic plan – billed “Peace to Prosperity” – will be implemented only if a political solution to one of the world’s most intractable conflicts is reached.

Jordan and Egypt, the only Arab states to have reached peace with Israel, are sending deputy finance ministers. Kushner’s plan has hit a political nerve in Jordan, home to millions of citizens of Palestinian refugee origin.

Saudi Arabia and the United Arab Emirates want to move on from a Palestinian conflict they believe has held back the Arab world. Other Gulf states such as Kuwait, Qatar and Oman have not said who they are sending to the conference.

“If there is a one percent chance we do something good here, we should get together and try,” billionaire Mohamed Alabbar, one of Dubai’s most prominent businessmen, said after arriving at the venue in Manama and embracing two American rabbis.

POLITICAL PLAN?

It is not clear whether the Trump team plans to abandon the “two-state solution,” which involves creation of an independent Palestinian state living side by side with Israel.

The United Nations and most nations back the two-state solution and it has underpinned every peace plan for decades.

But Trump’s team has consistently refused to commit to it, keeping the political stage of the plan a secret.

U.N. Secretary-General Antonio Guterres urged the pursuit of “peace efforts to realize the vision of two States, Israel and Palestine, living side by side in peace and security”.

Any such solution would have to settle long-standing issues such as the status of Jerusalem, mutually agreed borders, satisfying Israel’s security concerns and Palestinian demands for statehood, and the fate of Israel’s settlements and military presence in territory in Palestinians want to build that state.

In Gaza, businesses closed doors in a general strike called by the ruling Islamist Hamas group and other factions.

In the West Bank on the outskirts of Ramallah, where a small crowd of protesters was dispersed by Israeli troops firing tear gas, Palestinian lawmaker Mustafa Barghouti said: “There can be no economic solution as a substitute for our freedom.”

The workshop is being held in Bahrain, home of the U.S. Navy’s Fifth Fleet, at a time of heightened tension between Tehran and Washington and its Gulf allies. Trump on Monday imposed sanctions on Iran’s Supreme Leader and other officials after Iran downed an U.S. drone last week.

Palestinian leaders have boycotted the conference, and are refusing to engage with the White House – accusing it of pro-Israel bias. Breaking with international convention, Trump in 2017 recognized disputed Jerusalem as Israel’s capital – a move that infuriated the Palestinians and other Arabs.

Seven Palestinian businessmen gathered in the lobby of the Four Seasons hotel, the conference venue. They estimated that 15 to 20 Palestinian business representatives would be present.

“The politicians will not bring us anywhere,” said conference attendee Shlomi Fogel, an Israeli entrepreneur. “We, the business people, should be able to show them there might be another way.”

(Reporting by Matt Spetalnick and Stephen Farrell; Additional reporting by Nidal al-Mughrabi in Gaza and Rami Ayyub in Ramallah; Writing by Ghaida Ghantous; Editing by Angus MacSwan)

Trump says Iran ‘made a very big mistake’ by shooting down drone

Iran's Supreme Leader Ayatollah Ali Khamenei is seen near a "3 Khordad" system which is said to had been used to shoot down a U.S. military drone, according to news agency Fars, in this undated handout picture. Fars news/Handout via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. REUTERS IS UNABLE TO INDEPENDENTLY VERIFY THIS IMAGE.

By Parisa Hafezi and Phil Stewart

DUBAI/WASHINGTON (Reuters) – U.S. President Donald Trump on Thursday said Iran made “a very big mistake” by shooting down a U.S. military drone that Tehran said was on a spy mission over its territory, in an incident that fanned fears of wider military conflict in the Middle East.

The United States, which called the event an “unprovoked attack” in international air space, is pursuing a campaign to isolate Iran to contain its nuclear and ballistic missile programs and limit its role in regional wars.

It was the latest in an escalating series of incidents in the Gulf region, a critical artery for global oil supplies, since mid-May including explosive strikes on six oil tankers as Tehran and Washington have edged toward confrontation.

“Iran made a very big mistake!” Trump said in a Twitter post.

It was unclear how the United States might respond and U.S. House of Representatives Speaker Nancy Pelosi, the top Democrat in Congress, said Washington had no appetite for war with Iran.

Iran has denied involvement in the tanker attacks, but global jitters about a new Middle East conflagration disrupting oil exports have triggered a jump in crude prices. They surged by more than $3 to above $63 a barrel on Thursday.

Saudi Arabia, Washington’s main gulf ally, said Iran had created a grave situation with its “aggressive behavior” and the kingdom was consulting other Gulf Arab states on next steps.

“When you interfere with international shipping it has an impact on the supply of energy, it has an impact on the price of oil which has an impact on the world economy. It essentially affects almost every person on the globe,” Adel al-Jubeir, Saudi minister of state for foreign affairs, told reporters in London.

Tensions flared with Trump’s withdrawal last year from world powers’ 2015 nuclear accord with Iran and have worsened as Washington imposed fresh sanctions to throttle Tehran’s vital oil trade. Iran retaliated earlier this week with a threat to breach limits on its nuclear activities imposed by the deal.

U.S. MIDEAST FORCES

Upping the ante, Washington said on Monday it would deploy about 1,000 more troops, along with Patriot missiles and manned and unmanned surveillance aircraft, to the Middle East on top of a 1,500-troop increase announced after the May tanker attacks.

Iranian state media said the “spy” drone was brought down over the southern Iranian province of Hormozgan, which is on the Gulf, with a locally made “3 Khordad” missile.

A U.S. official said the drone, formally called an RQ-4A Global Hawk High-Altitude, Long, Endurance Unmanned Aircraft System, had been downed in international air space over the Strait of Hormuz, through which about a third of the world’s seaborne oil exits the Gulf..

Navy Captain Bill Urban, a spokesman for the U.S. military’s Central Command, said Iran’s account that the drone had been flying over Iranian territory was false.

“This was an unprovoked attack on a U.S. surveillance asset in international air space,” Urban said. The drone, he added, was downed over the Strait of Hormuz at approximately 2335 GMT – in the early morning hours of local time in the Gulf.

Separately, a U.S. official told Reuters on condition of anonymity the debris field from the drone was in international waters in the Strait and U.S. naval assets have been dispatched to the area.

Iran’s foreign ministry said the drone had violated Iranian air space and warned of the consequences of such “illegal and provocative” measures.

Independent confirmation of the drone’s location when it was brought down was not immediately available.

A Iranian Revolutionary Guards statement said the drone’s identification transponder had been switched off “in violation of aviation rules and was moving in full secrecy” when it was downed, Iranian state broadcaster IRIB reported.

IRANIAN “RED LINE”

“Our air space is our red line and Iran has always responded and will continue to respond strongly to any country that violates our air space,” Ali Shamkhani, secretary of the Supreme National Security Council, told Iran’s Tasnim news agency.

The RQ-4A’s manufacturer, Northrop Grumman, says on its website that it can fly for over 24 hours at a time at altitudes higher than 10 miles (16 km), with an operational range of 8,200 nautical miles.

The Trump administration sought on Wednesday to rally global support for its pressure on Iran by displaying limpet mine fragments it said came from an oil tanker damaged in the June 13 attacks, saying the ordnance closely resembled mines publicly displayed in Iranian military parades.

European diplomats have said more evidence is needed to pinpoint responsibility for the tanker strikes.

The U.S. sanctions net draped over Iran, scuttling its oil exports and barring it from the dollar-dominated global finance system, have hammered Iran’s economy, undoing the promise of trade rewards from the 2015 deal to curb its nuclear ambitions.

Trump has sent forces including aircraft carriers, B-52 bombers and troops to the Middle East over the past few weeks. Iran said last week it was responsible for the security of the Strait of Hormuz, calling on American forces to leave the Gulf.

Tehran has also said it will shortly suspend compliance with the nuclear deal’s curbs on its uranium enrichment, meant to block any pathway to nuclear weapons capability, and threatened to disrupt oil shipments through the Strait of Hormuz.

But Trump – who sees the nuclear deal as flawed to Iran’s advantage and requiring renegotiation – and Iranian Supreme Leader Ayatollah Ali Khamenei have both said they have no interest in starting a war.

(Additional reporting by Asma Alsharif, Stephen Kalin in Riyadh and Doina Chiacu in Washinigton; Writing by Parisa Hafezi and Arshad Mohammed; Editing by Mark Heinrich and Alistair Bell)

Iran, U.S. in war of words after U.S. drone shot down

FILE PHOTO: The Northrop Grumman-built Triton unmanned aircraft system completed its first flight from the company's manufacturing facility in Palmdale, California, U.S., May 22, 2013. US Navy/Northrop Grumman/Bob Brown/Handout via REUTERS

By Parisa Hafezi and Phil Stewart

DUBAI/WASHINGTON (Reuters) – Iran on Thursday shot down a U.S. military drone it said was on a spy mission over its territory but Washington said the aircraft was targeted in international air space in “an unprovoked attack”.

The incident fanned fears of wider military conflict in the Middle East as U.S. President Donald Trump pursues a campaign of to isolate Iran over its nuclear and ballistic missile programs and role in regional wars.

It was the latest in an escalating series of incidents in the Gulf region, a critical artery for global oil supplies, since mid-May including explosive strikes on six oil tankers as Tehran and Washington have slid toward confrontation.

Iran has denied involvement in any of the attacks, but global jitters about a new Middle East conflagration disrupting oil exports have triggered a jump in crude prices. They surged by more than $3 to above $63 a barrel on Thursday.

Saudi Arabia, Washington’s main gulf ally, said Iran had created a grave situation with its “aggressive behavior” and the kingdom was consulting other Gulf Arab states on next steps.

“When you interfere with international shipping it has an impact on the supply of energy, it has an impact on the price of oil which has an impact on the world economy. It essentially affects almost every person on the globe,” Adel al-Jubeir, Saudi minister of state for foreign affairs, told reporters in London.

Tensions flared with Trump’s withdrawal last year from world powers’ 2015 nuclear accord with Iran and have worsened as Washington imposed fresh sanctions to throttle Tehran’s vital oil trade and Iran retaliated earlier this week with a threat to breach limits on its nuclear activities imposed by the deal.

U.S. BEEFING UP MIDEAST FORCES

Upping the ante, Washington said on Monday it would deploy about 1,000 more troops, along with Patriot missiles and manned and unmanned surveillance aircraft, to the Middle East on top of a 1,500-troop increase announced after the May tanker attacks.

Iranian state media said the “spy” drone was brought down over the southern Iranian province of Hormozgan, which is on the Gulf, with a locally made “3 Khordad” missile.

A U.S. official said the drone was a U.S. Navy MQ-4C Triton and that it had been downed in international air space over the Strait of Hormuz, through which about a third of the world’s seaborne oil exits the Gulf..

Navy Captain Bill Urban, a spokesman for the U.S. military’s Central Command, said Iran’s account that the drone had been flying over Iranian territory was false.

“This was an unprovoked attack on a U.S. surveillance asset in international air space,” Urban said. The drone, he added, was downed over the Strait of Hormuz at approximately 2335 GMT – in the early morning hours of local time in the Gulf.

The Islamic Republic’s Foreign Ministry insisted the drone had violated Iranian air space and warned of the consequences of such “illegal and provocative” measures.

Independent confirmation of the drone’s location when it was brought down was not immediately available.

A Iranian Revolutionary Guards statement said the drone’s identification transponder had been switched off “in violation of aviation rules and was moving in full secrecy” when it was downed, Iranian state broadcaster IRIB reported.

IRANIAN “RED LINE”

“Our air space is our red line and Iran has always responded and will continue to respond strongly to any country that violates our air space,” Ali Shamkhani, secretary of the Supreme National Security Council, told Iran’s Tasnim news agency.

The MQ-4C Triton’s manufacturer, Northrop Grumman, says on its website that the Triton can fly for over 24 hours at a time at altitudes higher than 10 miles (16 km), with an operational range of 8,200 nautical miles.

The Trump administration sought on Wednesday to rally global support for its pressure on Iran by displaying limpet mine fragments it said came from an oil tanker damaged in the June 13 attacks, saying the ordinance closely resembled mines publicly displayed in Iranian military parades.

European diplomats have said more evidence is needed to pinpoint responsibility for the tanker strikes.

SANCTIONS NOOSE

The U.S. sanctions net draped over Iran, scuttling its oil exports and barring it from the dollar-dominated global finance system, have hammered Iran’s economy, undoing the promise of trade rewards from the 2015 deal to curb its nuclear ambitions.

Trump has sent forces including aircraft carriers, B-52 bombers and troops to the Middle East over the past few weeks. Iran said last week it was responsible for the security of the Strait of Hormuz, calling on American forces to leave the Gulf.

Tehran has also said it will shortly suspend compliance with the nuclear deal’s curbs on its uranium enrichment, meant to block any pathway to nuclear weapons capability, and threatened to disrupt oil shipments through the Strait of Hormuz.

But Trump – who sees the nuclear deal as flawed to Iran’s advantage and requiring renegotiation – and Iranian Supreme Leader Ayatollah Ali Khamenei have both said they have no interest in starting a war.

Heightened U.S.-Iranian tensions have also stoked concerns about increasing bloodshed in countries where Iran and its Saudi-led Gulf Arab regional rivals have long been locked in proxy battles for geopolitical dominance in the Middle East.

(Additional reporting by Asma Alsharif in Dubai and Stephen Kalin in Riyadh; Writing by Parisa Hafezi; Editing by Mark Heinrich)

Don’t open ‘Pandora’s Box’ in Middle East, China warns

FILE PHOTO: Chinese Foreign Minister Wang Yi attends a news conference with Cuban Foreign Minister Bruno Rodriguez (not pictured) at Diaoyutai state guesthouse in Beijing, China May 29, 2019. REUTERS/Florence Lo

By Ben Blanchard

BEIJING (Reuters) – The Chinese government’s top diplomat warned on Tuesday that the world should not open a “Pandora’s Box” in the Middle East, as he denounced U.S. pressure on Iran and called on it not to drop out of a landmark nuclear deal.

Fears of a confrontation between Iran and the United States have mounted since last Thursday when two oil tankers were attacked in the Gulf of Oman.

The United States blamed Iran for the attacks, more than a year after President Donald Trump withdrew from a 2015 Iran nuclear deal.

Iran denied involvement in the tanker attacks and said on Monday it would soon breach limits on how much enriched uranium it can stockpile under the deal, which had sought to limit its nuclear capabilities.

Acting U.S. Defense Secretary Patrick Shanahan announced on the same day the deployment of about 1,000 more troops to the Middle East for what he said were defensive purposes, citing concerns about a threat from Iran.

Speaking in Beijing after meeting Syria’s foreign minister, Chinese State Councillor Wang Yi said the United States should not use “extreme pressure” to resolve issues with Iran.

Wang told reporters that China was “of course, very concerned” about the situation in the Gulf and with Iran, and called on all sides to ease tension and not head towards a clash.

“We call on all sides to remain rational and exercise restraint, and not take any escalatory actions that irritate regional tensions, and not open a Pandora’s box,” Wang said.

“In particular, the U.S. side should alter its extreme pressure methods,” Wang said.

“Any unilateral behavior has no basis in international law. Not only will it not resolve the problem, it will only create an even greater crisis.”

Wang also said that the Iran nuclear deal was the only feasible way to resolve its nuclear issue, and he urged Iran to be prudent.

“We understand that relevant parties may have different concerns but first of all the comprehensive nuclear deal should be properly implemented,” he added. “We hope that Iran is cautious with its decision-making and not lightly abandon this agreement.”

At the same time, China hopes other parties respect Iran’s legitimate lawful rights and interests, Wang said.

China and Iran have close energy ties, and China has been angered by U.S. threats against countries and companies that violate U.S. sanctions by importing Iranian oil, including Chinese firms.

China has had to walk a fine line as it has also been cultivating relations with Iran’s regional rival, Saudi Arabia, the Asian giant’s top oil supplier.

Iran’s foreign minister has visited China twice this year already. Saudi Arabia’s crown prince has also visited Beijing this year.

(Reporting by Ben Blanchard; Writing by Se Young Lee and Michael Martina; Editing by Clarence Fernandez, Robert Birsel)

Arab League head warns no Mideast peace deal without Palestinian state

FILE PHOTO - Arab League Secretary-General Ahmed Aboul Gheit attends the Arab League's foreign ministers meeting to discuss unannounced U.S. blueprint for Israeli-Palestinian peace, in Cairo, Egypt April 21, 2019. REUTERS/Mohamed Abd El Ghany

CAIRO (Reuters) – The head of the Arab League warned on Monday that attempts to solve the Israel-Palestinian conflict will be in vain without the establishment of a Palestinian state on all territories occupied by Israel in the 1967 Middle East war.

Ahmed Aboul Gheit’s comments appeared directed at a still unpublished peace plan that U.S. President Donald Trump has dubbed the “deal of the century”. As part of the plan, a U.S.-led conference will be held next week in Bahrain on proposals for the Palestinian economy.

The Palestinian leadership is boycotting the conference, saying Trump’s peace plan is likely to be heavily weighted in favor of Israel and to quash their aspirations for statehood in the occupied West Bank and Gaza Strip.

While the precise outlines of the draft plan have yet to be revealed, Palestinian and Arab sources who have been briefed on it say it jettisons the two-state solution.

“Whatever is rejected by the Palestinian or the Arab side is unacceptable,” Aboul Gheit said during an event at the Arab League.

“What is acceptable from our side as Arabs as a solution is the establishment of a Palestinian state on the June 4, 1967 borders, with Jerusalem as its capital,” he added.

Based in Egypt, the Arab League is often seen as a talking shop rendered ineffective by regional rivalries, but it remains the main forum for Arab opinion on international matters.

Saudi Arabia and Egypt are its most influential members.

Aboul Gheit said that Israel’s acceptance of an Arab Peace Initiative drawn up by Saudi Arabia in 2002, which offers Israel normal ties in return for withdrawal from territory captured in 1967, was the only acceptable solution for Arab states.

“If (Israel) chooses the only reasonable and accepted way from our side as Arabs, which is the establishment of a Palestinian state … it will be accepted in the region as a normal regional partner,” he said.

Last week, a White House official said Egypt, Jordan and Morocco planned to attend the Bahrain conference.

Palestinians urged Egypt and Jordan to reconsider their attendance at the U.S.-led conference in Bahrain, voicing concern it would weaken any Arab opposition to Washington’s coming peace plan.

(Reporting by Mahmoud Mourad and Ahmed Tolba, Editing by Aidan Lewis and Toby Chopra)

Tanker attacks in Gulf of Oman fuel security, oil supply fears

An oil tanker is seen after it was attacked at the Gulf of Oman, June 13, 2019. ISNA/Handout via REUTERS

By Lisa Barrington and Rania El Gamal

DUBAI (Reuters) – Attacks on two oil tankers on Thursday in the Gulf of Oman left one ablaze and both adrift, shipping firms said, driving oil prices up 4% over worries about Middle East supplies.

The Front Altair was on fire in waters between Gulf Arab states and Iran after an explosion that a source blamed on a magnetic mine. The crew of the Norwegian vessel were picked up by a vessel in the area and passed to an Iranian rescue boat.

A second Japanese-owned tanker was abandoned after being hit by a suspected torpedo, the firm that chartered the ship said. The crew were also picked up.

The attacks were the second in a month near the Strait of Hormuz, a major strategic waterway for world oil supplies.

The United States and Saudi Arabia blamed Iran for last month’s attacks using limpet mines on four tankers off the coast of the United Arab Emirates, a charge Tehran denies.

There were no immediate statements apportioning blame after Thursday’s incidents.

“We need to remember that some 30% of the world’s (seaborne) crude oil passes through the straits. If the waters are becoming unsafe, the supply to the entire Western world could be at risk,” said Paolo Amico, chairman of INTERTANKO tanker association.

Tensions have risen since President Donald Trump, who has demanded Tehran curb its military programs and influence in the Middle East, pulled the United States out of a deal between Iran and global powers to curb Tehran’s nuclear ambitions.

Thursday’s attacks came as Shinzo Abe – prime minister of U.S. ally Japan, a big importer of Iranian oil until Washington ratcheted up sanctions – was visiting Tehran with a message from Trump. Abe urged all sides not to let tensions escalate.

The Bahrain-based U.S. Navy Fifth Fleet said it was assisting the two tankers on Thursday after receiving distress calls. Britain said it was “deeply concerned” about Thursday’s reported explosions and was working with partners on the issue.

Iranian Foreign Minister Mohammad Javad Zarif described Thursday’s incidents as “suspicious” on Twitter, noting they occurred during Abe’s Tehran visit. The minister called for regional dialogue.

Oman and the United Arab Emirates, which both have coastlines along the Gulf of Oman, did not immediately issue any public comment.

Saudi Arabia and the UAE, both majority Sunni Muslim nations with a long-running rivalry with predominantly Shi’ite Iran, have previously said attacks on oil assets in the Gulf pose a risk to global oil supplies and regional security.

An oil tanker is seen after it was attacked at the Gulf of Oman, June 13, 2019. ISNA/Handout via REUTERS

An oil tanker is seen after it was attacked at the Gulf of Oman, June 13, 2019. ISNA/Handout via REUTERS

EXPLOSION

Bernhard Schulte Ship management said the Kokuka Courageous was damaged in a “suspected attack” that breached the hull above the waterline while transporting methanol from Saudi Arabia to Singapore.

It said the ship was afloat and the crew safe with one minor injury reported.

A shipping broker said the blast that struck the Kokuka Courageous might have been caused by a magnetic mine. “Kokuka Courageous is adrift without any crew on board,” the source said.

Japan’s Kokuka Sangyo, owner of the Kokuka Courageous, said its ship was hit twice over a three-hour period.

Taiwan’s state oil refiner CPC said the Front Altair, owned by Norway’s Frontline, was “suspected of being hit by a torpedo” around 0400 GMT carrying a Taiwan-bound cargo of 75,000 tonnes of petrochemical feedstock naphtha, which Refinitiv Eikon data showed had been picked up from Ruwais in the UAE.

Frontline said its vessel was on fire but afloat, denying a report by the Iranian news agency IRNA that the vessel had sunk.

Front Altair’s 23-member crew abandoned ship after the blast and were picked up by the nearby Hyundai Dubai vessel. The crew was then passed to an Iranian rescue boat, Hyundai Merchant Marine said in a statement.

Iranian search and rescue teams picked up 44 sailors from the two damaged tankers and took them to the Iranian port of Jask, Iran’s IRNA reported.

Thursday’s attacks came a day after Yemen’s Iran-aligned Houthis fired a missile on an airport in Saudi Arabia, injuring 26 people. The Houthis also claimed an armed drone strike last month on Saudi oil pumping stations.

Iranian Supreme Leader Khamenei told Abe during his visit to Iran that Tehran would not repeat its “bitter experience” of negotiating with the United States, state media reported.

“I do not see Trump as worthy of any message exchange, and I do not have any reply for him, now or in future,” the Iranian leader said.

(Reporting by Koustav Samanta and Jessica Jaganathan in Singapore, Liang-Sa Loh and Yimou Lee in Taipei, Terje Solsvik in Oslo, Ghaida Ghantous in Dubai, Hyunjoo Jin in Seoul and Jonathan Saul in London; Writing by Edmund Blair; Editing by Jon Boyle and Alison Williams)

Iran’s Khamenei: Tehran will not abandon its missile program

FILE PHOTO: Iranian Supreme Leader Ayatollah Ali Khamenei speaks on television after voting in a presidential election in Tehran, June 12, 2009. REUTERS/Caren Firouz//File Photo

LONDON (Reuters) – Iran’s Supreme Leader Ayatollah Ali Khamenei said on Tuesday that Tehran would not be “deceived” by U.S. President Donald Trump’ss offer of negotiations and would not give up its missile program.

Iran and the United States have been drawn into a starker confrontation in the past month, a year after Washington pulled out of a deal between Iran and global powers to curb Tehran’s nuclear program in return for lifting international sanctions.

Trump has condemned the nuclear deal, signed by his predecessor Barack Obama, as flawed for not being permanent and for not covering Iran’s ballistic missile program and its role in conflicts around the Middle East. He has called on Iran to come to negotiating table to reach a new deal.

Trump said last week that Iran “has a chance to be a great country, with the same leadership. We’re not looking for regime change. I just want to make that clear. We’re looking for no nuclear weapons.”

Reacting to those comments, Khamenei said in a speech broadcast on state television: “The U.S. president recently said Iran can achieve development with its current leaders. That means they do not seek regime change … But this political trick will not deceive Iranian officials and the Iranian nation.”

“In the missile program, they know we have reached a point of deterrence and stability. They want to deprive us from it, but they will never succeed,” Khamenei said, speaking at a ceremony marking the 30th anniversary of the death of Ayatollah Ruhollah Khomeini, founder of the Islamic Republic of Iran.

Khamenei said U.S. sanctions have created hardship for Iranians and called on the government to make improving economic conditions its top priority.

President Hassan Rouhani, who has taken a softer stance, suggested last week that Iran might be willing to hold talks if the United States showed it respect and lifted sanctions.

U.S. Secretary of State Mike Pompeo said on Sunday the United States was prepared to engage with Iran without pre-conditions about its nuclear program. Iran dismissed the offer as “word-play”.

(Reporting by Bozorgmehr Sharafedin; Editing by Gareth Jones and Frances Kerry)

Palestinians say U.S. ‘deal of the century’ will finish off their state

FILE PHOTO: Palestinian President Mahmoud Abbas meets with White House senior advisor Jared Kushner in the West Bank City of Ramallah in the Israeli-occupied West Bank June 21, 2017. Thaer Ghanaim/PPO/Handout via REUTERS/File Photo

By Samia Nakhoul

BEIRUT (Reuters) – The U.S. blueprint to end the conflict between Israel and the Palestinians, still in draft form after almost two years, is seen by Palestinians, and by some Arab officials and politicians, as a plan to finish off the Palestinian cause.

The initiative, driven by Jared Kushner, Donald Trump’s son-in-law and White House adviser, was billed by the U.S. president as the “deal of the century”.

While its precise outlines have yet to be revealed, Palestinian and Arab sources who have been briefed on the draft plan say Kushner has jettisoned the two-state solution – the long-standing U.S. and international formula that envisages an independent Palestinian state alongside Israel in the West Bank, east Jerusalem and Gaza.

After several postponements, Washington plans a first formal outing of the economic components of the plan at a “Peace for Prosperity” workshop in June in Bahrain.

The plan faces possible delays due to political upheaval in Israel, where Prime Minister Benjamin Netanyahu must fight another election after failing to form a government.

Kushner and Trump, with backgrounds in real estate rather than diplomacy, seem to be approaching this hitherto insoluble conflict as a transaction, three Arab officials briefed on the plan said.

If the politics keep failing, the reasoning seems to be, then try dangling tens of billions of dollars before the Palestinians and Israel’s Arab neighbors and do a deal that could unlock prosperity for the Palestinians and security for Israel, these officials said.

Politically, the deal envisages an expansion of Gaza into part of northern Egypt, under Egyptian control, Palestinian officials briefed on the plan told Reuters. Palestinians would be left with a smaller share of the West Bank and some areas on the outskirts of Jerusalem and no control over their borders. Western and Arab sources confirmed the outline of the plan.

Jason Greenblatt, Trump’s Middle East envoy, said “rumors” about an expansion into Egypt’s Sinai desert were false. He declined to give details of the political plan before it is released.

On the decision not to use the term “two-state solution”, Grenblatt said: “We believe that using certain phrases and labels is not helpful because they lack detail and nuance – they mean different things to different people. The detailed plan, once released, will show what we think may be best solution for the two parties.”

NOT BUYING IT

The Palestinians are not buying it.

“What we’re seeing from the plan is that it will blow up the Palestinians,” one Arab official told Reuters. “The plan doesn’t give justice to the Palestinians.”

“The Palestinian cause is being liquidated – no Jerusalem (as capital), no right of return for refugees, no sovereign state. That is why this American project is dangerous,” one senior Palestinian leader told Reuters.

The deal as outlined so far has been dismissed by President Mahmoud Abbas’ western-backed Palestinian Authority in the Israeli-occupied West Bank.

Abbas has boycotted political dealings with the Trump administration for 18 months. This followed Trump’s decisions in 2017 to recognize Jerusalem as Israel’s capital and move the U.S. embassy there from Tel Aviv.

    Since then, the Trump administration has curtailed aid to the Palestinian Authority, shuttered the Palestine Liberation Organisation (PLO) delegation in Washington and cut off finance to UNRWA, the U.N. agency supporting Palestinian refugees. Washington meanwhile endorsed Israel’s sovereignty over the Golan Heights.

“In practice, they have already started implementing ‘the deal of the century’,” the senior Palestinian leader said, “on the ground, step by step”. “Today, the two-state solution has been scuttled”.  Abbas is not alone in his view of the U.S. deal.

It was rejected by the Islamist Hamas movement, which does not recognize Israel’s right to exist and has only given conditional consent to a state in the occupied Palestinian territories.

The PLO has dismissed the Kushner effort as an attempt to bribe Palestinians into accepting Israeli occupation of the West Bank, a prelude to Israel annexing about half their territory and leaving them with scattered cantons.

Hanan Ashrawi, a moderate Palestinian leader, tweeted that the Kushner plan and the Bahrain conference were just “a handout to make our captivity palatable”.

Palestinian businessmen have opposed the Bahrain gathering despite a plea by Washington to attend, saying their political demands must be addressed in any peace plan.

Qatar said economic prosperity cannot be achieved without political solutions acceptable to Palestinians. Oman said anything that precludes the establishment of a Palestinian state will not be acceptable.

“We are not proposing an economic peace,” Greenblatt said. “We know that is not acceptable to the Palestinians. We’ve been very clear that the full plan includes a political component as well. But the economic plan is an essential component to the full plan.”

MOVING ON

Robert Satloff, executive director of the Washington Institute for Near East Policy, an influential think-tank and supporter of Israel, wrote after interviewing Kushner this month that the deal is a political disaster that should be abandoned.

He said positive economic proposals could be lost by the attempt to skirt around Palestinian rights.

“The only way to protect the long-term viability of the plan’s best aspects is to kill it,” he said.

Satloff wrote that “unlike a real estate transaction in which one party gets the property and the other party gets the cash, a Middle East peace deal starts and ends with the two parties as neighbors, stuck with each other sharing a duplex for eternity”.

Kushner meanwhile visited the Middle East this week seeking support for the June 25-26 Bahrain conference.

The meeting is to talk about the cash. The U.S. plan expects almost all of this  “$50 billion to $70 billion” to be put up by Gulf Arab allies, Saudi Arabia and the United Arab Emirates, Palestinian sources said. Yet even that is now moot.

Saudi Arabia, under Crown Prince Mohammed bin Salman, and the UAE, under Abu Dhabi Crown Prince Mohammed bin Zayed, want to move on from a Palestinian conflict they believe has held back the Arab world.

That means uniting with Israel against Iran and concentrating on domestic challenges such as economic reforms and confronting Islamist radicals.

The Saudi crown prince maintains close ties with Kushner. But his father, King Salman, has twice said there will be no deal unless Israel meets Palestinian rights to a state.

“Kushner has been taken by surprise in his meetings in Riyadh recently, where there has definitely been a change in tone – in private and in public – by the Saudis,” said a senior western diplomat.

Asked for comment, the White House referred to its earlier official statement on Kushner’s February meeting with the crown prince and the king which said they discussed “increasing cooperation” and efforts to facilitate peace between Israelis and Palestinians.

NEW REALITY

The Palestinian official said it is clear that Israel “is creating a new reality on the ground” with the Trump administration’s help – not least by paving the way for the annexation of Jewish settlements in the West Bank.

The Palestinian and Arab officials briefed on the Kushner- Trump plan said its political contours, as explained to them, look like non-starters unless there is a peace deal.

The essential part is Gaza: where 2 million Palestinians are shut into a strip between Israel and Egypt. The idea is to expand it into the north of Egypt’s Sinai peninsula, creating an area where Palestinians can live and work under Egyptian control.

“The plan envisions Gaza stretching from Rafah (its southern border) to El Arish and some parts of Sinai. This area will be a Palestinian expansion in which Palestinians can reside,” the Palestinian leader said.

Big projects, such as an airport, a seaport, an industrial zone and power stations are envisaged, Palestinian sources briefed on the plan said.

On the West Bank, the plan is for Israel to annex and join up the settlements, take the Jordan valley and make it the Israeli border with Jordan, and leave the Palestinians a bit less than half as “an autonomous mini-state under some form of self-government”, the senior Palestinian leader said.

As for Jerusalem, Palestinians would get neighborhoods on the outskirts such as Abu Dis and Beit Hanina and Silwan: “not the real Jerusalem (but) they will tell them this is your Jerusalem”, the Palestinian leader added.

Western diplomats and intelligence sources worry about how the plan might affect Egypt and Jordan. However much money is offered, these sources question whether Egyptians would happily relinquish territory.And Jordan fears a Trump-backed Israel is returning to an old theme: Jordan is Palestine and that is where the Palestinians of the West Bank should go, they say.

 

(Additional reporting by Ghaida Ghantous, Eric Knecht, Suleiman Al-Khalidi and Matt Spetalnick; Editing by Giles Elgood)