Saudi visit shows Putin’s deepening Middle East influence

By Olesya Astakhova and Stephen Kalin

RIYADH (Reuters) – President Vladimir Putin signaled Moscow’s growing Middle East clout on Monday by visiting Saudi Arabia for the first time in over a decade, buoyed by Russian military gains in Syria, strong ties with Riyadh’s regional rivals and energy cooperation.

Moscow accrued power in the Middle East in 2015 by sending troops to Syria, where it and Iran have been key backers of President Bashar al-Assad amid civil war, while the United States pulled back. Saudi Arabia sided with Syrian rebels.

On the eve of Putin’s trip, U.S. troops were abruptly retreating from northern Syria as Russian-backed government forces deployed deep inside Kurdish-held territory under a deal to help fend off a Turkish cross-border offensive.

Russia has also strengthened ties with both Sunni Muslim Saudi Arabia and Shi’ite Iran, which are locked in a decades-old contest for influence that veered towards open conflict after a recent spate of attacks on oil assets in the Gulf that Riyadh and Washington blame on Tehran. Iran denies the charges.

Tensions with Iran, which is locked in several proxy wars with Saudi Arabia, have risen to new highs after Washington last year quit a 2015 international nuclear accord with Tehran and re-imposed sanctions.

The Russian president, accompanied by his energy minister and head of Russia’s wealth fund, met King Salman at his palace along with de facto ruler Crown Prince Mohammed bin Salman, with whom Putin says he has friendly relations.

Deepening ties have seen non-OPEC Russia, once regarded as a rival in oil markets, join OPEC kingpin Saudi Arabia in forming an alliance known as OPEC+ to support crude prices by restraining output.

At a morning forum convening 300 Saudi and Russian CEOs, Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ countries were showing high commitments to the deal, and his Russian counterpart said there were no talks underway to change it.

Ahead of the visit, Putin, who offered to provide Russian defense systems to the kingdom after Sept. 14 attacks on its oil facilities, said he could also play a positive role in easing tensions with Tehran given good ties with both sides.

Any progress on long-mulled Saudi plans to purchase the Russian S-400 surface-to-air missile systems would cause disquiet in Washington, which is sending 3,000 troops and additional air defense systems to Saudi Arabia.

U.S. President Donald Trump has resisted pressure to sanction Riyadh over human rights abuses, including the murder of journalist Jamal Khashoggi, calling that a “foolish” move that would only benefit competitors Russia and China.

OIL AND INVESTMENTS

Asked about concerns Riyadh was cozying up to Moscow, Saudi Minister of State for Foreign Affairs Adel al-Jubeir said he saw no contradiction.

“We don’t believe that having close ties with Russia has any negative impact on our relationship with the United States,” he told reporters on Sunday. “We believe that we can have strategic and strong ties with the United States while we develop our ties with Russia.”

Russian and Saudi flags lined Riyadh streets ahead of Putin’s one-day visit, which includes an evening performance by Russia’s Tchaikovsky Symphony Orchestra. Putin then travels to the United Arab Emirates.

In meetings with Saudi leaders, the Russian president will discuss the OPEC+ pact, which has seen production cut by 1.2 million barrels per day since January.

The two sides are expected to sign more than $2 billion of deals, including a joint investment by state oil giant Saudi Aramco and Russia’s RDIF sovereign wealth fund.

RDIF head Kirill Dmitriev said a number of Russian investors were interested in a planned initial public offering of Aramco. The oil major could sell 1-2% through a local listing its chairman said would be announced “very, very soon”, ahead of a potential international offering.

Energy Minister Alexander Novak said Russia’s Gazprom is interested in cooperating with Saudi firms on natural gas.

Moscow, the world’s largest wheat exporter, made some progress in accessing the Saudi and Middle Eastern markets when the kingdom agreed in August to relax specifications for wheat imports, opening the door to Black Sea imports.

RDIF and Saudi Arabia’s SALIC plan to sign an agreement to jointly search for investment projects in Russia’s agricultural sector, a source told Reuters.

(Additional reporting by Maher Chmaytelli and Dahlia Nehme in Dubai and Polina Devitt in Moscow; Writing by Stephen Kalin; Editing by Lincoln Feast, William Maclean)

Iran warns against war as U.S. and Saudi weigh response to oil attack

By Tuqa Khalid and Stephen Kalin

DUBAI/JEDDAH (Reuters) – Iran warned U.S. President Donald Trump on Thursday against being dragged into all-out war in the Middle East following an attack on Saudi Arabian oil facilities which Washington and Riyadh blame on Tehran.

U.S. Secretary of State Mike Pompeo has described the weekend strike that initially halved Saudi oil output as an act of war and has been discussing possible retaliation with Saudi Arabia and other Gulf allies.

Trump on Wednesday struck a cautious note, saying there were many options short of war with Iran, which denies involvement in the Sept. 14 strikes. He ordered more sanctions on Tehran.

Iran’s foreign minister responded by telling CNN that the Islamic Republic “won’t blink” if it has to defend itself against any U.S. or Saudi military strike, which he said would lead to “all-out war”.

Mohammed Javad Zarif said Pompeo was part of a so-called “B-team”, which Tehran says includes Saudi Arabia’s crown prince and is trying to dupe Trump into opting for war.

Pompeo said on Wednesday the attack was an act of war against the Saudis.

Riyadh, which called the assault a “test of global will”, on Wednesday displayed what it described as remnants of 25 Iranian drones and missiles used in the strike, saying it was undeniable evidence of Iranian aggression.

BUILDING A COALITION

The United Arab Emirates on Thursday followed its ally Saudi Arabia in announcing it was joining a global maritime security coalition that Washington has been trying to build since a series of explosions on oil tankers in Gulf waters in recent months that were also blamed on Tehran.

Pompeo, who arrived in the UAE from Saudi Arabia on Thursday, welcomed the move on Twitter: “Recent events underscore the importance of protecting global commerce and freedom of navigation.”

Britain and Bahrain previously said they are participating but most European countries have been reluctant to sign up for fear of stoking regional tensions. Iraq said it would not join the mission, and also rejected any Israeli role in it.

Yemen’s Iran-aligned Houthi movement, which is battling a Saudi-led military coalition, claimed responsibility for the assault on two Saudi oil plants, including the world’s largest processing facility. U.S. and Saudi officials rejected the claim, saying the attack had not come from the south.

Kuwait, which said earlier this week it was investigating the detection of a drone over its territory, has put its oil sector on high alert and raised security to the highest level as a precautionary measure.

Oil prices, which soared following the attack, steadied after Saudi Arabia pledged to restore full oil production by the end of September. [O/R]

U.N. MEETING IN FOCUS

Proof of Iranian responsibility and evidence that the attack was launched from Iranian territory could pressure Riyadh and Washington, which want to curb Iranian influence in the region, into a response.

Pompeo said the attacks would be a major focus of next week’s annual U.N. General Assembly meeting and suggested Riyadh could make its case there.

Iran’s Zarif accused Pompeo of trying to “dodge a U.S. obligation” to issue visas for Iran’s U.N. delegates.

Tehran says the U.S. accusations were part of Washington’s “maximum pressure” policy on Iran to force it to renegotiate a 2015 nuclear deal with world powers, which Trump exited last year, reimposing sanctions to choke off Iran’s oil exports.

Tehran, which has gradually scaled back its nuclear commitments, has rejected any talks unless sanctions are lifted.

“The United States is now using oil as a weapon; oil is not a weapon,” Iranian Oil Minister Bijan Zangeneh said.

France, which is trying to salvage the deal, said the New York gathering presented a chance to de-escalate tensions.

“When missiles hit another country it is an act of war, but we have to go back to the principle of de-escalation,” French Foreign Minister Jean-Yves Le Drian said. “There is an international investigation, let’s wait for its results.”

(Reporting by Tuqa Khalid and Stephen Kalin; Additional reporting by Mahal El Dahan, Nafisa Eltahir, Aziz El Yaakoubi, Rania El Gamal and Dubai newsroom, Sudip Kar-Gupta in Paris, Michelle Martin in Berlin, Julia Payne and Dmitry Zhdannikov in London, John Davison and Mohammed Katfan in Baghdad, Ahmed Tolba and Samar Hassan in Cairo; Writing by Ghaida Ghantous; Editing by Giles Elgood)

Britain will support U.S. in Iran talks if deal can be made: UK defense minister

FILE PHOTO: Britain's Defence Secretary Ben Wallace walks outside Downing Street in London, Britain, September 2, 2019. REUTERS/Simon Dawson

LONDON (Reuters) – Britain will always help the United States along a path to talks with Iran if a deal can be made, British defense minister Ben Wallace said on Friday, although he cautioned that Iran should be judged by its actions rather than words.

“Actions speak louder than words, so I think we’ll take them (Iran) at their actions rather than their words,” Wallace said at a news conference in London with his U.S. counterpart Mark Esper, who earlier said Iran was “inching” towards a place where talks could be held.

“But if there is a deal to be made, we will of course always help the United States along that path, because I think peace and stability in that region is the most important thing,” Wallace added.

(Reporting by Idrees Ali, writing by Alistair Smout; editing by Stephen Addison)

Netanyahu: Israel ready for any scenario after Hezbollah clash

Israeli Prime Minister Benjamin Netanyahu looks on as he arrives to review an honor guard with his Ethiopian counterpart Abiy Ahmed during their meeting in Jerusalem September 1, 2019. REUTERS/Ronen Zvulun

By Ari Rabinovitch and Ellen Francis

JERUSALEM/BEIRUT (Reuters) – Prime Minister Benjamin Netanyahu said on Sunday that Israel was prepared for any scenario after a cross-border clash with Lebanon’s Hezbollah, but neither side seemed eager for another conflict.

Israel’s military said anti-tank missiles from Lebanon targeted an army base and vehicles. It responded with fire into southern Lebanon, after a week of growing tension raised fears of a new war with long-time enemy Hezbollah.

The Iran-backed Hezbollah movement said its fighters destroyed an Israeli military vehicle, killing and wounding those inside. Israel said there were no casualties.

Netanyahu, whose re-election campaign ahead of a poll less than three weeks away could have been complicated by war in the north, signaled business as usual after the hostilities erupted along the frontier with Lebanon.

The Israeli leader kept to his regular schedule, commenting on the security situation, in Hebrew only, at the start of a meeting with Honduras’ visiting president, and did not take questions from reporters.

“We were attacked by a few anti-tank missiles. We responded with 100 shells, aerial fire and various measures. We are in consultations about what’s to come,” Netanyahu said.

“I have given instructions to be prepared for any scenario, and we will decide on what’s next depending on how things develop,” he said, almost dismissively, in a departure from his usually much tougher language toward Israel’s enemies.

“I can make an important announcement – we have no casualties, no wounded, not even a scratch.”

The U.N. peacekeeping force on the frontier said calm had returned to the region at night. The United Nations Interim Force in Lebanon (UNIFIL) also said it had urged both sides to “exercise utmost restraint to prevent any further escalation.”

The two sides fought a month-long war in 2006 after Hezbollah captured two Israeli soldiers in a cross-border raid.

Israel has been on alert for a confrontation with Hezbollah for the past week after two drones crashed in Beirut’s southern suburbs, with one of them exploding. Security officials in the region have described the target as linked to precision-guided missile projects.

Any new war between Israel and Hezbollah would raise the risk of a wider conflict in the Middle East, where Iran has defied U.S. attempts to force it to renegotiate a 2015 nuclear deal it reached with world powers.

At the same time, Israel is alarmed by Tehran’s growing influence in the region through militia allies such as Hezbollah in countries such as Syria.

In Iraq, powerful Iranian-backed militias have blamed a series of recent blasts at their weapons depots on Israel and the United States.

Hezbollah said the operation on Sunday was carried out by a unit named after two of its fighters who were killed by an Israeli airstrike inside Syria last week.

An Iranian security official was cited as saying the Hezbollah attack on Sunday was “a reciprocal measure”.

Hezbollah leader Hassan Nasrallah said on Saturday night that field commanders were ready to respond to last week’s drone attack, which he blamed on Israel. But like Netanyahu, Nasrallah has not indicated Hezbollah was seeking full-scale war.

Amid the threats, Israel had moved extra forces into the border region, which was largely quiet since the 2006 war.

Without claiming responsibility for the Beirut drone attack, the Israeli military has published what it said were details about an extensive Iranian-sponsored campaign to provide Hezbollah with the means to produce precision-guided missiles.

Such missiles could potentially pose a counter-balance to Israel’s overwhelming military force in any future war, with the capacity to home in on and knock out core infrastructure sites.

Nasrallah says Hezbollah has enough of the missiles, dismissing claims that it has factories to produce the weapons.

(Writing by Michael Georgy; Editing by Jane Merriman and Mark Potter)

Plane used to carry U.S. troops catches fire at Irish airport

Emergency vehicles respond after an Omni Air International Boeing 767-300 (not pictured) caught fire at Shannon Airport, Ireland August 15, 2019 in this image obtained from social media. Charles Pereira via REUTERS

DUBLIN (Reuters) – A plane that regularly carries U.S. troops through Ireland’s Shannon Airport caught fire shortly before it was due to take off on Thursday, forcing a five-hour suspension of flights at Shannon and cancellation of some trips.

Shannon Airport temporarily suspended operations at 0537 GMT after the incident involving an Omni Air International Boeing 767-300 due to depart for the Middle East. All 145 passengers and 14 crew disembarked after emergency services were called.

Air traffic controllers noticed a fire and smoke coming from the aircraft as it taxied along the runway after having to abort its take-off for technical reasons, according to Niall Maloney, operations director at Shannon Airport.

“The problem with an aborted take-off is you can probably get things like hot brakes and when the aircraft went around again to come back on the apron, a flame was spotted,” Maloney told Irish national broadcaster RTE.

Omni Air International is a civilian airline that says it transports U.S. and foreign military troops and military family members around the world.

In a Twitter post, Omni Air said it was participating in an investigation of the incident after the aircraft “rejected take-off” and was safely evacuated. Initial reports indicated no serious injuries to passengers or crew, it added.

Ireland provides landing and refueling facilities to the U.S. military at Shannon, the country’s second busiest airport, particularly for transatlantic flights.

An average of around 300 U.S. troops passed through Shannon Airport each day in the first three months of the year, according to Ireland’s Transport Ministry.

The incident forced the cancellation of 10 flights including eight to and from Britain operated by IAG’s Aer Lingus, and an American Airlines aircraft that was due to arrive from Philadelphia before it returned to the U.S. city.

The airport reopened just before 1030 GMT.

(Reporting by Padraic Halpin; Editing by Mark Heinrich)

Iran says it arrests CIA spies, Gulf tensions simmer

FILE PHOTO - The Iranian flag flutters in front the International Atomic Energy Agency (IAEA) headquarters in Vienna, Austria July 10, 2019. REUTERS/Lisi Niesner

By Michael Georgy

DUBAI (Reuters) – Iran announced on Monday it had captured 17 spies working for the U.S. Central Intelligence Agency (CIA) and sentenced some of them to death, deepening a crisis between the Islamic Republic and the West.

Iranian state television published images that it said showed the CIA officers who had been in touch with the suspected spies.

In a statement read on state television, the Ministry of Intelligence said 17 spies had been arrested in the 12 months to March 2019. Some have been sentenced to death, according to another report.

Such announcements are not unusual in Iran, and are often made for domestic consumption. But the timing suggests Tehran could harden its position in a standoff with Western powers which has raised fears of a direct military confrontation.

In recent weeks the United States has blamed Iran for attacks on shipping near the Strait of Hormuz, the global oil trade’s most important waterway, accusations Iran has denied.

The United States and Iran have downed drones operated by the other side and on Friday, Iran captured a British-registered tanker, the Stena Impero, in the Strait of Hormuz. Tehran had previously warned it would respond to Britain’s seizure of an Iranian tanker off Gibraltar on July 4.

There was no immediate comment on the Iranian allegations by the CIA or U.S. officials.

Iran announced in June that it had broken up an alleged CIA spy ring but it was unclear whether Monday’s announcement was linked to the same case.

BRITAIN’S NEXT MOVE

Prime Minister Theresa May’s office has said she would chair a meeting of Britain’s COBR emergency response committee early on Monday to discuss the tanker crisis and the government was expected to announce its next steps in parliament.

As Britain weighed its next move a recording emerged showing the Iranian military defied a British warship when it boarded and seized the Stena Impero, underscoring the challenges Britain faces responding.

Experts on the region say there are few obvious steps London can take at a time when the United States has already imposed the maximum possible economic sanctions, banning all Iranian oil exports worldwide.

Washington imposed the sanctions after President Donald Trump pulled out of a deal signed by his predecessor Barack Obama, which had provided Iran access to world trade in return for curbs on its nuclear program.

European countries including Britain have been caught in the middle. They disagreed with the U.S. decision to quit the nuclear deal but have so far failed to offer Iran another way to receive the deal’s promised economic benefits.

In Tokyo, Prime Minister Shinzo Abe said on Monday that Japan wants to make every effort to reduce tension between the United States and Iran before responding to an expected U.S. request to send its navy to safeguard strategic waters off Iran.

Japanese media have said Washington’s proposal to boost surveillance of vital Middle East oil shipping lanes off Iran and Yemen could be on the agenda during a visit to Tokyo this week by U.S. national security adviser John Bolton.

“We have a long tradition of friendship with Iran and I’ve met with its president any number of times, as well as other leaders,” Abe told a news conference after his coalition’s victory in a Sunday election for parliament’s upper house.

“Before we make any decisions on what to do, Japan would like to make every effort to reduce tensions between Iran and the United States.”

The United States is struggling to win its allies’ support for an initiative to heighten surveillance of vital Middle East oil shipping lanes because of fears it will increase tension with Iran, six sources familiar with the matter said.

(Reporting by Gulf bureau and Elaine Lies and Linda Sieg in Tokyo; Editing by Raissa Kasolowsky and Jon Boyle)

U.S. general says will work ‘aggressively’ to enable free passage in the Gulf

Saudi-led coalition officials show to U.S. Central Command chief General Kenneth McKenzie an exibit of weapons and missiles that is used by Houthi attacks against Saudi Arabia, in Riyadh, Saudi Arabia, July 18, 2019. REUTERS/Marwa Rashad

RIYADH (Reuters) – U.S. Central Command chief General Kenneth McKenzie said on Thursday it was talking to other countries about freedom of navigation in the Gulf and would work “aggressively” to find a solution to enable free passage.

The United States has beefed up its military presence in the Middle East over a perceived Iranian threat and is asking allies to help protect strategic waters off Iran and Yemen, following attacks on oil tankers in Gulf waters in recent months.

“We are currently talking with the international community about the right to freedom of navigation in the Middle East that will include passage to the Strait of Hormuz and passage to the Bab al Mandeb,” Mckenzie said.

Mckenzie made his comments before Iranian state TV broadcast a report that Iran had seized a foreign tanker smuggling fuel in the Gulf.

The U.S. general was talking to reporters in Riyadh at a joint news conference with General Prince Fahd bin Turki, commander of the Saudi-led coalition fighting the Iran-aligned Houthis in Yemen.

Asked if Saudi Arabia would have a role in a proposed international maritime security coalition, Prince Fahd said the coalition would continue to escort ships in the Red Sea.

“We have been doing that for the past few years and we have achieved great success in spite of some damage to civilian shipping,” Prince Fahd said. “So we’ve been active in this field, we are practicing this at the Red Sea at Bab al Mandeb.”

Earlier this month the Western-backed Sunni Muslim coalition led by Saudi Arabia said its naval forces foiled an attack on an unidentified commercial ship in the southern Red Sea by Houthi forces, which the group denied.

Washington and Riyadh have publicly blamed Iran and its proxies for the recent tanker attacks, a charge Tehran denies.

“We don’t believe war with Iran is inevitable and we don’t seek a war with Iran, what we seek is to deter Iran from the destabilizing and malign activities across the region,” McKenzie said.

The Houthis have stepped up missile and drone attacks on Saudi Arabia, recently targeting oil installations and airports in cities near the border with Yemen, fuelling tensions.

Saudi officials took McKenzie on a tour of an exhibit displaying missiles and drones Riyadh says were produced by Iran and used in the Houthi attacks. Tehran denies supplying the group with arms and the Houthis say they manufacture their own.

(Reporting By Marwa Rashad, writing by Aziz El Yaakoubi)

From Iraq to Yemen, drones raise U.S. alarm over Iranian plans

FILE PHOTO: A projectile and a drone launched at Saudi Arabia by Yemen'S Houthis are displayed at a Saudi military base, Al-Kharj, Saudi Arabia June 21, 2019. REUTERS/Stephen Kalin

By Babak Dehghanpisheh and Phil Stewart

GENEVA/WASHINGTON (Reuters) – The increased use of drones by Iran and its allies for surveillance and attacks across the Middle East is raising alarms in Washington.

The United States believes that Iran-linked militia in Iraq have recently increased their surveillance of American troops and bases in the country by using off-the-shelf, commercially available drones, U.S. officials say.

The disclosure comes at a time of heightened tensions with Iran and underscores the many ways in which Tehran and the forces it backs are increasingly relying on unmanned aerial vehicles (UAVs) in places like Yemen, Syria, the Strait of Hormuz and Iraq.

Beyond surveillance, Iranian drones can drop munitions and even carry out “a kamikaze flight where they load it up with explosives and fly it into something”, according to a U.S. official who spoke on condition of anonymity.

Yemen’s Iranian-backed Houthis have significantly increased their UAV attacks in recent months, bombing airports and oil facilities in Saudi Arabia, a main rival of Iran.

Last month, Iran came close to war with the United States after the Islamic Republic’s unprecedented shoot-down of a U.S. drone with a surface-to-air missile, a move that nearly triggered retaliatory strikes by U.S. President Donald Trump.

Trump withdrew from a major 2015 nuclear deal last year and reimposed sanctions to cut off Iran’s oil exports and pressure the Islamic Republic to negotiate over its ballistic missile program and regional policy.

The increased use of drones by Iran or its regional allies is a strategy aimed at pushing back and defending against pressure from the United States and foes like Saudi Arabia and Israel, current and former security officials and analysts say.

Iran now flies two or three drones over Gulf waters every day, the first U.S. official estimated, making it a core part of Tehran’s effort to monitor the Strait of Hormuz, through which one-fifth of the world’s oil consumption flow.

The United States and Saudi Arabia have accused Iran of carrying out attacks against six oil tankers near the Strait in the past two months, a claim Tehran has denied.

The U.S. officials, who spoke on condition of anonymity, declined to quantify the extent to which surveillance near U.S. forces has increased in Iraq or to specify which militia were carrying it out.

“We have seen an uptick in drone activity in Iraq near our bases and facilities,” the first official said. “Certainly the drones that we have seen are more of the commercial off-the-shelf variant. So they’re obviously a deniable type UAV-activity in Iraq.”

A second official said the recent increase in surveillance was worrying but acknowledged Iran-linked militia in Iraq had a history of keeping tabs on Americans.

Reuters has previously reported that the United States has indirectly sent warnings to Iran, saying any attack against U.S. forces by proxy organizations in Iraq will be viewed by Washington as an attack by Iran itself.

In recent weeks, mortars and rockets have been fired at bases in Iraq where U.S. forces are located but no American troops have been injured. U.S. officials did not link those attacks to the increased surveillance.

Attempts to reach the Iranian ministry of foreign affairs and the Revolutionary Guards, who are most closely linked to militant groups in Iraq, for comment were unsuccessful.

Iraqi militia groups linked to Iran began using drones in 2014 and 2015 in battles to retake territory from Islamic State, according to militia members and Iraqi security officials.

These groups received training on the use of drones from members of Iran’s Revolutionary Guards and Lebanon’s Iranian-backed Hezbollah, two Iraqi security officials with knowledge of militia activities said.

“Key militia groups have the ability to launch aerial attacks using drones. Will they target American interests? That hasn’t happened yet,” said one Iraqi security official. “They used Katyusha [rockets] and mortars in very restricted attacks against American interests in Iraq to send a message rather than trying to inflict damage. Using explosive-laden drones is very possible once we have a worsening situation between Tehran and Washington.”

HOW SOPHISTICATED ARE IRAN’S DRONES?

In March, Iran boasted about a complex military exercise involving 50 drones. In a slickly edited video aired on state TV, waves of drones streak across a clear blue sky, bombing buildings on an island in the Gulf.

The show of force was intended to highlight Iran’s locally developed UAV program, which it has been building up for several years.

Douglas Barrie, a senior fellow at the London-based International Institute for Strategic Studies, however, cautioned that some of Iran’s claims were “best viewed through the prism of domestic messaging”. “That Iran has a growing capability in UAVs isn’t debatable. What is an open question is the actual levels of technology it often employs,” Barrie said, adding that Israel had the most advanced program in the region.

American technology may have been used to enhance the Iranian drone program: an advanced U.S. RQ-170 Sentinel reconnaissance drone went down in eastern Iran in 2011, and Revolutionary Guards commanders say they were able to reverse engineer it, a claim which some security officials and analysts dispute.

“They’ve really come up with some aircraft which are looking increasingly sophisticated in terms of their ability to carry guided weapons and carry out long-range surveillance missions,” said Jeremy Binnie, Middle East and Africa editor for Jane’s Defense Weekly.

U.S. forces have shot down Iranian-made drones in 2017 in Syria, after deeming them a threat to both U.S.-backed forces and their advisers.

EXPORTING DRONE TECHNOLOGY

Iran has passed on its drones and technical expertise to regional allies, current and former security officials and analysts say.

The Revolutionary Guards and Hezbollah advise the Houthis on the use of drones and operate video uplinks from Tehran and Beirut to beam in technical expertise when needed, an official from the Saudi-led coalition fighting in Yemen said.

Iran has denied any role in the conflict in Yemen.

U.N. experts say the Houthis now have drones that can drop bigger bombs further away and more accurately than before. In May, drones hit two oil pumping stations hundreds of kilometers inside Saudi territory.

“Either the drones that attacked the pipelines were launched from inside Saudi territory or the Houthis just significantly upped their capability with satellite technology and were provided with the capability to extend the distance,” said Brett Velicovich, a drone expert and U.S. Army veteran, about the May attack.

A commander of Kataib Hezbollah, an Iraqi militia closely linked to Iran, using the nickname Abu Abdullah, told Reuters in 2014 that Iran had provided training for operating drones, which were mostly used to target Islamic State positions.

He said at the time that they had also used the drones to carry out surveillance on American military positions in Iraq and in the conflict in Syria, where Kataib Hezbollah fought in support of President Bashar al-Assad. 

Iraqi militia groups have now acquired enough expertise to modify drones for attacks, two Iraqi security officials with knowledge of the militia activities said.

(Reporting by Babak Dehghanpisheh and Phil Stewart; Additional reporting by Ahmed Rasheed in Baghdad, Tuqa Khalid in Dubai, Stephen Kalin in Riyadh and Dan Williams in Jerusalem; editing by Giles Elgood)

Oil steadies as U.S. supply concerns ease but Iran tensions loom

FILE PHOTO: Oil pumps are seen after sunset outside Vaudoy-en-Brie, near Paris, France November 14, 2018. REUTERS/Christian Hartmann

By Bozorgmehr Sharafedin

LONDON (Reuters) – Oil prices steadied on Tuesday as a resumption of production in the Gulf of Mexico after Hurricane Barry and a boom in U.S. supply from shale oil countered tensions in the Middle East.

Uncertainty about China’s economic prospects also pressured prices after data on Monday showed that growth in the country slowed to 6.2% from a year earlier, the weakest pace in at least 27 years.

Brent crude futures <LCOc1> were up 9 cents at $66.57 a barrel by 1333 GMT. The international benchmark hit a session high of $66.84 earlier in the day.

West Texas Intermediate crude futures <CLc1> rose by 13 cents to $59.71 a barrel. The U.S. benchmark hit a session high of $60.02 earlier.

U.S. oil companies on Monday began restoring some of the nearly 74% of production that was shut at platforms in the Gulf of Mexico because of Hurricane Barry.

“Crude oil is having a quiet day today after giving back some of last week’s gains,” Saxo Bank commodity strategist Ole Hansen said.

“U.S. output from the Gulf looks set to increase and … Barry failed to hit refinery assets along the coast.”

Workers were returning to the more than 280 production platforms that had been evacuated. It can take several days for full production to resume.

“You could almost hear the big sigh of relief from oil producers and refiners in the region as the storm passed without causing significant damage,” PVM analyst Tamas Varga said.

The storm will probably result in a noticeable decline in U.S. crude oil stocks this week, analysts at Commerzbank said.

Inventory data will be published by the American Petroleum Institute on Tuesday evening, and by the U.S. Department of Energy on Wednesday.

The market was also weighed down by signs of further increases in output from the United States, which has ridden a wave of shale oil production to become the world’s biggest crude producer, ahead of Russia and Saudi Arabia.

U.S. oil output from seven major shale formations is expected to rise by about 49,000 barrels per day in August, to a record 8.55 million bpd, the U.S. Energy Information Administration said.

Market activity has started to slow as it tends to in July and August, the peak European and U.S. holiday season, Hansen said.

Tension between the United States and Iran over Tehran’s nuclear program kept the market on edge given the potential for a price spike should the situation deteriorate.

Iran’s Supreme Leader Ayatollah Ali Khamenei said on Tuesday Tehran would respond to Britain’s “piracy” over the seizure of its oil tanker in Gibraltar.

“The Iranian tension … still makes any oil bear careful,” Varga said.

(Additional reporting by Aaron Sheldrick in Tokyo; Editing by Dale Hudson/Kirsten Donovan)

Netanyahu warns Iran it is within range of Israeli air strikes, citing Iranian threats

FILE PHOTO: Israeli Prime Minister Benjamin Netanyahu gestures during the weekly cabinet meeting at his office in Jerusalem July 7, 2019. Abir Sultan/Pool via REUTERS/File Photo

JERUSALEM (Reuters) – Prime Minister Benjamin Netanyahu cautioned Iran on Tuesday that it is within range of Israeli airstrikes, citing what he described as Iranian threats to destroy Israel.

“Iran recently has been threatening Israel’s destruction,” Netanyahu said at an Israeli air force base, where he viewed a squadron of advanced U.S.-built F-35 warplanes.

“It should remember that these planes can reach anywhere in the Middle East, including Iran, and certainly Syria,” he said in a YouTube video clip filmed at the base, with an F-35 in the background.

Last week, a senior Iranian parliamentarian was quoted by the semi-official Mehr news agency as saying that if the United States attacked Iran, Israel would be destroyed in half an hour.

Israel has long said that every option is on the table in ensuring that Iran does not develop a nuclear weapon, and has backed pledges to prevent Iranian military entrenchment in Syria by carrying out airstrikes there.

Tehran denies seeking nuclear arms.

(Writing by Jeffrey Heller; Editing by Mark Heinrich)