Monday, June 25, 2012

Eye on Iran: Iran's Oil Ships Sail Into Troubled Waters






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Top Stories


WSJ: "Iran, already braced for escalating sanctions in coming days, is facing another challenge to ship its oil that could ultimately curtail its crude sales more than expected. Under pressure from lobbying groups campaigning against Iran's nuclear program, some specialized companies that supply the safety certificates required for ships to dock at foreign ports are terminating their dealings with Iran. Tankers from Iran and elsewhere can't sail without a stamp of approval from these 'classification societies,' which survey the vessels to ensure they are safe and environmentally sound. The move is narrowing the number of foreign vessels willing to load Iranian oil at Iranian terminals, which could hit Iran's already declining oil exports and ultimately push prices upward... 'It is of the utmost importance that we maintain our good reputation,' Germany's Germanischer Lloyd said in a letter sent to advocacy group United Against Nuclear Iran, announcing its termination of Iranian ship surveys." http://t.uani.com/MP8Qdl

Reuters: "Iran has given new English names and changed the flags of many of its oil tankers, two of which are steaming toward Europe with an EU ban on Iranian oil imports just a week away, ship tracking data shows. The Haraz is now Freedom, Nesa has transformed into Truth, and Sima has become Blossom. At least a third of oil tanker operator National Iranian Tanker Company's ships have registered with the pacific atolls of Tuvalu and also Tanzania after dropping their Maltese and Cypriot flags. NITC is not subject to U.N. sanctions, but with Malta and Cyprus coming under increased EU pressure to stop flagging Iranian government-linked ships, NITC has hoisted flags from Tuvalu on at least 11 of its 39 oil tankers, while Tanzanian flags fly above at least two. Merchant ships need a flag from national ship registries to gain access to most of the world's ports. According to ship tracking data on Reuters, two of the tankers, now called Pioneer and Elite, were heading through the Red Sea toward Europe on Sunday, where a ban on buying Iranian oil comes into effect on July 1." http://t.uani.com/MKxcoW

AFP: "South Korea's May imports of Iranian crude oil fell 39.5 percent from a year earlier to 3.96 million barrels as it cuts shipments in line with a US sanctions drive, figures showed Monday. Imports from January to May dropped 15.7 percent from the same period last year, according to the preliminary figures from the state Korea National Oil Corporation. May's imports from Iran were down 47.3 percent month-on-month. South Korea has in the past imported about 10 percent of its crude needs from Iran... Earlier this month, two South Korean shipping companies said they had suspended importing Iranian crude due to a separate EU embargo set to come into force from July. SK Shipping, which handles the needs of refiner SK Energy, said it shipped its last cargo from Iran early this month and it would arrive by the end of June. Hyundai Merchant Marine said it had not carried any Iranian crude for Hyundai Oilbank in June." http://t.uani.com/L9Rvd6
MTN Action Alert 
Nuclear Program 
  
Reuters: "A high-ranking Iranian general said on Saturday Israeli military action against Iran's nuclear program would lead to the collapse of the Jewish state, Fars news agency reported. Last week's round of nuclear talks between Iran and world powers in Moscow failed to secure a breakthrough, heightening fears Israel might take unilateral military action to curb Iran's nuclear activities. The two sides agreed to a follow-up meeting of technical experts on July 3, saving the process from outright failure. 'They cannot do the slightest harm to the (Iranian) revolution and the system,' Brigadier General Mostafa Izadi, deputy chief of staff of Iran's armed forces, told Fars. 'If the Zionist regime takes any (military) actions against Iran, it would result in the end of its labors,' he added. 'If they act logically, such threats amount to a psychological war but if they want to act illogically, it is they who will be destroyed.'" http://t.uani.com/MIBf4V

AFP: "World powers negotiating with a defiant Iran over its nuclear programme need to risk more and get more 'creative' if they want to break a deadlock that threatens tipping into military conflict, analysts say. After three high-level meetings in three months, the latest in Moscow last week, Iran and the P5+1 group (the United States, Britain, France, Germany, Russia and China), appear no closer to finding a way out of their almost decade-long confrontation. Parallel efforts between Iran and the UN nuclear watchdog, the International Atomic Energy Agency, are in an even worse state, with no sign of a deal on enhanced cooperation that IAEA chief Yukiya Amano said was all but sealed when he visited Tehran a month ago." http://t.uani.com/LtWBFz

Haaretz: "Venezuela has transferred at least one F-16 fighter to Iran in an attempt to help it calibrate its air defenses, in preparation for a possible Israeli or U.S. strike on its nuclear facilities, reports Spanish newspaper ABC. ABC, one of the three largest Spanish dailies and aligned with the ruling rightist party, wrote that the transfer, in 2006, was supervised by one of Venezuelan president Hugo Chavez's closest aides. The paper's Washington correspondent, Emili J. Blasco, said the story was based on both sources in Venezuela's air force and classified documents, following a tip- off by a non-Western intelligence agency. The timing of the story's publication was probably timed to coincide with the current visit of Iranian President Mahmoud Ahmadinejad in Venezuela, which began Friday." http://t.uani.com/KInHHE

Sanctions

Reuters: "India has allowed state refiners to import Iranian oil, with Tehran arranging shipping and insurance, from July 1, keeping purchases of over 200,000 barrels per day (bpd) flowing after European sanctions hit insurance for the cargoes, government and industry sources said... Unlike private refiners, India's state-run companies need government permission to import oil on a CIF basis as federal policy requires them to favor Indian insurers and shippers by buying only on a Free on Board (FOB) basis. India aims to buy 310,000 bpd of oil from Iran under contracts during the fiscal year from April to March, which includes 100,000 bpd of purchases by Essar Oil, the only private customer. The United States earlier this month extended exemptions from its tough, new sanctions on Iran's oil trade to seven more economies including India but China remains vulnerable. Indian state insurers led by General Insurance Corp (GIC) had agreed to provide $50 million of cover for the ships carrying Iran crude from July but this has been delayed as the insurance regulator has not yet given its approval." http://t.uani.com/LkJD6N

AFP: "Vendors of Apple products in Iran scoffed Saturday at US media reports that the consumer technology giant was banning US sales to customers of Iranian background, pointing out that iPads and iPhones are widely available in Tehran. One salesman -- who gave only his first name, Hossein -- said that he sold 40 iPhones the day before and explained that prices for Apple items in Iran were only around $50 to $60 more than in the United States. Traders were easily getting around US sanctions on the export of popular electronic items to Iran, he said. 'All Apple products are smuggled into Iran. Before, it was mainly from Dubai and European countries, but now we can get all we need from Iraq,' he said. 'We have all of Apple's products.'" http://t.uani.com/PYELZk

Bloomberg: "Russian oil producer Zarubezhneft OAO (ZRNFT) has 'no result yet' from talks with Iran on joint oil projects, the company said. 'Iran is interesting for our company as a country with one of the biggest hydrocarbon resources, but we need an approval from the government to continue,' Zarubezhneft Deputy Chief Executive Officer Artyom Garibyan told reporters in St. Petersburg, Russia today. 'We are in talks with the Iranian side, but there is no specific result yet,' he added." http://t.uani.com/MmSLuP

Bloomberg: "A senior cleric called on Iran's Islamic establishment to counter the effects of high prices partly caused by international sanctions, Shargh reported. High prices are caused by the sanctions as well as local businesses seeking to profit from the rising value of the dollar by increasing their prices, and the government's inability to ease the pressure on poorer families through 'sound management, correct investment in production and job opportunities for youth,' Ayatollah Nasser Makarem-Shirazi was quoted as saying by the Tehran-based newspaper. Makarem-Shirazi said Iran's problems can't be addressed by 'denial, force, pressure and presenting incorrect economic indicators.' He said failure to tackle them may lead people to 'doubt the essence of the revolution.'" http://t.uani.com/MSlx3e

Bloomberg: "The cost of construction materials in Iran has increased by as much as 51 percent in the Iranian year that ended on March 19, compared with the previous period, Shargh reported, citing the country's statistical center. Costs of building goods, including bricks, ceramics and pre-built items in concrete and cement, have risen by 10 percent to 51 percent, the Tehran-based newspaper said, citing a report published by the center yesterday." http://t.uani.com/Mu0ybq

Terrorism

Reuters: "A Malaysian court ordered on Monday the extradition to Thailand of an Iranian man suspected of involvement in bomb blasts in Bangkok in February, rejecting his defense that he had not known about any plan for an attack. Masoud Sedaghat Zadeh, 31, will be sent back to Thailand unless his lawyers file an appeal within 15 days, prosecution lawyers said. Masoud was arrested in Malaysia the day after the blasts as he attempted to board a flight to Iran, police said. Three bombs went off in Bangkok on February 14. The first was apparently an accidental blast at a house that Masoud was sharing with two other Iranian suspects. Another bomb was thrown at a taxi and a third blew off the leg of an Iranian man before he was arrested by police. Another Iranian suspect was arrested at Bangkok's main airport but Masoud managed to escape to Malaysia." http://t.uani.com/NCJZKG 

Human Rights


AFP: "Iran is to execute two people caught drinking alcohol for a third time after judges upheld the Islamic republic's strict laws on alcohol consumption, according to media reports in the country quoting a top judicial official today. Hassan Shariati, the judiciary chief of the northeastern province of Khorasan-e Razavi, announced the sentence in an ISNA news agency report that was published by the Donya-e-Eqtesad daily. The two unidentified people were repeat offenders, having been twice before convicted of drinking and lashed 80 times each, Mr Shariati said. He said the death penalty for their third conviction had been validated by Iran's Supreme Court." http://t.uani.com/LkNxwl

Foreign Affairs


Bloomberg: "Iranian President Mahmoud Ahmadinejad arrived in Venezuela to meet with President Hugo Chavez after talks stalled in Moscow over his country's nuclear program. The Iranian leader arrived yesterday from stops in Brazil, where he attended the United Nations Rio+20 conference in Rio de Janeiro, and Bolivia. Ahmadinejad is making his sixth trip to the region since 2006 as he seeks to capitalize on a surge in anti-American sentiment spearheaded by Chavez and his eight-nation Bolivarian Alliance for the Americas." http://t.uani.com/LLhMh4

Reuters: "Iran's Foreign Ministry congratulated Egyptians on Sunday over the victory of Islamist Mohamed Morsy in the country's first free presidential election and said the country was in the final stages of an 'Islamic Awakening'. Muslim Brotherhood candidate Morsy defeated former general Ahmed Shafik to succeed President Hosni Mubarak, who was overthrown last year after a popular revolt against his rule. 'The foreign ministry of the Islamic Republic of Iran congratulates the victory of the Egyptian nation in these elections and the presidency of Doctor Mohammed Morsy,' it said in a statement on the Iranian Students' News Agency (ISNA)." http://t.uani.com/LLo5Tz

Reuters: "Egypt's Islamist President-elect Mohamed Mursi voiced interest in restoring long-severed ties with Tehran to create a strategic 'balance' in the region, in an interview published on Monday with Iran's Fars news agency... 'We must restore normal relations with Iran based on shared interests, and expand areas of political coordination and economic cooperation because this will create a balance of pressure in the region,' Mursi was quoted as saying in a transcript of the interview." http://t.uani.com/Ns4SVD

Opinion & Analysis

L. Gordon Crovitz in WSJ: "Ten years ago this summer, an Iranian dissident first warned the world about efforts by the mullahs to build a nuclear weapon. Since 2002, headlines have touted talks and possible inspections, with no results other than an Iran closer to a bomb. President Obama, who vows not to let Iran go nuclear, hopes economic sanctions will work, as 44 senators have urged him to drop the pretense of negotiations. The case of Iran raises novel questions about how open societies should deal with risks from closed societies. Iranian leaders have always claimed the right to build nuclear weapons and have been clear about their intent. In 2005, President Mahmoud Ahmadinejad told an Iranian student group: 'Many who are disappointed in the struggle between the Islamic world and the infidels have tried to spread the blame. They say it is not possible to have a world without the United States and Zionism. But you know this is a possible goal.' The known unknown is how seriously to take the threat. The regime has made this hard to calculate by blocking access to information. The Committee to Protect Journalists reports that Iran last year imprisoned more of its journalists than any other country and tied Cuba for the greatest number driven into exile. Responding to an inquiry about how many Western reporters are based in Iran, CPJ could identify only a handful, almost all with wire services. In recent years, correspondents from the BBC, Agence France-Presse and Spain's El PaĆ­s have had their visa renewals rejected and had to leave the country... In an era of transparency, countries that close themselves off from the flow of information should lose the benefit of the doubt about their intentions. Even without diplomats or journalists on the ground, it's clear the likeliest reason for a country to seek such isolation is that it has plenty to hide. We know more than enough about Iran to make it imperative to do what it takes to make sure it doesn't get the bomb." http://t.uani.com/PYI2rN

Mark Katz in The Diplomat: "The Obama Administration has sought to enlist Moscow in the effort to increase pressure on Iran to cooperate with the international community and verifiably renounce any ambitions it might have to acquire nuclear weapons. But while Russia would undoubtedly prefer a non-nuclear to a nuclear Iran, joining the U.S. and its allies in more forcefully sanctioning Iran for not cooperating on this matter involves risks for Moscow that it doesn't wish to incur... The reality is that Moscow isn't as concerned about the prospect of a nuclear Iran as the U.S. and its Western, Arab, and Israeli allies. In Moscow's (however unfortunate) view, Iran simply may not have the capacity to acquire nuclear weapons. Further, while Moscow doesn't regard the Iranian acquisition of nuclear weapons as desirable, it's far more sanguine about this possibility than America and many of its allies are. However unpleasant the leaders of the Islamic Republic might be, Moscow sees them as (just like the Putin administration) focused primarily on remaining in power and thus unlikely to undertake any actions that could undermine this goal, such as actually using nuclear weapons. Meanwhile, Moscow sees Pakistan as far more volatile than Iran, and thus the Pakistani possession of nuclear weapons as being more problematic than Iranian acquisition of them. Ultimately, just as they had to accept and deal with a nuclear-armed Pakistan and North Korea, Moscow anticipates that the international community - including the U.S. - will just have to accept and deal with a nuclear-armed Iran if and when this emerges. Moscow understands that an important reason why the Obama administration has pursued its 'reset' policy aimed at improving Russian-American relations is that it seeks to enlist Moscow's help in the effort to prevent Iran from acquiring nuclear weapons. Moscow, though, sees itself as having very little leverage over Iran on this issue. Putin has on several occasions proposed that the solution to the Iranian nuclear crisis is for Russia to enrich all uranium for Iran (either in Russia, Iran, or a third country), but Tehran has always insisted that it will continue to enrich at least some of its own uranium even if it agrees to cooperate with any of these Russian proposals.  Otherwise, the only positive inducements that Tehran might actually respond to that Moscow can offer are either ones that the United States and its allies would object to (more arms, more nuclear reactors), or ones that both they and Russia itself would oppose (Russian support for the export of Caspian Basin petroleum via Iran)." http://t.uani.com/KWgHIH

Walter Russell Mead in The American Interest: "In all seriousness though, it should be obvious by now to all reasonable observers that Iran is an unstable regime shot through with dangerous anti-Semitic impulses, apocalyptic fantasy and convoluted conspiracy thinking that has no business anywhere near nuclear weapons. In this regard, much ink has been spilled over whether the mullahs are 'rational actors' or not-i.e. whether they would bomb Israel even if this would result in devastating retaliation-but Via Meadia thinks that such speculation misses an important point: anti-Semitism is never a rational policy, yet it persists. Infamously, Hitler and the Nazis exiled their own best physicists because they were Jewish, enabling the US to win the nuclear arms race and ultimately World War II. History is replete with stories of countries driving productive citizens into exile because Jew-hatred is an irrational passion that overmasters common sense and destroys the ability to perceive ones own best interests. True, risking a retaliatory nuclear strike requires an unusual degree of paranoia and hatred, but enough Israelis have enough historical memory of the irrationality that Jew-hatred brings in its wake that it's unrealistic to expect Israel to accept an Iranian bomb no matter how rational the experts say the mullahs really are. Those fears cannot just be dismissed. If there were an Olympics of Jew-hating, the competition for the gold medal would be tough, but few could deny that Iran fields a strong team. Few countries, if any, have engaged in more anti-Semitic activity or can match the hothouse conspiracy thinking routinely encountered in the Islamic Republic that made Ahmadinejad a world famous religious nut. While it's true that not-so-mysterious computer viruses and other untoward accidents involving nuclear scientists give Iranians solid ground for worrying about Israeli measures against their government, Iranian hostility and paranoia about Israel and Jews predates official Israeli hostility toward Iran and its nuclear program... Even if there were no Israel, Iran's nuclear drive threatens some vital American interests and allies, and the US would have to resist. Countries like Saudi Arabia view Iran's government with a deep fear and loathing. Throw Israel into the mix, as a factor in Middle East politics and the US domestic politics on the issue, and President Obama's oft-repeated judgment on the matter looks sound: the US must stop any Iranian bomb drive because the effort to contain a nuclear Iran will make everything in the Middle East even worse than it is." http://t.uani.com/NrXut9

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.

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