Thursday, July 28, 2016

Eye on Iran: Top Oil Market Embraces Iran Once Again as Asia Imports Jump








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Bloomberg: "At the biggest oil market in the world, crude from Iran is back in vogue. The Persian Gulf state boosted exports to major oil consumers in Asia during the first half of this year, after international sanctions that restricted its supplies were eased in January. Japan's purchases increased 28 percent, India bought 63 percent more, South Korea's imports more than doubled while shipments into China gained 2.5 percent during the six months, government and shipping data compiled by Bloomberg show. The increase in cargoes to Asia shows Iran is having some success in meeting its pledge to prioritize regaining market share it lost in the region due to the sanctions over its nuclear program. The nation, which was OPEC's second-biggest producer before the international measure choked off its supplies, defied skeptics with a 25 percent surge in production so far in 2016 and aims to reach an eight-year high for daily output of 4 million barrels by the end of the year." http://t.uani.com/2aAs7l6

Washington Post: "Before Reza 'Robin' Shahini flew to Iran to visit his ailing mother in May, he was careful to delete years-old postings about Iran on his social-media accounts. He was not a political activist, but Shahini wanted to avoid attracting any attention from Iranian authorities... But on July 11, Shahini, 46, was arrested in Iran on suspicion of crimes against the Islamic Republic, becoming the latest Westerner with dual citizenship to be detained. He joined two other U.S. citizens known to be detained, and at least four dual nationals from Britain, Canada and France, three of whom have been arrested in the past five months... [H]is arrest reflects a shift in tactics by hard-liners in Iran trying to keep the country isolated despite a nuclear deal signed a year ago. Prominent people are not the only ones in the crosshairs. Now, ordinary people are being swept up." http://t.uani.com/2ag1YoX

AP: "Iran's Interior Ministry on Wednesday said a constitutional watchdog had approved the country's presidential election for May [19,] 2017... Under the law, President Hassan Rouhani is eligible to run for another term in office." http://t.uani.com/2a22mME

Business Risk

Tasnim News Agency: "Iran is going to think again about engagement with the Financial Action Task Force (FATF), the policy-making body of the international financial system, following concerns that an agreement with the watchdog could risk Iran's national interests. In the wake of media uproar surrounding Iran's cooperation with the FATF and announcement of the parliament's decision to intervene, an order has been issued by relevant Iranian supervisory bodies to review the agreement and deter any threat to the country's national interests, informed sources told Tasnim... In late June, FATF hailed Iran's adoption of an action plan to address shortcomings in its anti-money laundering policies and its decision to seek assistance with implementation... Iran, however, will remain on the FATF blacklist until the full implementation is complete, the body said. Moreover, if it fails to demonstrate 'sufficient progress' at the end of the yearlong suspension, the restrictions will be re-imposed." http://t.uani.com/2ag1u26

Sanctions Relief

Reuters: "Japanese oil refiner TonenGeneral Sekiyu has bought its first oil from Iran since becoming independent from U.S. oil major Exxon Mobil Corp... Iran has been regaining market share faster than analysts had expected after sanctions were lifted in January, and its exports are projected to be above 2 million barrels per day for a fourth month in July." http://t.uani.com/2agW0aJ

Financial Tribune: "Finnish company Outotec has been awarded a contract by Shangdong Province Metallurgical Engineering Co., known as SDM, for the delivery of process equipment to the Iron Concentrate Project Sangan in northeastern Iran. The Iranian Mines and Mining Industries Development and Renovation Organization owns the Sangan mines and SDM is their engineering partner. The contract value is approximately €10 million... The new iron processing plant will process annually 5 million tons of ore. The equipment will be delivered mostly during the second quarter of 2017." http://t.uani.com/2ayznBr

Syria Conflict

Washington Free Beacon: "A top Iranian general recently visited the Israeli-Syrian border to tour a city on Israel's doorstep, Iran's semi-official Fars news agency reported Wednesday, marking the first time the government has publicized a visit by a senior regime official to the area. General Mohammad Reza Naqdi, commander of the Basij paramilitary force, a massive volunteer organization under the Islamic Revolutionary Guard Corps that performs domestic security functions, traveled to the city of Quneitra in southwest Syria. He also inspected the demarcation line dividing the Golan Heights, a strategic rocky plateau by the border that Israel has controlled since the 1967 Six Day War... Naqdi's stop comes after several cross-border incidents between the Syrian army, fighting for embattled President Bashar al-Assad, and the Israel Defense Forces. Two Israeli unmanned aerial vehicles shot two missiles by a residential building in Quneitra on Monday, resulting in no injuries, after a stray mortar fell inside the Golan Heights near Israel's border... Israeli officials are concerned that Iran and Hezbollah will use the fighting in Syria as a way to set up a new front against Israel in the southern part of the country, and Naqdi's visit could raise concerns that Tehran is trying again to set up military posts near Quneitra. The U.S. Treasury Department sanctioned Naqdi in 2011 'for being responsible for or complicit in serious human rights abuses in Iran.' Naqdi oversaw on Sunday the destruction of 100,000 satellite dishes for causing 'increased divorce, addiction, and insecurity in society" and for damaging Iran's Islamic "morality and culture.'" http://t.uani.com/2at5sYv

New York Times: "Afghanistan has been hollowed out as its citizens have fled poverty and war... But a specific emigration pattern - of thousands of young men flowing into neighboring Iran and then on to fight alongside the Syrian government and its allies - has provoked extraordinary anguish for families here and for Afghanistan's government, particularly over the past year. Leaving a country racked by decades of war, the young Afghans who choose the path to Syria then fall into peril on the bloody front lines of Aleppo, Homs or other battlegrounds... The promise of urgently needed salaries - or at least compensation for hardship or death, often paid by the Iranian government - has done little to comfort the families left behind, or to ease their regret at the misery that forced their sons to flee in the first place... Some of the Afghan fighters head to Syria for religious reasons... But most were enticed by financial benefits, including the promise of legal residence for the fighters and their families in Iran... Iran's government provides a few weeks of training and flies the men to Syria, where they join one of the Afghan brigades." http://t.uani.com/2ayz0Xu

Domestic Politics

BBC News: "'Payslip-gate,' as it has come to be known, has been dominating the news headlines in Iran for months. The scandal began in May when the payslips of top managers at the state insurance company were leaked to the media, showing they were receiving very generous salaries. In the weeks that followed more payslips mysteriously found their way into the public domain, revealing the earnings of a range of officials from top civil servants to bank bosses. Some were apparently getting around 50 times the minimum public sector wage. Many were also being paid big bonuses and extras, taking their overall salaries to upwards of a hundred times the average household income... The saga has been a major blow to the reputation of the government of President Hassan Rouhani. The millions of Iranians who voted for him in the 2013 were hoping for change and in particular an improvement to their country's dire economic situation. Although the president has delivered on his election promises of resolving the stand-off over Iran's nuclear programme, and opening the way for sanctions to be lifted, there has been little concrete improvement in ordinary people's lives so far... There has been a drumbeat of negative coverage in the conservative media. Things have also got personal with critics targeting Mr Rouhani's brother, Hossein Ferydoun, who has been accused of having close links to some of the officials at the centre of the scandal." http://t.uani.com/2aq1Rfn

Opinion & Analysis

Ellie Geranmayeh in NYT: "Iran and Saudi Arabia have, even while backing competing forces across the Middle East, generally maintained one red line: They wouldn't interfere directly in each other's domestic security. Policy makers in Riyadh and Tehran have known that backing militant groups among their rival's Shiite minorities in Saudi Arabia or Sunni minorities in Iran could lead to an escalation for which neither country is ready. But that tacit agreement might be unraveling. While no hard proof has been presented, in the past month Iran has ratcheted up claims that Saudi Arabia is supporting groups working to overthrow the government in Tehran or to destabilize the country, in particular opening a new front with Kurdish separatists. The Saudis, for their part, say Iran is increasing support for Shiite militants. Both countries deny the allegations. But given the total breakdown in diplomatic relations since January, and in an increasingly volatile region, it isn't hard to imagine this tension morphing into something much more dangerous: a tit-for-tat exchange of attacks carried out by domestic armed groups." http://t.uani.com/2ag23t4
       

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

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