<a href="http://www.wionews.com/world/brazil-will-move-embassy-to-jerusalem-netanyahu-says-report-187399">Prime Minister Benjamin Netanyahu</a> said Monday that Arab countries viewed Israel as an "indispensable ally" fighting Iran and the Islamic State group.

That evaluation, he told Brazil's Globo TV during a visit to Rio, has caused "a revolution in relations with the Arab world."

The comments came as Israel has stepped up air strikes on Iranian positions in neighbouring Syria, and as Israel digested an abrupt decision by President Donald Trump to withdraw US troops from Syria.

Netanyahu has repeatedly warned that Iran is trying to develop nuclear weapons to destroy his country.

Israel, he said, had shown itself to be active in battling "radical Islam, violent Islam — either the one led by radical Shiites led by Iran or the one led by the radical Sunnis led by Daesh (IS) and Al-Qaeda."

"Unfortunately we have not made any advance with the Palestinians. Half of them are already under the gun of Iran and of radical Islam," Netanyahu added.

Asked if he could ever contemplate sitting down with an Iranian leader to talk peace, Netanyahu replied: "If Iran remains committed to our destruction the answer is no."

The only way, he said, would be "if Iran undergoes a total transformation."

Netanyahu was in Brazil to attend Tuesday's inauguration of the Latin American country's new, pro-Israel president, Jair Bolsonaro.

On the sidelines of the ceremony, Netanyahu was to hold talks with US Secretary of State Mike Pompeo, who is also among the visiting dignitaries.

They were expected to discuss the US troop pullout from Syria and Iranian activities in the Middle East.&nbsp; 
&nbsp;

Benjamin Netanyahu has repeatedly warned that Iran is trying to develop nuclear weapons to destroy his country.

Prime Minister Benjamin Netanyahu said Monday that Arab countries viewed Israel as an "indispensable ally" fighting Iran and the Islamic State group. That evaluation, he told Brazil's Globo TV during a visit to Rio, has caused "a revolution in relations with the Arab world." The comments came as Israel has stepped up air strikes on Iranian positions in neighbouring Syria, and as Israel digested an abrupt decision by President Donald Trump to withdraw US troops from Syria. Netanyahu has repeatedly warned that Iran is trying to develop nuclear weapons to destroy his country. Israel, he said, had shown itself to be active in battling "radical Islam, violent Islam — either the one led by radical Shiites led by Iran or the one led by the radical Sunnis led by Daesh (IS) and Al-Qaeda." "Unfortunately we have not made any advance with the Palestinians. Half of them are already under the gun of Iran and of radical Islam," Netanyahu added. Asked if he could ever contemplate sitting down with an Iranian leader to talk peace, Netanyahu replied: "If Iran remains committed to our destruction the answer is no." The only way, he said, would be "if Iran undergoes a total transformation." Netanyahu was in Brazil to attend Tuesday's inauguration of the Latin American country's new, pro-Israel president, Jair Bolsonaro. On the sidelines of the ceremony, Netanyahu was to hold talks with US Secretary of State Mike Pompeo, who is also among the visiting dignitaries. They were expected to discuss the US troop pullout from Syria and Iranian activities in the Middle East.

PM Netanyahu says Israel is Arabs' 'indispensable ally' against Iran

A British-Iranian academic who had been detained in Iran on security charges has returned to the United Kingdom, the BBC reported on Tuesday.

Abbas Edalat, a computer science and mathematics professor at Imperial College London, was detained in Tehran in April. He had been arrested on what Iranian state media said at the time were unidentified security charges.

The Foreign Office did not respond to telephone calls seeking comment on Christmas Day, a national holiday in Britain.

A British-Iranian academic who had been detained in Iran on security charges has returned to the United Kingdom, the BBC reported on Tuesday. Abbas Edalat, a computer science and mathematics professor at Imperial College London, was detained in Tehran in April.

A British-Iranian academic who had been detained in Iran on security charges has returned to the United Kingdom, the BBC reported on Tuesday. Abbas Edalat, a computer science and mathematics professor at Imperial College London, was detained in Tehran in April. He had been arrested on what Iranian state media said at the time were unidentified security charges. The Foreign Office did not respond to telephone calls seeking comment on Christmas Day, a national holiday in Britain.

British professor returns to UK after detention in Iran: BBC

Iran has been holding talks with <a href="http://www.wionews.com/south-asia/8-taliban-militants-killed-in-afghanistan-185979">Afghanistan's Taliban</a> with the knowledge of <a href="http://www.wionews.com/south-asia/death-toll-in-kabul-attack-rises-to-43-health-ministry-186264">the Afghan government</a>, a senior Iranian security official was quoted by the official news agency IRNA as saying on Wednesday during a visit to Kabul.

The news came days after reports last week of talks between US and Taliban officials over proposals for a ceasefire in Afghanistan and a future withdrawal of foreign troops ahead of possible peace negotiations.

Talks between Iran and the Taliban were held "to help curb the security problems in Afghanistan," Ali Shamkhani, secretary of Iran's Supreme National Security Council, was quoted by IRNA as saying.

"All contacts and talks with the Taliban group have been with the knowledge of Afghanistan's government and this process will continue," he said. He gave no further details.

Majority-Shi'ite Iran has long had close ties to Shi'ites in neighbouring Afghanistan whose militias have fought the Taliban's Sunni militants.

But in recent months Afghan officials have accused Tehran, which the United States says is trying to extend its influence in western Afghanistan, of providing the Taliban with money, weapons and explosives. Iran denies that.

Earlier this month, Afghan forces abandoned a remote western district bordering Iran, leaving the area to the Taliban after the government failed to resupply troops stationed there.

In November, the United States displayed pieces of what it said were Iranian weapons supplied to militants in Yemen and Afghanistan, a move by Washington to pressure Tehran to curb its regional activities. Iran denies supplying arms to the militants.

In October, the United States accused Iran of providing military training, financing and weapons to the Taliban and targeted sanctions against eight individuals, including two linked to the Quds Force of Iran’s Revolutionary Guards. Tehran denies the accusations. 
&nbsp;

Iran has been holding talks with Afghanistan's Taliban with the knowledge of the Afghan government, a senior Iranian security official was quoted by the official news agency IRNA as saying on Wednesday during a visit to Kabul.

Iran has been holding talks with Afghanistan's Taliban with the knowledge of the Afghan government, a senior Iranian security official was quoted by the official news agency IRNA as saying on Wednesday during a visit to Kabul. The news came days after reports last week of talks between US and Taliban officials over proposals for a ceasefire in Afghanistan and a future withdrawal of foreign troops ahead of possible peace negotiations. Talks between Iran and the Taliban were held "to help curb the security problems in Afghanistan," Ali Shamkhani, secretary of Iran's Supreme National Security Council, was quoted by IRNA as saying. "All contacts and talks with the Taliban group have been with the knowledge of Afghanistan's government and this process will continue," he said. He gave no further details. Majority-Shi'ite Iran has long had close ties to Shi'ites in neighbouring Afghanistan whose militias have fought the Taliban's Sunni militants. But in recent months Afghan officials have accused Tehran, which the United States says is trying to extend its influence in western Afghanistan, of providing the Taliban with money, weapons and explosives. Iran denies that. Earlier this month, Afghan forces abandoned a remote western district bordering Iran, leaving the area to the Taliban after the government failed to resupply troops stationed there. In November, the United States displayed pieces of what it said were Iranian weapons supplied to militants in Yemen and Afghanistan, a move by Washington to pressure Tehran to curb its regional activities. Iran denies supplying arms to the militants. In October, the United States accused Iran of providing military training, financing and weapons to the Taliban and targeted sanctions against eight individuals, including two linked to the Quds Force of Iran’s Revolutionary Guards. Tehran denies the accusations.

Iran in talks with Afghan Taliban: Report

Ten people have been killed in a bus accident at one of Tehran's largest universities, Iran's conservative news agency Tasnim reported Wednesday.

The bus was carrying 30 students along a mountainous road within the science research campus of Islamic Azad University in northwestern Tehran when it came off the road and hit a concrete column on Tuesday.&nbsp;

Seven were killed instantly, state TV said, while an updated death toll of 10 was reported by Tasnim the day after the crash.

Iran was the world's seventh deadliest country for drivers per capita, according to the World Health Organization's latest figures from 2013, and the only non-African country apart from Thailand in the top 10.

Iranian authorities say over 16,000 died on the road in the last Iranian year (2017-18).

Efforts to modernise Iran's ageing and highly polluting cars have been hampered by a lack of investment, and foreign companies such as Peugeot and Renault were again forced to withdraw this year by the return of US sanctions.

The university blamed Tuesday's crash on the driver having a stroke, but many on social media pointed to its ageing bus fleet and lack of road maintenance.

Journalist Mahmoud Sadri tweeted that the university's use of a "ramshackle bus in a mountainous region" amounted to "manslaughter". 
Supreme leader Ayatollah Ali Khamenei offered his condolences over the "tragic accident" in a statement on Tuesday.

Ten people have been killed in a bus accident at one of Tehran's largest universities, Iran's conservative news agency Tasnim reported Wednesday. The bus was carrying 30 students along a mountainous road within the science research campus of Islamic Azad University in northwestern Tehran when it came off the road and hit a concrete column on Tuesday.

Ten people have been killed in a bus accident at one of Tehran's largest universities, Iran's conservative news agency Tasnim reported Wednesday. The bus was carrying 30 students along a mountainous road within the science research campus of Islamic Azad University in northwestern Tehran when it came off the road and hit a concrete column on Tuesday. Seven were killed instantly, state TV said, while an updated death toll of 10 was reported by Tasnim the day after the crash. Iran was the world's seventh deadliest country for drivers per capita, according to the World Health Organization's latest figures from 2013, and the only non-African country apart from Thailand in the top 10. Iranian authorities say over 16,000 died on the road in the last Iranian year (2017-18). Efforts to modernise Iran's ageing and highly polluting cars have been hampered by a lack of investment, and foreign companies such as Peugeot and Renault were again forced to withdraw this year by the return of US sanctions. The university blamed Tuesday's crash on the driver having a stroke, but many on social media pointed to its ageing bus fleet and lack of road maintenance. Journalist Mahmoud Sadri tweeted that the university's use of a "ramshackle bus in a mountainous region" amounted to "manslaughter". Supreme leader Ayatollah Ali Khamenei offered his condolences over the "tragic accident" in a statement on Tuesday.

10 dead in bus crash at Iran university

Iran's government faces acute economic challenges as it announces its annual budget, expected on Tuesday, and not all of its problems are the result of US sanctions.&nbsp;

The rial has lost around half its value against the dollar since US President Donald Trump announced he was withdrawing from the 2015 nuclear deal in May and reimposing sanctions.&nbsp;

That has driven up prices and blocked much of the foreign investment President Hassan Rouhani had hoped to attract, with the International Monetary Fund now predicting the economy will shrink by 3.6 percent next year.

But analysts say many of the country's woes pre-date Trump and the sanctions.&nbsp;

Banking sector 
Iran-based economist Mohammad Mahidashti says the banking system is the "biggest problem -- riddled with fictitious assets and non-performing loans".

Banks issued huge loans under Rouhani's predecessor Mahmoud Ahmadinejad with little apparent care for whether they would be repaid.&nbsp;

Parliament's economic commission said in March that half of all these loans -- worth around $27 billion at the time -- turned sour.

Desperately short of funds, banks have tried to attract fresh deposits with interest rates of 30 percent or more.

While providing a much-needed source of liquidity initially, the interest on these deposits has only added to banks' instability.

Rouhani said recently that "unhealthy" banks were being kept afloat by continuously borrowing from the central bank, and the debts of private lenders have doubled in the year to September.

Banks are also saddled with unsellable properties after pumping cash into a construction boom that ran out of steam around 2013.&nbsp;

"We have close to two million empty houses in Iran. There is simply no demand out there," said Narges Darvish, an economics lecturer at Tehran's Alzahra University.

But the government is loath to let banks fail, fearing a public backlash -- especially after the collapse of dodgy credit agencies helped fuel widespread protests a year ago.

Currency crisis 
The US withdrawal from the nuclear deal fuelled a run on the Iranian rial, but was not the only factor behind the currency's weakness.&nbsp;

In September, central bank governor Abdolnasser Hemmati instead blamed "horrific growth in money supply".&nbsp;

Its data shows that the amount of cash flowing around the Iranian economy has increased 24 percent annually for the past four years.

Given that Iran's economy offers few profitable and secure investment opportunities, citizens had already long sought to change rial savings into dollars. &nbsp;

And when rising expectations that the US would re-impose sanctions pressured the rial in earnest in early 2018, the government's reaction was a mess, according to economist Mousa Ghaninezhad.

"They claim they believe in the free market but they have no coherent strategy," he told AFP.&nbsp;

At one point, in April, the government forcibly shut down exchange houses and tried to fix the rate at 42,000 rials per dollar -- which only fuelled panic and drove speculators into the black market.&nbsp;

Recognising its mistake, the government reopened exchange shops and sacked the central bank governor a few months later.

A fierce crackdown was also unleashed on those exploiting the situation, with dozens of traders put on trial and at least three businessmen executed since October.

But the damage has been done. Imports are now vastly more expensive at the same time as sanctions make it harder to move goods into the country.

Prices have been rising as a result -- the cost of food and drink rose 60 percent in the year to November, according to the central bank.

State control 
Despite a privatisation drive, much of the economy remains in the hands of the state, either directly, or because groups connected to the government or military are the major shareholders.&nbsp;

This has stifled the private sector, which struggles to attract investment and compete for projects, analysts say.

Economist Ehsan Soltani says state-controlled industries like steel and petrochemicals benefit from huge subsidies -- totalling around $40 billion (35 billion euros) a year in fuel and electricity discounts -- but create relatively few jobs and returns.&nbsp;

"These industries are only wanted because of rent and corruption," he told AFP.

Hopes that the nuclear deal would bring a flood of foreign investment to boost the private sector have been dashed by the return of sanctions.&nbsp;

Meanwhile, efforts to bring greater transparency -- notably, new laws against money-laundering -- have been opposed by powerful vested interests, according to Foreign Minister Mohammad Javad Zarif.&nbsp;

"Those places that launder thousands of billions (of rials) are certainly financially capable of spending a few hundred billion on propaganda (against the laws)," Zarif told Khabar Online news agency last month.&nbsp;

Iran's government faces acute economic challenges as it announces its annual budget, expected on Tuesday, and not all of its problems are the result of US sanctions.

Iran's government faces acute economic challenges as it announces its annual budget, expected on Tuesday, and not all of its problems are the result of US sanctions. The rial has lost around half its value against the dollar since US President Donald Trump announced he was withdrawing from the 2015 nuclear deal in May and reimposing sanctions. That has driven up prices and blocked much of the foreign investment President Hassan Rouhani had hoped to attract, with the International Monetary Fund now predicting the economy will shrink by 3.6 percent next year. But analysts say many of the country's woes pre-date Trump and the sanctions. Banking sector Iran-based economist Mohammad Mahidashti says the banking system is the "biggest problem -- riddled with fictitious assets and non-performing loans". Banks issued huge loans under Rouhani's predecessor Mahmoud Ahmadinejad with little apparent care for whether they would be repaid. Parliament's economic commission said in March that half of all these loans -- worth around $27 billion at the time -- turned sour. Desperately short of funds, banks have tried to attract fresh deposits with interest rates of 30 percent or more. While providing a much-needed source of liquidity initially, the interest on these deposits has only added to banks' instability. Rouhani said recently that "unhealthy" banks were being kept afloat by continuously borrowing from the central bank, and the debts of private lenders have doubled in the year to September. Banks are also saddled with unsellable properties after pumping cash into a construction boom that ran out of steam around 2013. "We have close to two million empty houses in Iran. There is simply no demand out there," said Narges Darvish, an economics lecturer at Tehran's Alzahra University. But the government is loath to let banks fail, fearing a public backlash -- especially after the collapse of dodgy credit agencies helped fuel widespread protests a year ago. Currency crisis The US withdrawal from the nuclear deal fuelled a run on the Iranian rial, but was not the only factor behind the currency's weakness. In September, central bank governor Abdolnasser Hemmati instead blamed "horrific growth in money supply". Its data shows that the amount of cash flowing around the Iranian economy has increased 24 percent annually for the past four years. Given that Iran's economy offers few profitable and secure investment opportunities, citizens had already long sought to change rial savings into dollars. And when rising expectations that the US would re-impose sanctions pressured the rial in earnest in early 2018, the government's reaction was a mess, according to economist Mousa Ghaninezhad. "They claim they believe in the free market but they have no coherent strategy," he told AFP. At one point, in April, the government forcibly shut down exchange houses and tried to fix the rate at 42,000 rials per dollar -- which only fuelled panic and drove speculators into the black market. Recognising its mistake, the government reopened exchange shops and sacked the central bank governor a few months later. A fierce crackdown was also unleashed on those exploiting the situation, with dozens of traders put on trial and at least three businessmen executed since October. But the damage has been done. Imports are now vastly more expensive at the same time as sanctions make it harder to move goods into the country. Prices have been rising as a result -- the cost of food and drink rose 60 percent in the year to November, according to the central bank. State control Despite a privatisation drive, much of the economy remains in the hands of the state, either directly, or because groups connected to the government or military are the major shareholders. This has stifled the private sector, which struggles to attract investment and compete for projects, analysts say. Economist Ehsan Soltani says state-controlled industries like steel and petrochemicals benefit from huge subsidies -- totalling around $40 billion (35 billion euros) a year in fuel and electricity discounts -- but create relatively few jobs and returns. "These industries are only wanted because of rent and corruption," he told AFP. Hopes that the nuclear deal would bring a flood of foreign investment to boost the private sector have been dashed by the return of sanctions. Meanwhile, efforts to bring greater transparency -- notably, new laws against money-laundering -- have been opposed by powerful vested interests, according to Foreign Minister Mohammad Javad Zarif. "Those places that launder thousands of billions (of rials) are certainly financially capable of spending a few hundred billion on propaganda (against the laws)," Zarif told Khabar Online news agency last month.

Iran's economic woes go beyond sanctions: Analysts

Leaders of India, Afghanistan and Iran met for the first congregation of the follow-up Committee for implementation of the trilateral Chabahar Agreement between the three countries.

The first meeting of the Follow-up Committee between the three South-Asian nations was held at the level of Joint Secretary/ Director General on December 24 in the port city of Chabahar in Iran, stated a press release from MEA.

While positive and constructive discussions were held between the three sides on full operationalisation of the Trilateral Transit Agreement for international transit and transport through the Chabahar Port, India Ports Global Limited company also opened its first office and took over operations at the Shaheed Behesti port at Chabahar.

India also attained mileage with the meeting as the three nations also agreed to finalise at the earliest the Protocol to harmonize transit, roads, customs, and consular matters.

India, Afghanistan and Iran also agreed to allow cargo movement at Chabahar using TIR Convention provisions.It was decided to hold an event to promote and popularize the potential of Chabahar on 26 February 2019.

Also, a study would be initiated for determining measures to make the route attractive, decrease logistic costs and pave the way for smooth operationalisation of the Chabahar Agreement.

The next Follow-up Committee meeting, followed by the 2nd Coordination Council Meeting the level of Secretaries/ Deputy Ministers, will held in India in 2019.

Leaders of India, Afghanistan and Iran met for the first congregation of the follow-up Committee for implementation of the trilateral Chabahar Agreement between the three countries.

Leaders of India, Afghanistan and Iran met for the first congregation of the follow-up Committee for implementation of the trilateral Chabahar Agreement between the three countries. The first meeting of the Follow-up Committee between the three South-Asian nations was held at the level of Joint Secretary/ Director General on December 24 in the port city of Chabahar in Iran, stated a press release from MEA. While positive and constructive discussions were held between the three sides on full operationalisation of the Trilateral Transit Agreement for international transit and transport through the Chabahar Port, India Ports Global Limited company also opened its first office and took over operations at the Shaheed Behesti port at Chabahar. India also attained mileage with the meeting as the three nations also agreed to finalise at the earliest the Protocol to harmonize transit, roads, customs, and consular matters. India, Afghanistan and Iran also agreed to allow cargo movement at Chabahar using TIR Convention provisions.It was decided to hold an event to promote and popularize the potential of Chabahar on 26 February 2019. Also, a study would be initiated for determining measures to make the route attractive, decrease logistic costs and pave the way for smooth operationalisation of the Chabahar Agreement. The next Follow-up Committee meeting, followed by the 2nd Coordination Council Meeting the level of Secretaries/ Deputy Ministers, will held in India in 2019.

India, Afghanistan and Iran meet for Chabahar Agreement

<a href="http://www.wionews.com/world/us-sanctions-are-economic-terrorism-says-iran-president-rouhani-182402">President Hassan Rouhani </a>presented an annual state budget of 4,700 trillion rials ($47 billion at the free market rate) to parliament on Tuesday, saying <a href="http://www.wionews.com/world/iran-seeks-regional-front-against-us-economic-terrorism-182445">US sanctions would affect Iranians`</a> lives and growth but not bring the government to its knees.

"America`s goal is to bring Iran`s Islamic system to its knees... and it will fail in this, but sanctions will no doubt affect people`s lives, and the country`s development and economic growth," Rouhani told parliament in a speech carried live on state television.

He gave the value of the draft budget at about 4,700 trillion rials for the next Iranian year which starts on March 21, 2019.

President Hassan Rouhani presented an annual state budget of 4,700 trillion rials ($47 billion at the free market rate) to parliament on Tuesday, saying US sanctions would affect Iranians` lives and growth but not bring the government to its knees.

President Hassan Rouhani presented an annual state budget of 4,700 trillion rials ($47 billion at the free market rate) to parliament on Tuesday, saying US sanctions would affect Iranians` lives and growth but not bring the government to its knees. "America`s goal is to bring Iran`s Islamic system to its knees... and it will fail in this, but sanctions will no doubt affect people`s lives, and the country`s development and economic growth," Rouhani told parliament in a speech carried live on state television. He gave the value of the draft budget at about 4,700 trillion rials for the next Iranian year which starts on March 21, 2019.

President Rouhani presents Iran budget, says US sanctions to hit lives, growth

Iran&nbsp;said on Monday it was ready to respond to any hostile US&nbsp;action, but it did not consider the arrival of a US aircraft carrier in the Gulf last week as a significant threat.

The USS John C. Stennis entered the Gulf on Friday, ending a long absence of US&nbsp;aircraft carriers in the region as tensions rise between Tehran and Washington.

"The presence of this warship is insignificant to us,"&nbsp;Iran's Navy commander Habibollah Sayyari was quoted as saying by the semi-official ISNA news agency.

"We will not allow this warship to come near our territorial waters in the Persian Gulf," he added.

Sayyari said the US&nbsp;Navy was allowed to sail in international waters near&nbsp;Iran, just as the&nbsp;Iranian navy could sail in the Atlantic Ocean near U.S. waters.

He said, however, that&nbsp;Iran&nbsp;was on alert for possible threats. "They do not have the courage or ability to take any measures against us. We have enough capabilities to stand against their actions and we have fully rehearsed for that."

A US-Iranian war of words has escalated since US&nbsp;President Donald Trump withdrew Washington in May from a world powers’ nuclear deal with&nbsp;Iran, and reimposed sanctions on its banking and energy sectors.

Iran&nbsp;has warned that if it cannot sell its oil due to US&nbsp;pressures, then no other regional country will be allowed to do so either, threatening to block the Strait of Hormuz in the Gulf.

A fifth of global oil consumption passes through the Strait from the Middle East crude producers to major markets.

In recent years, there have been periodic confrontations between&nbsp;Iran's Revolutionary Guards and US&nbsp;military in the Gulf, but the number of incidents has dropped in recent months.

Iran said on Monday it was ready to respond to any hostile US action, but it did not consider the arrival of a US aircraft carrier in the Gulf last week as a significant threat.

Iran said on Monday it was ready to respond to any hostile US action, but it did not consider the arrival of a US aircraft carrier in the Gulf last week as a significant threat. The USS John C. Stennis entered the Gulf on Friday, ending a long absence of US aircraft carriers in the region as tensions rise between Tehran and Washington. "The presence of this warship is insignificant to us," Iran's Navy commander Habibollah Sayyari was quoted as saying by the semi-official ISNA news agency. "We will not allow this warship to come near our territorial waters in the Persian Gulf," he added. Sayyari said the US Navy was allowed to sail in international waters near Iran, just as the Iranian navy could sail in the Atlantic Ocean near U.S. waters. He said, however, that Iran was on alert for possible threats. "They do not have the courage or ability to take any measures against us. We have enough capabilities to stand against their actions and we have fully rehearsed for that." A US-Iranian war of words has escalated since US President Donald Trump withdrew Washington in May from a world powers’ nuclear deal with Iran, and reimposed sanctions on its banking and energy sectors. Iran has warned that if it cannot sell its oil due to US pressures, then no other regional country will be allowed to do so either, threatening to block the Strait of Hormuz in the Gulf. A fifth of global oil consumption passes through the Strait from the Middle East crude producers to major markets. In recent years, there have been periodic confrontations between Iran's Revolutionary Guards and US military in the Gulf, but the number of incidents has dropped in recent months.

Presence of US warship insignificant to us, won't allow it to enter Persian Gulf: Iran

Iran executed a trader known as the "Sultan of Bitumen" on Saturday over charges of fraud and large-scale smuggling of the oil product, the judiciary's news agency Mizan online reported.

Hamidreza Bagheri Dermani is the third businessman to be executed since an anti-corruption drive was launched over the summer.&nbsp;

He was convicted of "corruption on earth", Iran's most serious offence, after swindling over 10 trillion rials (around $100 million at the current rate) through "fraud, forgery and bribery", Mizan reported.

Dermani, first arrested in August 2014, reportedly forged dozens of documents of fake real estate to acquire bank loans.&nbsp;

He then used front companies to procure more than 300,000 tonnes of bitumen — an oil-based substance used in asphalt and other products and one of Iran's most profitable businesses — Mizan said.

Dermani was also accused of ties to business magnate Babak Morteza Zanjani, who is awaiting execution after being convicted in 2016 of embezzling $2.7 billion while helping the government circumvent international sanctions.

The judiciary said Dermani's loans were facilitated by former central bank governor Mahmoud Reza Khavari, who was convicted in absentia last year after fleeing to Canada in the wake of yet another major embezzlement scandal.

News of Dermani's execution was presented in dramatic fashion on state television on Saturday, with an action-movie soundtrack and full documentary about his crimes.

The footage showed documents claiming Iranian journalist and women's rights activist Hengameh Shahidi, sentenced earlier this month to 12 years in prison on unspecified charges, had tried to pay Dermani's bail last year.

The authorities have been keen to show they are cracking down on "economic disruptors" accused of exploiting shortages and fluctuations in gold and currency prices.&nbsp;

Dozens have been tried and in November a trader dubbed the "Sultan of Coins" and partner were executed for exploiting a surge in gold demand from savers spooked by this year's currency crisis.

Iran has seen a sharp economic downturn this year, fuelled in part by US President Donald Trump's decision in May to withdraw from a landmark 2015 nuclear deal and reimpose crippling unilateral sanctions.

Iran executed a trader known as the "Sultan of Bitumen" on Saturday over charges of fraud and large-scale smuggling of the oil product, the judiciary's news agency Mizan online reported.

Iran executed a trader known as the "Sultan of Bitumen" on Saturday over charges of fraud and large-scale smuggling of the oil product, the judiciary's news agency Mizan online reported. Hamidreza Bagheri Dermani is the third businessman to be executed since an anti-corruption drive was launched over the summer. He was convicted of "corruption on earth", Iran's most serious offence, after swindling over 10 trillion rials (around $100 million at the current rate) through "fraud, forgery and bribery", Mizan reported. Dermani, first arrested in August 2014, reportedly forged dozens of documents of fake real estate to acquire bank loans. He then used front companies to procure more than 300,000 tonnes of bitumen — an oil-based substance used in asphalt and other products and one of Iran's most profitable businesses — Mizan said. Dermani was also accused of ties to business magnate Babak Morteza Zanjani, who is awaiting execution after being convicted in 2016 of embezzling $2.7 billion while helping the government circumvent international sanctions. The judiciary said Dermani's loans were facilitated by former central bank governor Mahmoud Reza Khavari, who was convicted in absentia last year after fleeing to Canada in the wake of yet another major embezzlement scandal. News of Dermani's execution was presented in dramatic fashion on state television on Saturday, with an action-movie soundtrack and full documentary about his crimes. The footage showed documents claiming Iranian journalist and women's rights activist Hengameh Shahidi, sentenced earlier this month to 12 years in prison on unspecified charges, had tried to pay Dermani's bail last year. The authorities have been keen to show they are cracking down on "economic disruptors" accused of exploiting shortages and fluctuations in gold and currency prices. Dozens have been tried and in November a trader dubbed the "Sultan of Coins" and partner were executed for exploiting a surge in gold demand from savers spooked by this year's currency crisis. Iran has seen a sharp economic downturn this year, fuelled in part by US President Donald Trump's decision in May to withdraw from a landmark 2015 nuclear deal and reimpose crippling unilateral sanctions.

Iran executes trader dubbed 'Sultan of Bitumen'

Israel will escalate its fight against Iranian-aligned forces in Syria <a href="http://www.wionews.com/world/trump-is-right-to-pull-us-troops-out-of-syria-says-putin-185511">after the withdrawal of US&nbsp;troops</a> from the country, Israeli Prime Minister Benjamin Netanyahu said on Thursday.

Some Israeli officials have said US&nbsp;President Donald Trump's move, announced on Wednesday, could help Iran by removing a US&nbsp;garrison that stems the movement of Iranian forces and weaponry into Syria from Iraq.

Israel also worries that its main ally's exit could reduce its diplomatic leverage with Russia, the Syrian government's big-power backer.

"We will continue to act very aggressively against Iran's efforts to entrench in Syria," Netanyahu said in televised remarks, referring to an Israeli air campaign in Syria against Iranian deployments and arms transfers to Lebanese Hezbollah guerrillas, carried out with Moscow often turning a blind eye.

"We do not intend to reduce our efforts. We will intensify them, and I know that we do so with the full support and backing of the United States."

Trump cited what he described as victory over Islamic State militants in Syria as warranting the U.S. withdrawal. Israel has long tried to persuade Washington that Iran and its Shi'ite Muslim militias, sent to reinforce Damascus, pose the greater threat.

"Daesh (Islamic State) has indeed been defeated in Syria, and this is greatly thanks to America," Israeli Education Minister Naftali Bennett, a member of Netanyahu's security cabinet, said in a statement to Reuters. "But Iran are already moving in, and they are a threat to the whole free world."

Another security cabinet member, Finance Minister Moshe Kahlon, told Israel's Army Radio: "Of course the American decision is not good for us. But we know that safeguarding Israel's security is also an American interest in the region."

Israel will escalate its fight against Iranian-aligned forces in Syria after the withdrawal of US troops from the country, Israeli Prime Minister Benjamin Netanyahu said on Thursday.

Israel will escalate its fight against Iranian-aligned forces in Syria after the withdrawal of US troops from the country, Israeli Prime Minister Benjamin Netanyahu said on Thursday. Some Israeli officials have said US President Donald Trump's move, announced on Wednesday, could help Iran by removing a US garrison that stems the movement of Iranian forces and weaponry into Syria from Iraq. Israel also worries that its main ally's exit could reduce its diplomatic leverage with Russia, the Syrian government's big-power backer. "We will continue to act very aggressively against Iran's efforts to entrench in Syria," Netanyahu said in televised remarks, referring to an Israeli air campaign in Syria against Iranian deployments and arms transfers to Lebanese Hezbollah guerrillas, carried out with Moscow often turning a blind eye. "We do not intend to reduce our efforts. We will intensify them, and I know that we do so with the full support and backing of the United States." Trump cited what he described as victory over Islamic State militants in Syria as warranting the U.S. withdrawal. Israel has long tried to persuade Washington that Iran and its Shi'ite Muslim militias, sent to reinforce Damascus, pose the greater threat. "Daesh (Islamic State) has indeed been defeated in Syria, and this is greatly thanks to America," Israeli Education Minister Naftali Bennett, a member of Netanyahu's security cabinet, said in a statement to Reuters. "But Iran are already moving in, and they are a threat to the whole free world." Another security cabinet member, Finance Minister Moshe Kahlon, told Israel's Army Radio: "Of course the American decision is not good for us. But we know that safeguarding Israel's security is also an American interest in the region."

Israel will escalate fight against Iran in Syria after US exit: Netanyahu

Iranian Foreign Minister Mohammad Javad Zarif on Saturday said US sanctions will have no impact on the policies of the Islamic republic at home or abroad.

"It is obvious that we are facing pressure by the US sanctions. But will that lead to a change in policy? I can assure you it won't," Zarif told the Doha Forum policy conference in Qatar.

"If there is an art we have perfected in Iran and can teach to others for a price, it is the art of evading sanctions," he added.

The US imposed two sets of sanctions on Iran this year, after earlier unilaterally pulling out of the Iran nuclear deal with global powers.

Discussing the Yemen conflict, Zarif denied Tehran had ever armed the Huthi rebels battling pro-government forces in the country.

"We have never provided weapons to Huthis," he said when challenged on what arms it had supplied.

"They have enough weapons, they don't need weapons from Iran," Zarif said.

He said there were only "allegations" that Iran had sent weapons to Yemen, whereas there were "facts" that other countries had shipped arms.

"I don't need to show any evidence about the jets that were flying in Yemen bombing the Yemenis.

"Those are American-made jets and those are Saudi fighters, I assume, which are piloting those jets," Zarif said.

"If there are allegations about Iranian weapons, there are facts about US weapons, facts about Saudis bombing the hell out of the Yemenis," he added.

Iran's regional rival Saudi Arabia intervened in the Yemen conflict in 2015 as part of a coalition backing the government.

Zarif said the United States and its ally Saudi Arabia were responsible for the "humanitarian nightmare" in war-torn Yemen.

He also accused Riyadh of seeking "tension" with Iran.

Zarif also alluded to the murder of Saudi journalist Jamal Khashoggi, saying Saudi Arabia believes "it can get away with murder".

Khashoggi, a palace insider turned critic of the regime, was killed shortly after entering the Saudi consulate in Istanbul on October 2.

&nbsp;

Iranian Foreign Minister Mohammad Javad Zarif on Saturday said US sanctions will have no impact on the policies of the Islamic republic at home or abroad. "It is obvious that we are facing pressure by the US sanctions.

Iranian Foreign Minister Mohammad Javad Zarif on Saturday said US sanctions will have no impact on the policies of the Islamic republic at home or abroad. "It is obvious that we are facing pressure by the US sanctions. But will that lead to a change in policy? I can assure you it won't," Zarif told the Doha Forum policy conference in Qatar. "If there is an art we have perfected in Iran and can teach to others for a price, it is the art of evading sanctions," he added. The US imposed two sets of sanctions on Iran this year, after earlier unilaterally pulling out of the Iran nuclear deal with global powers. Discussing the Yemen conflict, Zarif denied Tehran had ever armed the Huthi rebels battling pro-government forces in the country. "We have never provided weapons to Huthis," he said when challenged on what arms it had supplied. "They have enough weapons, they don't need weapons from Iran," Zarif said. He said there were only "allegations" that Iran had sent weapons to Yemen, whereas there were "facts" that other countries had shipped arms. "I don't need to show any evidence about the jets that were flying in Yemen bombing the Yemenis. "Those are American-made jets and those are Saudi fighters, I assume, which are piloting those jets," Zarif said. "If there are allegations about Iranian weapons, there are facts about US weapons, facts about Saudis bombing the hell out of the Yemenis," he added. Iran's regional rival Saudi Arabia intervened in the Yemen conflict in 2015 as part of a coalition backing the government. Zarif said the United States and its ally Saudi Arabia were responsible for the "humanitarian nightmare" in war-torn Yemen. He also accused Riyadh of seeking "tension" with Iran. Zarif also alluded to the murder of Saudi journalist Jamal Khashoggi, saying Saudi Arabia believes "it can get away with murder". Khashoggi, a palace insider turned critic of the regime, was killed shortly after entering the Saudi consulate in Istanbul on October 2.

US sanctions won't change Iran policies: Javad Zarif

Pakistan on Saturday summoned Iran's ambassador Mehdi Honardoost to record protest against a terrorist attack on a paramilitary convoy on the Iranian border in which six soldiers were killed.

On Friday, about 30 terrorists ambushed a convoy of the Frontier Corps along the Pakistan-Iran border when it was patrolling the area.&nbsp;

Six soldiers were killed and 14 others injured in the "cowardly terrorist attack", the FO said, adding, "The Iranian Ambassador to Pakistan was called to the Foreign Office to lodge a strong protest against the ghastly incident."&nbsp;

Claiming that the militants were operating from the Iranian border area, the FO demanded that Iran should carry out an effective operation against the terrorist group responsible for the attack on its side of the border.

"The need for an effective border coordination mechanism to prevent such incidents in future was also underscored," it said.

Pakistan on Saturday summoned Iran's ambassador Mehdi Honardoost to record protest against a terrorist attack on a paramilitary convoy on the Iranian border in which six soldiers were killed.

Pakistan on Saturday summoned Iran's ambassador Mehdi Honardoost to record protest against a terrorist attack on a paramilitary convoy on the Iranian border in which six soldiers were killed. On Friday, about 30 terrorists ambushed a convoy of the Frontier Corps along the Pakistan-Iran border when it was patrolling the area. Six soldiers were killed and 14 others injured in the "cowardly terrorist attack", the FO said, adding, "The Iranian Ambassador to Pakistan was called to the Foreign Office to lodge a strong protest against the ghastly incident." Claiming that the militants were operating from the Iranian border area, the FO demanded that Iran should carry out an effective operation against the terrorist group responsible for the attack on its side of the border. "The need for an effective border coordination mechanism to prevent such incidents in future was also underscored," it said.

Pakistan summons Iran envoy to protest terror attack on border

<a href="http://www.wionews.com/world/mike-pompeo-sees-strong-us-britain-ties-in-hard-brexit-183010">US Secretary of State Mike Pompeo</a> on Wednesday urged the United Nations to tighten restrictions on Iran's missiles, saying the Islamic republic had hundreds of projectiles that could strike US allies.

Pompeo headed to New York for a Security Council meeting on Iran, which recently confirmed a medium-range ballistic test, arguing it is legal and necessary for its defence.

"We risk the security of our people if Iran continues stocking up on ballistic missiles," Pompeo told the Security Council.

"We risk escalation of conflict in the region if we fail to restore deterrence. And we convey to all other malign actors that they too can defy the Security Council with impunity if we do nothing," he said.

Iran has "hundreds of missiles which pose a threat to our partners in the region," Pompeo said, likely referring to Israel and Arab allies such as Saudi Arabia.

Pompeo said the United States would press to preserve a UN arms embargo on Iran due to expire in 2020.

"We also call on the Council to establish inspection and interdiction&nbsp; 
measures, in ports and on the high seas, to thwart Iran's continuing efforts to circumvent existing arms restrictions," Pompeo said.

Pompeo has put a major focus on ramping up pressure on Iran, with President Donald Trump withdrawing from an international accord on curbing Tehran's nuclear program negotiated under his predecessor Barack Obama.

He called for the reimposition of a ban on Iran developing missiles capable of delivering nuclear weapons as outlined under Security Council Resolution 1929 of 2010.

That resolution was superceded by Security Council Resolution 2231 backing the Iran nuclear accord, which also called upon Tehran to refrain from the sensitive missile work.

Iran has argued that its missile tests are not nuclear in nature and that it is defending itself against threats, noting that Western powers backed Saddam Hussein in the 1980-88 Iran-Iraq war.

European powers remain committed to the Iran accord and note that UN inspectors say Tehran has complied with terms on ending its nuclear program.

Karel van Oosterom, the Dutch ambassador to the United Nations, in a statement on behalf of eight European nations said that Iran's missile program was concerning but separate from the nuclear accord.

"We call on Iran to refrain from such activities, which deepen mistrust and increase regional tensions and are in non-conformity with Resolution 2231," he told reporters.

US Secretary of State Mike Pompeo on Wednesday urged the United Nations to tighten restrictions on Iran's missiles, saying the Islamic republic had hundreds of projectiles that could strike US allies.

US Secretary of State Mike Pompeo on Wednesday urged the United Nations to tighten restrictions on Iran's missiles, saying the Islamic republic had hundreds of projectiles that could strike US allies. Pompeo headed to New York for a Security Council meeting on Iran, which recently confirmed a medium-range ballistic test, arguing it is legal and necessary for its defence. "We risk the security of our people if Iran continues stocking up on ballistic missiles," Pompeo told the Security Council. "We risk escalation of conflict in the region if we fail to restore deterrence. And we convey to all other malign actors that they too can defy the Security Council with impunity if we do nothing," he said. Iran has "hundreds of missiles which pose a threat to our partners in the region," Pompeo said, likely referring to Israel and Arab allies such as Saudi Arabia. Pompeo said the United States would press to preserve a UN arms embargo on Iran due to expire in 2020. "We also call on the Council to establish inspection and interdiction measures, in ports and on the high seas, to thwart Iran's continuing efforts to circumvent existing arms restrictions," Pompeo said. Pompeo has put a major focus on ramping up pressure on Iran, with President Donald Trump withdrawing from an international accord on curbing Tehran's nuclear program negotiated under his predecessor Barack Obama. He called for the reimposition of a ban on Iran developing missiles capable of delivering nuclear weapons as outlined under Security Council Resolution 1929 of 2010. That resolution was superceded by Security Council Resolution 2231 backing the Iran nuclear accord, which also called upon Tehran to refrain from the sensitive missile work. Iran has argued that its missile tests are not nuclear in nature and that it is defending itself against threats, noting that Western powers backed Saddam Hussein in the 1980-88 Iran-Iraq war. European powers remain committed to the Iran accord and note that UN inspectors say Tehran has complied with terms on ending its nuclear program. Karel van Oosterom, the Dutch ambassador to the United Nations, in a statement on behalf of eight European nations said that Iran's missile program was concerning but separate from the nuclear accord. "We call on Iran to refrain from such activities, which deepen mistrust and increase regional tensions and are in non-conformity with Resolution 2231," he told reporters.

Pompeo, at UN, urges tougher action on Iran missiles

Iran has detained an Australian-based academic on charges of trying to "infiltrate" Iranian institutions, according to official media.

Meimanat Hosseini-Chavoshi was detained as she was leaving Iran, the state news agency IRNA said.

Hosseini-Chavoshi, a population expert, is affiliated with the Melbourne School of Population and Global Health, according to the University of Melbourne's website.

Population control has become a sensitive issue in Iran since Supreme Leader Ayatollah Ali Khamenei issued an edict in 2014 calling for a population increase after decades of state-promoted birth control.

In October, Khamenei called for increased efforts to combat enemy "infiltration" as tensions escalated with the United States after Washington withdrew from a landmark nuclear deal and reimposed sanctions on Iran.

Asked about reports that several experts advocating population curbs had been arrested, judiciary spokesman Gholamhossein Mohseni Ejei told reporters on Sunday:

"One person has been arrested in this regard ... and three or four people are being sought," the judiciary's news website Mizan reported. Ejei gave no further details.

IRNA said last week there were reports that authorities had detained an Australian-based population expert on charges that she had tried to "infiltrate" state bodies in Iran.

IRNA quoted an attorney as naming the detained woman as Hosseini-Chavoshi, saying that she did not yet have a lawyer.

The agency quoted the hardline daily Kayhan as saying Hosseini-Chavoshi, reported to hold dual Australian and Iranian nationality, was detained by security forces in a drive against "enemy infiltration elements" as she was leaving Iran.

Reuters reported in 2017 that Iran's Revolutionary Guards had arrested at least 30 dual nationals in recent years, mostly on espionage charges. Among those held is British-Iranian aid worker Nazanin Zaghari-Ratcliffe, a project manager with the Thomson Reuters Foundation.

Iran does not recognise dual nationality and does not routinely announce arrests or charges of dual nationals, whose rights to consular assistance are enshrined in the U.N. Vienna Convention.

Iran has detained an Australian-based academic on charges of trying to "infiltrate" Iranian institutions, according to official media. Meimanat Hosseini-Chavoshi was detained as she was leaving Iran, the state news agency IRNA said.

Iran has detained an Australian-based academic on charges of trying to "infiltrate" Iranian institutions, according to official media. Meimanat Hosseini-Chavoshi was detained as she was leaving Iran, the state news agency IRNA said. Hosseini-Chavoshi, a population expert, is affiliated with the Melbourne School of Population and Global Health, according to the University of Melbourne's website. Population control has become a sensitive issue in Iran since Supreme Leader Ayatollah Ali Khamenei issued an edict in 2014 calling for a population increase after decades of state-promoted birth control. In October, Khamenei called for increased efforts to combat enemy "infiltration" as tensions escalated with the United States after Washington withdrew from a landmark nuclear deal and reimposed sanctions on Iran. Asked about reports that several experts advocating population curbs had been arrested, judiciary spokesman Gholamhossein Mohseni Ejei told reporters on Sunday: "One person has been arrested in this regard ... and three or four people are being sought," the judiciary's news website Mizan reported. Ejei gave no further details. IRNA said last week there were reports that authorities had detained an Australian-based population expert on charges that she had tried to "infiltrate" state bodies in Iran. IRNA quoted an attorney as naming the detained woman as Hosseini-Chavoshi, saying that she did not yet have a lawyer. The agency quoted the hardline daily Kayhan as saying Hosseini-Chavoshi, reported to hold dual Australian and Iranian nationality, was detained by security forces in a drive against "enemy infiltration elements" as she was leaving Iran. Reuters reported in 2017 that Iran's Revolutionary Guards had arrested at least 30 dual nationals in recent years, mostly on espionage charges. Among those held is British-Iranian aid worker Nazanin Zaghari-Ratcliffe, a project manager with the Thomson Reuters Foundation. Iran does not recognise dual nationality and does not routinely announce arrests or charges of dual nationals, whose rights to consular assistance are enshrined in the U.N. Vienna Convention.

Iran said to hold Australian-based academic on 'infiltration' charge

Iranian President Hassan Rouhani predicted a "deluge" of drugs, refugees and attacks on the West if <a href="http://www.wionews.com/world/iran-seeks-regional-front-against-us-economic-terrorism-182445">US&nbsp;sanctions</a> weaken Iran's ability to contain them.

"I warn those who impose sanctions that if Iran's ability to fight drugs and terrorism are affected ... you will not be safe from a deluge of drugs, asylum seekers, bombs and terrorism," Rouhani said in a speech carried live on state television.

Separately, Foreign minister Mohammad Javad Zarif was quoted as saying that the United States is selling more arms into the Middle East than the region needs, making it a "tinderbox".

US&nbsp;President Donald Trump pulled the United States out of a multilateral nuclear deal with Iran in May and reimposed sanctions on Iran’s vital oil industry last month.

Drug trafficking is a serious challenge for Iran as it borders Afghanistan - the world’s largest opium producer - and Pakistan, a major transit country for drugs.

"We spend $800 million a year to fight drugs which ensures the health of nations stretching from of Eastern Europe to the American West and North Africa to West Asia. Imagine what a disaster there would be if there is a breach in the dam," Rouhani said.

In 2012, Iran accounted for two thirds of the world’s opium seizures and one fourth of the world’s heroin and morphine seizures, a U.N. report published in 2014 showed.

"We have been just as determined in the fight against terrorism ... sacrificing hundreds of valuable troops and spending millions of dollars annually," Rouhani said.

"We don't expect the West to pay their share, but they should know that sanctions hurt Iran's capacity to fight drugs and terrorism," Rouhani added.

Iran, a key supporter of President Bashar al-Assad in Syria's civil war, has sent military advisers as well as materiel and regional Shi’ite militias to fight militant groups.

In Iraq, Iranian-backed militias and their Iranian advisers helped Iraq defeat Islamic State.

"Economic terrorism means creating horror in a country and create fear in other countries that intend to invest (there). America's withdrawal from the (nuclear accord) is undoubtedly a clear example of economic terrorism," Rouhani told a meeting of heads of parliaments of China, Russia, and four other countries.

More than 700,000 undocumented Afghans have returned from Iran this year as the Iranian economy tightens, according to data from the UN’s migration agency, and Iranian media said some Afghans were seeking to enter Turkey to reach Europe.&nbsp;

Zarif warned about the dangers of large U.S. arms sales in the Middle East, where Iran's regional rival Saudi Arabia is a major buyer of Western weapons.

"The Americans have turned the region into a tinderbox. The level of arms sales by the Americans is unbelievable and much beyond regional needs and this points to the very dangerous policies followed by the Americans," IRNA reported Zarif as saying.

Iranian President Hassan Rouhani predicted a "deluge" of drugs, refugees and attacks on the West if US sanctions weaken Iran's ability to contain them. "I warn those who impose sanctions that if Iran's ability to fight drugs and terrorism are affected .

Iranian President Hassan Rouhani predicted a "deluge" of drugs, refugees and attacks on the West if US sanctions weaken Iran's ability to contain them. "I warn those who impose sanctions that if Iran's ability to fight drugs and terrorism are affected ... you will not be safe from a deluge of drugs, asylum seekers, bombs and terrorism," Rouhani said in a speech carried live on state television. Separately, Foreign minister Mohammad Javad Zarif was quoted as saying that the United States is selling more arms into the Middle East than the region needs, making it a "tinderbox". US President Donald Trump pulled the United States out of a multilateral nuclear deal with Iran in May and reimposed sanctions on Iran’s vital oil industry last month. Drug trafficking is a serious challenge for Iran as it borders Afghanistan - the world’s largest opium producer - and Pakistan, a major transit country for drugs. "We spend $800 million a year to fight drugs which ensures the health of nations stretching from of Eastern Europe to the American West and North Africa to West Asia. Imagine what a disaster there would be if there is a breach in the dam," Rouhani said. In 2012, Iran accounted for two thirds of the world’s opium seizures and one fourth of the world’s heroin and morphine seizures, a U.N. report published in 2014 showed. "We have been just as determined in the fight against terrorism ... sacrificing hundreds of valuable troops and spending millions of dollars annually," Rouhani said. "We don't expect the West to pay their share, but they should know that sanctions hurt Iran's capacity to fight drugs and terrorism," Rouhani added. Iran, a key supporter of President Bashar al-Assad in Syria's civil war, has sent military advisers as well as materiel and regional Shi’ite militias to fight militant groups. In Iraq, Iranian-backed militias and their Iranian advisers helped Iraq defeat Islamic State. "Economic terrorism means creating horror in a country and create fear in other countries that intend to invest (there). America's withdrawal from the (nuclear accord) is undoubtedly a clear example of economic terrorism," Rouhani told a meeting of heads of parliaments of China, Russia, and four other countries. More than 700,000 undocumented Afghans have returned from Iran this year as the Iranian economy tightens, according to data from the UN’s migration agency, and Iranian media said some Afghans were seeking to enter Turkey to reach Europe. Zarif warned about the dangers of large U.S. arms sales in the Middle East, where Iran's regional rival Saudi Arabia is a major buyer of Western weapons. "The Americans have turned the region into a tinderbox. The level of arms sales by the Americans is unbelievable and much beyond regional needs and this points to the very dangerous policies followed by the Americans," IRNA reported Zarif as saying.

Iran's Rouhani predicts 'deluge' of drugs, refugees, attacks on West

Iran's President Hassan Rouhani said US sanctions were "economic terrorism", as he sought to foster a united front from visiting regional officials on Saturday.&nbsp;

Addressing parliament speakers from Afghanistan, China, Pakistan, Russia and Turkey, Rouhani said they had all suffered economic pressure from the US.

"We are facing an all-out assault which is not only threatening our independence and identity but also is bent on breaking our longstanding ties," he said.

Washington has reimposed an oil embargo and other damaging sanctions on Iran since withdrawing in May from a landmark 2015 nuclear deal between Tehran and major powers.&nbsp;

"America's unjust and illegal sanctions against the honourable nation of Iran have targeted our nation in a clear instance of terrorism," Rouhani said.&nbsp;

"Economic terrorism is designed to create panic in the economy of a country and fear in other countries in order to prevent investment."

The conference in Tehran was a second annual meeting of parliament speakers focused on terrorism and regional cooperation. The first was held last December in Islamabad.

Most participating countries have faced harsh sanctions and other economic pressure as part of the Trump administration's use of trade as a diplomatic weapon.&nbsp;

A <a href="http://www.wionews.com/opinions/g20-summit-bring-a-truce-in-us-china-trade-relations-181105">brief truce</a>&nbsp;in Trump's trade war with China was again in doubt this week after the&nbsp;<a href="http://www.wionews.com/world/huaweis-meng-wanzhou-faces-us-fraud-charges-linked-to-iran-bail-hearing-continues-monday-182324">arrest of Chinese telecom giant Huawei's chief financial officer,</a> who was detained in Canada to face fraud charges in the US.&nbsp;

Washington has continued to pile fresh sanctions on Russia that began over its military intervention in Ukraine, while Turkey also faced penalties this year over the detention of an American pastor.&nbsp;

'We are all punished'&nbsp;

Trump has also cancelled hundreds of millions of dollars in aid to Pakistan, accusing it of failing to crack down on militancy.

"When they put pressure on China's trade, we are all harmed... By punishing Turkey, we are all punished. Any time they threaten Russia, we too consider our security to be endangered," Rouhani said.

"When they impose sanctions on Iran, they deprive all of us of the benefits of international trade, energy security and sustainable development. And in fact, they impose sanctions on everyone.

"We are here to say that we don't intend to tolerate such insolence."

Rouhani warned Europe which has strongly objected to the US withdrawal from the nuclear deal&nbsp;that much is at stake in its efforts to bypass US sanctions and maintain trade with Iran.

"They should know that by sanctioning Iran, they would harm our ability to fight drugs and terrorism," Rouhani said, referring to Iran's efforts to combat smuggling, particularly from Afghanistan.&nbsp;

The European Union is working on a payment system, known as the "special purpose vehicle", to keep money flowing into Iran, but has struggled to find a host since many countries fear repercussions from the Trump administration.&nbsp;

Iran's President Hassan Rouhani said US sanctions were "economic terrorism", as he sought to foster a united front from visiting regional officials on Saturday. Addressing parliament speakers from Afghanistan, China, Pakistan, Russia and Turkey, Rouhani said they had all suffered economic pressure from the US.

Iran's President Hassan Rouhani said US sanctions were "economic terrorism", as he sought to foster a united front from visiting regional officials on Saturday. Addressing parliament speakers from Afghanistan, China, Pakistan, Russia and Turkey, Rouhani said they had all suffered economic pressure from the US. "We are facing an all-out assault which is not only threatening our independence and identity but also is bent on breaking our longstanding ties," he said. Washington has reimposed an oil embargo and other damaging sanctions on Iran since withdrawing in May from a landmark 2015 nuclear deal between Tehran and major powers. "America's unjust and illegal sanctions against the honourable nation of Iran have targeted our nation in a clear instance of terrorism," Rouhani said. "Economic terrorism is designed to create panic in the economy of a country and fear in other countries in order to prevent investment." The conference in Tehran was a second annual meeting of parliament speakers focused on terrorism and regional cooperation. The first was held last December in Islamabad. Most participating countries have faced harsh sanctions and other economic pressure as part of the Trump administration's use of trade as a diplomatic weapon. A brief truce in Trump's trade war with China was again in doubt this week after the arrest of Chinese telecom giant Huawei's chief financial officer, who was detained in Canada to face fraud charges in the US. Washington has continued to pile fresh sanctions on Russia that began over its military intervention in Ukraine, while Turkey also faced penalties this year over the detention of an American pastor. 'We are all punished' Trump has also cancelled hundreds of millions of dollars in aid to Pakistan, accusing it of failing to crack down on militancy. "When they put pressure on China's trade, we are all harmed... By punishing Turkey, we are all punished. Any time they threaten Russia, we too consider our security to be endangered," Rouhani said. "When they impose sanctions on Iran, they deprive all of us of the benefits of international trade, energy security and sustainable development. And in fact, they impose sanctions on everyone. "We are here to say that we don't intend to tolerate such insolence." Rouhani warned Europe which has strongly objected to the US withdrawal from the nuclear deal that much is at stake in its efforts to bypass US sanctions and maintain trade with Iran. "They should know that by sanctioning Iran, they would harm our ability to fight drugs and terrorism," Rouhani said, referring to Iran's efforts to combat smuggling, particularly from Afghanistan. The European Union is working on a payment system, known as the "special purpose vehicle", to keep money flowing into Iran, but has struggled to find a host since many countries fear repercussions from the Trump administration.

Iran seeks regional front against US 'economic terrorism'

Breaking News: At least three killed by bomb blast in Iran's port town of Chahbahar

More than 700,000 undocumented Afghans have returned from Iran this year as the Iranian economy tightens, with a knock-on effect on the Afghan economy, according to data from the UN's migration agency.

In a report covering the period up to December 1, the International Organization for Migration said a total of 752,325 Afghans had returned from Iran and Pakistan, including 721,633 from Iran.

"Undocumented returns from Iran, in particular, are seeing a massive increase over previous years, largely driven by recent political and economic issues in Iran including massive currency devaluation," the IOM report said.

Demand for Afghan labour in Iran's informal economy had drastically fallen, it added.

"As all Afghans typically send home their earnings in the form of monthly remittances, the Afghan economy itself, already evident in the drought-affected provinces of Herat, Badghis and Ghor, is suffering direct and immediate effects."

Iranian media reports say many of the Afghans had returned or were seeking to enter Turkey to reach Europe after the fall of the Iranian currency, which has lost about 70 per cent of its value this year.

Iran emerged in early 2016 from years of global sanctions under a deal with world powers that curbed its disputed nuclear programme.

But US President Donald Trump withdrew the United States from the deal in May, calling it flawed to Iran's advantage, and reimposed far-reaching US sanctions in phases, with the most damaging oil and banking penalties taking effect on November 5.

Jan Egeland, head of the Norwegian Refugee Council, told Reuters that increasing US pressure on Iran would cause problems for Afghanistan.

“The Trump sanctions will put the Iranian economy into a void and is doing that. (The people) who will first lose a grip on their existence are the Afghan registered and unregistered refugees and migrants," he said.

Last month the top UN humanitarian official in Afghanistan, Toby Lanzer, told reporters in Geneva that the UN had expected up to 700,000 Afghans to return from Pakistan this year, but very few had made the move, while the returns from Iran took the UN by surprise.

More than 700,000 undocumented Afghans have returned from Iran this year as the Iranian economy tightens, with a knock-on effect on the Afghan economy, according to data from the UN's migration agency.

More than 700,000 undocumented Afghans have returned from Iran this year as the Iranian economy tightens, with a knock-on effect on the Afghan economy, according to data from the UN's migration agency. In a report covering the period up to December 1, the International Organization for Migration said a total of 752,325 Afghans had returned from Iran and Pakistan, including 721,633 from Iran. "Undocumented returns from Iran, in particular, are seeing a massive increase over previous years, largely driven by recent political and economic issues in Iran including massive currency devaluation," the IOM report said. Demand for Afghan labour in Iran's informal economy had drastically fallen, it added. "As all Afghans typically send home their earnings in the form of monthly remittances, the Afghan economy itself, already evident in the drought-affected provinces of Herat, Badghis and Ghor, is suffering direct and immediate effects." Iranian media reports say many of the Afghans had returned or were seeking to enter Turkey to reach Europe after the fall of the Iranian currency, which has lost about 70 per cent of its value this year. Iran emerged in early 2016 from years of global sanctions under a deal with world powers that curbed its disputed nuclear programme. But US President Donald Trump withdrew the United States from the deal in May, calling it flawed to Iran's advantage, and reimposed far-reaching US sanctions in phases, with the most damaging oil and banking penalties taking effect on November 5. Jan Egeland, head of the Norwegian Refugee Council, told Reuters that increasing US pressure on Iran would cause problems for Afghanistan. “The Trump sanctions will put the Iranian economy into a void and is doing that. (The people) who will first lose a grip on their existence are the Afghan registered and unregistered refugees and migrants," he said. Last month the top UN humanitarian official in Afghanistan, Toby Lanzer, told reporters in Geneva that the UN had expected up to 700,000 Afghans to return from Pakistan this year, but very few had made the move, while the returns from Iran took the UN by surprise.

More than 700,000 Afghans leave Iran as economy slows

The Israeli army said Tuesday it had detected Hezbollah tunnels infiltrating its territory from Lebanon and had launched an operation to cut them off.

Israeli army spokesman Jonathan Conricus said the "attack tunnels" detected were not yet operational. He declined to say how many were detected or how they would be cut off.

All operations would take place within Israeli territory, Conricus said, though they were likely to boost tensions with Hezbollah, the Shiite militant group with which Israel fought a devastating war in 2006.

The military has used various means to collapse or fill in tunnels from the Gaza Strip.

"We have launched Operation Northern Shield to expose and thwart cross-border attack tunnels dug by Hezbollah terror organisation from Lebanon into Israel," Conricus told journalists.

The announcement of the operation comes after Israeli Prime Minister Benjamin Netanyahu met US Secretary of State Mike Pompeo in Brussels on Monday night.

Netanyahu said he had planned to discuss with Pompeo "steps we are taking together to block the aggression of Iran and its proxies in the north," referring to Syria and Lebanon.

Hezbollah is backed by Iran, Israel's main enemy.

The Israeli army said Tuesday it had detected Hezbollah tunnels infiltrating its territory from Lebanon and had launched an operation to cut them off. Israeli army spokesman Jonathan Conricus said the "attack tunnels" detected were not yet operational.

The Israeli army said Tuesday it had detected Hezbollah tunnels infiltrating its territory from Lebanon and had launched an operation to cut them off. Israeli army spokesman Jonathan Conricus said the "attack tunnels" detected were not yet operational. He declined to say how many were detected or how they would be cut off. All operations would take place within Israeli territory, Conricus said, though they were likely to boost tensions with Hezbollah, the Shiite militant group with which Israel fought a devastating war in 2006. The military has used various means to collapse or fill in tunnels from the Gaza Strip. "We have launched Operation Northern Shield to expose and thwart cross-border attack tunnels dug by Hezbollah terror organisation from Lebanon into Israel," Conricus told journalists. The announcement of the operation comes after Israeli Prime Minister Benjamin Netanyahu met US Secretary of State Mike Pompeo in Brussels on Monday night. Netanyahu said he had planned to discuss with Pompeo "steps we are taking together to block the aggression of Iran and its proxies in the north," referring to Syria and Lebanon. Hezbollah is backed by Iran, Israel's main enemy.

Israel launches operation to cut off Hezbollah infiltration tunnels

Iran said on Sunday it would continue missile tests to build up its defences and denied this was in breach of UN&nbsp;resolutions following US&nbsp;allegations that Tehran had tested a new missile capable of carrying multiple warheads.

US&nbsp;Secretary of State Mike Pompeo on Saturday condemned what he called Iran's testing of a medium-range ballistic missile in violation of the 2015 international agreement on the Iranian nuclear programme, from which Washington has withdrawn.

"Missile tests ... are carried out for defence and the country's deterrence, and we will continue this," Brigadier- General Abolfazl Shekarchi, spokesman for Iran's armed forces, was quoted as saying by the semi-official Tasnim news agency.

"We will continue to both develop and test missiles. This is outside the framework of (nuclear) negotiations and part of our national security, for which we will not ask any country's permission," Shekarchi said.

He did not confirm or deny Iran had tested a new missile.

Earlier, US&nbsp;National Security Adviser John Bolton tweeted: "Iran just test-fired a ... ballistic missile capable of reaching Israel and Europe. This provocative behaviour cannot be tolerated."

Iranian Foreign Ministry spokesman Bahram Qasemi also said Iranian missiles were purely defensive and added: "There is no Security Council resolution prohibiting missile programme and missile tests by Iran."

UN&nbsp;Security Council resolution 2231 enshrined Iran's 2015 nuclear deal with Britain, China, France, Germany, Russia and the United States in which Tehran curbed its disputed uranium enrichment programme in exchange for an end to international sanctions.

The resolution says Iran is "called upon" to refrain for up to eight years from work on ballistic missiles designed to deliver nuclear weapons.

Surrealism in foreign affairs

Iran has repeatedly said its missile programme is purely defensive and denied that its missiles are capable of being tipped with nuclear warheads, or that it has any intent of developing nuclear weapons through uranium enrichment.

In May, President Donald Trump pulled Washington out of the nuclear deal, approved before he took office, and reimposed sanctions on Tehran. Trump said the deal was flawed as it did not include curbs on Iran's development of ballistic missiles or its support for armed proxies in Syria, Yemen, Lebanon and Iraq.

"Surrealism is now the US' modus operandi in its foreign affairs," Iranian Foreign Minister Mohammad Javad Zarif tweeted.

"While (the United States) itself violates (UN&nbsp;Security Council resolution) 2231 — and even threatens to punish those who don't wish to violate it in abiding with illegal US sanctions — it now falsely accuses Iran of violating the very SAME resolution," Zarif added.

Separately, Zarif accused Washington of arming militant groups that fight against the Tehran-backed Syrian government and the Iranian-aligned Houthi movement in Yemen.

"US (is) proliferating advanced weapons to extremists incl Al Qaeda &amp; ISIS (Islamic State)," Zarif tweeted, referring to a British newspaper report that said many arms supplied by Britain and the United States had ended up in the hands of militias fighting in the Yemen war.

British Foreign Secretary Jeremy Hunt tweeted that he was deeply concerned by "Iran's test-firing of a medium-range ballistic missile. Provocative, threatening and inconsistent with UNSCR 2231".

"Our support for (the Iran nuclear accord) in no way lessens our concern at Iran's destabilising missile programme and determination that it should cease," Hunt added.

Iran said on Sunday it would continue missile tests to build up its defences and denied this was in breach of UN resolutions following US allegations that Tehran had tested a new missile capable of carrying multiple warheads.

Iran said on Sunday it would continue missile tests to build up its defences and denied this was in breach of UN resolutions following US allegations that Tehran had tested a new missile capable of carrying multiple warheads. US Secretary of State Mike Pompeo on Saturday condemned what he called Iran's testing of a medium-range ballistic missile in violation of the 2015 international agreement on the Iranian nuclear programme, from which Washington has withdrawn. "Missile tests ... are carried out for defence and the country's deterrence, and we will continue this," Brigadier- General Abolfazl Shekarchi, spokesman for Iran's armed forces, was quoted as saying by the semi-official Tasnim news agency. "We will continue to both develop and test missiles. This is outside the framework of (nuclear) negotiations and part of our national security, for which we will not ask any country's permission," Shekarchi said. He did not confirm or deny Iran had tested a new missile. Earlier, US National Security Adviser John Bolton tweeted: "Iran just test-fired a ... ballistic missile capable of reaching Israel and Europe. This provocative behaviour cannot be tolerated." Iranian Foreign Ministry spokesman Bahram Qasemi also said Iranian missiles were purely defensive and added: "There is no Security Council resolution prohibiting missile programme and missile tests by Iran." UN Security Council resolution 2231 enshrined Iran's 2015 nuclear deal with Britain, China, France, Germany, Russia and the United States in which Tehran curbed its disputed uranium enrichment programme in exchange for an end to international sanctions. The resolution says Iran is "called upon" to refrain for up to eight years from work on ballistic missiles designed to deliver nuclear weapons. Surrealism in foreign affairs Iran has repeatedly said its missile programme is purely defensive and denied that its missiles are capable of being tipped with nuclear warheads, or that it has any intent of developing nuclear weapons through uranium enrichment. In May, President Donald Trump pulled Washington out of the nuclear deal, approved before he took office, and reimposed sanctions on Tehran. Trump said the deal was flawed as it did not include curbs on Iran's development of ballistic missiles or its support for armed proxies in Syria, Yemen, Lebanon and Iraq. "Surrealism is now the US' modus operandi in its foreign affairs," Iranian Foreign Minister Mohammad Javad Zarif tweeted. "While (the United States) itself violates (UN Security Council resolution) 2231 — and even threatens to punish those who don't wish to violate it in abiding with illegal US sanctions — it now falsely accuses Iran of violating the very SAME resolution," Zarif added. Separately, Zarif accused Washington of arming militant groups that fight against the Tehran-backed Syrian government and the Iranian-aligned Houthi movement in Yemen. "US (is) proliferating advanced weapons to extremists incl Al Qaeda & ISIS (Islamic State)," Zarif tweeted, referring to a British newspaper report that said many arms supplied by Britain and the United States had ended up in the hands of militias fighting in the Yemen war. British Foreign Secretary Jeremy Hunt tweeted that he was deeply concerned by "Iran's test-firing of a medium-range ballistic missile. Provocative, threatening and inconsistent with UNSCR 2231". "Our support for (the Iran nuclear accord) in no way lessens our concern at Iran's destabilising missile programme and determination that it should cease," Hunt added.

Iran says it will continue missile tests after US allegation

Iran said on Sunday it would continue missile tests to build up its defences and denied this was in breach of UN&nbsp;resolutions following US&nbsp;allegations that Tehran had tested a new missile capable of carrying multiple warheads.

US&nbsp;Secretary of State Mike Pompeo on Saturday condemned what he called Iran's testing of a medium-range ballistic missile in violation of the 2015 international agreement on the Iranian nuclear programme, from which Washington has withdrawn.

"Missile tests...are carried out for defence and the country's deterrence, and we will continue this," Brigadier- General Abolfazl Shekarchi, spokesman for Iran's armed forces, was quoted as saying by the semi-official Tasnim news agency.

"We will continue to both develop and test missiles. This is outside the framework of (nuclear) negotiations and part of our national security, for which we will not ask any country's permission," Shekarchi said.

He did not confirm or deny Iran had tested a new missile.

Earlier, US&nbsp;National Security Adviser John Bolton tweeted: "Iran just test-fired a... ballistic missile capable of reaching Israel and Europe. This provocative behaviour cannot be tolerated."

Iranian Foreign Ministry spokesman Bahram Qasemi also said Iranian missiles were purely defensive and added, "There is no Security Council resolution prohibiting missile programme and missile tests by Iran".

UN Resolution 2231 enshrined Iran's 2015 nuclear deal with Britain, China, France, Germany, Russia and the United States in which Tehran curbed its disputed uranium enrichment programme in exchange for an end to international sanctions.

The resolution says Iran is "called upon" to refrain for up to eight years from work on ballistic missiles designed to deliver nuclear weapons.

Iran has repeatedly said its missile programme is purely defensive and denied that its missiles are capable of being tipped with nuclear warheads, or that it has any intent of developing nuclear weapons through uranium enrichment.

Qasemi, addressing Pompeo, said: "It is...ironic that you cite a resolution that you have not only breached through your unilateral and unlawful withdrawal form the accord, but that you also encourage others to breach, or even threaten to punish and sanction them if they carry it out."

In May, President Donald Trump pulled Washington out of the nuclear deal, approved before he took office, and reimposed sanctions on Tehran. Trump said the deal was flawed as it did not include curbs on Iran's development of ballistic missiles or its support for armed proxies in Syria, Yemen, Lebanon and Iraq.

Separately, Iranian foreign minister Mohammad Javad Zarif accused the United States of arming militant groups which fight against the Tehran-backed Syrian government and the Iran-aligned Houthi movement in Yemen.

"US (is) proliferating advanced weapons to extremists incl Al Qaeda &amp; ISIS (Islamic State)," Zarif said on Twitter, referring to a British newspaper report that said many arms supplied by Britain and the United States had ended up in the hands of militias fighting in the Yemen war.

British Foreign Secretary Jeremy Hunt said on Twitter that he was deeply concerned by "Iran's test-firing of a medium-range ballistic missile. Provocative, threatening and inconsistent with UNSCR 2231".

"Our support for (the Iran nuclear accord) in no way lessens our concer

Iran said on Sunday it would continue missile tests to build up its defences and denied this was in breach of UN resolutions following US allegations that Tehran had tested a new missile capable of carrying multiple warheads. US Secretary of State Mike Pompeo on Saturday condemned what he called Iran's testing of a medium-range ballistic missile in violation of the 2015 international agreement on the Iranian nuclear programme, from which Washington has withdrawn. "Missile tests...are carried out for defence and the country's deterrence, and we will continue this," Brigadier- General Abolfazl Shekarchi, spokesman for Iran's armed forces, was quoted as saying by the semi-official Tasnim news agency. "We will continue to both develop and test missiles. This is outside the framework of (nuclear) negotiations and part of our national security, for which we will not ask any country's permission," Shekarchi said. He did not confirm or deny Iran had tested a new missile. Earlier, US National Security Adviser John Bolton tweeted: "Iran just test-fired a... ballistic missile capable of reaching Israel and Europe. This provocative behaviour cannot be tolerated." Iranian Foreign Ministry spokesman Bahram Qasemi also said Iranian missiles were purely defensive and added, "There is no Security Council resolution prohibiting missile programme and missile tests by Iran". UN Resolution 2231 enshrined Iran's 2015 nuclear deal with Britain, China, France, Germany, Russia and the United States in which Tehran curbed its disputed uranium enrichment programme in exchange for an end to international sanctions. The resolution says Iran is "called upon" to refrain for up to eight years from work on ballistic missiles designed to deliver nuclear weapons. Iran has repeatedly said its missile programme is purely defensive and denied that its missiles are capable of being tipped with nuclear warheads, or that it has any intent of developing nuclear weapons through uranium enrichment. Qasemi, addressing Pompeo, said: "It is...ironic that you cite a resolution that you have not only breached through your unilateral and unlawful withdrawal form the accord, but that you also encourage others to breach, or even threaten to punish and sanction them if they carry it out." In May, President Donald Trump pulled Washington out of the nuclear deal, approved before he took office, and reimposed sanctions on Tehran. Trump said the deal was flawed as it did not include curbs on Iran's development of ballistic missiles or its support for armed proxies in Syria, Yemen, Lebanon and Iraq. Separately, Iranian foreign minister Mohammad Javad Zarif accused the United States of arming militant groups which fight against the Tehran-backed Syrian government and the Iran-aligned Houthi movement in Yemen. "US (is) proliferating advanced weapons to extremists incl Al Qaeda & ISIS (Islamic State)," Zarif said on Twitter, referring to a British newspaper report that said many arms supplied by Britain and the United States had ended up in the hands of militias fighting in the Yemen war. British Foreign Secretary Jeremy Hunt said on Twitter that he was deeply concerned by "Iran's test-firing of a medium-range ballistic missile. Provocative, threatening and inconsistent with UNSCR 2231". "Our support for (the Iran nuclear accord) in no way lessens our concer

Iran said on Sunday its missile programme is defensive and not in breach of UN&nbsp;resolutions, the state news agency IRNA said, following a <a href="http://www.wionews.com/world/us-vows-iran-pressure-says-not-after-regime-change-167482">US allegation</a> that Tehran had carried out a new missile test.

US&nbsp;Secretary of State Mike Pompeo on Saturday condemned what he described as Iran's testing of a medium-range ballistic missile capable of carrying multiple warheads as a violation of the 2015 international agreement on the Iranian nuclear programme.

"Iran's missile programme is defensive in nature... There is no Security Council resolution prohibiting the missile programme and missile tests by Iran," IRNA quoted Foreign Ministry spokesman Bahram Qasemi as saying in response to Pompeo's remarks.

Qasemi did not confirm or deny that Iran had carried out a new missile test.

Under the UN&nbsp;resolution enshrining the 2015 nuclear deal with Britain, China, France, Germany, Russia and the United States, Iran is "called upon" to refrain for up to eight years from work on ballistic missiles designed to deliver nuclear weapons.

Iran has repeatedly said its missile programme is purely defensive and denied its missiles are capable of being tipped with nuclear warheads.

Qasemi, addressing Pompeo, said: "It is...ironic that you cite a resolution that you have not only breached through your unilateral and unlawful withdrawal form the (nuclear) accord but that you also encourage others to breach or even threaten to punish and sanction them if they carry it (accord) out."

President Donald Trump pulled Washington out of the nuclear deal, approved before he took office, in May and reimposed sanctions on Tehran. Trump said the deal was flawed as it did not include curbs on Iran's development of ballistic missiles or its support for armed proxies in Syria, Yemen, Lebanon and Iraq.

Iran said on Sunday its missile programme is defensive and not in breach of UN resolutions, the state news agency IRNA said, following a US allegation that Tehran had carried out a new missile test.

Iran said on Sunday its missile programme is defensive and not in breach of UN resolutions, the state news agency IRNA said, following a US allegation that Tehran had carried out a new missile test. US Secretary of State Mike Pompeo on Saturday condemned what he described as Iran's testing of a medium-range ballistic missile capable of carrying multiple warheads as a violation of the 2015 international agreement on the Iranian nuclear programme. "Iran's missile programme is defensive in nature... There is no Security Council resolution prohibiting the missile programme and missile tests by Iran," IRNA quoted Foreign Ministry spokesman Bahram Qasemi as saying in response to Pompeo's remarks. Qasemi did not confirm or deny that Iran had carried out a new missile test. Under the UN resolution enshrining the 2015 nuclear deal with Britain, China, France, Germany, Russia and the United States, Iran is "called upon" to refrain for up to eight years from work on ballistic missiles designed to deliver nuclear weapons. Iran has repeatedly said its missile programme is purely defensive and denied its missiles are capable of being tipped with nuclear warheads. Qasemi, addressing Pompeo, said: "It is...ironic that you cite a resolution that you have not only breached through your unilateral and unlawful withdrawal form the (nuclear) accord but that you also encourage others to breach or even threaten to punish and sanction them if they carry it (accord) out." President Donald Trump pulled Washington out of the nuclear deal, approved before he took office, in May and reimposed sanctions on Tehran. Trump said the deal was flawed as it did not include curbs on Iran's development of ballistic missiles or its support for armed proxies in Syria, Yemen, Lebanon and Iraq.

Iran says missile programme defensive after US alleges it carried out missile test

Iranian President Hassan Rouhani called on Muslims worldwide on Saturday to unite against the United States, instead of "rolling out red carpets for criminals".

Washington in May reimposed sanctions on Tehran, after President Donald Trump pulled out of a 2015 international nuclear deal with Iran under which they had been lifted.

"Submitting to the West headed by America would be treason against our religion ... and against the future generations of this region," Rouhani told an international conference on Islamic unity in Tehran, in a speech broadcast live on state television.

"We have a choice to either roll out red carpets for criminals, or to forcefully stand against injustice and remain faithful to our Prophet, our Koran and our Islam," Rouhani said, in an apparent reference to Saudi Arabia and other Gulf states which have close ties to Washington.

Iran and Saudi Arabia are regional rivals and have supported opposing sides in conflicts in Syria and Yemen and different political factions in Iraq and Lebanon.

"We are ready to defend the interests of the Saudi people against terrorism, aggression and the superpowers... and we don`t ask for $450 billion to do it," Rouhani said, referring to Saudi Arabia`s contracts with the United States.

Iranian President Hassan Rouhani called on Muslims worldwide on Saturday to unite against the United States, instead of "rolling out red carpets for criminals". Washington in May reimposed sanctions on Tehran, after President Donald Trump pulled out of a 2015 international nuclear deal with Iran under which they had been lifted.

Iranian President Hassan Rouhani called on Muslims worldwide on Saturday to unite against the United States, instead of "rolling out red carpets for criminals". Washington in May reimposed sanctions on Tehran, after President Donald Trump pulled out of a 2015 international nuclear deal with Iran under which they had been lifted. "Submitting to the West headed by America would be treason against our religion ... and against the future generations of this region," Rouhani told an international conference on Islamic unity in Tehran, in a speech broadcast live on state television. "We have a choice to either roll out red carpets for criminals, or to forcefully stand against injustice and remain faithful to our Prophet, our Koran and our Islam," Rouhani said, in an apparent reference to Saudi Arabia and other Gulf states which have close ties to Washington. Iran and Saudi Arabia are regional rivals and have supported opposing sides in conflicts in Syria and Yemen and different political factions in Iraq and Lebanon. "We are ready to defend the interests of the Saudi people against terrorism, aggression and the superpowers... and we don`t ask for $450 billion to do it," Rouhani said, referring to Saudi Arabia`s contracts with the United States.

Iran President Hassan Rouhani calls for Muslims to unite against United States

Iran's Foreign Minister Mohammad Javad Zarif on Friday said that US accusations that Tehran has a chemical weapons programme were "obscene and dangerous".

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The US allegations are the latest salvo against Iran from the administration of President Donald Trump, who earlier this year pulled out of a landmark 2015 nuclear deal between major powers and Tehran and reimposed crippling unilateral sanctions.

"(The) US wants to resort to international conventions to make allegations against Iran when it's made a policy of violating them itself," Zarif said in a tweet.

He said that allegations about weapons of mass destruction "by a country that supported Iraq's use of CW (chemical weapons) against Iran, then invaded Iraq to allegedly rid it of them is not just obscene, it's dangerous".

Earlier on Friday the Iranian foreign ministry said Tehran "strongly rejects" the US accusations.

"The United States... has made, as is its habit, baseless accusations against the Islamic republic which we strongly reject," the foreign ministry said in a statement.

"Such incorrect and false accusations are due solely to enmity towards the Iranian nation and are intended to deflect international attention from its own broken commitments and continued support for the Zionist regime's chemical arsenal and for terrorist groups."

The US accused Iran on Thursday of failing to declare a chemical weapons programme to the global watchdog in breach of international agreements.

US envoy Kenneth Ward told the Organisation for the Prohibition of Chemical Weapons in The Hague that Tehran was also seeking deadly nerve agents for offensive purposes.

Iran has accused the US of being the "only member state that has a chemical weapons arsenal and has, until now, not acted on its obligations to destroy it".

Iran is one of the few countries that has been attacked with chemical weapons since the end of World War I in 1918.

Chemical weapons used by Saddam Hussein's Iraq during its 1980-88 war with Iran killed and wounded tens of thousands of Iranian soldiers and civilians.

Iran has expressed strong opposition ever since to the use or possession of chemical weapons by any country.

Zarif, who is in Italy for a conference, on Friday also expressed his frustration with the European Union's delay to come up with means of allowing EU trade with Tehran despite US sanctions .&nbsp;

"(The) EU needs to make a decision: does it want the US to dictate its relations with others...?" he asked in a tweet.

The nuclear deal "was in the interest of the security of Europe (which) now needs to invest in that security." he added.

Although the European Union has vowed to create a "special purpose vehicle" (SPV) to protect companies buying oil, analysts see little chance that firms will risk US penalties by using it.&nbsp;

Iran's Foreign Minister Mohammad Javad Zarif on Friday said that US accusations that Tehran has a chemical weapons programme were "obscene and dangerous". × The US allegations are the latest salvo against Iran from the administration of President Donald Trump, who earlier this year pulled out of a landmark 2015 nuclear deal between major powers and Tehran and reimposed crippling unilateral sanctions.

Iran's Foreign Minister Mohammad Javad Zarif on Friday said that US accusations that Tehran has a chemical weapons programme were "obscene and dangerous". × The US allegations are the latest salvo against Iran from the administration of President Donald Trump, who earlier this year pulled out of a landmark 2015 nuclear deal between major powers and Tehran and reimposed crippling unilateral sanctions. "(The) US wants to resort to international conventions to make allegations against Iran when it's made a policy of violating them itself," Zarif said in a tweet. He said that allegations about weapons of mass destruction "by a country that supported Iraq's use of CW (chemical weapons) against Iran, then invaded Iraq to allegedly rid it of them is not just obscene, it's dangerous". Earlier on Friday the Iranian foreign ministry said Tehran "strongly rejects" the US accusations. "The United States... has made, as is its habit, baseless accusations against the Islamic republic which we strongly reject," the foreign ministry said in a statement. "Such incorrect and false accusations are due solely to enmity towards the Iranian nation and are intended to deflect international attention from its own broken commitments and continued support for the Zionist regime's chemical arsenal and for terrorist groups." The US accused Iran on Thursday of failing to declare a chemical weapons programme to the global watchdog in breach of international agreements. US envoy Kenneth Ward told the Organisation for the Prohibition of Chemical Weapons in The Hague that Tehran was also seeking deadly nerve agents for offensive purposes. Iran has accused the US of being the "only member state that has a chemical weapons arsenal and has, until now, not acted on its obligations to destroy it". Iran is one of the few countries that has been attacked with chemical weapons since the end of World War I in 1918. Chemical weapons used by Saddam Hussein's Iraq during its 1980-88 war with Iran killed and wounded tens of thousands of Iranian soldiers and civilians. Iran has expressed strong opposition ever since to the use or possession of chemical weapons by any country. Zarif, who is in Italy for a conference, on Friday also expressed his frustration with the European Union's delay to come up with means of allowing EU trade with Tehran despite US sanctions . "(The) EU needs to make a decision: does it want the US to dictate its relations with others...?" he asked in a tweet. The nuclear deal "was in the interest of the security of Europe (which) now needs to invest in that security." he added. Although the European Union has vowed to create a "special purpose vehicle" (SPV) to protect companies buying oil, analysts see little chance that firms will risk US penalties by using it.

Iran says US accusing Tehran of having chemical weapons programme is 'obscene and dangerous'

The United States has moved to disrupt an Iranian-Russian network that sent millions of barrels of oil to Syria and hundreds of millions of dollars to indirectly fund militant groups Hamas and Hezbollah.&nbsp;

The complicated arrangement, described by the US Treasury in a statement on Tuesday, involved a Syrian citizen allegedly using his Russia-based company to ship Iranian oil to Syria with the aid of a Russian state-owned company.

Syria then helped transfer hundreds of millions of dollars in cash to Hezbollah, which functions as a political party that is part of the Lebanese government and as a militia, as well as to Hamas, the Palestinian group that rules the Gaza Strip.

The US Treasury Department alleged that since 2014, vessels carrying Iranian oil have switched off transponders to conceal deliveries to Syria.&nbsp;

The Treasury, the State Department and the US Coast Guard State have issued an advisory to the maritime community about the sanctions risks of shipping oil to Syria`s government.

An Iranian foreign ministry spokesman called the sanctions "fruitless, illogical and inefficient".

Bahram Qasemi was quoted as saying by the state news agency IRNA on Wednesday: "Those who designed and implemented these sanctions will understand sooner or later that they will not achieve their goals."&nbsp;

The alleged arrangement shows how Russia has sought to undercut US policy toward Syria, where Washington and Moscow back opposite sides of a civil war that began in 2011, as well as toward Iran, which the United States wants to curb its nuclear and missile programs and support for militant proxies.

"Today we are acting against a complex scheme Iran and Russia have used to bolster the (Syrian President Bashar al-) Assad regime and generate funds for Iranian malign activity," US Treasury Secretary Steven Mnuchin said in a statement announcing sanctions on those it said were tied to the network. 
"Central Bank of Iran officials continue to exploit the international financial system," he added.&nbsp;

Richard Nephew, a sanctions expert at Columbia University, said: "The arrangement exposes Russia`s efforts to support Assad for their own interests, which has the function of thwarting the US desire to no longer have Assad in power."

Those targeted include Syrian Mohammad Amer Alchwiki and his Russia-based company Global Vision Group, which were central to the delivery of Iranian oil to Syria and the transfer of funds to the Islamic Revolutionary Guard Corps` Quds Force`s "lethal proxies", the Treasury Department said in a statement.

Other targets include Syrian national Hajji Abd Al-Nasir, Lebanon national Muhammad Qasim Al-Bazzal and Russian national Andrey Dogaev, as well as Iranian nationals Rasoul Sajjad and Hossein Yaghoubi Miab, the statement said.

Sajjad and Yaghoubi, Central Bank of Iran officials, worked to facilitate Alchwiki`s transfers, it said.

Others sanctioned include state-owned Russian company Promsyrioimport, a subsidiary of the Russian Ministry of Energy, which the US Treasury alleges had facilitated shipments of Iranian oil to Syria, as well as Mir Business Bank and Iran-based Tadbir Kish Medical and Pharmaceutical Company.

Russia will continue supplying oil to Syria in line with its agreement with Damascus despite pressure from the United States, RIA news agency quoted Oleg Morozov, a member of the Russian Federation Council, as saying late on Tuesday.

"The political defeat in Syria apparently prompts the United States to return to the idea of regime change in Damascus. Therefore, economic pressure through oil supply shutdown becomes a tool of the new economic war with Bashar Assad and indirectly with Moscow and Iran," he said.&nbsp;

According to Morozov, Russia acts and will act "absolutely legally".

"We have an agreement with Syria and therefore it`s up to us to decide what we supply and to whom. This will be our answer, (it is) much more effective than counter sanctions," he added.

The Russian Energy Ministry, to which Promsyrioimport belongs, declined immediate comment.&nbsp;

The Treasury`s "designation" of the individuals and entities effectively cuts them off from the global financial system by blocking any of their assets under US jurisdiction and in effect warning non-US institutions against dealing with them.

The United States is at odds with Britain, France and Germany as well as with Russia and China over US President Donald Trump`s May 8 decision to abandon the 2015 Iran nuclear deal, negotiated with the other world powers during Democratic President Barack Obama`s administration.

That agreement removed many US and other economic sanctions from Iran in return for Tehran`s commitment to curtail its nuclear program.

Trump restored US sanctions on November 5 and has threatened more action to stop its "outlaw" policies.

Iran, in turn, called Trump`s actions economic warfare and vowed to defy the sanctions. European powers that continue to back the nuclear deal said they opposed the reapplication of sanctions.

The United States has moved to disrupt an Iranian-Russian network that sent millions of barrels of oil to Syria and hundreds of millions of dollars to indirectly fund militant groups Hamas and Hezbollah.

The United States has moved to disrupt an Iranian-Russian network that sent millions of barrels of oil to Syria and hundreds of millions of dollars to indirectly fund militant groups Hamas and Hezbollah. The complicated arrangement, described by the US Treasury in a statement on Tuesday, involved a Syrian citizen allegedly using his Russia-based company to ship Iranian oil to Syria with the aid of a Russian state-owned company. Syria then helped transfer hundreds of millions of dollars in cash to Hezbollah, which functions as a political party that is part of the Lebanese government and as a militia, as well as to Hamas, the Palestinian group that rules the Gaza Strip. The US Treasury Department alleged that since 2014, vessels carrying Iranian oil have switched off transponders to conceal deliveries to Syria. The Treasury, the State Department and the US Coast Guard State have issued an advisory to the maritime community about the sanctions risks of shipping oil to Syria`s government. An Iranian foreign ministry spokesman called the sanctions "fruitless, illogical and inefficient". Bahram Qasemi was quoted as saying by the state news agency IRNA on Wednesday: "Those who designed and implemented these sanctions will understand sooner or later that they will not achieve their goals." The alleged arrangement shows how Russia has sought to undercut US policy toward Syria, where Washington and Moscow back opposite sides of a civil war that began in 2011, as well as toward Iran, which the United States wants to curb its nuclear and missile programs and support for militant proxies. "Today we are acting against a complex scheme Iran and Russia have used to bolster the (Syrian President Bashar al-) Assad regime and generate funds for Iranian malign activity," US Treasury Secretary Steven Mnuchin said in a statement announcing sanctions on those it said were tied to the network. "Central Bank of Iran officials continue to exploit the international financial system," he added. Richard Nephew, a sanctions expert at Columbia University, said: "The arrangement exposes Russia`s efforts to support Assad for their own interests, which has the function of thwarting the US desire to no longer have Assad in power." Those targeted include Syrian Mohammad Amer Alchwiki and his Russia-based company Global Vision Group, which were central to the delivery of Iranian oil to Syria and the transfer of funds to the Islamic Revolutionary Guard Corps` Quds Force`s "lethal proxies", the Treasury Department said in a statement. Other targets include Syrian national Hajji Abd Al-Nasir, Lebanon national Muhammad Qasim Al-Bazzal and Russian national Andrey Dogaev, as well as Iranian nationals Rasoul Sajjad and Hossein Yaghoubi Miab, the statement said. Sajjad and Yaghoubi, Central Bank of Iran officials, worked to facilitate Alchwiki`s transfers, it said. Others sanctioned include state-owned Russian company Promsyrioimport, a subsidiary of the Russian Ministry of Energy, which the US Treasury alleges had facilitated shipments of Iranian oil to Syria, as well as Mir Business Bank and Iran-based Tadbir Kish Medical and Pharmaceutical Company. Russia will continue supplying oil to Syria in line with its agreement with Damascus despite pressure from the United States, RIA news agency quoted Oleg Morozov, a member of the Russian Federation Council, as saying late on Tuesday. "The political defeat in Syria apparently prompts the United States to return to the idea of regime change in Damascus. Therefore, economic pressure through oil supply shutdown becomes a tool of the new economic war with Bashar Assad and indirectly with Moscow and Iran," he said. According to Morozov, Russia acts and will act "absolutely legally". "We have an agreement with Syria and therefore it`s up to us to decide what we supply and to whom. This will be our answer, (it is) much more effective than counter sanctions," he added. The Russian Energy Ministry, to which Promsyrioimport belongs, declined immediate comment. The Treasury`s "designation" of the individuals and entities effectively cuts them off from the global financial system by blocking any of their assets under US jurisdiction and in effect warning non-US institutions against dealing with them. The United States is at odds with Britain, France and Germany as well as with Russia and China over US President Donald Trump`s May 8 decision to abandon the 2015 Iran nuclear deal, negotiated with the other world powers during Democratic President Barack Obama`s administration. That agreement removed many US and other economic sanctions from Iran in return for Tehran`s commitment to curtail its nuclear program. Trump restored US sanctions on November 5 and has threatened more action to stop its "outlaw" policies. Iran, in turn, called Trump`s actions economic warfare and vowed to defy the sanctions. European powers that continue to back the nuclear deal said they opposed the reapplication of sanctions.

US targets Iran-Russia network over oil sent to Syria

Iranian Foreign Minister Javad Zarif, during his meeting with his British counterpart Jeremy Hunt in Tehran on Monday, stated that Iran is used to pressuring and will survive the newly imposed US sanctions.&nbsp;

He added that Tehran will resist the pressure imposed by the United States and will even thrive while surviving it.&nbsp;Zarif called for a political commitment from Britain on the nuclear deal.&nbsp;

Britain's Foreign Minister Jeremy Hunt was in Tehran on Monday on his first official visit in Tehran to hold talks with Iranian authorities on issues including the future of the 2015 nuclear deal.

"The Europeans should accelerate their efforts to save the deal...We are ready for all scenarios, including a return to pre-deal era," the secretary of Iran's Supreme National Security Council, Ali Shamkhani, told Hunt, Iranian state television reported.

Hunt said Britain was committed to the nuclear deal and discussed European efforts to maintain nuclear-related sanctions relief, Iran's state news agency IRNA reported.

"The Iran nuclear deal remains a vital component of stability in the Middle East by eliminating the threat of a nuclearised Iran. It needs 100 per cent compliance though to survive," Hunt said in a statement ahead of the visit.

The top diplomats also discussed the conflict in Yemen and other issues in meetings.

Meanwhile, Iranian President Hassan Rouhani on Monday said <a href="http://wioneews.com/world/rouhani-says-iran-to-continue-oil-exports-and-resist-us-economic-war-178271">Tehran will continue to export oil despite US sanctions</a>, news agency Reuters reported.&nbsp;

"We will not yield to this pressure, which is part of the psychological war launched against Iran," Rouhani said in a speech in the city of Khoy, broadcast live on state television.&nbsp;

"They have failed to stop our oil exports. We will keep exporting it ... Your regional policies have failed and you blame Iran for that failure from Afghanistan to Yemen and Syria," he added.

(With inputs from Reuters)&nbsp;

 
&nbsp;

Iranian Foreign Minister Javad Zarif, during his meeting with his British counterpart Jeremy Hunt in Tehran on Monday, stated that Iran is used to pressuring and will survive the newly imposed US sanctions.

Iranian Foreign Minister Javad Zarif, during his meeting with his British counterpart Jeremy Hunt in Tehran on Monday, stated that Iran is used to pressuring and will survive the newly imposed US sanctions. He added that Tehran will resist the pressure imposed by the United States and will even thrive while surviving it. Zarif called for a political commitment from Britain on the nuclear deal. Britain's Foreign Minister Jeremy Hunt was in Tehran on Monday on his first official visit in Tehran to hold talks with Iranian authorities on issues including the future of the 2015 nuclear deal. "The Europeans should accelerate their efforts to save the deal...We are ready for all scenarios, including a return to pre-deal era," the secretary of Iran's Supreme National Security Council, Ali Shamkhani, told Hunt, Iranian state television reported. Hunt said Britain was committed to the nuclear deal and discussed European efforts to maintain nuclear-related sanctions relief, Iran's state news agency IRNA reported. "The Iran nuclear deal remains a vital component of stability in the Middle East by eliminating the threat of a nuclearised Iran. It needs 100 per cent compliance though to survive," Hunt said in a statement ahead of the visit. The top diplomats also discussed the conflict in Yemen and other issues in meetings. Meanwhile, Iranian President Hassan Rouhani on Monday said Tehran will continue to export oil despite US sanctions, news agency Reuters reported. "We will not yield to this pressure, which is part of the psychological war launched against Iran," Rouhani said in a speech in the city of Khoy, broadcast live on state television. "They have failed to stop our oil exports. We will keep exporting it ... Your regional policies have failed and you blame Iran for that failure from Afghanistan to Yemen and Syria," he added. (With inputs from Reuters)

Won't yield to this pressure, will survive and thrive: Iran on newly imposed US sanctions

Iran will continue to export oil despite US&nbsp;sanctions, which are part of a psychological war doomed to failure, Iranian President Hassan Rouhani said on Monday.

By reimposing sanctions on OPEC's third biggest crude producer, Washington wants to force Tehran to drop its ballistic missile programmes, further curb its nuclear work and limit its support for proxy militias from Syria to Lebanon and Yemen.

"We will not yield to this pressure, which is part of the psychological war launched against Iran," Rouhani said in a speech in the city of Khoy, broadcast live on state television.

"They have failed to stop our oil exports. We will keep exporting it ... Your regional policies have failed and you blame Iran for that failure from Afghanistan to Yemen and Syria," he added, to chants of "Death to America!".

Rouhani said Washington lacked the necessary international support for its sanctions, and noted that it had granted temporary waivers to eight major buyers of Iranian oil.

"America is isolated now. Iran is supported by many countries. Except for the Zionist regime (Israel) and some countries in the region, no other country backs America's pressure on Iran," he said.

The European Union, France, Germany, Britain, Russia and China, participants with the United States in the 2015 deal that lifted sanctions on Iran in exchange for curbs on its nuclear programme, have been trying to find ways to circumvent the US&nbsp;limitations.

In particular, the EU has been trying to establish a Special Purpose Vehicle (SPV) for non-dollar trade with Iran.

But this has not stopped foreign businesses ranging from oil companies and trading houses to firms leaving Iran for fear of incurring US penalties.

Iran has threatened to exit the deal if its economic benefits are not preserved, but Foreign Ministry spokesman Bahram Qasemi told a news conference that it remained "hopeful that the Europeans can save the deal".

The SPV was conceived as a clearing house that could be used to help match Iranian oil and gas exports against purchases of EU goods, circumventing the US&nbsp;sanctions, which are based on the global use of the dollar for oil trade.

The EU wanted to have the SPV set up by this month, but no country has offered to host it, six diplomats told Reuters last week.

"We expect EU to implement the SPV as soon as possible," Qasemi said. "Iran adheres to its commitments as long as other signatories honour theirs."

Iran's deputy Oil Minister Amirhossein Zamaninia said "France might host the SPV", the semi-official Fars news agency reported on Monday.

The French Foreign Ministry declined to comment. The Finance Ministry has said that all options are on the table for the SPV and that no decisions had been taken.

Washington has warned that European banks and firms who engage in the SPV will be at risk from the reimposed US&nbsp;sanctions.

Iran will continue to export oil despite US sanctions, which are part of a psychological war doomed to failure, Iranian President Hassan Rouhani said on Monday. By reimposing sanctions on OPEC's third biggest crude producer, Washington wants to force Tehran to drop its ballistic missile programmes, further curb its nuclear work and limit its support for proxy militias from Syria to Lebanon and Yemen.

Iran will continue to export oil despite US sanctions, which are part of a psychological war doomed to failure, Iranian President Hassan Rouhani said on Monday. By reimposing sanctions on OPEC's third biggest crude producer, Washington wants to force Tehran to drop its ballistic missile programmes, further curb its nuclear work and limit its support for proxy militias from Syria to Lebanon and Yemen. "We will not yield to this pressure, which is part of the psychological war launched against Iran," Rouhani said in a speech in the city of Khoy, broadcast live on state television. "They have failed to stop our oil exports. We will keep exporting it ... Your regional policies have failed and you blame Iran for that failure from Afghanistan to Yemen and Syria," he added, to chants of "Death to America!". Rouhani said Washington lacked the necessary international support for its sanctions, and noted that it had granted temporary waivers to eight major buyers of Iranian oil. "America is isolated now. Iran is supported by many countries. Except for the Zionist regime (Israel) and some countries in the region, no other country backs America's pressure on Iran," he said. The European Union, France, Germany, Britain, Russia and China, participants with the United States in the 2015 deal that lifted sanctions on Iran in exchange for curbs on its nuclear programme, have been trying to find ways to circumvent the US limitations. In particular, the EU has been trying to establish a Special Purpose Vehicle (SPV) for non-dollar trade with Iran. But this has not stopped foreign businesses ranging from oil companies and trading houses to firms leaving Iran for fear of incurring US penalties. Iran has threatened to exit the deal if its economic benefits are not preserved, but Foreign Ministry spokesman Bahram Qasemi told a news conference that it remained "hopeful that the Europeans can save the deal". The SPV was conceived as a clearing house that could be used to help match Iranian oil and gas exports against purchases of EU goods, circumventing the US sanctions, which are based on the global use of the dollar for oil trade. The EU wanted to have the SPV set up by this month, but no country has offered to host it, six diplomats told Reuters last week. "We expect EU to implement the SPV as soon as possible," Qasemi said. "Iran adheres to its commitments as long as other signatories honour theirs." Iran's deputy Oil Minister Amirhossein Zamaninia said "France might host the SPV", the semi-official Fars news agency reported on Monday. The French Foreign Ministry declined to comment. The Finance Ministry has said that all options are on the table for the SPV and that no decisions had been taken. Washington has warned that European banks and firms who engage in the SPV will be at risk from the reimposed US sanctions.

We will not yield to this pressure: Rouhani says Iran will continue oil exports despite US sanctions

Russia, Iran and Turkey will hold the next round of talks on Syria's conflict on November 28-29 in the Kazakh capital Astana, Kazakhstan's foreign minister said on Monday. &nbsp;

"The participants plan to discuss the current situation in Syria, in particular in Idlib, creating conditions for the return of refugees and internally displaced people, and post-conflict reconstruction," Kairat Abdrakhmanov said in Astana.

The meeting will be the 11th in the Astana peace process -- set up in early 2017 by Russia and Iran, who support President Bashar al-Assad's regime in Syria, and opposition backer Turkey.&nbsp;

Abdrakhmanov said representatives of Damascus and armed opposition groups would take part, but did not specify what level of officials from Russia, Iran and Turkey would attend. &nbsp;&nbsp;

The Astana process was launched after Russia's military intervention in Syria tipped the balance in the regime's favour. It has gradually eclipsed an earlier UN-sponsored negotiations framework known as the Geneva process.&nbsp;

This month's meeting comes with continued violence threatening plans for a buffer zone around Idlib, the last major opposition stronghold in Syria.

Russia and Turkey agreed in September to set up the buffer zone to avert a Syrian regime offensive, but jihadists who hold around 70 percent of the area have refused to withdraw.

Fighting in the area has continued, with jihadists on Friday killing 22 regime fighters in an attack on government forces in the northwest of Hama province near the planned zone.

Russia, Iran and Turkey will hold the next round of talks on Syria's conflict on November 28-29 in the Kazakh capital Astana, Kazakhstan's foreign minister said on Monday.

Russia, Iran and Turkey will hold the next round of talks on Syria's conflict on November 28-29 in the Kazakh capital Astana, Kazakhstan's foreign minister said on Monday. "The participants plan to discuss the current situation in Syria, in particular in Idlib, creating conditions for the return of refugees and internally displaced people, and post-conflict reconstruction," Kairat Abdrakhmanov said in Astana. The meeting will be the 11th in the Astana peace process -- set up in early 2017 by Russia and Iran, who support President Bashar al-Assad's regime in Syria, and opposition backer Turkey. Abdrakhmanov said representatives of Damascus and armed opposition groups would take part, but did not specify what level of officials from Russia, Iran and Turkey would attend. The Astana process was launched after Russia's military intervention in Syria tipped the balance in the regime's favour. It has gradually eclipsed an earlier UN-sponsored negotiations framework known as the Geneva process. This month's meeting comes with continued violence threatening plans for a buffer zone around Idlib, the last major opposition stronghold in Syria. Russia and Turkey agreed in September to set up the buffer zone to avert a Syrian regime offensive, but jihadists who hold around 70 percent of the area have refused to withdraw. Fighting in the area has continued, with jihadists on Friday killing 22 regime fighters in an attack on government forces in the northwest of Hama province near the planned zone.

Russia, Iran, Turkey to hold Syria talks next week: Kazakh foreign minister

Iran and Iraq could raise their annual bilateral trade to US $20 billion from the current level of US $12 billion, President Hassan Rouhani said on Saturday, amid concerns in Tehran over the economic impact of renewed US&nbsp;sanctions.

Rouhani's remarks, made after a meeting with visiting Iraqi President Barham Salih, came about two weeks after the United States restored sanctions targeting Iran’s key oil industry as well as its banking and transportation sectors.

"... through bilateral efforts, we can raise this figure (for bilateral trade) to US $20 billion in the near future," Rouhani said in comments broadcast live on Iranian state television.

"We held talks on trade in electricity, gas, petroleum products and activities ... in the field of oil exploration and extraction," Rouhani said.

Iraqi officials told Reuters last week that Iraq had agreed to trade Iraqi food items in return for Iranian gas and energy supplies.

Baghdad is seeking US&nbsp;approval to allow it to import Iranian gas for its power stations. Iraqi officials say they needs more time to find an alternative source than a 45-day waiver granted to it by the United States.

"It will be important to create free trade zones at our shared border and to connect the two countries' railways," Salih said.

"We will not forget your support for the Iraqi people in the fight against (Iraqi dictator) Saddam (Hussein). Neither do we forget Iran's stand in the recent fight against terrorism," added Salih, an Iraqi Kurd.

Iran wields wide influence in Iraq, its smaller Arab neighbour, where its Revolutionary Guards played a key role in training and arming the mainly Shi’ite militias that helped defeat Islamic State.

Iraq imports a wide range of goods from Iran, including food, agricultural products, home appliances, air conditioners and spare car parts. The goods element of Iranian imports to Iraq was worth about US $6 billion in the 12 months ending March 2018, or about 15 per cent of Iraq’s total imports for 2017.

Energy contracts also contribute to the total volume of bilateral trade.

Iraqi central bank officials said in August that their country’s economy was closely linked to non-Arab Iran, which is engaged in several proxy wars with Saudi Arabia in the region.

Iran and Iraq could raise their annual bilateral trade to US $20 billion from the current level of US $12 billion, President Hassan Rouhani said on Saturday, amid concerns in Tehran over the economic impact of renewed US sanctions.

Iran and Iraq could raise their annual bilateral trade to US $20 billion from the current level of US $12 billion, President Hassan Rouhani said on Saturday, amid concerns in Tehran over the economic impact of renewed US sanctions. Rouhani's remarks, made after a meeting with visiting Iraqi President Barham Salih, came about two weeks after the United States restored sanctions targeting Iran’s key oil industry as well as its banking and transportation sectors. "... through bilateral efforts, we can raise this figure (for bilateral trade) to US $20 billion in the near future," Rouhani said in comments broadcast live on Iranian state television. "We held talks on trade in electricity, gas, petroleum products and activities ... in the field of oil exploration and extraction," Rouhani said. Iraqi officials told Reuters last week that Iraq had agreed to trade Iraqi food items in return for Iranian gas and energy supplies. Baghdad is seeking US approval to allow it to import Iranian gas for its power stations. Iraqi officials say they needs more time to find an alternative source than a 45-day waiver granted to it by the United States. "It will be important to create free trade zones at our shared border and to connect the two countries' railways," Salih said. "We will not forget your support for the Iraqi people in the fight against (Iraqi dictator) Saddam (Hussein). Neither do we forget Iran's stand in the recent fight against terrorism," added Salih, an Iraqi Kurd. Iran wields wide influence in Iraq, its smaller Arab neighbour, where its Revolutionary Guards played a key role in training and arming the mainly Shi’ite militias that helped defeat Islamic State. Iraq imports a wide range of goods from Iran, including food, agricultural products, home appliances, air conditioners and spare car parts. The goods element of Iranian imports to Iraq was worth about US $6 billion in the 12 months ending March 2018, or about 15 per cent of Iraq’s total imports for 2017. Energy contracts also contribute to the total volume of bilateral trade. Iraqi central bank officials said in August that their country’s economy was closely linked to non-Arab Iran, which is engaged in several proxy wars with Saudi Arabia in the region.

Rouhani sees Iran, Iraq expanding trade despite US sanctions

By Tom Harper

As the US begins to enforce what are possibly the strongest sanctions on Iran to date, headlines have been dominated by the bellicose rhetoric of the Trump administration and Tehran. This comes on the heels of Washington’s withdrawal from the Joint Comprehensive Plan of Action (JCPOA) negotiated by Trump’s predecessor, Barack Obama, alongside Britain, France, Russia and China.

The marked difference between the latest sanctions and previous rounds has been the criticism of them voiced by European states, who previously had accepted what had been imposed by Washington. So has US unlateralism gone too far?

While the most recent round of sanctions aims to put further pressure on Tehran for regime change and to support American regional allies, such as Israel and Saudi Arabia, they also have an indirect beneficiary in the form of the US’s biggest global rival, China. And this has wider implications for the region.

The Middle Kingdom meets the Middle East

While European firms have explored ways to circumvent American sanctions or seek waivers, the threat of sanctions is likely to scare away many firms from doing business in the country. This will leave a void that China is likely to fill. As a result, Chinese firms will gain a near monopoly on Iranian oil and trade.

While Chinese imports of Iranian oil have initially experienced a slight decline, it is possible that this is one of Beijing’s ploys to see whether deals serving China’s interests are offered by an increasingly isolated Iran. For while Iran has been receptive to Chinese investment in the past, it has equally sought European investment to balance this out and to prevent China from playing too dominant a role in the country. The sanctions have now made China’s dominance all the more likely.

China increasingly is building its influence in a region that has traditionally been dominated by the US. This may see Tehran become more amenable to Chinese global initiatives, such as the Belt and the Road Initiative (BRI) and the Shanghai Cooperation Organisation (SCO).

The former is likely to see further Eurasian integration under China’s watch, while the latter, as a loose military alliance, is likely to be attractive to Iran as a deterrent to regime change.

But while these moves follow the common pattern of Chinese foreign policy, most notably Beijing’s willingness to take greater risks and conduct business in shunned nations, they have wider implications for the region and the wider world.

The way of Mao

Beijing has long been adept at exploiting developments in the international system for its own benefit – and Iran is the latest example of this. In this case, it is filling the void left by European firms that have been scared off by the threat of sanctions.

This raises questions about the utility of sanctions at a time when they have become a cornerstone of the Trump administration’s diplomatic arsenal. While there have been cases of sanctions being successful, most notably in ending apartheid rule in South Africa, they have rarely succeeded in changing state behaviour in recent years.

But possibly the most significant implication is how sanctions have led to widespread de-dollarisation, whereby the dominant global status of the dollar has been challenged. Since sanctioned states are no longer attached to the established system, it is easier for them to adopt an alternative way of operating. An example is the Petro Yuan – whereby China’s oil imports have been priced in yuan rather than in dollars – which has been adopted by oil-rich states targeted by sanctions, most notably Russia and Venezuela. The sanctions on Iran will only exacerbate this process.

The Petro Yuan is evidence that China is challenging the established US-centric system and seeks to provide an alternative. This is reminiscent of Mao Zedong’s strategies for guerrilla warfare, where an insurgent seeks to make the government irrelevant over a long period of time before overthrowing it. By building ties with sanctioned nations and creating alternative international institutions, China is deploying a similar strategy on a global scale in an effort to bypass the&nbsp;US.

As a result of this, there has also been wider Sino-Russian cooperation, such as in Syria. There, China is poised to play a role in rebuilding the country alongside Russia’s military assistance to it, having found common ground in their concerns over Islamic militancy .

Russia and China were also signatories of the Iran deal and have been dissatisfied with Washington’s abandonment of it. Trump’s present strategies have often been described as a “reverse Nixon”, seeking further ties with Russia to counter China. But the situation in Iran is more likely to see China and Russia jointly challenge the US.

By withdrawing from the deal, Trump has also split the Western world and while it is easy to turn Iran away from the table, it will be tougher to get it back there.

What next?

As a result of these developments, China has become one of the wild cards of the Middle East, challenging and changing the established system there. This also questions the utility of sanctions in the long-term since nations under longstanding sanctions are more open to alternative systems.

By providing an alternative, China seeks to challenge the established system by making it irrelevant. While China has abandoned Mao’s ideology, his strategies continue to be influential.

While the sanctions were seen as an attempt to preserve American dominance in the region, they will have consequences that will indirectly challenge this. This is one US play that could badly misfire.

(Tom Harper is Doctoral Researcher in Politics, University of Surrey) 
 
(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/iran-how-us-sanctions-are-strengthening-chinas-global-power-106564">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

&nbsp;

By Tom Harper As the US begins to enforce what are possibly the strongest sanctions on Iran to date, headlines have been dominated by the bellicose rhetoric of the Trump administration and Tehran.

By Tom Harper As the US begins to enforce what are possibly the strongest sanctions on Iran to date, headlines have been dominated by the bellicose rhetoric of the Trump administration and Tehran. This comes on the heels of Washington’s withdrawal from the Joint Comprehensive Plan of Action (JCPOA) negotiated by Trump’s predecessor, Barack Obama, alongside Britain, France, Russia and China. The marked difference between the latest sanctions and previous rounds has been the criticism of them voiced by European states, who previously had accepted what had been imposed by Washington. So has US unlateralism gone too far? While the most recent round of sanctions aims to put further pressure on Tehran for regime change and to support American regional allies, such as Israel and Saudi Arabia, they also have an indirect beneficiary in the form of the US’s biggest global rival, China. And this has wider implications for the region. The Middle Kingdom meets the Middle East While European firms have explored ways to circumvent American sanctions or seek waivers, the threat of sanctions is likely to scare away many firms from doing business in the country. This will leave a void that China is likely to fill. As a result, Chinese firms will gain a near monopoly on Iranian oil and trade. While Chinese imports of Iranian oil have initially experienced a slight decline, it is possible that this is one of Beijing’s ploys to see whether deals serving China’s interests are offered by an increasingly isolated Iran. For while Iran has been receptive to Chinese investment in the past, it has equally sought European investment to balance this out and to prevent China from playing too dominant a role in the country. The sanctions have now made China’s dominance all the more likely. China increasingly is building its influence in a region that has traditionally been dominated by the US. This may see Tehran become more amenable to Chinese global initiatives, such as the Belt and the Road Initiative (BRI) and the Shanghai Cooperation Organisation (SCO). The former is likely to see further Eurasian integration under China’s watch, while the latter, as a loose military alliance, is likely to be attractive to Iran as a deterrent to regime change. But while these moves follow the common pattern of Chinese foreign policy, most notably Beijing’s willingness to take greater risks and conduct business in shunned nations, they have wider implications for the region and the wider world. The way of Mao Beijing has long been adept at exploiting developments in the international system for its own benefit – and Iran is the latest example of this. In this case, it is filling the void left by European firms that have been scared off by the threat of sanctions. This raises questions about the utility of sanctions at a time when they have become a cornerstone of the Trump administration’s diplomatic arsenal. While there have been cases of sanctions being successful, most notably in ending apartheid rule in South Africa, they have rarely succeeded in changing state behaviour in recent years. But possibly the most significant implication is how sanctions have led to widespread de-dollarisation, whereby the dominant global status of the dollar has been challenged. Since sanctioned states are no longer attached to the established system, it is easier for them to adopt an alternative way of operating. An example is the Petro Yuan – whereby China’s oil imports have been priced in yuan rather than in dollars – which has been adopted by oil-rich states targeted by sanctions, most notably Russia and Venezuela. The sanctions on Iran will only exacerbate this process. The Petro Yuan is evidence that China is challenging the established US-centric system and seeks to provide an alternative. This is reminiscent of Mao Zedong’s strategies for guerrilla warfare, where an insurgent seeks to make the government irrelevant over a long period of time before overthrowing it. By building ties with sanctioned nations and creating alternative international institutions, China is deploying a similar strategy on a global scale in an effort to bypass the US. As a result of this, there has also been wider Sino-Russian cooperation, such as in Syria. There, China is poised to play a role in rebuilding the country alongside Russia’s military assistance to it, having found common ground in their concerns over Islamic militancy . Russia and China were also signatories of the Iran deal and have been dissatisfied with Washington’s abandonment of it. Trump’s present strategies have often been described as a “reverse Nixon”, seeking further ties with Russia to counter China. But the situation in Iran is more likely to see China and Russia jointly challenge the US. By withdrawing from the deal, Trump has also split the Western world and while it is easy to turn Iran away from the table, it will be tougher to get it back there. What next? As a result of these developments, China has become one of the wild cards of the Middle East, challenging and changing the established system there. This also questions the utility of sanctions in the long-term since nations under longstanding sanctions are more open to alternative systems. By providing an alternative, China seeks to challenge the established system by making it irrelevant. While China has abandoned Mao’s ideology, his strategies continue to be influential. While the sanctions were seen as an attempt to preserve American dominance in the region, they will have consequences that will indirectly challenge this. This is one US play that could badly misfire. (Tom Harper is Doctoral Researcher in Politics, University of Surrey) (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

How US sanctions are strengthening China’s global power

By Gary Grappo

Washington’s latest round of sanctions on Iran’s primary hard currency earner will be felt not only by the Iranian government but also by Iranians. Previous sanctions, imposed after Washington withdrew from the Joint Comprehensive Plan of Action (JCPOA) in May 2018, had already begun to take a bite out of Iran’s economy, costing the Islamic Republican estimated loss of more than $2 billion in revenue. Undoubtedly, it has been a contributing factor in the recent spiral of the Iranian rial, down against the dollar by approximately 75 &nbsp;per cent since 2017.

Tehran has been down this road before. US sanctions, much of which had been endorsed by the UN Security Council in the period leading up to the negotiation and signing of the JCPOA, had been so painful for Iran that it finally agreed to come to the negotiating table with the P5+1 countries (China, France, Germany, Russia, the UK and the US) and ultimately accepted restrictions on its nuclear weapons development program. The fact that Tehran has not reneged on the nuclear deal in spite of Washington’s withdrawal is a testament to the devastating impact that global sanctions can have on its economy and its desire to forestall sanctions broader than those reimposed by Washington.

Nevertheless, US sanctions are impossible to ignore by Iran or any other country. Any country, bank or enterprise risks its US-based operations — not to mention access to America’s outsized market — in doing business with Iran or an Iranian entity falling under the sanctions. Despite the unwillingness of the other P5+1 countries to follow Washington’s lead, their businesses and banks cannot afford to risk secondary sanctions. They will comply by withdrawing their business with or in Iran, cancelling contracts or shutting down financial dealings with Iranian banks.

Almighty Dollar

How does Washington get away with it? What makes the imposition of US sanctions so problematic for any country, entity or person on the receiving end of America’s financial wrath? The answer isn’t just the size of America’s economy — US GDP is nearly a quarter of global GDP. More often, it’s the “almighty” US dollar. In 2017, the dollar accounted for 85 per cent of global trade based on the value of letters of credit issued, up from 81 per cent two years earlier. The US currency is involved in nearly nine out of every 10 transactions in the daily $5.1-trillion foreign exchange market, according to 2016 data from the Bank for International Settlements. The greenback also accounts for 62 per cent of global reserves. As Iran learned prior to 2015 and will now experience again, it’s nearly impossible to do business in the world today without recourse to the dollar.

And for Tehran, it’s getting worse. SWIFT — Society for Worldwide Interbank Financial Telecommunications — a Belgium-based messaging network that financial institutions use to securely transmit information and instructions worldwide, announced that it too is severing its relations with Iran’s banks. The move will effectively cut those banks off from the global financial system. Since the vast majority of SWIFT’s transactions are in dollars, it had no choice.

Iran isn’t alone in the bullseye of American sanctions. The US Treasury Department currently enforces 29 active sanctions programs, targeting countries like Russia, Belarus, North Korea, Venezuela, Cuba, Zimbabwe, Yemen, Syria, Libya and others, as well as various criminal organizations, individuals and businesses throughout the world, for an assortment of sanctionable violations of US human rights, drug trafficking, money laundering, terrorism, human trafficking, weapons sales, cyber warfare and other laws. Sanctions have become America’s go-to tool for extending territoriality of its laws, and the US economy and the dollar give it the ability to do it.

However, Washington faces increasing challenges in its resort to sanctions, not just as they apply to Iran, but also to US economic interests around the globe. First, Washington’s withdrawal from the Iran nuclear deal was unpopular and opposed by nearly all of its allies, including the other members of the P5+1. To date, none have withdrawn, nor are they expected to do so. That means that there is little hope of achieving what the Obama administration had done — a UN Security Council resolution imposing global sanctions on Iran. So, as painful as US sanctions are likely to be for Iran, they are unlikely to approach the levels experienced in the period leading up to the signing of the JCPOA.

Washington now asserts that it expects Iran to comply with a 12-point list of demands, articulated by Secretary of State Mike Pompeo in May. It’s not a bad list of Iran’s misbehaviour both in the region and around the world. But it goes far beyond anything envisioned by the US and the other P5+1 members who, in 2015, focused on limiting Iran’s nuclear program. So, with fewer countries joining Washington’s sanctions, how is the Trump administration counting on the Iranians to give up more than they did in 2015? “More with less” once was a clever slogan in American politics, but it’s been proven unsuccessful. In this case, Iran is much more likely to weather these current sanctions, however painfully, than it was those imposed through 2015.

Second, Tehran has managed to accomplish a long-sought objective — drive a wedge between the US and its closest allies in Europe. In order to keep the US in the JCPOA, the European countries had shown considerable willingness to ratchet up non-nuclear sanctions on Iran and push for extending the deadlines in the nuclear agreement beyond their current 10-15 year deadlines before they came up for review. Yet the Trump administration bowed to its campaign promises and to its base — and withdrew. Trump had effectively gotten the bargain he wanted from the Europeans and instead went for the two birds in the bush and not the one he had in his hand.

Powerful weapon

Now, the EU is seeking to set up a separate mechanism that would allow Iran and businesses and banks with which it deals, including oil customers, to work through a different financial clearing system. Known as the Special Purpose Vehicle, or SPV, it could have a much greater impact than the immediate goal of freeing Iran from Washington’s financial grip. Longer term, one could envision its use by China, Russia and other currently sanctioned states, entities and individuals to dodge US sanctions and work outside the US-led system. To be sure, setting up such a mechanism will be long and difficult, presenting all sorts of unforeseen challenges to global businesses, banks and governments. But in this age of instant financial transactions governed by algorithms and technology, the global economic and financial system has shown itself to be adaptable to the vicissitudes of international politics.

This raises the third risk to America’s use of sanctions when its allies are not on board. Such overuse and misuse will mean diminishing America’s and the world’s abilities to punish those who act outside acceptable bounds of international behaviour. Causes such as protecting human rights, combatting terrorism and drug trafficking, and stemming proliferation, among others, will all suffer as violators turn to new means to avoid constraints and pursue efforts to destabilize and disrupt.

Finally, sanctions not adequately coordinated with other major economic powers, especially the EU, Japan and South Korea, can upset financial markets, currency trading and international trade. The global economy is better at adjusting when the sanctions are clear and enforceable, meaning other major nations act in concert with the US and not in opposition. Last summer, after the US imposed sanctions on Turkey, European bank stocks took a beating. Had the trade controls and sanctions been better coordinated with America’s European allies, the sell-off might have been mitigated.

Sanctions remain a powerful weapon in the US arsenal, one which it wields almost unilaterally among world powers. But their effect — to ensure global order by limiting the ability of bad actors to skirt international norms, and punishing them when they do — will be diluted if the Trump administration continues to pursue a go-it-alone approach. Their impact is exponentially greater when Washington convinces other economic powers to work with it.

(Gary Grappo is a former US ambassador and a distinguished fellow at the Center for Middle East Studies at the Korbel School for International Studies)

(This article was originally published on Fair Observer. Read the <a href="https://www.fairobserver.com/region/middle_east_north_africa/donald-trump-us-sanctions-iran-economy-oil-exports-nuclear-deal-news-65172/">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

By Gary Grappo Washington’s latest round of sanctions on Iran’s primary hard currency earner will be felt not only by the Iranian government but also by Iranians.

By Gary Grappo Washington’s latest round of sanctions on Iran’s primary hard currency earner will be felt not only by the Iranian government but also by Iranians. Previous sanctions, imposed after Washington withdrew from the Joint Comprehensive Plan of Action (JCPOA) in May 2018, had already begun to take a bite out of Iran’s economy, costing the Islamic Republican estimated loss of more than $2 billion in revenue. Undoubtedly, it has been a contributing factor in the recent spiral of the Iranian rial, down against the dollar by approximately 75 per cent since 2017. Tehran has been down this road before. US sanctions, much of which had been endorsed by the UN Security Council in the period leading up to the negotiation and signing of the JCPOA, had been so painful for Iran that it finally agreed to come to the negotiating table with the P5+1 countries (China, France, Germany, Russia, the UK and the US) and ultimately accepted restrictions on its nuclear weapons development program. The fact that Tehran has not reneged on the nuclear deal in spite of Washington’s withdrawal is a testament to the devastating impact that global sanctions can have on its economy and its desire to forestall sanctions broader than those reimposed by Washington. Nevertheless, US sanctions are impossible to ignore by Iran or any other country. Any country, bank or enterprise risks its US-based operations — not to mention access to America’s outsized market — in doing business with Iran or an Iranian entity falling under the sanctions. Despite the unwillingness of the other P5+1 countries to follow Washington’s lead, their businesses and banks cannot afford to risk secondary sanctions. They will comply by withdrawing their business with or in Iran, cancelling contracts or shutting down financial dealings with Iranian banks. Almighty Dollar How does Washington get away with it? What makes the imposition of US sanctions so problematic for any country, entity or person on the receiving end of America’s financial wrath? The answer isn’t just the size of America’s economy — US GDP is nearly a quarter of global GDP. More often, it’s the “almighty” US dollar. In 2017, the dollar accounted for 85 per cent of global trade based on the value of letters of credit issued, up from 81 per cent two years earlier. The US currency is involved in nearly nine out of every 10 transactions in the daily $5.1-trillion foreign exchange market, according to 2016 data from the Bank for International Settlements. The greenback also accounts for 62 per cent of global reserves. As Iran learned prior to 2015 and will now experience again, it’s nearly impossible to do business in the world today without recourse to the dollar. And for Tehran, it’s getting worse. SWIFT — Society for Worldwide Interbank Financial Telecommunications — a Belgium-based messaging network that financial institutions use to securely transmit information and instructions worldwide, announced that it too is severing its relations with Iran’s banks. The move will effectively cut those banks off from the global financial system. Since the vast majority of SWIFT’s transactions are in dollars, it had no choice. Iran isn’t alone in the bullseye of American sanctions. The US Treasury Department currently enforces 29 active sanctions programs, targeting countries like Russia, Belarus, North Korea, Venezuela, Cuba, Zimbabwe, Yemen, Syria, Libya and others, as well as various criminal organizations, individuals and businesses throughout the world, for an assortment of sanctionable violations of US human rights, drug trafficking, money laundering, terrorism, human trafficking, weapons sales, cyber warfare and other laws. Sanctions have become America’s go-to tool for extending territoriality of its laws, and the US economy and the dollar give it the ability to do it. However, Washington faces increasing challenges in its resort to sanctions, not just as they apply to Iran, but also to US economic interests around the globe. First, Washington’s withdrawal from the Iran nuclear deal was unpopular and opposed by nearly all of its allies, including the other members of the P5+1. To date, none have withdrawn, nor are they expected to do so. That means that there is little hope of achieving what the Obama administration had done — a UN Security Council resolution imposing global sanctions on Iran. So, as painful as US sanctions are likely to be for Iran, they are unlikely to approach the levels experienced in the period leading up to the signing of the JCPOA. Washington now asserts that it expects Iran to comply with a 12-point list of demands, articulated by Secretary of State Mike Pompeo in May. It’s not a bad list of Iran’s misbehaviour both in the region and around the world. But it goes far beyond anything envisioned by the US and the other P5+1 members who, in 2015, focused on limiting Iran’s nuclear program. So, with fewer countries joining Washington’s sanctions, how is the Trump administration counting on the Iranians to give up more than they did in 2015? “More with less” once was a clever slogan in American politics, but it’s been proven unsuccessful. In this case, Iran is much more likely to weather these current sanctions, however painfully, than it was those imposed through 2015. Second, Tehran has managed to accomplish a long-sought objective — drive a wedge between the US and its closest allies in Europe. In order to keep the US in the JCPOA, the European countries had shown considerable willingness to ratchet up non-nuclear sanctions on Iran and push for extending the deadlines in the nuclear agreement beyond their current 10-15 year deadlines before they came up for review. Yet the Trump administration bowed to its campaign promises and to its base — and withdrew. Trump had effectively gotten the bargain he wanted from the Europeans and instead went for the two birds in the bush and not the one he had in his hand. Powerful weapon Now, the EU is seeking to set up a separate mechanism that would allow Iran and businesses and banks with which it deals, including oil customers, to work through a different financial clearing system. Known as the Special Purpose Vehicle, or SPV, it could have a much greater impact than the immediate goal of freeing Iran from Washington’s financial grip. Longer term, one could envision its use by China, Russia and other currently sanctioned states, entities and individuals to dodge US sanctions and work outside the US-led system. To be sure, setting up such a mechanism will be long and difficult, presenting all sorts of unforeseen challenges to global businesses, banks and governments. But in this age of instant financial transactions governed by algorithms and technology, the global economic and financial system has shown itself to be adaptable to the vicissitudes of international politics. This raises the third risk to America’s use of sanctions when its allies are not on board. Such overuse and misuse will mean diminishing America’s and the world’s abilities to punish those who act outside acceptable bounds of international behaviour. Causes such as protecting human rights, combatting terrorism and drug trafficking, and stemming proliferation, among others, will all suffer as violators turn to new means to avoid constraints and pursue efforts to destabilize and disrupt. Finally, sanctions not adequately coordinated with other major economic powers, especially the EU, Japan and South Korea, can upset financial markets, currency trading and international trade. The global economy is better at adjusting when the sanctions are clear and enforceable, meaning other major nations act in concert with the US and not in opposition. Last summer, after the US imposed sanctions on Turkey, European bank stocks took a beating. Had the trade controls and sanctions been better coordinated with America’s European allies, the sell-off might have been mitigated. Sanctions remain a powerful weapon in the US arsenal, one which it wields almost unilaterally among world powers. But their effect — to ensure global order by limiting the ability of bad actors to skirt international norms, and punishing them when they do — will be diluted if the Trump administration continues to pursue a go-it-alone approach. Their impact is exponentially greater when Washington convinces other economic powers to work with it. (Gary Grappo is a former US ambassador and a distinguished fellow at the Center for Middle East Studies at the Korbel School for International Studies) (This article was originally published on Fair Observer. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Are US sanctions losing their clout?

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