Trump’s delusional Iran oil gambit is decades too late

Trump is using everything he’s got to wage economic war on Iran. His problem is that ‘everything he’s got’ is not nearly enough, as the virtual monopoly power once wielded by the US has long since evaporated.

Last week, a senior State Department official announced the US’ intention to cut Iranian oil exports “to zero” by November 4th this year, by threatening to impose sanctions on any company still trading beyond that date. Brian Hook, director of policy planning at the State Department, told reporters on July 2nd that “Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue on crude oil sales”.

Hitherto, experts had predicted US sanctions would see a reduction of around 500,000 barrels per day (bpd) by the end of the year – barely one fifth of the country’s current export of 2.4 million bpd. Even the sanctions that preceded the 2015 nuclear deal – which, unlike today’s unilateral effort, were supported by a broad alliance of world powers, including Russia and China – only succeeded in removing half Iran’s oil (1.2m bdp) from the market.

Hook reassured the world that “We are confident there is sufficient global spare oil capacity”, claiming Saudi Arabia alone could produce an additional 2 million bpd. Saudi Arabia and Russia have already agreed to increase production by 1 million bpd reversing the production quotas imposed in the wake of the oil price slump in 2016.

This determination to destroy Iran by any means necessary has, of course, been the Trump administration’s signature foreign policy since day one, with almost every member of his team harbouring a long-held and well documented vendetta against the Islamic Republic. What is new with Trump, however, is not this determination as such – let’s not forget that Iran has been on the official Pentagon hitlist since at least 2001 – as the means used to pursue it. As I argued in 2014, the nuclear deal was not, on the part of the west, a genuine rapprochement so much as a long term programme of western infiltration, based on the ‘Libya model’, aimed at building a pro-imperialist fifth column within the Iranian state in order to prepare the ground for ‘regime change’ in the future. The Trump team, of course, has no patience for the long game, and want to simply cut to the chase. The reason for this obsession with destroying Iran – shared by all factions of the western ruling class, despite their differences over means – is obvious: Iran’s very existence as an independent state threatens imperial control of the region – which in turns underpins both US military power and the global role of the dollar. And as South-South cooperation continues to develop, this threat grows every day, whilst the means to diminish it are reduced by the same measure.

At the same time, the US military encirclement of China – begun in earnest as Obama’s ‘pivot to Asia’, but, like so much else, undergoing major escalation under Trump – is intimately linked to a policy of cutting off China from its suppliers. In this sense, a policy of ‘isolating’ of Iran is aimed at isolating China also, as China is the largest market for Iranian crude.

Trump’s policy, however, is likely to get few buyers. Pepe Escobar has explained the likely response to Trump’s plans from each of Iran’s top customers:India will buy Iranian oil with rupees. China also will be totally impervious to the Trump administration’s command. Sinopec, for instance, badly needs Iranian oil for new refineries in assorted Chinese provinces, and won’t stop buying. Turkey’s Economy Minister Nihat Zeybekci has been blunt: “The decisions taken by the United States on this issue are not binding for us.” He added that: “We recognize no other [country’s] interests other than our own.” Iran is Turkey’s number-one oil supplier, accounting for almost 50% of total imports. Russia won’t back down from its intention to invest $50 billion in Iran’s energy infrastructure.. And Iraq won’t abandon strategic energy cooperation with Iran. Supply chains rule; Baghdad sends oil from Kirkuk to a refinery in Kermanshah in Iran, and gets refined Iranian oil for southern Iraq.”

With European companies likely to be more nervous about insubordination to US diktat, this merely leaves more tantalising investments open to Russian and Chinese companies.  As Philip K. Verleger noted, “It’s a huge opportunity for China and Russia to cement relationships with Iran”.

At the same time, all this activity and uncertainty is bound to push oil prices higher, meaning that any reductions in export quantities may well be compensated by increased revenues.

Trump’s attempts to persuade the rest of the world to cut off its nose to spite its face, then, are likely to all on deaf ears. It is in this light that Trump’s igniting of a global trade war must be seen.

At midnight on July 5th, US tariffs on $34billion worth of Chinese imports went into effect, at a rate of 25%. Trump told reporters that tariffs on a further $16 billion worth were likely to follow in two weeks, fulfilling a pledge made in April to slap tariffs on 1300 products totalling $50 billion annually. These tariffs were designed to target the Chinese aerospace, tech and machinery industries, as well as medical equipment, medicine and educational material. The final total, however, he added, could eventually reach $550 billion – “a figure”, noted Industry Week, “that exceeds all of U.S. goods imports from China in 2017”. These China-specific tariffs follow tariffs on steel (25%) and aluminium (10%) imports imposed on the EU, Mexico and Canada four days earlier.

According to Fox Business, Canada stands to lose around $2billion per year as a result of these tariffs, with Brazil, Russia, China and South Korea each set to lose at least $500 million annually.

But this may be precisely the point: not only to ‘bring jobs back to the US’, but also to create new forms of leverage to be used against rivals and allies (and is there really a distinction between the two anyway these days?) alike. So far, of course, Trump has famously refused to offer waivers to his allies. But with Trump, nothing is forever – everything is leverage, to be played and bartered as seen fit. Could it be, then, that waivers may yet be offered to countries who manage to wean themselves off Iranian oil by the November deadline? And even if not, the very willingness to use trade as a weapon so openly and brazenly is a reminder that there may be further punishments on the way for those who do not toe the line on the strangulation of Iran. After all, as Louis Kuijs, chief economist at Oxford Economics, has pointed out, this ‘new era’ has only just begun: “Clearly the first salvos have been exchanged,” he said, “and in that sense, the trade war has started. There is no obvious end to this”.

Nevertheless, Trump’s bark may yet be well worse than his bite. For on thing, the counter-measures employed by the Chinese – a reciprocal 25% tariff on $50billion of US goods – will hit the US hard. One product subject to the new tariff, for example, is soybeans. China is the market for 25% of all soybeans grown in the US. Grant Kimberley, a soybean farmer with the Iowa Soybean Association, estimates that this tariff alone could lead to a 70% drop in exports.

But even, even apart from the Chinese counter-measures, the US-imposed tariffs themselves are likely to hurt the US as much as China. A report on NPR suggests thatfor now, the blows are threatening to land hardest on non-Chinese companies like New Jersey-based Snow Joe/Sun Joe”, which – like so many other US companies, relies on Chinese imports for crucial parts of its supply chain. And in the end, of course, all of these increased costs will be passed on to the US consumer, directly depressing their real wages.

For China, however, the impact is likely to be – in the words of Ethan Harris, head of economic research at Bank of America Merrill Lynch – “quite small”.  Industry Week noted that whilst “In the past, the U.S. used its economic clout to win trade skirmishes with developing countries… China, whose economy has grown tenfold since it joined the World Trade Organization in 2001, poses a much more formidable adversary.” James Boughton, a senior fellow at the Centre for International Governance Innovation in Waterloo, Ontario, told the site that  “The dynamic is different from anything we’ve seen. China has an ability to ride out this kind of pressure, to weather the storm, that a lot of countries didn’t have in the past.”

 

Indeed, Trump has already been forced into retreat in some areas, given the likely repercussions. Ian Bremmer, president of the Eurasia Group consultancy, told CBS that  “Trump backed off a couple weeks ago on implementing what would have been significant measures against them. You’re familiar with the Chinese telecom firm ZTE. They were going to be made bankrupt by White House regulations what were being put in place. Trump himself intervened with a tweet saying, we don’t want to lose all of those Chinese jobs… [Trump] knows that China can hit back really hard and they can hit back in a targeted way against red states, against American farmers. So I would be very surprised if we saw significant escalation as opposed to significant rhetoric before elections in the U.S. in November, which is what we’re really talking about here.” Other possible Chinese retaliatory measures include limits on exports of rare-earth metals, essential for technologies such as smartphones, and of course the zero-option of dumping its holdings of US treasuries (although this would not be without serious pain to itself of course).

So the idea that trade war will somehow pressure China (and others) to dump Iran seems ultimately fanciful. The process of ‘delinking’ has already gone too far. China is already Iran’s biggest trading partner, and – with Chinese tariffs on US oil looming – is more likely to increase Iranian imports to replace that no longer coming from the US rather than vice versa. Iran already sells its oil to China in yuan, rather than US dollars, meaning that the entire US-controlled financial system is completely circumvented for the countries’ bilateral trade, and therefore outside the control of US-imposed financial sanctions. Looking forward, Iran is set to play a crucial role in the development of China’s mega Belt and Road Initiative, with a high speed railway planned to provide sea access to landlocked central Asia. And with French oil giant Total’s planned investment in the massive South Pars oil field in jeopardy, the contract is likely to now go to a Chinese company.

Economics professor Danny Quah noted back in 2009 that the dependence of China on US markets tended to be greatly overestimated in the west. By 2006, only 20% of Chinese exports were to the USA, with a far higher proportion going elsewhere in East Asia. In 2013, the US was not even the largest single customer for Chinese goods (it came second to Hong Kong). By 2o15, only 18% of Chinese exports were to the US; with almost half (48.5%) going elsewhere in Asia, 19.9% to Europe, 4.2% to Latin America, and 4.1% to Africa. In other words, the global South accounted for more Chinese exports than US and Europe combined. And, as is becoming clearer by the day, US and Europe are not combined.

According to the CIA’s world factbook, Chinese exports in total represent just under 20% of GDP. If we do the maths, then – 20% of 20% – it turns out that just 4% of Chinese GDP comes from exports to the US. Significant, but hardly the economic gun to the head that Trump seems to believe.

The days when loss of market access to the US meant oblivion for countries like China are long gone. The future now lies in South-South cooperation precisely along the lines of the multibillion Belt and Road Initiative. The US government understand that, and their attempts to simultaneously sabotage both China and Iran are last-ditch attempts to prevent the inevitable – further delinking, and a global economy in which the US is becoming increasingly peripheral. But the truth is, this effort is already too late.

This article originally appeared on RT.com 

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Trump’s attack on the lira – a new financial war on the Global South

Trump’s attack on the Turkish lira, combined with recent Federal Reserve moves to choke off dollar supply, are pushing the world towards a rerun of the 1997 currency crisis. This may well be the whole point.

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Last Friday, Donald Trump announced new sanctions on Turkey – comprising a doubling of the steel and aluminium tariffs he had introduced earlier this year. Turkey’s currency was already struggling, but these new sanctions “are the straw that broke the camel’s back”, commented Edward Park of the UK investment management firm Brooks Macdonald. The same day, the Turkish lira fell to more than 6 to the dollar, the first time it had ever done so, hitting a low point of 7.21 to the dollar on Sunday. Following Turkish caps on currency swaps, it slightly regained some of its lost value, and was trading at 6.12 by Wednesday, still way below the 4.75 to the dollar it was worth last week. Whilst the Turkish move has had some effect, this should not be overstated: simply banning the trading of lira above certain limits, which is effectively what Turkey has done, is hardly a sustainable means of revalorising the currency; andaccording to the FT, investors “are still ratcheting up bets against Turkey in other ways, such as through credit default swaps that pay out in the case of a debt default”. Turkish bank shares now stand at their lowest level since 2003.

Underlying the currency’s vulnerability are the country’s massive dollar debts. Turkish companies now owe almost $300 billion in foreign-denominated debt, a figure which stands at over half its GDP. The question is – how did this happen, and why has it suddenlynow become a problem?

During the era of Quantitative Easing, the US Federal Reserve flooded US financial institutions with $3.5trillion in new dollars, much of which poured into so-called ‘emerging markets’ such as Turkey. So long as the music kept playing, this was fine – near-zero interest rates, combined with a weak dollar, made these debts affordable. But since the Federal Reserve ended its programme of QE last year – and then started to reverse it, selling off the financial assets it had purchased (and thus effectively taking dollars out of the financial system) – the dollar’s value has started to rise again, making debt repayments less affordable. This appreciation of the dollar has been compounded by two successive interest rate rises by the Reserve; but it has also been compounded by Trump’s actions. Paradoxically, Trump’s trade wars have led to a further rise in the dollar, as investors have viewed it as a ‘safe haven’ compared to other currencies deemed less able to withstand the unpredictable turbulence he has unleashed. Even the yen and the Swiss franc, traditionally viewed as ‘good as gold’ have weakened against the dollar – as, indeed, has gold itself. As Aly-Khan Satchu, financial analyst at Rich Management, has put it the “US dollar has been weaponised – either deliberately or by design” (is there a difference?), adding that the “dollar is basically knee-capping countries”, warning that other countries will face the same treatment “if they continue to pursue the policies that Erdogan is seeking to pursue”.

Thus Turkey has been hit by a quadruple whammy by the US – interest rate hikes and the choking off of dollars from the Fed; tariffs and sanctions from Trump. The result is a loss in the lira’s value of almost 40% since the start of the year.

And the effects are already being felt far beyond Turkey’s borders; the South African rand fell to a two-year low on Monday, and the Indian rupee, Mexican peso and Indonesian rupiah have all been hard hit. This is unsurprising, as the ballooning of dollar-denominated debts – from $2trillion 15 years ago to $9trillion today, largely in the global South – combined with the reversal of QE was a crisis waiting to happen. All the conditions which prefigured the 1997 East Asian currency crisis are now effectively in place. All that’s needed is a push – which is exactly what Trump has just given.

This is textbook stuff – or should be, if economics textbooks bore any relation to reality (which they don’t). The last ten years are virtually an exact replay of the decade or so running up to the 1997 crisis. Whilst the 1985 ‘Plaza Accord’ dollar devaluation was not exactly Quantitative Easing, it had the same intent and results – a flood of cheap money and dollar debt, and therefore growing global dependence on the dollar and vulnerability to US monetary and economic policy. This vulnerability was then effectively ‘cashed in’ with the ‘reverse Plaza accord’ ten years later, which, as with the current reversal of QE, choked off credit and ramped up interest rates, making markets more jumpy and bankruptcies more likely. In the end, the trigger was the collapse of the baht – the currency of a country (Thailand) with a GDP half that of Turkey – which spiralled into a crisis that ultimately spread across all of Asia, sabotaging the continent’s development and allowing US corporations to buy up some of the most advanced industrial plant in the world for a fraction of its value.

It is not hard, then, to see why Trump and the Fed might well wish to trigger such a crisis today. The more the currencies of dollar-indebted countries slide, the more real goods and services they have to pay in tribute to the US to service the same paper-dollar debts – whilst those who cannot keep up will be gobbled up for pennies on the dollar. Yet beyond these purely economic gains lies also the geopolitical imperative – to maintain and extend US domination by scuppering its rivals. Trump is, after all, about nothing if not the conversion of all possible means of power into leverage to obliterate his opponents. Forcing one country after another to the brink of bankruptcy – and therefore to the IMF for a bailout – is a means of cashing in the dollar-dependency built up over the past decade into raw power. One can easily imagine the demands the US might make in return for its support in securing an IMF bailout – end oil imports from Iran, discontinue involvement with China’s Belt and Road Initiative… the potential is vast. Already direct threats are being made against Turkey about ‘what it needs to do’ to ‘reassure the markets’ – the Times on Tuesday, for example, demanding that “Erdogan should end his spat with the West if he wants to avert a deeper crisis…his course of action should be clear: he should raise interest rates [that is, promise a bigger cut of the Turkish economy to international currency speculators], heed competent economists, explicitly guarantee the independence of the central bank [that is, remove it from democratic oversight], and make up with President Trump” – as, after all, “US support will be needed if the IMF of World Bank is to step in”. Indeed, the targeting of Turkey may well be a response to Erdogan’s insubordination in relation to Iran: noted Robert Fisk this week, “Erdogan is helping Iran to dodge US sanctions which were imposed after Trump flagrantly tore up the 2015 nuclear agreement, and – in a decision demonstrating the cowardly response of the EU’s own oil conglomerates to Trump’s insanity – has announced that he will continue to import Iranian oil. Thus will Washington’s further threat of increased oil sanctions against Iran be blunted.” Trump may well hope – as I argued recently – that tariffs can serve as a weapon to bring recalcitrant states back in line with his Iran policy.

Indeed, it is here that the false dichotomy between the ‘globalists’ and the ‘economic nationalists’ in the Trump White House – and the country at large – is, once again, exposed. When it comes to pushing the global South into bankruptcy, their interests are perfectly aligned. However much Goldman Sachs’ press releases may cry wolf about Trump’s tariffs, the reality is that the trade war is the icing on the cake of the Fed’s own policy of squeezing the ‘emerging markets’. Indeed, Wall st depends on precisely the kind of financial instability which Trump’s trade wars have triggered. As Peter Gowan has noted, “the US economy depends…upon constantly reproduced international monetary and financial turbulence” – while Wall St in particular “depends upon chaotic instabilities in ‘emerging market’ financial systems.” But by draping these actions in the flag, and parading them alongside a chorus of pseudo-shock from the ‘globalists’, their true nature is obscured. The global South now stands on the precipice – with ‘establishment liberals’ and ‘nationalist insurgents’ alike lining up to give them a shove.

An earlier version of this article originally appeared on RT.com 

Is Russia facilitating Trump’s strangulation of Iran?

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Since the earliest days on the campaign trail, it has never been in doubt who Trump and his team have had in their sights. “Iran is the biggest destabilizing force in the Middle East and its policies are contrary to our interests,” Defence Secretary Mattis told his Senate confirmation hearing, having previously claimed the country posed a bigger security threat than either ISIS or Al Qaeda. Mike Pence called Iran the “leading state sponsor of terrorism” whilst new National Security Advisor John Bolton has for years called for Iran to be bombed. Trump himself, in his own little remix of Pence’s phrase, has called Iran “The Number One State of Sponsored Terror”, which presumably means something derogatory.

 

China, of course, was famously accused of “raping our country” by Trump in 2016, whilst White House aide Peter Navarro claimed the country was waging “economic aggression” against the US. Former National Security Advisor Steve Bannon announced this week that “we are at war with China”.

 

Iran and China, then, have been favoured rhetorical targets since day one – but this year that rhetoric has morphed into all-out economic warfare. This month alone, Trump has unleashed tariffs on $60 billion of Chinese goods, threatened to do so on $500billion more, and announced his intention to cut Iranian oil exports to zero by November. These weapons of financial destruction are openly aimed at crippling and sabotaging China and Iran in order to stymie their development and bring them to their knees. Yet at the same time as this is happening, the leader of Iran and China’s major geopolitical ally, Russian President Vladimir Putin, has continued to be courted and flattered by Trump. What is going on?

 

On the face of it, these hostile acts against two of Russia’s key allies have, as one might expect, been condemned by Putin’s government. Prior to Trump’s May announcement that he would intended to violate the Iranian nuclear deal by restoring sanctions, the Kremlin warned of “harmful consequences” should he do so. And following the recent Helsinki summit between the two leaders, Putin continued to back the deal (albeit on the grounds of limiting Iranian sovereignty rather than defending it) stating that “The Russian position remains unchanged regarding the Iranian nuclear program, and we believe that the JCPOA is an instrument that makes it possible to guarantee the non-proliferation of nuclear weapons in general and in the region in particular,” adding that the deal had turned Iran into one of the most heavily IAEA-monitored countries in the world. Russia similarly denounced the tariffs slapped on China earlier this month.

 

Yet, behind the rhetorical opposition, Russian actions are facilitating Trump’s aggression. Following 18 months of oil production cuts agreed by Russia and Saudi Arabia in 2016, which had successfully raised oil prices out of the slump into which they had fallen, Russia last month proposed an unexpected and immediate reversal of this policy. The low oil prices which had plagued oil markets before the 2016 cuts were agreed had caused huge problems for producer countries such as Russia, Iran and Venezuela, leading many to believe that the Saudis had been ordered by the US to flood the market in order to sabotage the economies of its geopolitical foes. The new production quotas, then, had given these countries some much-needed breathing space; yet, this June, Russia put forward a proposal to OPEC to increase production by 1.8million barrels per day (bpd) – and, unusually, proposed that these increases were to start kicking in within weeks. In the end, a pact to increase production by 1 million barrels per day – spearheaded by Russia and Saudi Arabia – was agreed by OPEC and non-OPEC countries in late June. The rise was opposed by Iran, Iraq, Venezuela and Algeria, with Iranian oil minister Bijan Zanganeh commenting ahead of the meeting that “OPEC is not the organization to receive instruction from President Trump … OPEC is not part of the Department of Energy of the United States”.

 

Within days of the adoption of the Russian-led production increase, the Trump administration announced its plans to “reduce Iranian oil exports to zero” by November 4th. Questioned on whether such a policy might cause disruption as countries scrambled to replace supplies, State Department policy director Brian Hooks remarked that “we are confident there is sufficient global spare oil capacity.” Russia’s push for increased production had, in effect, smoothed the path for the next round of Trump’s strangulation of Iran. It was precisely this deal which lay behind Trump’s brazen claim that world oil supplies would plug the gap created by the loss of Iranian crude; without the end to Russian-Saudi production limits, this would have been unthinkable. As things stand, however, all the pieces are in place for Trump to apply serious pressure on all importers of Iranian oil. Whilst the Russian-Saudi deal offers alternative sources of supply, the trade war now underway demonstrates Trump’s willingness to use tariffs against those who do not bend to his geopolitical will. Whilst Trump has openly threatened sanctions against those who do not heed his call to end their dealings with Iran, it is quite possible that those who do heed it will be rewarded with tariff exemptions. China, in particular – Iran’s biggest trading partner, and now threatened with tariffs on all $500bilion of their exports to the US – will be particularly under pressure.

 

On the surface, then, Russia’s actions appear self-defeating. The end to the, hugely successful, production quotas of the previous 18 months immediately triggered a drop in oil prices – Russia’s main export commodity – whilst facilitating the escalation of US economic warfare against key Russian ally Iran. Yet there are several reasons Russia may be supporting Trump’s moves.

 

Most obviously, Iran is a major competitor with Russia for oil export markets – especially in Europe. European hopes to reduce dependence on Russian energy supplies are likely to be seriously dashed if they can no longer turn to Iran as an alternative supplier. Quite simply, Russia will sell more oil without Iranian competition.

 

More than this, however, even Trump’s use of tariffs as leverage to push countries away from Iran could be to Russia’s benefit. If Trump does indeed make tariff-free access to the US market conditional on cutting investment and trade with Iran, China would face a major dilemma.

 

China has for some years been not only Iran’s major trading partner, but investment financier as well. In 2011, China  signed a  $20 billion  agreement  to  boost  bilateral  cooperation  in Iran’s industrial and mining sectors. Today, China is poised to take over development of the massive South Pars oil and gas field should the French company TOTAL pull out, as they are widely expected to do, whilst a $3billion deal was recently signed giving SINOPEC the right to expand the Abadan oil refinery in Khuzestan Province. Meanwhile, reports Fox News, “With the U.S. Treasury putting pressure on Western banks to not make any deals with Iran, the Chinese state-owned CITIC bank is extending lines of credit worth $10 billion for Iranian banks. This funding will finance water, energy and transport projects. To bypass U.S. sanctions, the lines of credit will use euros and yuan currencies”.

But most significant for Russia is the 2017 $1.5 billion deal made by the Chinese Export-Import Bank to finance a high-speed railway between Tehran and Mashhad. The railway is envisioned to become part of China’s ‘Belt and Road Initiative’ , creating a high-speed transit route between central Asia and Europe that will shave weeks off current travel times.

This May – in a clear act of defiance to the US – China opened a new train line between China’s Inner Mongolia Autonomous Region and Tehran, shortening travel time by 20 days compared to cargo ship. Once the full vision of  a Chinese built high-tech, high-speed rail network across central Asia is realised, however, the current ‘Northern route’ through Russia is likely to be rendered all but redundant.

 

Could it be, then, that Russia sees it as in its own interests to facilitate Trump’s quest to chase Chinese investment out of Iran in order to preserve its trade routes and access to European oil markets?

 

If so, it is likely to be disappointed. For Iran is central not only to the Belt and Road Initiative – China’s multi-trillion, multi-decade long ‘geoeconomic’ programme – but also to its defence strategy. As correctly observed in a recent piece published by The Diplomat, “Iran constitutes [China’s] true priority. China has nurtured bilateral relations with Tehran for decades, leveraging a common resentment toward Western dominance. This partnership has great geostrategic importance to both nations. Thanks to its oil and gas reserves, Iran could help Beijing withstand a U.S. attack on its SLOCs (Sea Lines of Communication).”

For China, much as it naturally seeks to avoid further punishment from the US, Iran is simply too important to be bargained away. Unfortunately not so, it seems, for Moscow.

Originally published in Middle East Eye, July 2018

The Qatar blockade, the petro-yuan, and the coming war on Iran

 

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Trump with Saudi Deputy Crown Prince Mohammed Bin Sultan

Trump’s speech to the assembled Gulf leaders in Saudi Arabia on May 21st is worth reading in full. It is deeply disturbing.

Having praised himself for his $110billion arms deal with the Saudis, he goes on to talk about the threat posed by terrorism, and what a wonderful job the US and the Gulfis – that is, the leading state sponsor of the region’s supremacist death squads, and its assembled proxies – are doing in combating it. He then goes on to claim that at the root of the region’s terrorism lurks – guess who? The power leading the regional pushback against ISIS and Al Qaeda – Iran.

 

“Starving terrorists of their territory, their funding, and the false allure of their craven ideology, will be the basis for defeating them” he says, “But no discussion of stamping out this threat would be complete without mentioning the government that gives terrorists all three—safe harbor, financial backing, and the social standing needed for recruitment”. This is pretty much exactly how Joe Biden – in his own attempt to whitewash US involvement – described Trump’s Saudi hosts three years earlier. But Trump is not talking about IS’s Saudi backers; he is talking about Iran – the same Iran responsible, with its Syrian and Russian allies, for that fact that the IS flag is NOT today flying over Damascus.

 

It gets worse. Look at the following passage, just after he calls on “all nations of conscience to work together to isolate Iran”:

“Will we be indifferent in the presence of evil? Will we protect our citizens from its violent ideology? Will we let its venom spread through our societies? Will we let it destroy the most holy sites on earth? If we do not confront this deadly terror, we know what the future will bring—more suffering and despair. But if we act—if we leave this magnificent room unified and determined to do what it takes to destroy the terror that threatens the world—then there is no limit to the great future our citizens will have.

The birthplace of civilization is waiting to begin a new renaissance. Just imagine what tomorrow could bring. Glorious wonders of science, art, medicine and commerce to inspire humankind. Great cities built on the ruins of shattered towns. New jobs and industries that will lift up millions of people.”

This is the language of genocide. Heroism and genocide have always gone hand-in-hand in the settler-colonial ideology internalised by the likes of Trump, for which ‘building great cities on the ruins of shattered towns’, be they native American, Palestinian, or, it seems, Iranian, has always been the highest accolade. Some have accused Trump of making novice blunders during his first lumbering foray into the Middle Eastern maelstrom. But I think he knows exactly what he’s doing. He knows very well that the loosely-defined ‘ideology’ he speaks of as ‘spreading venom’ will be much more readily interpreted by his hosts as Shi’ism – the creed to which Iran actually subscribes – than as Wahhabi’ism, the sectarian ideology behind ISIS, Al Qaeda and the Saudi state. And just to make clear what he is demanding be done to this ill-defined – but, nudge-wink, understood – enemy, he spells it out: “The nations of the Middle East cannot wait for American power to crush this enemy for them. The nations of the Middle East will have to decide what kind of future they want for themselves, for their countries, and for their children.

It is a choice between two futures — and it is a choice America CANNOT make for you.

A better future is only possible if your nations drive out the terrorists and extremists. Drive. Them. Out.

DRIVE THEM OUT of your places of worship.

DRIVE THEM OUT of your communities.

DRIVE THEM OUT of your holy land, and

DRIVE THEM OUT OF THIS EARTH.”

 

Doesn’t this sound horribly like Trump giving the green light to an all-out war of eradication against the region’s Shia – that is, a war very similar to the one actually being waged, in Syria, Yemen and elsewhere, by Trump’s government, his hosts, and their proxies?

 

At the same time, having found it harder than expected to rip up the Iran deal, Trump is instead hoping to render it null and void by simply blackmailing individual nations into not dealing with Iran, ensuring the formal lifting of sanctions is replaced by an informal blockade.

 

This is where Qatar comes in. Qatar  has clearly not been playing ball with the US-approved, Saudi-led ‘isolate Iran’ programme. This is partly because, ever since the current Emir toppled his pro-Saudi father in 1995, the country has made independence from Saudi Arabia a hallmark of its foreign policy. But it is mostly because Qatar and Iran share the world’s largest natural gas field – known in Qatar as North Field and in Iran as South Pars.

 

In fact, the two countries have had decent relations for some time: in May 2010, for example, in stark contrast to the hardline attitude of his Gulf neighbours, the Qatari Emir Al-Thani joined forces with President Assad of Syria, no less, to support Turkey’s diplomatic proposals over Iran’s nuclear programme. Then, in 2014, in a ‘dry run’ of today’s crisis, the Saudis, UAE and Bahrain withdrew their ambassadors from Doha following a Qatari proposal to help Iran develop its side of the North Field/ South Pars gas field. But what’s taking place now is much more serious. And that is largely because of the likely earth-shattering impact of the decisions surely now being considered by the two powers over where their gas will go, how it will get there – and in what currency it will be sold.

 

In April of this year, a self-imposed 12-year moratorium on the development of Qatar’s share of North Field came to an end, potentially opening up a flood of Liquified Natural Gas (LNG) onto the market in the years to come. But where will it go? Qatar had originally been hoping to build an LNG pipeline to the Mediterranean via Saudi Arabia, Syria and Turkey; indeed, many have speculated that Assad’s blocking of this proposal in favour of an Iran-Iraq-Syria route was a major reason for Qatar’s support of the anti-government insurgency there. The failure of this insurgency, however, has spelled the death of this proposal, leaving Qatar bound to look East to Asia – already their biggest customers – for their LNG markets. But most of the existing Eastbound LNG pipeline infrastructure is controlled by Iran. For Qatar, then, cutting its Iran links would be cutting off its nose to spite its face. This is why the Saudis aim to demonstrate that the alternative is having their entire face cut off.

 

For the US, the stakes couldn’t be higher. In 2012, Iran began to accept yuan for its oil and gas payments, followed by Russia in 2015. If this takes off, this could literally spell the beginning of the end of US global power. The dollar is the world’s leading reserve currency, in the main, only because oil is currently traded in dollars. Countries seeking foreign exchange reserves as insurance against crises within their own currencies tend to look to the dollar precisely because it is effectively ‘convertible’ into oil, the world’s number one commodity. This global thirst for dollars is what allows the US to print endless amounts of them, virtually for free, which it can then exchange for real goods and services with other countries. This is what is known as ‘seignorage privileges’; that is, the ability to absorb ever-increasing amounts of goods and services from other countries without having to provide anything of equivalent value in return. In turn, it is this privilege which helps to finance the staggering costs of the US military machine, now running at over $600 billion per year.

 

Yet, this whole system falls apart once other countries stop using the dollar as their prime reserve currency. And they stop doing this once oil stops being traded in dollars. This is one reason why the US were do keen for Saddam Hussein to go after he began trading Iraqi oil in Euros.

 

And, slowly but surely, this change is already occurring. In 2012, the People’s Bank of China announced it would no longer be increasing its holdings of US dollars, and two years later, Nigeria increased its holdings of yuan from 2% to 7% of its total foreign exchange reserves. Many other countries are moving in the same direction.

 

At the same time, China has been on a gold-buying spree, setting up its own twice-daily  pricing of gold in yuan in 2012 as part of what the chair of the Shanghai Gold Exchange called the “internationalisation of renminbi”, ultimately aiming towards making yuan fully convertible to gold. Once this happens, the choice for oil-producing countries between trading oil for ever-more-worthless paper dollars, or trading it for convertible-to-gold renminbi will be a no-brainer. For Qatar, the pull may already be irresistible.

 

Hence the urgency to pre-emptively punish Qatar for its likely move towards a joint venture with Iran to supply Asia with LNG priced in yuan. The aim is to demonstrate that, however economically suicidal it may be in the long term to snub Iran and continue trading in the dollar, it will be politically suicidal in the immediate term to do anything else. Just how far Trump and his Arab friends are prepared to take this remains to be seen. But Trump has repeatedly suggested that the whole point of having a military is to use it.

This article originally appeared on RT.

The West clearly now has Iran in its sights (March 2017)

The British-US plan to weaken Iran via the proxy war on Syria has spectacularly backfired. Now they are more desperate than ever to bring Iran to its knees.

Western think tanks and ‘strategic institutes’ have been getting themselves in a cold sweat about Iranian influence for some time. In 2012, Frederick Kagan (former Bush advisor and Project for a New American Century neo-con) co-authored a report for the Institute for the Study of War warning “the US and its allies and partners in the region and beyond must not only understand Iran’s regional strategy and influence but also develop a coherent strategy of their own with which to confront them. Considering the religious, economic, political and diplomatic power of the two sides, it is simply unacceptable for the US and its allies to allow even such progress as it has [already] made in these realms.” Since Kagan made those comments four years ago, Iran’s “unacceptable…progress” has continued apace.

Its military cooperation with Russia, Syria, Iraq and Hezbollah has developed into an increasingly formalized alliance (the so-called “4+1”), in which it played a leading role in the liberation of the Syrian city of Aleppo earlier this year. In Iraq, the Shi’ite militias it sponsors have been the indispensable vanguard of many of the battles against Islamic State, and it wields considerable influence over the rebel forces in both Bahrain and (supposedly) Yemen. The fall of Mosul will only consolidate this power.

Indeed, according to the Guardian, the territory west of Mosul that is currently being secured by the Iranian-backed Popular Mobilization forces is one of the final pieces of a jigsaw completing an arc of influence stretching all the way from Tehran to the Mediterranean. Such a ‘land bridge’ to the Mediterranean would significantly strengthen Iran’s independence and ability to withstand, for example, any future blockades or sieges. This is making Western planners particularly nervous, as it significantly weakens the West’s ability to control and corral the Iranians; with a long time Centcom advisor Ali Khedery, for example, claiming that such a development “should trouble every Western leader and our regional allies because this will further embolden Iran.”

Forbes, meanwhile, wrote that “Iranian influence in Iraq has the potential to destabilize global oil policy and the global oil market” given that the two countries combined oil reserves almost equal those of Saudi Arabia.

For here, as ever, lies the empire’s real fear – that the people of the Middle East might actually gain control over their own resources, and start using them strategically for their own development. Genuine independence has always been the fear of the region’s British, US and Israeli overlords. And Iran’s potential makes this independence a greater threat than most.

The Foreign Affairs Committee of the British House of Commons spelled this out in a report in 2014: “Iran has the potential to be a major international power… it could be the “engine roomof the Middle East. It lies in a very significant strategic position, with Iraq to the west, former Soviet states to the north which have only relatively recently gained independence, Afghanistan, and Pakistan to the east and the Persian Gulf—a prime route for oil exports—to the south. It has a large and youthful population—75 million or more, of whom 55 percent are aged under 30. Iran ranks 76th out of the 187 countries classified under the UNDP Human Development Index, based upon assessments of life expectancy, access to knowledge and standard of living, placing it higher than any of its land neighbors. Youth literacy is near-universal. The country’s economy is relatively diverse, with supplies of essential commodities and an engineering, research and manufacturing base. Iran has substantial resources of natural gas (second only to the Russian Federation) and enough oil to enable it to be a leading exporter.”

Unacceptable progress” indeed!

Clearly, the US has been rattled by Iran for some time. Contrary to Trump’s assertions, for example, the Iranian ‘nuclear deal’ was less a ‘gift’ to Iran than a changing of tack to a longer game allowing the West to cultivate a fifth column in the country in preparation for a future attack.

Yet, US belligerence has apparently been stepped up under Trump, with new sanctions, an enormous ramping up of hostile rhetoric and the dispatch of another warship to Iran’s borders in January following an entirely legal Iranian missile test.

But most worryingly, the US has been sending large numbers of US troops to Iran’s neighbors in recent weeks. The initial deployment of 500 US troops in Syria was followed on March 9 by a further 400, with the Washington Post announcing on March 15 that another 1,000 are on the way.

These are just part of a massive flotilla of almost 5,000 US soldiers currently en route to the region, with troops from Saudi Arabia, Jordan and the UAE also being considered. This was revealed just one day after Trump met Saudi Deputy Crown Prince Mohammed bin Salman at the White House, following meetings earlier in the week between Secretary of State Rex Tillerson and the foreign ministers of both Saudi Arabia and the United Arab Emirates. These troops are ostensibly going to aid the fight to oust ISIS from their stronghold in Raqqa. The real reason is to cement US influence and confront the Iranians. This is the US ground invasion which the ‘Gulfis’ have been calling for for years. Its aim is to keep the civil war alive by keeping the Syrian Arab Army out of Raqqa.

In Iraq, Secretary of Defense James Mattis (an avowed anti-Iran hawk who has claimed the country is a bigger problem than ISIS) announced he plans to keep US troops in Mosul long after the city is recaptured from ISIS. Again, this is nothing to do with ‘stability’ but all about countering Iranian influence. Indeed, according to Iraqi Prime Minister Abadi, Trump promised that he would “double US support, not just continue it” following Mosul’s capture; support here meaning the deployment of occupation troops.

But deploying troops to Iraq and Syria to contain Iranian influence is just the start of it. Ultimately, Trump’s Cabinet of anti-Iran warmongers seek to destroy the Islamic Republic itself. Their difficulty is how to convince Russia to go along with this: Syria has taught them that without Russian acquiescence, regime change can be very difficult indeed.

The Wall Street Journal recently ran an article on Trump’s plans to “drive a wedge” between Iran and Russia, quoting a European official that there was “daylight” between the two countries. Indeed, differences do seem to have emerged over, for example, Assad’s future in Syria and, as political analyst Eric Draitser has pointed out, the two countries have a certain rivalry over supplying Europe’s energy markets.

Nevertheless, it would be utter suicide for Russia to go along with any US attempts to undermine its number one Middle Eastern ally.

As the deputy director of the Institute of the CIS, Lieutenant-Colonel Vladimir Yevseyev told Sputnik, “the logic of the White House is simple: any deterioration of relations, whether Russian-Iranian or Russian-Turkish is strengthening the US position in the region.” Neither side has an interest in that.

Indeed, Obama’s so-called ‘reset’ of US-Russian relations did not end well for Russia: then Prime Minister Medvedev supported tough UN sanctions on Iran and delayed the delivery of anti-missile batteries to Iran, not to mention acquiescing to NATO aggression against Libya, only to find the US going back on its commitments to roll back its missile defenses in Eastern Europe, organizing an anti-Russian coup in Ukraine, initiating a major sanctions regime, and sponsoring a proxy war against Russia’s ally Syria. So much for gratitude!

Thankfully, Iranian and Russian interests are deeply converged and a split highly unlikely. As the Institute for the Study of War has pointed out, the list of shared interests is long, ranging from support for the Syrian government, the desire to limit US influence in the Middle East and support for Armenia against Azerbaijan and Turkey, forming a relationship that “rests on a deep foundation of common strategic objectives and interests”. The key, however, is to approach matters with eyes wide open. Trump’s rushing of troops to Syria is nothing to do with any ‘common front’ against ISIS and everything to do with weakening Iran. And in the end, this means weakening Russia too.

This article originally appeared on RT. 

Flynn may be gone, but his Russia policy lives on (February 2017)

US Army Lt General Flynn testifies before House Intelligence Committee in Washington

 

Amid demonstrations against his choice, Trump named Lieutenant General Herbert McMaster – whose book claiming the US was too soft on Vietnam is now required reading for US officers – as his new national security adviser this week.

McMaster’s appointment came after Michael Flynn, Trump’s original choice, was forced to resign earlier this month after it emerged that he had misled Vice President Mike Pence about his phone calls with the Russian ambassador back in December. 

The Washington Post revealed that these conversations, which occurred before Flynn had taken up his government role, had involved discussions of discussed US sanctions on Russia. Such a discussion not only broke the ‘one president at a time’ protocol – that members of an incoming administration should not discuss policy with foreign powers – but also flatly contradicted his own earlier denials, made to both Pence and to the FBI.   

As Flynn had supposedly been one of the key ‘pro-Putin’ figures in Trump’s administration, his removal has been interpreted by some as a victory for the anti-Russia ‘hawks’ in the US foreign policy establishment. This is a misreading of the situation on two levels.

First, characterising members of Trump’s team as ‘pro-Russia’ is incorrect; rather, they have, as Tom Hardy’s character in Taboo might put it, a “use” for Russia. Secondly, this plan for Russia is likely to remain intact regardless of Flynn’s removal – or McMaster’s well-publicised anti-Russia stance.

XX subheading XX

Improving relations with Russia was only one of Flynn’s two major foreign policy obsessions: the other was and is “regime change” in Iran. In his 2016 book The Field of Fight, he wrote that “Iran has been a major threat to the US for decades due to its sponsorship of international terrorism – but the US has prioritised diplomatic relations over national security”. Instead, he argued, “the US must change course. These countries must be prepared to face military action”. 

In fact, it is highly likely that the so-called ‘pro-Russia’ position of Flynn, and indeed Trump, is part of a broader foreign policy initiative aimed ultimately at destroying Iran. The broad outlines of this position could already be discerned in the testimony Flynn gave to the Joint Foreign Affairs and House Armed Services Committee back in June 2015. Like so many now in Trump’s team, he expressed his dissatisfaction with the nuclear deal negotiated the year before.

“Iran represents a clear and present danger to the region, and eventually to the world,” he told the committee. When asked what he believed should be done about the prospect of Iranian nuclear development, he was unequivocal, replying that regime change in Tehran “is the best way to stop the Iranian nuclear weapons programme”.

Since then, of course, Syria has taught the West a painful lesson about ‘regime change’, namely that Russia can make it extremely difficult. 

Later in his testimony, Flynn argued that there was an ‘anti-US’ alliance being developed between China, Iran and Russia: “Just look at the [Iranian] cooperation with North Korea, China and Russia. Connect those dots and you get the outline of a global alliance aimed at the US, our friends and our allies”. He continued: “Russian assistance is part of a broader pattern. After all, the Iranian nuclear reactor at Bushehr is Russian-built, the two countries work very closely together in Syria, and Russia is providing Iran with an effective anti-aircraft system that could be deployed against any aircraft seeking to destroy the nuclear programme”. 

The message is clear: if you want to attack Iran, you’d better break their alliance with Russia first. Michael Ledeen, who co-authored Flynn’s book, put it simply: “The issue is whether Putin is prepared to abandon Khamenei”. This is what those phone calls, and all Trump’s flattery of Putin, are really about: attempting to draw Russia away from its alliance with Iran (and China) – and ultimately to buy Russian acquiescence for the next war.

XXsubheadingXX

The restoration of governmental authority in Syria currently underway, however, is not the first time that the US has suffered a military defeat at the hands of a foreign government supported by Russia. Nor is it the first time the US have responded to such a failure with a renewed attempt to split Russia from her allies.

In 1969, Richard Milhous Nixon became 37th President of the United States, and the 5th to lead US attempts to crush Vietnamese independence, inheriting what had by then become a full-scale, and disastrous, military commitment. The Tet offensive the previous year had decisively blown apart the lie that the US was winning the war, and Nixon was elected on a promise to bring about “peace with honour”. 

He would achieve neither, and in fact embarked on a massive escalation of the war, including a secret carpet bombing campaign in Cambodia which led to famine and ultimately the rise of the Khmer Rouge. Yet the US’s ongoing defeat could not be abated. This led Nixon and his advisors towards a radical rethink of US strategy. 

“By the time Nixon came into office,” wrote his own National Security advisor, Henry Kissinger, “East-West relations were themselves in obvious need of reassessment”. Indeed, he said, the USA’s entire Cold War strategy “needed to be reconsidered in light of the trauma of Vietnam”. 

The Vietnamese victory over the US was aided significantly by support, at different times, from both Russia and China, and Kissinger’s greatest fear was the restoration of “dreaded Sino-Soviet bloc…which had inspired so much fear in the 1950s”. He added that while it was “far from clear” that the USSR was “capable of realising so vast a project…what was obvious…was that the risk could not be run”. 

“If the balance of power is taken seriously,” he continued, “then the very prospect of

geopolitical upheaval must be resisted; by the time the change has occurred, it may well be too late to oppose it.”

The missing linkage

In today’s terms, this formula translates into two specific policy requirements for the US: 1) Russian-Chinese unity must be resisted and 2) Iran’s increasing influence in the Middle East must be reversed (ideally, one presumes, before the recapture of Mosul by largely Iranian-allied militias solidifies such influence).

Like Trump and Flynn today, Nixon and Kissinger sought nothing less than the breakup of the non-Western alliance spearheaded by Russia and China that had stymied US attempts to destroy governments challenging their hegemony. And, as today, they believed US cooperation with Russia to be both possible and desirable for both parties. 

Said Kissinger, “America needed breathing room in order to extricate itself from Vietnam and to construct a new policy for the post-Vietnam era, while the Soviet Union had perhaps even stronger reasons for seeking a respite”. In particular, “the idea was to emphasise those areas in which cooperation was possible, and to use that cooperation as leverage to modify Soviet behaviour in areas where the two countries were at loggerheads”, a policy that became known as ‘linkage’. 

The linkage being sought today – the deal Trump wishes to make with Russia – is precisely to use potential “cooperation” over Syria, Ukraine and sanctions as “leverage” to secure Russian acquiescence for renewed hostilities towards Iran and China.

With this in mind, it is particularly interesting to note Kissinger’s role in shaping Trump’s foreign policy today. Germany’s Bild newspaper reported in December 2016 that Kissinger was a key architect of Trump’s ‘rapprochement’ policy with Russia, advising him to lift sanctions and recognise Russian ownership of Crimea. These will not be free gifts – reciprocity will be expected and demanded, and Trump is making it abundantly clear that he wants a free hand in confronting Iran and China. 

Furthermore, as journalist Nafeez Ahmed has noted, “Kissinger’s ‘unofficial’ advisory role in the Trump regime is solidified through the direct influence of one of his longtime acolytes: K.T. McFarland, an aide to Henry Kissinger during the Nixon administration on the National Security Council from 1970 to 1976.” 

KT McFarland, it may be recalled, was appointed by Trump as Michael Flynn’s deputy. Robert Harward, a former Navy seal, reportedly turned down the national security adviser post because Trump insisted that she stay on rather than allowing Harward to bring his own team.

In his book Diplomacy, Kissinger wrote that “Nixon had managed, despite the tragedy of Indochina, to maneuver his country into a dominant international position”, snatching a victory of sorts from the jaws of defeat, by playing Russia and China off against one another. 

In this light, McMaster’s apparently conflicting views on Russia make sense. According to

Frants Klintsevich, deputy head of the defense and security affairs committee of Russia’s Federation Council, McMaster is a “100% hawk” on Russia. This appears to contrast with Flynn’s approach, putting him closer to other so-called ‘Russophobes’ in the Trump team, such as the ambassador to the UN Nikki Haley, who told the Security Council last month that “Russian actions” in the Ukraine “demand clear and strong condemnation”, and Vice President Mike Pense, who condemned Russia at the recent Munich Security Conference. Yet these figures, and their veiled and less veiled threats, are as much a part of the strategy as dangling the prospect of lifting sanctions. As Kissinger put it, “The statesman’s role is….to create a network of incentives and penalties to produce the most favourable outcome”. To pull off his ‘deal’ Trump needs his ‘bad cops’ just as much as he needs to flatter and offer inducements – to warn Russia of what they will be up against should they choose to ignore his overtures and maintain their existing alliances. The question today is: will Russia snatch defeat from the jaws of victory in Syria by allowing itself to be played off against Iran and China?

The stakes could not be higher.

This article originally appeared in Middle East Eye

Trump’s grand strategy and the coming war with Iran

trump-iran-flagIn his 2009 book “The Next 100 Years”, George Friedman, of intelligence analysts STRATFOR pointed out, at the risk of stating the obvious, that “the United States is, historically, a warlike country”. But the number crunching that followed was particularly revealing. “The United States has been at war for about 10% of its existence” he wrote, adding that this only included major wars, not “minor conflicts like the Spanish-American war or Desert Storm” (the latter ‘minor conflict’ killing over 80,000 Iraqis). He continued: “during the twentieth century, the United States was at war 15% of the time. In the second half of the twentieth century, it was 22% of the time. And since the beginning of the twenty first century, in 2001, the United States has been constantly at war. War is central to the American experience, and its frequency is constantly increasing. It is built into American culture and deeply rooted in American geopolitics.”

The truth of this statement was revealed in a now notorious interview with former Supreme Allied Commander of NATO, General Wesley Clark, by Democracy Now in March 2007. In this interview, Clark revealed, for the first time, the existence of a top-secret memo circulating in the Pentagon, issued by the US Defence Department in the weeks following the 9/11 attacks. This memo, he said, “describes how we’re going to take out seven countries in five years, starting with Iraq, and then Syria, Lebanon, Libya, Somalia, Sudan and, finishing off, Iran.” The 9/11 attack was being used as a once-in-a-lifetime opportunity to destroy every regional power with the potential to challenge US-British-Israeli hegemony in the entire Middle East/ North African/ Red Sea region.

The West’s war juggernaut has been rolling through this list ever since, though never without resistance. The US suffered over 35,000 casualties in Iraq, according to official figures, including over 4000 fatalities, with the true fallout (including, for example, trauma-related mental problems and suicides) likely to be far, far higher. The military and financial costs of this war, and the backlash it provoked, meant that different methods were adopted for the other targeted nations. The attack on Lebanon, when it came in 2006, was launched by Israel rather than the US – but it, too, did not go as planned. Rather than the hoped-for destruction of Hezbollah, it resulted in a victory for the group and a skyrocketing of its popularity across the entire region. Others on the list, however, have indeed been ‘taken out’. The same year as the Lebanon invasion, Somalia – then on the verge of coming under one single central authority for the first time since 1991 – was destabilised by a US-sponsored Ethiopian invasion, followed five years later by another invasion by British client state Kenya, ensuring the civil war has continued to rage to this day. Then in 2011, after years spent arming the country’s various armed factions, the US oversaw the breakup of Sudan. The new breakaway republic of South Sudan almost immediately collapsed into civil war, and is now undergoing what has been officially declared the world’s first famine in six years. And in 2011, too, the NATO bombardment of Libya, in coordination with Al Qaeda splinter group the Libyan Islamic Fighting Group and the Qatari armed forces, led to the collapse of the Libyan state. Libya, too, remains at war, with the various pro-NATO rebel groups now fighting one another for control.

Indeed, Libya provided the blueprint for what was supposed to take place in Syria – a violent, sectarian insurgency, armed, trained and sponsored by the West and its Gulf allies, overthrowing state authority with NATO air support if necessary. It didn’t turn out this way, of course, and the victory of Syrian government forces in Aleppo last December marks what many now see as the decisive defeat of this latest attempt at ‘regime change’. And this defeat is in no small part down to the final country on that list – Iran.

It was, after all, Iran that provided the experienced, battle-hardened troops which – alongside their proteges, Hezbollah, and the Syrian Arab Army itself – acted as the ground forces against the West’s proxies. As a result, Iran’s influence in Syria has been cemented, as it had already been in Iraq following 2003, and is likely to be even further following the defeat of ISIS in Mosul. As Iranian-Canadian analyst Shahir Shahidsaless has written, “Iran challenges US hegemony in every corner of the region. The fall of Aleppo was a clear manifestation of the decline of American influence in the region and the emergence of a new order in which Iran will play a major role as a regional power.”

For US war planners, this growing influence only pushes Iran even further up the target list. George Friedman, discussing the US invasion of Iraq, wrote that whilst “there is no question” it was “clumsy, graceless and in many ways unsophisticated”, nevertheless “on a broader, more strategic level, that does not matter. So long as the Muslims are fighting each other, the United States has won its war”. However, he adds a warning: the instability engendered by the war “does raise the possibility of a Muslim nation-state taking advantage of the instability, and therefore the weaknesses within other states, to assert itself as a regional power”. In the eyes of many US strategists, this is precisely what Iran has done. Regardless of the fact that Iran’s only Arab ally Syria was, until the NATO-backed insurgency began in 2011, a beacon of stability in the region, and that Iran has been attempting to restore its stability since then, an influential faction within the US is intent on blaming Iran for all the region’s woes. And it is precisely this faction that has just come to power under Trump.

If there is one thing that unites ‘Team Trump’, it is their hostility to Iran, their hatred of the Iran nuclear deal, and their willingness – or even eagerness – to go to war with Iran. Secretary of Defence General Mattis told his Senate confirmation hearing that“Iranian malign influence in the region is growing. Iran is the biggest destabilizing force in the Middle East and its policies are contrary to our interests.” Last April, at a speech in Washington DC, Mattis clearly stated that he would prioritise ‘dealing with’ Iran ahead of tackling Al Qaeda and ISIS:  “The Iranian regime, in my mind, is the single most enduring threat to stability and peace in the Middle East,” he said. “For all the talk of ISIS and Al Qaida everywhere right now… they’re a very serious threat. But nothing is as serious in the long term enduring ramifications, in terms of stability and prosperity and some hope for a better future for the young people out there, than Iran.” Indeed, his speech went on to attempt to actually pin the rise of ISIS on Iran. “I consider ISIS nothing more than an excuse for Iran to continue its mischief. Iran is not an enemy of ISIS; they have a lot to gain from the turmoil that ISIS creates.” “What,” he asked, “is the one country in the Middle East that has not been attacked by ISIS? One. And it’s Iran. That is just more than happenstance, I’m sure.” This is a little conspiratorial, even by Trump’s standards. But Mattis’ approach is not untypical of the new administration.

Michael Flynn, Trump’s original National Security Advisor, recently forced to resign over his contacts with Russia, has been a vocal and consistent advocate of ‘regime change’ in Iran. His 2016 book, The Field of Fight, described Iran as the head of “an international alliance of evil countries” which “extends from North Korea and China to Russia, Iran, Syria, Cuba, Bolivia, Venezuela, and Nicaragua”, with Iran itself “the linchpin of this alliance, its centerpiece.” At the time of the 2012 attack on the CIA compound in Benghazi, Flynn was head of the Defence Intelligence Agency. But, according to the New York Times, Flynn’s  focus at the time was not on tracking the culprits but instead on obsessively ordering his staff to find a nonexistent ‘Iran connection’ to the attacks. The NYT noted that they found “no evidence of any links” but “the general’s stubborn insistence reminded some officials at the agency of how the Bush administration had once relentlessly sought to connect Saddam Hussein and Iraq to the September 11th 2001, attacks”.

Mike Pompeo, the new CIA director shares Flynn’s views. He has called for “trashing the nuclear agreement”, arguing that it “strengthens Muslim extremists”.

This list goes on. Vice President Mike Pence has called Iran the “leading state sponsor of terrorism” and promised to “rip up the Iran deal” on the campaign trail, going further than even Trump himself had at the time.  John Bolton, who advised Trump on foreign policy during the campaign has repeatedlycalled for Iran to be bombed.  Other Iran hawks in Trump’s team include Jeff Sessions (Attorney General), Rick Perry (Secretary of Energy), Ben Carson (Secretary of the Department of Housing and Urban Development), Nikki Haley (U.S. Ambassador the United Nations), Tom Price (Health & Human Services Secretary), and Ryan Zinke (Secretary of the Interior).

And their rhetoric is increasingly warlike. Already, following a missile test fully in line with Iran’s commitments under the nuclear deal, Trump’s administration has stepped up sanctions against Iran (a move it called an “initial step”), declaring that the country is now “on notice” and “playing with fire”. As Rasool Nafisi, an Iran expert at Washington DC’s Strayer University, has said, the new US government appear to be “itching for some kind of conflict in the Middle East, and especially against Iran, given all the rhetoric they used during the election campaign.” If the nuclear deal unravels, such a war is far from unlikely – and according to Lieutenant Colonel Vladimir Evseev, a defence analyst at the Commonwealth of Independent States, Trump is pushing for exactly this: “The US can’t block this agreement because it is supported by the corresponding resolution of the UN Security Council and is a multipartite deal. However it will try to create conditions so that the deal cannot be implemented”, he told Sputnik.. And, as Shahir Shahidsaless has convincingly argued, “The collapse of the nuclear deal will inevitably push the Trump administration into conflict with Iran” . This is because whatever act of US belligerence (such as restored sanctions) actually buries the deal will force Iran to take a defiant stand in response, such as, for example, renewing its uranium enrichment programme. To such a move, the US would ultimately respond with force.

This, then, is the direction in which the US is moving: towards an all out confrontation with Iran, the last country on Wesley Clark’s list. But they face a major problem. Russia.

In August 2013, when the US and Britain were declaring that airstrikes against Syrian government targets were imminent, Russia immediately sent three warships to the Mediterranean, stepped up their shipments of powerful anti-aircraft missiles to Syria, and made it very clear that they were standing by the Syrian government. This would not be a repeat of 2011 Libya: NATO planes would be shot down, and body bags would flow back home. In the end, Britain and the US backed down. Just over two years later, in September 2015, Russia launched its own military intervention in Syria, at the request of the Syrian government, giving renewed momentum to the push-back against Western-backed insurgents. The US-British war plan for Syria was in tatters, and the lesson was clear: taking out governments supported by Russia is extremely difficult.

Herein lies the purpose of the much-touted ‘Trump-Putin deal’ that is supposedly in the pipeline. Trump and co know very well that Russian acquiescence will be key to the success of any future attack on Iran. Even without Russian support, a war on Iran will not be easy; with Russian support, Iran, like Syria, may well emerge triumphant. At the very least, the cost, in blood and treasure, of attacking an Iran backed by Russia would make it political suicide. Breaking the alliance between Iran and Russia is therefore crucial to the next phase of the US war. And time is of the essence, as Iran is learning from Russia all the time. As the Institute for the Study of War have noted, “Iranian military cooperation with Russia in Syria is dramatically increasing Tehran’s ability to plan and conduct complex conventional operations. Iranians are learning by seeing and by doing, and are consciously trying to capture lessons-learned in Syria for use throughout their military and para-military forces. Iran is fielding a conventional force capability to complement and in some cases supplant its reliance on asymmetric means of combat. Russia is assisting Iran’s military leadership conduct this effort. It is introducing Iran and its proxies to signature Russian campaign-design concepts such as cauldron battles, multiple simultaneous and successive operations, and frontal aviation in Syria. These concepts are the fruit of almost a century of advanced Soviet and Russian thought and hard-won experience in conventional military operations. This knowledge-transfer can help the Iranian military advance its understanding of conventional war far more rapidly than it might otherwise be able to do. It can help Iran become a formidable conventional military power in the Middle East in relatively short order, permanently changing the balance of power and the security environment in the region…Iranian conventional military capabilities will continue to increase rapidly as long as Russian and Iranian forces continue to operate alongside each other in Syria simply by learning the best practices for developing, deploying, and using such forces in combat. Russia is poised to teach Iran additional methods of warfare as it prepares for the next phase of the pro-regime campaign in Syria.” The report concludes that “The U.S. and its regional partners must recognize that the deep Russo-Iranian military cooperation in Syria is in itself a major threat to the balance of power within the Middle East.”

 

This, then, is the grand strategy that so many commentators have failed to discern in the Trump administration: to break the Russian-Iranian alliance and effectively buy Russian acquiescence for the forthcoming US/ Israeli/ British attack on Iran.

Of course, such a strategy does, at first, sound absurd. Iran and Russia – as Flynn himself noted in  despair – are allies. They have just emerged as triumphant partners in the battle to thwart regime change in Syria, and Russia has already provided Iran with the powerful S-300 anti-aircraft missile system that so put the jitters up NATO when it arrived in Syria in 2013. Moreover, last August, Russia moved the airbases used for its Syria operations from southern Russia to Iran, in what the National Interest called “an expression of Russian solidarity with Iran”.

Yet Trump has a lot to offer Russia in return for its ending this ‘solidarity’. Most obviously, he could lift sanctions. Russia’s economy was plunged into recession in 2015 following the onset of US-EU sanctions the previous year, which coincided with a collapse in the global price of oil, Russia’s major export. Russia has been keen to downplay the impact of sanctions, but even Prime Minister Dmitri Medvedev has admitted that they have cost the country tens of billions of dollars. Trump is particularly well placed to offer Russia lucrative deals, especially in the oil sector, should these sanctions be lifted. Trump’s Secretary of State Rex Tillerson, former CEO of Exxon Mobil, already signed a deal with Russian state-owned oil firm Rosneft estimated to be worth up to $500 billion back in 2012. The comprehensive agreement covered Arctic and Black Sea oil exploration and development, as well as providing Rosneft with a 30% share in Exxon projects in Texas and the Gulf of Mexico; it also promised to transfer technology developed in hard-to-access parts of America to western Siberia, to allow Russia to tap into an estimated 1.7billion barrels of light oil currently trapped in non-porous rock. “In terms of its ambitions”, said Russia’s deputy Prime Minister Igor Sechin at the time, the project, “exceeds sending man into outer space or flying to the moon”. But US sanctions imposed following the Russian annexation of Crimea put the deal on ice. Lifting them would allow the Exxon-Rosneft project to finally go ahead, potentially reversing Russia’s dwindling economic woes. Tillerson, unsurprisingly, is on record as being opposed to the sanctions. His $218million personal stake in Exxon Mobil would immediately ramp up in value were the 2012 deal to be unfrozen.

Trump has, indeed, already stated that he would be willing to reconsider sanctions if Moscow “was really helping us” to achieve US policy goals.

However, lifting sanctions requires some kind of, at least nominal, resolution of the Ukraine conflict, as this was ostensibly the reason for imposing them in the first place. Interestingly, itemerged this February that two of Trump’s close colleagues – his personal lawyer Michael Cohen and business associate Felix Sater – had discussed a proposal to lift Russian sanctions and recognise Russian sovereignty over Crimea , in exchange for a withdrawal of Russian forces from eastern Ukraine, with an opposition politician in Ukraine last year.

Lifting sanctions and easing tension in Ukraine might well be tempting enough for Putin to consider ditching his Iranian allies. But Trump has much more than this to offer: ending NATO expansion (for example, by persuading Senate Republicans to vote against Montenegrin membership later this year), pulling back NATO forces from Eastern Europe (easily justified following any deal over Ukraine), ending calls for regime change in Syria and even military cooperation there against Al Qaeda and ISIS.

And Trump not only has carrots aplenty – he also has sticks. From this point of view, the supposed split in the administration, between supposedly ‘pro-’ and ‘anti-’ Russian figures actually works to Trump’s advantage, providing him with not only ‘good cops’ like Tillerson, willing to cooperate and negotiate with Russia, but also bad cops (like Russia ‘hawk’ HR McMaster) who illustrate Trump’s willingness to continue with NATO expansion, ramp up sanctions, and push Russia into a crippling arms race should they refuse to play ball.

Ultimately, of course, any Russian decision to sell out its Iranian ally would be utterly self-defeating. China would be next, and ultimately Russia would find itself totally isolated once the US finally set its sights on them. Ultimately, there are no shared interests between the US and Russia – whatever goodies might be dangled beneath their eyes.

This piece was originally published in Counterpunch