Showing posts with label Strait of Hormuz. Show all posts
Showing posts with label Strait of Hormuz. Show all posts

Monday, September 17, 2012

US And Britain Send Warships To The Persian Gulf To Prepare For An Israel Strike On Iran

Banoosh

An armada of U.S. and British naval power is amassing in the Persian Gulf in the belief that Israel is considering a pre-emptive strike against Iran’s alleged covert nuclear weapons program (which doesn't exist, according to Secretary of Defense, Leon Panetta).

Warships, aircraft carriers, minesweepers and submarines from 25 nations are converging on the strategically important Strait of Hormuz in an unprecedented show of force as Israel and Iran move towards the brink of war.

Western leaders are convinced that Iran will retaliate to any attack by attempting to mine or blockade the shipping lane through which around 18 million barrels of oil passes every day; approximately 35 per cent of the world’s petroleum traded by sea.

A blockade would have a catastrophic effect on the fragile economies of Britain, Europe, the United States and Japan, all of which rely heavily on oil and gas supplies from the Gulf.

The Strait of Hormuz is one of the world’s most congested international waterways. It is only 21 miles wide at its narrowest point and is bordered by the Iranian coast to the north and the United Arab Emirates to the south.

In preparation for any pre-emptive or retaliatory action by Iran, warships from more than 25 countries, including the United States, Britain, France, Saudi Arabia, and the UAE, will today begin an annual 12-day exercise.

The war games are the largest ever undertaken in the region.

They will practice tactics in how to breach an Iranian blockade of the strait and the force will also undertake counter-mining drills.

The multi-national naval force in the Gulf includes three U.S. Nimitz class carrier groups, each of which has more aircraft than the entire complement of the Iranian air force.

The carriers are supported by at least 12 warships, including ballistic missile cruisers, frigates, destroyers, and assault ships carrying thousands of U.S. Marines and special forces.

The British component consists of four British minesweepers and the Royal Fleet Auxiliary Cardigan Bay, a logistics vessel. HMS Diamond, a brand-new £1billion Type 45 destroyer, one of the most powerful ships in the British fleet, will also be operating in the region.

In addition, commanders will also simulate destroying Iranian combat jets, ships, and coastal missile batteries.

In the event of war, the main threat to the multi-national force will come from the Islamic Revolutionary Guards Corps navy, which is expected to adopt an “access-denial” strategy in the wake of an attack, by directly targeting U.S. warships, attacking merchant shipping, and mining vital maritime chokepoints in the Persian Gulf.

Defense sources say that although Iran’s capability may not be technologically sophisticated, it could deliver a series of lethal blows against British and U.S. ships using mini-subs, fast attack boats, mines, and shore-based anti-ship missile batteries.

Next month, Iran will stage massive military maneuvers of its own, to show that it is prepared to defend its nuclear installations against the threat of aerial bombardment.

The exercise is being showcased as the biggest air defence war game in the Islamic Republic’s history, and will be its most visible response yet to the prospect of an Israeli military strike.

Using surface-to-air missiles, unmanned drones, and state-of-the-art radar, Iran’s Revolutionary Guards and air force will combine to test the defenses of 3,600 sensitive locations throughout the country, including oil refineries and uranium enrichment facilities.

Brigadier General Farzad Esmaili, commander of the Khatam al-Anbiya air defence base, told a conference this month that the maneuvers would “identify vulnerabilities, try out new tactics and practise old ones”.

At the same time as the Western maneuvers in the Gulf, the British Response Task Forces Group — which includes the carrier HMS Illustrious, equipped with Apache attack helicopters, along with the French aircraft carrier Charles de Gaulle — will be conducting a naval exercise in the eastern Mediterranean. The task force could easily be diverted to the Gulf region via the Suez Canal within a week of being ordered to do so.

The main naval exercise comes as President Barack Obama is scheduled to meet Benjamin Netanyahu, the Israeli prime minister, today to discuss the Iranian crisis.

Many within the Obama administration believe that Israel will launch a pre-emptive strike against Iran’s nuclear facilities before the U.S. presidential elections, an act which would signal the failure of one of Washington’s key foreign policy objectives.

Both Downing Street and Washington hope that the show of force will demonstrate to Iran that NATO and the West will not allow President Mahmoud Ahmadinejad, the Iranian leader, to develop a nuclear armory or close Hormuz.

Sir John Sawers, the head of MI6, the Secret Intelligence Service, reportedly met the Israeli prime minister and Ehud Barak, his defense secretary, two weeks ago in an attempt to avert military action against Iran.

But just last week Mr. Netanyahu signaled that time for a negotiated settlement was running out when he said: “The world tells Israel ‘Wait, there’s still time.’ And I say, ‘Wait for what? Wait until when?’”

“Those in the international community who refuse to put red lines before Iran don’t have a moral right to place a red light before Israel.”

The crisis hinges on Iran’s nuclear enrichment program, which Israel believes is designed to build an atomic weapon. Tehran has long argued that the program is for civil use only and says it has no plans to build a nuclear bomb, but that claim has been disputed by the West, with even the head of MI6 stating that the Islamic Republic is on course to develop atomic weapons by 2014.

The Strait of Hormuz has long been disputed territory, with the Iranians claiming control of the region and the entire Persian Gulf.

Rear Admiral Ali Fadavi of the Iranian Revolutionary Guard Corps recently boasted that “any plots of enemies” would be foiled and a heavy price exacted, adding: “We determine the rules of military conflict in the Persian Gulf and the Strait of Hormuz.”

But Leon Panetta, the U.S. defence secretary, warned that Iranian attempts to exercise control over the Strait of Hormuz could be met with force.

He said: “The Iranians need to understand that the United States and the international community are going to hold them directly responsible for any disruption of shipping in that region — by Iran or, for that matter, by its surrogates.”

Mr. Panetta said that the United States was “fully prepared for all contingencies” and added: “We’ve invested in capabilities to ensure that the Iranian attempt to close down shipping in the Gulf is something that we are going to be able to defeat if they make that decision.”

That announcement was supported by Philip Hammond, the Defense Secretary, who added: “We are determined to work as part of the international community effort to ensure freedom of passage in the international waters of the Strait of Hormuz.”

One defense source told The Sunday Telegraph last night: “If it came to war, there would be carnage. The Iranian casualties would be huge but they would be able to inflict severe blows against the U.S. and British forces.

“The Iranian Republican Guard are well versed in asymmetrical warfare and would use swarm attacks to sink or seriously damage ships. This is a conflict nobody wants, but the rhetoric from Israel is unrelenting.”

Saturday, July 14, 2012

Dangerous game: 'US almost daring Tehran to strike first'

 
With sanctions against Iran gradually showing their ineffectiveness, Washington is escalating the situation in the Persian Gulf, as if encouraging Tehran to attack first, a US politics professor told RT.

­Amid pressure mounting on Tehran, a major Indian company, United India Insurance Co., has agreed to provide insurance for tankers carrying oil from Iran. Insurances are vital for sea transportation. Without insurance, tankers are unable to deliver oil from one destination to another.

The decision of an Indian company means a serious blow to the effectiveness of the US sanctions against Iran in a bid to crank up the pressure over the country's nuclear activities. The sanctions target companies accused of breaching a European ban on buying oil from Tehran.

Simultaneously, to give their sanctions policies some military support, the US is sending fourth air carrier to the Persian Gulf region. It has also been announced that America deploys underwater drones to deal with sea mines Iran might plant in the Strait of Hormuz to block the vital route.

“The more warships the US moves [to the region], the more threatened Iran is going to feel and there is more chance of triggering some kind of mistake,” explains Patricia DeGennaro, professor of politics at New York University.

She says the act of sending more warships to the region is a dangerous game of “dare”.

“I don’t know what they are going to achieve by putting more warships in the region. This is a very bad move. Maybe they are trying to make Israel feel safer, but in fact again that is a very dangerous game that is almost daring somebody to strike first,” the professor believes.
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‘Mrs. Clinton should better promote peace instead of war’
A naval clash in the Persian Gulf region is very real, DeGennaro told RT, because military communications do not often go as they are expected to.

“The Iranian military is organized a bit differently than the American military. They can get orders not normally understood… within a context of a country being threatened.”

“We should do more negotiations and more diplomacy,” the professor concluded. “I’d like to see Mrs. [Hillary] Clinton lead the State Department as Secretary of State instead of really promoting more war in the region.”

Western intelligence claims Iran might be just a year away from building a nuclear weapon, while Tehran denies allegations of developing nuclear power for military use. This confrontation need to be resolved given neither side wants to lose face, which means negotiations in the first place, believes Patricia DeGennaro.

“Let’s sit down and talk before we start pointing weapons at each other, which should really facilitate a really large scale conflict in the region.”

Saturday, January 28, 2012

Highest Gasoline Prices Ever Ahead for Us in 2012

$5 per gallon this year, kids. The national average will be over $4, but in the bigger cities or in states where gas taxes are higher, $5 a gallon is a given. SUCK!!!!--jef

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Gas pump prices at record high on supply concerns
The Associated Press
Posted Jan 25, 2012


Washington — Americans aren’t likely to find much relief from high prices at the gas pump as they go about paying their post-holiday bills.

Retail gas prices are at their highest levels ever for this time of year despite ample supplies and declining demand. That’s because tension in the Persian Gulf has kept crude oil prices around $100 per barrel for most of the month.

Analysts say oil prices are likely to remain at those levels until there is more clarity about what will happen in the Gulf, where Iran has threatened to close the Strait of Hormuz if the U.S. and other countries impose more sanctions on its nuclear program.

Iranian imports are banned in the U.S., but Iran supplies 2.2 million barrels per day to the rest of the world, mainly Asia and Europe.

Both oil and gasoline futures have moved in a narrow range for most of the month. In addition to the Iranian situation, investors are concerned about the European debt crisis and whether it will impact the global economy.

European Union foreign ministers are expected to discuss possible sanctions against Iran, including an oil embargo, at a Monday meeting.

Many analysts doubt that Iran could set up a blockade without swift military intervention from the U.S., but any supply shortages would cause oil supplies to tighten.

The national average for gasoline was $3.382 per gallon Friday, which was about 17 cents more than it was a month ago and nearly 27 cents more than a year ago, according to AAA, Wright Express and the Oil Price Information Service. Drivers in California, Illinois and parts of the Northeast paid the highest prices while the lowest prices were in the Rocky Mountains and parts of the Midwest.

Gas prices will go up or down based on what happens with Iran, PFGBest analsyt Phil Flynn said. If the situation calms down, retail gas prices could fall from 25 cents to 50 cents a gallon. If the situation intensifies, prices could increase by the same amount.

“It’s that much of a wild card,” Flynn said. “I think it’s a very volatile situation and I think we could go either way.”

High gas prices have been affected in previous years by a stronger economy because consumers have more to spend on filling their tanks. Although the U.S. economy is improving slowly, Flynn said many consumers still have habits that they picked up during the recession — such as watching how much they spend on gas and finding ways to combine trips in the car.

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Forecast: 2012 Worst Year for Gas Prices
By Susanna Kim - ABC News

To the dismay of drivers across the country, 2011 went down in the record books as having the most expensive gasoline average ever, $3.513 for the year, 72 cents per gallon higher than 2010′s yearly average, according to GasBuddy.

Patrick DeHaan, GasBuddy’s senior petroleum analyst, projects that by Memorial Day, the national average will be between $3.86 to $4.13 per gallon, and that prices in 2012 will come close to or set new all-time highs. If that happens, drivers could spend $200 to $300 more for gas this year.

Inflation adjusted data from the Energy Department’s U.S. Energy Information Administration confirmed that 2011 was a record year. The real annual average for a gallon of regular gas last year hit $3.56, up from $2.90 in 2010, according to the EIA. From its data that begins in 1919, the previous record high was in 1981, at $3.45.

Of course, in 2008 gasoline prices had the longest stretch of $4 or more, but the yearly average was $3.24, according to GasBuddy’s data, which goes back to 2000. In 2008, gas prices slid from October to December 2008 to less than $2 a gallon nationally.
Over the past seven years, according to GasBuddy data, gasoline prices rise an average of 93 cents per gallon from the start of the new year to when they eventually peak the same year, DeHaan said.

“Typically, prices peak in the summer months, or around Memorial Day, as has been the case in 2010 and 2011,” he said.

An increase of 93 cents a gallon could mean average gas prices may rise more than $4 a gallon and could easily approach record highs, he said. In 2004, gas prices had the largest price difference from the new year to their peak, when prices climbed $1.31 per gallon.

If such a gain occurred this year, that would mean the national average could rise to well over $4.25 a gallon, and some areas could see $5 a gallon.

“While that’s not very likely, it does represent a realistic worst case scenario,” he said.

DeHaan said he is traditionally reserved about forecasting oil prices, which hovered above $102 a barrel Thursday. But he said 2012 would almost certainly break all records, in part because of political tension with Iran over its nuclear program.

Iran has threatened to close a key oil passageway, the Strait of Hormuz, in possible retaliation for new economic sanctions from the U.S. and the European Union. Iran holds the world’s fourth-largest proven oil reserves, and the world’s second-largest natural gas reserves, according to the EIA.

Should Iran become more hostile and cause a supply disruption, oil prices could soar to all-time highs and approach $175 to $200 a barrel, DeHaan said.

“Coupled with rising demand as a result of a recovering economy, it won’t be pretty,” DeHaan said. “Either way you look at it, 2012 will be among the worst year ever for gasoline prices.”

Daniel O’Connell, senior energy broker with INTL FCStone Inc., said if the price of crude oil increases 8.2 percent in 2011, the U.S. could see a similar price hike in 2012 as jobs, housing and other economic data improve. O’Connell said overall data points to a volatile market with the same trading ranges as those of 2011.

But “if the Iran situation escalates two fold, all bets are off the table, and we will see a disaster regarding energy prices, that this country is not ready to handle just yet,” O’Connell said.

DeHaan said there was still time to lessen the anticipated impact by changing habits or modes of transportation.
“But if they don’t, I can see the average American spending a few hundred dollars more on gasoline this summer,” he said.

Wednesday, January 11, 2012

Iran: The Neocons Are At It Again--After Iran, Venezuela? (2 articles)



by Ralph Nader
 
The same neocons who persuaded George W. Bush and crew to, in Ron Paul's inimitable words, "lie their way into invading Iraq" in 2003, are beating the drums of war more loudly these days to attack Iran. It is remarkable how many of these war-mongers are former draft dodgers who wanted other Americans to fight the war in Vietnam.

With the exception of Ron Paul, who actually knows the history of U.S.-Iranian relations, the Republican presidential contenders have declared their belligerency toward Iranian officials who they accuse of moving toward nuclear weapons.

The Iranian regime disputes that charge, claiming they are developing the technology for nuclear power and nuclear medicine.

The inspection teams of the International Atomic Energy Authority (IAEA) that monitor compliance with the Nuclear Non-Proliferation Treaty, to which Iran belongs, have entered Iran numerous times and, while remaining suspicious, have not been able to find that country on the direct road to the Bomb.

While many western and some Arab countries in the Gulf region have condemned Iran's alleged nuclear arms quest, Israel maintains some 200 ready nuclear weapons and has refused to sign the non-proliferation treaty, thereby avoiding the IAEA inspectors.

Israelis in the know have much to say. Defense minister, Ehud Barak, responded to PBS's Charlie Rose's question "If you were Iran wouldn't you want a nuclear weapon?" with these words:

"Probably, probably. I don't delude myself that they are doing it just because of Israel. They have their history of 4,000 years. They look around and they see the Indians are nuclear. The Chinese are nuclear, Pakistan is nuclear as well as North Korea, not to mention the Russians."

The Iranian regime, with a national GDP smaller than Massachusetts, is terrified. It is surrounded by powerful adversaries, including the U.S. military on three of its borders.

President George W. Bush labeled Iran, along with Iraq and North Korea, one of the three "axis of evil," and Teheran knows what happened to Iraq after that White House assertion. They also know that North Korea inoculated itself from invasion by testing nuclear bombs. And all Iranians remember that the U.S. overthrew their popular elected Prime Minister Mohammad Mosaddegh in 1953 and installed the dictatorial Shah who ruled tyrannically for the next 27 years.

Recently, Iran has experienced mysterious cyber sabotage, drone violations of its air space, the slaying of its nuclear scientists and the blowing up of its military sites, including a major missile installation. Israeli and American officials are not trying too hard to conceal this low level warfare.

Israel military historian--strategist Martin van Creveld said in 2004, that Iranians "would be crazy not to build nuclear weapons considering the security threats they face." Three years later he stated that "the world must now learn to live with a nuclear Iran the way we learned to live with a nuclear Soviet Union and a nuclear China....We Israelis have what it takes to deter an Iranian attack. We are in no danger at all of having an Iranian nuclear weapon dropped on us...thanks to the Iranian threat, we are getting weapons from the U.S. and Germany."

U.S. General John Abizaid is one of numerous military people who say that the world can tolerate a nuclear Iran--which, like other countries, does not wish to commit suicide.

Using the "Iranian threat," served Israeli Prime Minister Netanyahu, who on his first tour of duty back in 1996, speaking to a joint session of Congress, made a big point of the forthcoming Iranian bomb.

Somehow the Iranians, who were invaded in 1980 by a U.S.-backed Saddam Hussein, resulting in a million casualties, and who have not invaded anybody for 250 years, are taking a very long time to build a capability for atomic bomb production, much less the actual weapons.

In mid-2011, Meir Dagan, recently retired head of Israel's "CIA," repeated his opposition to a military attack on Iran's nuclear facilities, adding it would engulf the region in a conventional war.

He further took the Israeli government to task for failing "to put forth a vision," noting that "Israel must present an initiative to the Palestinians and adopt the 2002 Saudi Arabia peace proposal, reiterated since, that would open full diplomatic relations with some two dozen Arab and Islamic countries in return for an Israeli pullback to the 1967 borders and recognition of a Palestinian state."

The war-mongers against Iran have often distorted Iranian statements to suit their purpose and kept in the shadows several friendly Iranian initiatives offered to the George W. Bush Administration.

Flynt L. Leverett, now with Brookings and before a State Department and CIA official, listed three initiatives that were rejected. Right after the Sept. 11 attacks, Iran offered to help Washington overthrow the Taliban. The U.S. declined the offer. Second, in the spring of 2003, top Iranian officials sent the White House a detailed proposal for comprehensive negotiations to resolve questions regarding its weapons programs, relations with Hezbollah and Hamas and a Palestinian peace agreement with Israel. This proposal was rebuffed and ignored.

Third, in October 2003, European officials secured an agreement from Iran to suspend Iranian uranium enrichment and to pursue talks that Mr. Leverett said "might lead to an economic, nuclear and strategic deal." The Bush administration "refused to join the European initiative, ensuring that the talks failed," he added.

A few days ago, U.S. Defense Secretary Leon Panetta said Iran was developing a capability for making nuclear weapons someday but was not yet building a bomb. So why is the Obama Administration talking about a western boycott of Iran's oil exports, so crucial to its faltering, sanctions-ridden economy? Is this latest sanction designed to squeeze Iranian civilians and lead to the overthrow of the regime? Arguably it may backfire and produce more support for the government.

Backing the Iranian regime into such a fateful corner risks counter-measures that may disrupt the gigantic flow of oil through the Strait of Hormuz. Should that occur, watch the prices of your gasoline, heating bill and other related products go through the roof--among other consequences.

Isn't it about time for the abdicatory Congress to reassert its constitutional responsibilities? It owes the American people comprehensive, public House and Senate hearings that produce knowledgeable testimony about these issues and all relevant history for wide media coverage.
The drums of war should not move our country into a propagandized media frenzy that preceded and helped cause the Iraq invasion with all the socio-cide in that country and all the costly blowbacks against U.S. national interests?

It is past time for the American citizenry to wake up and declare: Iran will not be an Iraq Redux!

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by MIKE WHITNEY
“The build-up against Venezuela that began during the George W. Bush administration has rapidly accelerated under Obama.”
– Eva Golinger, author of  The Chávez Code: Cracking US Intervention in Venezuela
Attorney and activist Eva Golinger has written an excellent piece on US-Venezuela relations that’s posted on her website Postcards from the Revolution. Golinger details the astonishing turnaround that Chavez has effected since he took office 12 years ago. Not only has Chavez routed the predatory oligarchs who once dominated Venezuelan politics, but his revolutionary social programs have also raised the standard of living for the poor and middle classes while strengthening the institutions that have transformed Venezuela into one of the hemishpere’s most vibrant democracies. Venezuela has seen a 50 percent reduction in poverty since Chavez took office in February, 1999. Venezuelans are now guaranteed free, universal healthcare, a K-through-college education, and civil liberties that are protected under the constitution. US citizens have every reason to be envious of the social safety net Chavez has created for his people via his Bolivarian Revolution.

Naturally, Chavez’s progressive policies have raised a few eyebrows in Washington where his successes are seen as a threat to the established order. Corporate mandarins regard Chavez as a troublemaker and they’re doing whatever they can to get rid of him ASAP. This is why one never reads anything positive about Chavez or his accomplishments in the US media, because the corporate bosses hate him, as they do anyone who diverts money from the 1 percent at the top of the economic foodchain to the 99 percent at the bottom.

US-Venezuela relations have continued to deteriorate under Barack Obama, who has turned out to be as big a disappointment to Chavez as he has to his supporters in the US. The Obama administration continues to fund the stealth network of US-backed NGOs that have been working around-the-clock to depose the democratically-elected leader for more than a decade. Golinger has written extensively on U.S. government agencies and their persistent meddling in Venezuela’s politics. Here’s an excerpt from Golinger’s post:
“Ever since the US-supported coup attempt against President Hugo Chavez in Venezuela failed in April 2002, Washington has been pursuing a variety of strategies to remove the overwhelmingly popular South American head of state from power. Multimillion-dollar funding to anti-Chavez groups in Venezuela through US government agencies, such as the National Endowment for Democracy (NED) and the US Agency for International Development (USAID), has increased exponentially over the past ten years, as has direct political support through advisors, strategists and consultants- all aiming to help an unpopular and outdated opposition rise to power.
US government agencies, including the State Department, Central Intelligence Agency, National Directorate of Intelligence and the Pentagon, have pumped up their hostile language towards the Venezuelan government in recent years. The major oil-producing nation has been placed on the countless, and baseless “lists” produced annually by Washington, including “failure to cooperate with counter-narcotics efforts”, “failure to aid in the war on terror”, “trafficking in persons”, and others, that are based on political decisions instead of concrete, substantial evidence to support their accusations. These classifications have enabled Washington to justify not only the millions of US taxpayer dollars channeled to anti-Chavez groups fronting as NGOs, but also to increase military presence in the region and convince public opinion that Hugo Chavez is an enemy.” (“War on Venezuela: Washington’s False Accusations Against The Chavez Government”, Eva Golinger, Postcards from the Revolution)
So, things have not improved under Obama at all, in fact, they’ve gotten worse. The US congress–whose public approval rating has plunged to single digits–is also beating the war drums against Chavez trying to garner support for direct intervention.

While Obama has refrained from name-calling or explicit accusations; his underlings in and out of the bureaucracy never hesitate to connect Chavez to Iran or to suggest links between Chavez and terrorism. Obama’s role in the smear campaign is as clear as his role in eviscerating the Bill of Rights with his recently-passed NDAA.

Here’s more from Golinger: “Other “commentators” and “analysts” are busy writing blogs and columns warning of the growing terrorist threat south of the US border. These dangerous, unfounded accusations could easily be used to justify an attack against Venezuela, as weapons of mass destruction was used against Iraq and “protecting the population” was used against Libya. ….Time again, Venezuela has shown there are no “terrorist training camps” on its soil. Nor is it secretly building a bomb to attack the US. Venezuela is a nation of peace. It does not invade, attack or threaten other countries.”

So, what does a peaceful country like Venezuela need to do to avert a confrontation with the United States?

Venezuela needs to become more like neighboring Colombia that Obama and others regularly hold up as a model of “democracy” in the region. Colombia –where human rights abuses and targeted assassinations are routine and where the US spends billions on a drug eradication program (Plan Colombia) that routinely sprays toxic (re: poison) chemicals on crops, livestock, water supplies and children.

Here’s a little background from Aljazeera: “In 2008, Colombian soldiers were revealed to have murdered possibly thousands of civilians and then dressed the corpses in FARC attire in order to receive bonus pay and extra holiday time. Juan Manuel Santos (who is now Colombia’s president) was serving as defence minister …when the “false positives” scandal broke…. Despite this and other details – such as that, since Uribe’s assumption of office, more trade unionists have been assassinated in Colombia than in the rest of the world combined …(Even so)…..the country has been applauded by the US State Department and the Inter-American Development Bank as a regional role model in confronting security threats ensures the fortification of a system in which profits depend on the perpetuation of insecurity.”(“Private security and ‘the Israelites of Latin America’”, Belen Fernandez, Aljazeera)

So, this is how one becomes America’s friend; just follow orders, kill and imprison your own people, (preferably trade unionists) and allow the corporate looting to go unchecked. No wonder the repressive Saudi dictatorship consistantly ranks so high on Washington’s Friend’s List.

So, what’s in store for Chavez, who’s done nothing except raise living standards, strengthen the rule of law, and make the world a better place for ordinary working people?

The Obama administration presently has its hands full with its wars in Central Asia, the Middle East and Africa. But as soon as Obama is finished “liberating” Tehran, it’ll be on to Venezuela. You can bet on it. After all, Venezuela sits on the biggest ocean of oil in the world, “over 500 billion barrels”. That means it’s only a matter of time before WMD and Al Qaida training camps are discovered in Caracas.

Energy Wars, 2012

by MICHAEL T. KLARE
 
Welcome to an edgy world where a single incident at an energy “chokepoint” could set a region aflame, provoking bloody encounters, boosting oil prices, and putting the global economy at risk.  With energy demand on the rise and sources of supply dwindling, we are, in fact, entering a new epoch — the Geo-Energy Era — in which disputes over vital resources will dominate world affairs.  In 2012 and beyond, energy and conflict will be bound ever more tightly together, lending increasing importance to the key geographical flashpoints in our resource-constrained world.

Take the Strait of Hormuz, already making headlines and shaking energy markets as 2012 begins.  Connecting the Persian Gulf and the Indian Ocean, it lacks imposing geographical features like the Rock of Gibraltar or the Golden Gate Bridge.  In an energy-conscious world, however, it may possess greater strategic significance than any passageway on the planet.  Every day, according to the U.S. Department of Energy, tankers carrying some 17 million barrels of oil — representing 20% of the world’s daily supply — pass through this vital artery.
So last month, when a senior Iranian official threatened to block the strait in response to Washington’s tough new economic sanctions, oil prices instantly soared. While the U.S. military has vowed to keep the strait open, doubts about the safety of future oil shipments and worries about a potentially unending, nerve-jangling crisis involving Washington, Tehran, and Tel Aviv have energy experts predicting high oil prices for months to come, meaning further woes for a slowing global economy.


The Strait of Hormuz is, however, only one of several hot spots where energy, politics, and geography are likely to mix in dangerous ways in 2012 and beyond.  Keep your eye as well on the East and South China Seas, the Caspian Sea basin, and an energy-rich Arctic that is losing its sea ice.  In all of these places, countries are disputing control over the production and transportation of energy, and arguing about national boundaries and/or rights of passage.

In the years to come, the location of energy supplies and of energy supply routes — pipelines, oil ports, and tanker routes — will be pivotal landmarks on the global strategic map.  Key producing areas, like the Persian Gulf, will remain critically important, but so will oil chokepoints like the Strait of Hormuz and the Strait of Malacca (between the Indian Ocean and the South China Sea) and the “sea lines of communication,” or SLOCs (as naval strategists like to call them) connecting producing areas to overseas markets.  More and more, the major powers led by the United States, Russia, and China will restructure their militaries to fight in such locales.

You can already see this in the elaborate Defense Strategic Guidance document, “Sustaining U.S. Global Leadership,” unveiled at the Pentagon on January 5th by President Obama and Secretary of Defense Leon Panetta.  While envisioning a smaller Army and Marine Corps, it calls for increased emphasis on air and naval capabilities, especially those geared to the protection or control of international energy and trade networks.  Though it tepidly reaffirmed historic American ties to Europe and the Middle East, overwhelming emphasis was placed on bolstering U.S. power in “the arc extending from the Western Pacific and East Asia into the Indian Ocean and South Asia.”

In the new Geo-Energy Era, the control of energy and of its transport to market will lie at the heart of recurring global crises.  This year, keep your eyes on three energy hot spots in particular: the Strait of Hormuz, the South China Sea, and the Caspian Sea basin.

The Strait of Hormuz
A narrow stretch of water separating Iran from Oman and the United Arab Emirates (UAE), the strait is the sole maritime link between the oil-rich Persian Gulf region and the rest of the world.  A striking percentage of the oil produced by Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and the UAE is carried by tanker through this passageway on a daily basis, making it (in the words of the Department of Energy) “the world’s most important oil chokepoint.”  Some analysts believe that any sustained blockage in the strait could trigger a 50% increase in the price of oil and trigger a full-scale global recession or depression.

American leaders have long viewed the Strait as a strategic fixture in their global plans that must be defended at any cost.  It was an outlook first voiced by President Jimmy Carter in January 1980, on the heels of the Soviet invasion and occupation of Afghanistan which had, he told Congress, “brought Soviet military forces to within 300 miles of the Indian Ocean and close to the Strait of Hormuz, a waterway through which most of the world’s oil must flow.” 

The American response, he insisted, must be unequivocal: any attempt by a hostile power to block the waterway would henceforth be viewed as “an assault on the vital interests of the United States of America,” and “repelled by any means necessary, including military force.”

Much has changed in the Gulf region since Carter issued his famous decree, known since as the Carter Doctrine, and established the U.S. Central Command (CENTCOM) to guard the Strait — but not Washington’s determination to ensure the unhindered flow of oil there.  Indeed, President Obama has made it clear that, even if CENTCOM ground forces were to leave Afghanistan, as they have Iraq, there would be no reduction in the command’s air and naval presence in the greater Gulf area.

It is conceivable that the Iranians will put Washington’s capabilities to the test.  On December 27th, Iran’s first vice president Mohammad-Reza Rahimi said, “If [the Americans] impose sanctions on Iran’s oil exports, then even one drop of oil cannot flow from the Strait of Hormuz.”  Similar statements have since been made by other senior officials (and contradicted as well by yet others).  In addition, the Iranians recently conducted elaborate naval exercises in the Arabian Sea near the eastern mouth of the strait, and more such maneuvers are said to be forthcoming.  At the same time, the commanding general of Iran’s army suggested that the USS John C. Stennis, an American aircraft carrier just leaving the Gulf, should not return.  “The Islamic Republic of Iran,” he added ominously, “will not repeat its warning.”

Might the Iranians actually block the strait?  Many analysts believe that the statements by Rahimi and his colleagues are bluster and bluff meant to rattle Western leaders, send oil prices higher, and win future concessions if negotiations ever recommence over their country’s nuclear program.  Economic conditions in Iran are, however, becoming more desperate, and it is always possible that the country’s hard-pressed hardline leaders may feel the urge to take some dramatic action, even if it invites a powerful U.S. counterstrike.  Whatever the case, the Strait of Hormuz will remain a focus of international attention in 2012, with global oil prices closely following the rise and fall of tensions there.

The South China Sea
The South China Sea is a semi-enclosed portion of the western Pacific bounded by China to the north, Vietnam to the west, the Philippines to the east, and the island of Borneo (shared by Brunei, Indonesia, and Malaysia) to the south.  The sea also incorporates two largely uninhabited island chains, the Paracels and the Spratlys.  Long an important fishing ground, it has also been a major avenue for commercial shipping between East Asia and Europe, the Middle East, and Africa.  More recently, it acquired significance as a potential source of oil and natural gas, large reserves of which are now believed to lie in subsea areas surrounding the Paracels and Spratlys.

With the discovery of oil and gas deposits, the South China Sea has been transformed into a cockpit of international friction.  At least some islands in this energy-rich area are claimed by every one of the surrounding countries, including China — which claims them all, and has demonstrated a willingness to use military force to assert dominance in the region.  Not surprisingly, this has put it in conflict with the other claimants, including several with close military ties to the United States.  As a result, what started out as a regional matter, involving China and various members of the Association of Southeast Asian Nations (ASEAN), has become a prospective tussle between the world’s two leading powers.

To press their claims, Brunei, Malaysia, Vietnam, and the Philippines have all sought to work collectively through ASEAN, believing a multilateral approach will give them greater negotiating clout than one-on-one dealings with China. For their part, the Chinese have insisted that all disputes must be resolved bilaterally, a situation in which they can more easily bring their economic and military power to bear.  Previously preoccupied with Iraq and Afghanistan, the United States has now entered the fray, offering full-throated support to the ASEAN countries in their efforts to negotiate en masse with Beijing.

Chinese Foreign Minister Yang Jiechi promptly warned the United States not to interfere.  Any such move “will only make matters worse and the resolution more difficult,” he declared.  The result was an instant war of words between Beijing and Washington.  During a visit to the Chinese capital in July 2011, Chairman of the Joint Chiefs of Staff Admiral Mike Mullen delivered a barely concealed threat when it came to possible future military action.  “The worry, among others that I have,” he commented, “is that the ongoing incidents could spark a miscalculation, and an outbreak that no one anticipated.”  To drive the point home, the United States has conducted a series of conspicuous military exercises in the South China Sea, including some joint maneuvers with ships from Vietnam and the Philippines.  Not to be outdone, China responded with naval maneuvers of its own.  It’s a perfect formula for future “incidents” at sea.

The South China Sea has long been on the radar screens of those who follow Asian affairs, but it only attracted global attention when, in November, President Obama traveled to Australia and announced, with remarkable bluntness, a new U.S. strategy aimed at confronting Chinese power in Asia and the Pacific.  “As we plan and budget for the future,” he told members of the Australian Parliament in Canberra, “we will allocate the resources necessary to maintain our strong military presence in this region.”  A key feature of this effort would be to ensure “maritime security” in the South China Sea.

While in Australia, President Obama also announced the establishment of anew U.S. base at Darwin on that country’s northern coast, as well as expanded military ties with Indonesia and the Philippines.  In January, the president similarly placed special emphasis on projecting U.S. power in the region when he went to the Pentagon to discuss changes in the American military posture in the world.

Beijing will undoubtedly take its own set of steps, no less belligerent, to protect its growing interests in the South China Sea.  Where this will lead remains, of course, unknown.  After the Strait of Hormuz, however, the South China Sea may be the global energy chokepoint where small mistakes or provocations could lead to bigger confrontations in 2012 and beyond.

The Caspian Sea Basin
The Caspian Sea is an inland body of water bordered by Russia, Iran, and three former republics of the USSR: Azerbaijan, Kazakhstan, and Turkmenistan.  In the immediate area as well are the former Soviet lands of Armenia, Georgia, Kyrgyzstan, and Tajikistan.  All of these old SSRs are, to one degree or another, attempting to assert their autonomy from Moscow and establish independent ties with the United States, the European Union, Iran, Turkey, and, increasingly, China.  All are wracked by internal schisms and/or involved in border disputes with their neighbors.  The region would be a hotbed of potential conflict even if the Caspian basin did not harbor some of the world’s largest undeveloped reserves of oil and natural gas, which could easily bring it to a boil.

This is not the first time that the Caspian has been viewed as a major source of oil, and so potential conflict.  In the late nineteenth century, the region around the city of Baku – then part of the Russian empire, now in Azerbaijan — was a prolific source of petroleum and so a major strategic prize.  Future Soviet dictator Joseph Stalin first gained notoriety there as a leader of militant oil workers, and Hitler sought to capture it during his ill-fated 1941 invasion of the USSR.  After World War II, however, the region lost its importance as an oil producer when Baku’s onshore fields dried up.  Now, fresh discoveries are being made in offshore areas of the Caspian itself and in previously undeveloped areas of Kazakhstan and Turkmenistan.

According to energy giant BP, the Caspian area harbors as much as 48 billion barrels of oil (mostly buried in Azerbaijan and Kazakhstan) and 449 trillion cubic feet of natural gas (with the largest supply in Turkmenistan).  This puts the region ahead of North and South America in total gas reserves and Asia in oil reserves.  But producing all this energy and delivering it to foreign markets will be a monumental task.  The region’s energy infrastructure is woefully inadequate and the Caspian itself provides no maritime outlet to other seas, so all that oil and gas must travel by pipeline or rail.

Russia, long the dominant power in the region, is pursuing control over the transportation routes by which Caspian oil and gas will reach markets.  It is upgrading Soviet-era pipelines that link the former SSRs to Russia or building new ones and, to achieve a near monopoly over the marketing of all this energy, bringing traditional diplomacy, strong-arm tactics, and outright bribery to bear on regional leaders (many of whom once served in the Soviet bureaucracy) to ship their energy via Russia.  As recounted in my book Rising Powers, Shrinking Planet, Washington sought to thwart these efforts by sponsoring the construction of alternative pipelines that avoid Russian territory, crossing Azerbaijan, Georgia, and Turkey to the Mediterranean (notably the BTC, or Baku-Tbilisi-Ceyhan pipeline), while Beijing is building its own pipelines linking the Caspian area to western China.

All of these pipelines cross through areas of ethnic unrest and pass near various contested regions like rebellious Chechnya and breakaway South Ossetia.  As a result, both China and the U.S. have wedded their pipeline operations to military assistance for countries along the routes.  Fearful of an American presence, military or otherwise, in the former territories of the Soviet Union, Russia has responded with military moves of its own, including its brief August 2008 war with Georgia, which took place along the BTC route.

Given the magnitude of the Caspian’s oil and gas reserves, many energy firms are planning new production operations in the region, along with the pipelinesneeded to bring the oil and gas to market.  The European Union, for example, hopes to build a new natural gas pipeline called Nabucco from Azerbaijan through Turkey to Austria.  Russia has proposed a competing conduit called South Stream.  All of these efforts involve the geopolitical interests of major powers, ensuring that the Caspian region will remain a potential source of international crisis and conflict.

In the new Geo-Energy Era, the Strait of Hormuz, the South China Sea, and the Caspian Basin hardly stand alone as potential energy flashpoints. The East China Sea, where China and Japan are contending for a contested undersea natural gas field, is another, as are the waters surrounding the Falkland Islands, where both Britain and Argentina hold claims to undersea oil reserves, as will be the globally warming Arctic whose resources are claimed by many countries.  One thing is certain: wherever the sparks may fly, there’s oil in the water and danger at hand in 2012.

Monday, January 9, 2012

SecDef Panetta: Iran NOT Building a Nuclear Weapon



Secretary of Defense Leon Panetta appeared on CBS' Face the Nation this morning and declared--despite enormous public rhetoric among pundits and many US government officials, not to mention GOP presidential candidates--that Iran is not currently trying to build a nuclear weapon.

The Associated Press reports today:
[Panetta] says Iran is laying the groundwork for making nuclear weapons someday, but is not yet building a bomb and called for continued diplomatic and economic pressure to persuade Tehran not to take that step.

As he has previously, Panetta cautioned against a unilateral strike by Israel against Iran's nuclear facilities, saying the action could trigger Iranian retaliation against US forces in the region.
The comments suggest the White House's assessment of Iran's nuclear strategy has not changed in recent months, despite warnings from advocates of military action that time is running out to prevent Tehran from becoming a nuclear-armed state.
Iran says its nuclear program is only for energy and medical research, and refuses to halt uranium enrichment
And although such comments pair with Iran's insistence that its nuclear program is strictly for domestic non-military purposes, and despite renewed warnings to US-allied Israel not to strike Iran prematurely, Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey, who joined Panetta on Face the Nation rattled the US saber without mistake, saying:
he wanted the Iranians to believe that a U.S. military strike could wipe out their nuclear program.
"I absolutely want them to believe that's the case," he said.
Panetta did not rule out launching a pre-emptive strike.
As such threats from both Israel and the United States continue it's little wonder the Iranians would seek to put their nuclear facilities beyond the reach of incoming airstrikes. As Reuters reports:
Iran will in the "near future" start enriching uranium deep inside a mountain, a senior [Iranian] official said.
[...]
A decision by the Islamic Republic to conduct sensitive atomic activities at an underground site - offering better protection against any enemy attacks - could complicate diplomatic efforts to resolve the long-running row peacefully.
Iran has said for months that it is preparing to move its highest-grade uranium refinement work to Fordow, a facility near the Shi'ite Muslim holy city of Qom in central Iran, from its main enrichment plant at Natanz.
Responding to threats by Iran to close the Strait of Hormuz to oil shipments, Panetta did not hesitate to raise the possibility of military intervention yet again. According the Agence France-Presse:

"We made very clear that the United States will not tolerate the blocking of the Straits of Hormuz," Panetta told CBS television. "That's another red line for us and that we will respond to them."

Panetta was seconded by General Martin Dempsey, the chairman of the Joint Chiefs of Staff, who said Iran has the means to close the waterway, through which 20 percent of the world's oil passes.

"But we would take action and reopen the Straits," the general said.

Sunday, January 1, 2012

Obama Signs New Iran Sanctions Into Law

Saturday, December 31, 2011 by Agence France-Presse
Move could intensify a brewing Gulf showdown
by Stephen Collinson

HONOLULU, Hawaii - US President Barack Obama Saturday signed into law tough new sanctions targeting Iran's central bank and financial sector, in a move that could intensify a brewing Gulf showdown.

The measures, meant to punish Iran for its nuclear program, were contained in a mammoth $662 billion defense bill, which Obama signed despite having reservations that it ties his hands on setting foreign policy.

The sanctions are meant to hit Iran's crucial oil sector and require foreign firms to make a choice between doing business with Tehran's financial sector and central bank or the mighty US economy and financial sector.

Foreign central banks which deal with the Iranian central bank on oil transactions could also face restrictions, sparking fears of damage to US ties with key nations such as Russia and China which trade with Iran.

Obama signed the bill in Hawaii where he is on vacation, at a time of rising tension with Tehran, which has threatened to block the Strait of Hormuz -- through which more than a third of the world's tanker-borne oil passes.

The United States has warned it will "not tolerate" such an interruption.

In comments reported Saturday, Tehran's top nuclear negotiator Saeed Jalili warned that Iran would "give a resounding and many-pronged response to any threat" made against it.

But Jalili also said Iran was ready to rejoin EU-led talks with major powers on assuaging Western concerns over its nuclear program.

The White House held intense negotiations with Congress on the terms of the law's implementation, given concern that sanctions on Iran's central bank could spark chaos in the global financial system and hike the price of oil.

Obama said in a statement issued as he signed the bill that he was concerned the measure would interfere with his constitutional authority to conduct foreign relations by tying his hands in dealings with foreign governments.

The bill, which passed with wide majorities in Congress, did reserve some wiggle room for Obama, granting him the power to grant 120-day waivers if he judges it to be in the national security interests of the United States.

Earlier this month, Treasury Secretary Timothy Geithner wrote to Congress to express concern against an earlier, tougher sanctions measure along the same lines saying it could harm the US push with its partners to isolate Iran.

Geithner argued that foreign allies could resent the new US measures and make it less likely they would cooperate and the sanctions would have the "opposite effect" of their intended purpose of isolating Iran.

Senior US officials said Saturday that they would try to implement the new sanctions guidelines in a way that protected the global economy and US foreign policy priorities, in a way which would still inflict pain on Iran.

There are fears that increased sanctions on Iran's central bank could force the global price of oil to suddenly soar, and actually give Tehran a financial windfall on its existing oil sales.

Rising oil prices could also crimp the fragile economic recovery in the United States and inflict pain on American voters in gas stations -- at a time when Obama is running for reelection next year.

The Obama administration argues that it has imposed the toughest-ever sanctions on Iran by the United States and its allies and says the measures are now having a punishing impact on the Iranian economy and petroleum sector.

The West alleges Tehran is seeking to acquire a weapons capability under the guise of its nuclear research program. Iran denies any such ambition and says its work is only for civil energy and medical purposes.

In recent weeks, Iranian officials have insisted the country was ready to face new sanctions against the oil sector and central bank.

The Wall Street Journal reported this month that US and European officials were seeking assurances from major oil producers, such as Saudi Arabia, Kuwait and the United Arab Emirates, that they would increase exports to the West and Asian nations if tighter sanctions on Tehran's energy exports are enforced.