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Ed Webb

The Oil for Security Myth and Middle East Insecurity - MERIP - 0 views

  • Guided by the twin logics of energy security and energy independence, American actions and alliances in region became a self-fulfilling prophecy. The very thing the United States sought to eliminate in the Middle East—insecurity—became a major consequence of America’s growing and increasingly militarized entanglement.
  • In effect, the essential relationship of dependency between the United States and the Middle East has never been “oil for security.” It has in fact been oil for insecurity, a dynamic in which war, militarization and autocracy in the region have been entangled with the economic dominance of North Atlantic oil companies, US hegemony and discourses of energy security.
  • Although the destabilizing contradictions of this dependency have now undercut both American hegemony and the power of the North Atlantic hydrocarbon industries, the oil-for-insecurity entanglement has nonetheless created dangerously strong incentives for more conflict ahead.
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  • Oil’s violent geopolitics is often assumed to result from the immense power its natural scarcity affords to those who can control it. Recent developments in global hydrocarbon markets, which saw negative prices on April 20, 2020 have once again put this scarcity myth to bed
  • In a series of studies that began in late 1980s, economists Jonathan Nitzan and Shimshon Bichler charted the extent to which the world’s leading oil companies enjoyed comparatively handsome rates of returns on equity—well ahead of other dominant sectors within North Atlantic capitalism—when major wars or sustained unrest occurred in the Middle East.
  • When oil prices began to collapse in the mid-1980s, the major oil companies witnessed a 14-year downturn that was only briefly interrupted once, during the 1990-1991 Gulf War.
  • The events of September 11, 2001, the launching of the global war on terror and the 2003 Anglo-American invasion of Iraq reversed the fiscal misfortunes of the North Atlantic oil companies in the previous decade. Collectively, they achieved relative returns on equity several orders of magnitude greater than the heyday of 1979 to 1981. As oil prices soared, new methods of extraction reinvigorated oil production in Texas, North Dakota, Pennsylvania and elsewhere. In effect, war in Iraq made the shale oil revolution possible
  • fracking—not only benefitted from sky-high oil prices, generous US government subsidies and lax regulation, but also the massive amounts of cheap credit on offer to revive the economy after 2008
  • In response to the Soviet invasion of Afghanistan and the Iran hostage crisis, the Carter Doctrine declared America’s intent to use military force to protect its interests in the Gulf. In so doing, Carter not only denounced “the overwhelming dependence of the Western democracies on oil supplies from the Middle East,” but he also proposed new efforts to restrict oil imports, to impose price controls and to incentivize more fossil fuel extraction in the United States, all in conjunction with solidifying key alliances (Egypt, Israel and Pakistan) and reinforcing the US military presence in the region.[5] In effect, America would now extract geopolitical power from the Middle East by seeking to secure it.
  • In denouncing certain governments as “pariahs” or “rogue states,” and in calling for regime change, American policy has allowed those leaders to institute permanent states of emergency that have reinforced their grip on power, in some cases aided by expanded oil rents due to heightened global prices
  • A 2015 report by the Public Accountability Initiative highlights the extent to which the leading liberal and conservative foreign policy think tanks in Washington—the American Enterprise Institute, Atlantic Council, Brookings, Cato, Center for Strategic and International Studies (CSIS), Council on Foreign Relations and Heritage Foundation—have all received oil industry funding, wrote reports sympathetic to industry interests or usually both
  • For some 50 years, the United States has been able to extract geopolitical power from Middle Eastern oil by posing as the protector of global energy security. The invention of the concept of energy security in the 1970s helped to legitimate the efforts of the Nixon, Ford and Carter administrations to forge new foundations for American hegemony amid the political, economic and social crises of that decade. In the wake of the disastrous US war efforts in Korea and Southeast Asia, Henry Kissinger infamously attempted to re-forge American hegemony by outsourcing US security to proxies like Iran under what is referred to as the Nixon Doctrine. At the same time, regional hegemons would be kept in check by “balancing” competing states against each other.
  • The realization of Middle Eastern insecurity was also made possible by the rapid and intensive arms build-up across the region in the 1970s. As oil prices skyrocketed into the 1980s, billions of so-called petrodollars went to purchase arms, primarily from North Atlantic and Soviet manufacturers. Today, the Middle East remains one of the most militarized regions in the world. Beyond the dominance of the security sector in most Middle Eastern governments, it also boasts the world’s highest rates of military spending. Since 2010, Middle Eastern arms imports have gone from almost a quarter of the world’s share to nearly half in 2016, mainly from North Atlantic armorers.
  • For half a century, American policy toward the Middle East has effectively reinforced these dynamics of insecurity by promoting conflict and authoritarianism, often in the name of energy security. High profile US military interventions—Lebanon in 1983, Libya in 1986 and 2011, the Tanker Wars in the late 1980s, the wars on Iraq in 1991 and 2003, Somalia in 1993, Afghanistan since 2001, the anti-Islamic State campaign since 2014 and the Saudi-Emirati war on Yemen since 2015—have received the most scrutiny in this respect, alongside the post-2001 “low intensity” counterterrorism efforts worldwide
  • cases abound where American policy had the effect of preventing conflicts from being resolved peacefully: Trump’s shredding of the 2015 Joint Comprehensive Plan of Action (JCPOA) nuclear agreement with Iran comes to mind; the case of the Israeli-occupied Palestinian territories and the Moroccan-occupied Western Sahara have likewise become quintessential “peace processes” that have largely functioned to prevent peace.
  • the myth of authoritarian stability
  • A year after the unexpected 2011 uprisings, the IMF’s former director Christine Lagarde admitted that the Fund had basically ignored “how the fruits of economic growth were being shared” in the region
  • What helps make energy security discourse real and powerful is the amount of industry money that goes into it. In a normal year, the oil industry devotes some $125 million to lobbying, carried out by an army of over 700 registered lobbyists. This annual commitment is on par with the defense industry. And like US arms makers,[9] the revolving door between government, industry and lobbying is wide open and constantly turning. Over two-thirds of oil lobbyists have spent time in both government and the private sector.[10]
  • From 2012 to 2018, organized violence in the Middle East accounted for two-thirds of the world’s total conflict related fatalities. Today, three wars in the region—Syria, Iraq and Afghanistan—now rank among the five deadliest since the end of the Cold War. Excluding Pakistan, the Middle East’s share of the worldwide refugee burden as of 2017 was nearly 40 percent at over 27 million, almost double what it was two decades prior.
  • profound political and financial incentives are accumulating to address the existing glut of oil on the market and America’s declining supremacy. A major war in the Middle East would likely fit that bill. The Trump administration’s temptation to wage war with Iran, change Venezuela’s regime and to increase tensions with Russia and China should be interpreted with these incentives in mind.
  • While nationalizing the North Atlantic’s petroleum industries is not only an imperative in the fight against climate change, it would also remove much of the profit motive from making war in the Middle East. Nationalizing the oil industry would also help to defund those institutions most responsible for both disseminating the myths of energy security and promoting insecurity in the Middle East.
Ed Webb

UAE Peace Deal Opens Doors for Secret Israeli-Iranian Pipeline and Big Oil Investments - 0 views

  • desert oil pipeline that Israel once operated as a secret joint venture with Iran could be a major beneficiary from the Trump-brokered peace deal with the United Arab Emirates. With the UAE formally scrapping the eight-decade Arab boycott of Israel—and other oil-rich Gulf neighbors likely to follow suit—the Jewish state is on the cusp of playing a much bigger role in the region’s energy trade, petroleum politics, and Big Oil investments
  • Stepping cautiously out of the shadows, the Israeli managers of Europe Asia Pipeline Co. (EAPC) say their 158-mile conduit from the Red Sea to the Mediterranean Sea provides both a cheaper alternative to Egypt’s Suez Canal and an option to connect to the Arab pipeline grid that transports oil and gas not just to the region, but to the seaports that supply the world
  • the pipeline, which connects Israel’s southern port of Eilat with a tanker terminal in Ashkelon on the Mediterranean coast, could nip off a significant share of the oil shipments now flowing through the nearby Suez Canal.
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  • Now that the Emiratis have broken the ice, opportunities for Arab-Israeli energy deals are broad and lucrative, ranging from investment in the Israeli pipeline itself, to adapting it for carrying natural gas or connecting it to pipelines across Saudi Arabia and the wider Middle East
  • Just over 60 years ago when it was built, the Eilat-Ashkelon pipeline was a massive national construction project aimed at guaranteeing Israel’s and Europe’s energy supplies in the wake of the 1956 Suez crisis
  • Most of the oil flowing through the pipeline came from Iran, which had close but discreet relations with Israel for decades under Shah Mohammad Reza Pahlavi. In 1968, the Israeli and Iranian governments registered what was then called the Eilat-Ashkelon Pipeline Co. as a 50-50 joint venture to manage the export of Iranian crude through Israeli territory and onward by tanker to Europe
  • A Swiss court ordered Israel in 2015 to pay Iran compensation of about $1.1 billion as a share of profits from the joint ownership of the pipeline since the two enemies broke off relations in 1979, but Israel has refused to pay up.
  • While the company’s main 42-inch pipeline was built to transport Iranian oil north to the Mediterranean, it now does most of its business in reverse. It can pump oil unloaded in Ashkelon from ships sent by producers such as Azerbaijan and Kazakhstan to tankers in the Gulf of Aqaba for transport to China, South Korea, or elsewhere in Asia
  • The pipeline’s advantage over the Suez is the ability of the terminals in Ashkelon and Eilat to accommodate the giant supertankers that dominate oil shipping today, but are too big to fit through the canal. Known in oilspeak as VLCCs, or very large crude carriers, the ships can transport as much as 2 million barrels of petroleum. The 150-year-old Suez Canal, on the other hand, is only deep and wide enough to handle so-called Suezmax vessels, with just half the capacity of a VLCC
  • The company’s business has always been one of Israel’s most closely guarded secrets. Even today, EAPC releases no financial statements. Levi says he can’t disclose the names of customers—though he says they include “some of the biggest companies in the world.” What little information that is publicly known only came to light as the result of legal battles following a 2014 rupture in the pipeline that caused the worst environmental disaster in Israeli history, spilling more than 1.3 million gallons of crude oil into the Ein Evrona desert nature preserve.
  • The boycott enforced by Saudi Arabia, the UAE, and their oil-producing neighbors meant that tankers acknowledging their docking in Israel would be barred from future loadings in the Persian Gulf, effectively destroying their business. The details are highly confidential—but generally the ways ships can obscure their activities include turning off their transponders, repainting, reflagging, reregistering, and faking their docking records.
  • EAPC’s business model improves dramatically with the erosion of the Arab boycott. “If the concerns [with secrecy] go down significantly, the price will drop significantly,”
  • Saudi Arabia has indicated it won’t establish formal links until the Palestinian conflict is resolved, although its business connections with Israel are plentiful and growing
  • Because of the canal’s limitations, much of the Gulf crude bound for Europe and North America gets pumped through Egypt’s Suez-Mediterranean Pipeline, in which Saudi Arabia and the UAE hold a stake. Egypt’s pipeline, however, operates in only one direction, making it less useful than its Israeli competitor, which can also handle, for example, Russian or Azerbaijani oil heading to Asia.
  • Even more possibilities arise from Israel’s discovery of a bounty of natural gas deposits off its Mediterranean coast that can supply far more than Israel’s own needs. Bringing in Gulf investors in addition to Israel’s current partners such as Chevron, and the possibility of connecting to the Middle East’s gas pipeline grid, would open yet another new horizon for Israel’s nascent energy industry.
Ed Webb

Beyond Oil: Lithium-Ion Battery Minerals and Energy Security - Foreign Policy Research ... - 0 views

  • Should the mass adoption of electric vehicles occur, access to reliable and affordable sources of minerals like cobalt, graphite, lithium, manganese, and nickel, which are used in modern electric-vehicle batteries, will come to occupy a larger share of energy security concerns, especially since one country has already gained control over much of the world’s production and processing of those minerals
  • oil has remained abundant and affordable, despite major production disruptions during the Arab Spring from 2010-2012, in Libya from 2013-2016, and in Venezuela after 2017. In fact, oil prices had dropped 60 percent from their 2008 highs by early 2020, even before the COVID-19 pandemic had made a dent in the global economy.
  • falling oil prices throughout the 2010s may have lulled Western policymakers into believing that the Russian Federation, whose economy is heavily reliant on oil and natural gas exports, would become more docile. It did not; instead, it continued to modernize its military and intimidate its neighbors
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  • OPEC and Russia bargained for months, but talks finally broke down after Moscow refused to limit its oil production to help stabilize oil prices in the wake of the slump in global oil demand caused by the COVID-19 pandemic. Calculating that it could hurt Russia enough to force it back to the negotiating table, Saudi Arabia boosted its daily oil output by 20 percent, flooding the market with oil. Not to be intimidated, Russia responded with a short-term increase in its own oil output (possibly to strike back at Saudi Arabia or to force some American shale-oil companies out of business or both). As a result, oil prices collapsed. The futures price for West Texas Intermediate crude touched a remarkable -$37 per barrel. Although beneficial for oil consumers, the Russia-Saudi Arabia oil price war was a reminder of the influence that state-driven oil producers still had over the world’s energy security.
  • a single country, China, has gained control over much of the world’s production and processing of the cobalt, graphite, lithium, manganese, and nickel used in lithium-ion batteries, the type of electricity-storage devices favored by electric-vehicle manufacturers today.
  • Chinese companies now control almost half of the DRC’s cobalt output, which constitutes over two-thirds of the world’s production. Perhaps of greater concern, China has come to dominate the refining and processing of those minerals. Eighty percent of the cobalt sulphates and oxides used for lithium-ion battery cathodes are processed in China.
  • China’s monopoly can be largely attributed to its relatively low energy costs and less stringent environmental regulations.
  • Though China controls a smaller share of the world’s production of lithium than that of other minerals, it has been buying up stakes in lithium mines around the globe.
  • Moving up the value chain, it is expected to build 101 of the 136 lithium-ion battery manufacturing plants that are currently planned over the next decade
  • n 2010, China abruptly restricted its rare-earth metal exports to Japan, nominally to protect the environment. But after a lengthy review, the World Trade Organization ruled against China’s restrictions. Since then, worries about relying on China as a strategic-minerals supplier have continued to grow. Sometimes, China feeds those fears. In one 2019 incident, China’s state-run Global Times flaunted the country’s dominance over rare-earth metals as a strategic weapon against other countries with the headline “China gears up to use rare-earth advantage.” Such not-so-veiled threats from government-linked media only fan suspicions that China will behave no better than Russia or Saudi Arabia—and possibly worse.
  • In 2019, the U.S. Department of State launched the Energy Resources Governance Initiative to “promote resilient and secure energy resource mineral supply chains” for all kinds of renewable energy and battery storage technologies.  The initiative’s membership has grown to include Australia, Botswana, Canada, Peru,
  • the world appears to be swapping its old dependency on OPEC and Russia, a fractious bunch that until recently was losing power to American oil-shale upstarts, for a new one on China, a single country with a one-party government
Ed Webb

Leaking Ghost Tankers: Pollution in the Port of Aden - Peace Organization PAX - 0 views

  • Decaying oil tankers at the coasts of Yemen pose serious risks to the environment and the people depending on it, reminding us starkly how conflicts can bring serious pollution risks. New open source research by PAX reveals multiple oil spills from rusty ships that have been polluting the coastal areas around the Port of Aden. If no action is taken by the authorities to remove these ships, it is only a matter of time before a new disaster will unfold.
  • Current international attention is mainly focused on finding a solution for the decaying oil tanker FSO SAFER loaded with 1.1 million barrels of oil. The tanker is at risk of sinking or exploding, which would create a regional environmental catastrophe. Yet over the course of the last years, smaller incidents around oil tankers in Yemen’s ports, the Red Sea and the Gulf of Aden have been mounting as well. Ranging from direct attacks on oil tankers to abandoned ships sinking and fires at port refineries, the conflict continues to create serious local pollution problems.
  • The war itself already poses serious environmental challenges that impact both Yemen’s population and its precious ecosystems. This ranges from structural leaking oil incidents documented by the Yemen environmentalist group Holmakhdar and the Sanaa Center, to broader environmental problems, and conflict-linked cutting and dying of millions of date palms, demonstrated by the open-source investigative group Bellingcat. The current weak state of governance and oversight around the many environmental challenges Yemen is facing continues to result in ongoing incidents that worsen the state of environment and affect the people depending on it.  Not only does this currently already lead to mounting environmental health risks and degraded ecosystems, these impacts will also worsen climate resilience for the conflict-affected country due to more extreme weather events, water shortages and rising temperatures
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  • According to the experts, over 40 tons of oil was leaked from the leaking tanker, though this has not been confirmed by the local authorities
  • PAX has observed leaks from two ships, including a large spill on July 5,2022 from the PEARL OF ATHENA that continued for 18 days until July 23. Oil slicks have washed ashore, polluting the coastal environment, and could pose a long-term risk to the marine environment in and around the bay of Aden, which could pose particular threats to the livelihoods of fishing communities. Hydrocarbons from crude oil and refined products contain toxic heavy metals such as lead, zinc, cadmium and mercury that can accumulate around coastal soils and sediments, be ingested by marine organisms such as fish, affect marine birds and mammals and impact marine ecosystems.
  • Large spills such as this one are also likely to hold up the arrival of ships that need to offload humanitarian goods in the container terminal. This is because ships are not able to go into the port until such slicks are removed to prevent further dispersal of the oil by the movement of incoming ships.  
  • The ongoing war in Yemen continues to stress local authorities’ capacities to address both the issues with dilapidated oil tankers and set up a proper environmental monitoring and enforcement mechanism for ships arriving in the Port of Aden
  • A damage assessment conducted by the UN Development Programme (UNDP) in 2021 found that at over 20 million USD was needed for reparations at the container terminal alone. The report, also stated that:  “Health, safety, and environmental awareness in the Port is currently unacceptable. The Port contains large areas of conflict-damaged debris, damaged and unusable equipment, and equipment and materials being stored for future use.”  
  • The arrival of ballast water on ships trading to ports in the Red Sea and Gulf of Aden (..) has the potential to do more harm to the marine environment than a major oil pollution incident. (..) Dumping of hazardous materials at sea in waters close to the Gulf of Aden has the potential to carry serious pollution hazards into the region.”   
  • the international community has failed to pick up the bill to effectively prevent a major environmental disaster with the FSO SAFER, despite the UN starting a public campaign to raise $20 million dollar to prevent a serious disaster posed by the tanker. Meanwhile, western countries continue to allow for billions in weapons sales to the countries bombing Yemen.  
  • The remaining tankers in the Port of Aden continue to pose a risk of sinking, which would likely lead to further environmental pollution with effects on coastal areas. This would particularly impact fishing communities and surrounding ecosystems
Ed Webb

OPEC Is in its Death Throes | Foreign Policy - 0 views

  • In February, OPEC called for an oil production “freeze” to raise crude prices in conjunction with Russia. But this effort collapsed at a meeting in Doha, Qatar, in April when Iran refused to join any freeze in order to regain the pre-2012 production levels of close to 4 mbpd it enjoyed before U.S. and European Union nuclear sanctions were imposed, following the removal of certain sanctions after the 2015 nuclear deal. A similar proposal failed at the OPEC meeting in June, again following Iran’s refusal, despite outreach by the Qataris.
  • OPEC again called for a form of output cut on Sept. 28 at an extraordinary meeting in Algiers. Markets bit on the news, with Brent prices rising sharply by about 15 percent in the following week, from $46 to $52 per barrel.
  • Can action by the cartel sustain higher crude prices over the long term? Probably not. Like a desert mirage, the image of an OPEC resurrection vanishes when approached.
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  • The massive fall in oil prices from over $100 per barrel in early 2014 to under $30 by January 2016 was caused primarily by then-Saudi Minister of Petroleum Ali al-Naimi’s strategy to gain market share for the kingdom and hurt the U.S. tight oil (or “shale”) industry by allowing the market, not OPEC interventions, to set prices.
  • While Riyadh has cranked up its production from mid-2014 to today by over a million barrels a day (to a peak of 10.7 mbpd in August this year), its fiscal position has taken a serious blow, with the budget deficit rising from 3 percent of GDP to 16 percent in 2015
  • The resilience of U.S. shale makes the argument that OPEC has experienced a resurrection a fragile claim. The cartel can probably raise prices in the short term through an output cut, but it will only be so long, perhaps already by mid-2017, before the U.S. shale industry revives and grabs any market share conceded by OPEC in a higher price environment. This will ultimately bring prices lower again, all else being equal.
  • Within OPEC, while other Gulf Co-Operation states, namely Kuwait and the United Arab Emirates, may be prepared to make a small cut to their production, key producers like Iraq and Venezuela are in too difficult a fiscal position to agree to any major cut.
  • Outside OPEC, Russia reached a production record of 11.1 mbpd in August, eclipsing Soviet levels. Being so close to the maximum anyway, Russia has little to lose by supporting the OPEC output cut and agreeing not to raise production further. Yet the Kremlin is unlikely to impose actual cuts on the range of oil companies that operate in the country.
  • In the short term, it seems Riyadh’s fiscal position was under such pressure from low oil prices that something had to give. While the kingdom has eased the fiscal pressure by starting to issue sovereign debt, the burn rate through its foreign reserves has been relentless (from about $740 billion in mid-2014 to $550 billion today) as it has attempted to defend the currency in the face of substantial capital flight from the country since the oil price crash in 2014.
  • Climate change will plainly be a major problem of the 21st century, and the world is moving away from fossil fuels: game over for an unreformed Saudi Arabia.
  • Saudi Arabia will face hard years ahead as the oil market increasingly looks to U.S. shale, not OPEC, as a handrail to oil prices on the supply side. However, this might well be the jolt that Salman needs to push through painful but necessary reforms
Julianne Greco

UPDATE: Lukoil Submits New Bid For Iraqi Oil Field-Official - WSJ.com - 0 views

  • -Competition is hotting up for rights to develop one of Iraq's largest oilfields after Russia's oil giant Lukoil (LKOH.RS) submitted this weekend an improved offer and accepted the government's production sharing terms, an official said.
  • Iraq is offering international oil companies a rare chance to gain a foothold in one of the world's largest deposits of crude at a time when few opportunities exist for private investors to exploit Middle East oil. In the Middle East, the industry is mainly controlled by state oil companies.
  • Lukoil is said to have raised the production plateau for the West Qurna-1 field in its new proposal and the company expects a decision by the Iraqi oil ministry on Monday or Tuesday, an industry official, with knowledge of the matter, said. The Russian company is partnering ConocoPhillips (COP) in the bid. Lukoil is now the second international oil company after Exxon to accept Baghdad's $1.90 a barrel payment fee for West Qurna, the most sought-after field in the country's first postwar petroleum round held at the end of June this year.
Ed Webb

'Apocalypse soon': reluctant Middle East forced to open eyes to climate crisis | Climat... - 0 views

  • In Qatar, the country with the highest per capita carbon emissions in the world and the biggest producer of liquid gas, the outdoors is already being air conditioned.
  • In the United Arab Emirates it is estimated that the climate crisis costs £6bn a year in higher health costs. The salinity of the Gulf, caused by proliferating desalination plants, has increased by 20%, with all the likely impact on marine life and biodiversity.
  • The Middle East is warming at twice the rate of the rest of the world. By the end of the century, if the more dire predictions prove true, Mecca may not be habitable, making the summer Haj a pilgrimage of peril, even catastrophe
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  • The ruling elites are all dependent on oil rents for the survival of their regimes. They need the oil business to stay alive for them to stay in power. Their system is based on continued oil rent, but ultimately, the citizens’ long-term interests are with a liveable climate
  • The precise point oil demand will peak has been contested, and depends on a myriad of assumptions about regulation, technology and consumer behaviour. But many people say demand will peak in about 2040, and then decline.
  • the International Energy Association’s report Net Zero by 2050, by contrast, proposed oil demand fall from 88m barrels a day (mb/d) in 2020, to 72 mb/d in 2030 and to 24 mb/d in 2050, a fall of almost 75% between 2020 and 2050. It argued that the Gulf has all three elements needed to switch to renewables: capital, sun and large tracts of vacant land.
  • The Gulf’s self-proclaimed first mover, the UAE, was the first country in the region to ratify the Paris agreement and is now the least dependent on oil for government revenues. Last week it announced a “net zero initiative by 2050” to be begun with $163bn (£118bn) of investments and a new minister for climate change and the environment, Mariam Almheiri. The announcement came after the UAE ordered an 80-day brainstorming session in every government department from June. It was the first petro-state to embrace net zero in domestic consumption.
  • Opec’s own projections suggest oil demand will rise in absolute terms through to 2045, and oil’s share of world wide energy demand will fall only from 30% to 28%. Hardly a green revolution.
  • Aramco, the Saudi company with the largest carbon footprint in the world, is not trying to diversify at the rate of Shell or BP. Indeed, it has just announced an investment to increase crude capacity from 12m barrels a day to 13m barrels by 2027
  • If you see the lifestyle in the UAE, Saudi Arabia and Qatar, it is based on endless consumption
  • The region is responsible for only 4.7 % of worldwide carbon emissions, dwarfed by the pollution from Europe, America and China. The oil that the Middle East exports is logged against the carbon emissions of the users, not the producers.
  • The Gulf States are still highly reliant on oil and gas exports, which remain more than 70% of total goods exports in Kuwait, Qatar, Saudi Arabia and Oman, and on oil revenues, which exceed 70% of total government revenues in Kuwait, Qatar, Oman, and Bahrain. In Vision 2030, published in 2016, the Saudi crown prince, Mohammed bin Salman, promised to turn the country into a diversified industrial power house. The reality is very different. The World Bank shows Saudi Arabia is still 75% dependent on oil exports for its budget.
  • Gulf states are deeply competitive, so a flurry of news is emerging. Qatar has appointed a climate minister; Bahrain is targeting net zero by 2050; Kuwait has a new emissions plan.
  • Fossil fuels shipped abroad are not on the Saudi’s carbon ledger, owing to UN accounting rules, and the promised internal reduction in emissions is dependent on a heavy bet that unproven blue hydrogen and carbon capture technology will work.
Ed Webb

'Five years ago there was nothing': inside Duqm, the city rising from the sand | Cities... - 0 views

  • a long line of plans stretching back to the 1980s aimed at developing and populating barren parts of Oman. Around 70% of the country’s population resides within a thin 150-mile-long coastal strip in the north near Muscat. The government now sees its hundreds of miles of unused coastline as full of economic potential.
  • “Duqm is a huge industrial city being built out of thin air,” says Manishankar Prasad, a local researcher who worked on the new city’s environmental and cultural impact assessments. “It will essentially change the locus of industrial activity from the northern parts of the country, which are heavily urbanised. [Having this] huge geographical expanse with this sparse population and no industrial activity is really not the way forward.”
  • We are in the midst of an era of new cities – with more than 200 currently under construction. Remote deserts all over east Asia, the Middle East and parts of Africa are being urbanised. There’s Nurkent in Kazakhstan, Aylat in Azerbaijan, New Kabul City in Afghanistan, New Baghdad in Iraq, Rawabi in Palestine, King Abdullah Economic City in Saudi Arabia, New Cairo in Egypt … Morocco has nine new cities in the works, and Kuwait has 12.
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  • Oman is desperate to diversify away from its oil and gas dependency. Research by the US Energy Information Administration puts Oman’s known crude oil reserves at 5.6bn barrels. While this is only enough to rank the country 21st in the world, its economy is disproportionately dependent: oil and gas accounts for nearly half of the country’s GDP, 70% of exports and between 68% and 85% of government revenue.
  • “Several dozen new cities are being constructed in the Middle East, mainly to transition away from the petroleum industry to a variety of other industries, including tourism, manufacturing, education and hi-tech,” says Dr Sarah Moser, a McGill University geography professor and author of an upcoming atlas of new cities.
  • Duqm sits on the Arabian Sea near the Strait of Hormuz, the gateway to the Persian Gulf – and the world’s most glaring oil supply chokepoint. Nearly a fifth of the world’s oil currently flows through this passage, ever prone to disruption. If the Duqm project succeeds, the shipping industry would be able to dock at the gates of the Middle East without needing to go all the way inside.
  • attracted the attention of Beijing’s much heralded Maritime Silk Road. More than three-quarters of Oman’s crude oil exports go directly to China.
  • While Duqm was never very densely populated, around 3,000 Bedouin – mostly fishermen and semi-nomadic herders – called the area home before the bulldozers arrived. These villages have now been demolished and the Oman government has built a new, modern town for them to relocate to. The houses look as if they were copied and pasted from Muscat – bright, white buildings two storeys high with garages and ornate gateways. There is a mosque in the centre. The houses stand empty. The local Bedouin prefer their traditional way of life – and want space to keep camels.
Ed Webb

Saudi Arabia May Become Oil Importer by 2030, Citigroup Says - Bloomberg - 0 views

  • Saudi Arabia, which depends on oil for 86 percent of its annual revenue, is accelerating exploration for gas and is planning to develop solar and nuclear power to preserve more of its valuable crude for export. The kingdom has refused to import gas, unlike neighboring producers such as Kuwait, and the United Arab Emirates that also lack fuel for power generation
  • Saudi Arabian power providers pay $5 to $15 a barrel for its fuel from state-owned Saudi Arabian Oil Co., according to the report. Brent crude, the benchmark for more than half the world’s oil, traded at $116 a barrel today on the London-based ICE Futures Europe Exchange.
Ed Webb

Warming Temperatures & Decades of Oil Spills Cause Irreversible Damage to the Persian G... - 0 views

  • According to estimates by experts, pollution levels in the Persian Gulf are 47 times higher than the world’s average and are steadily increasing. The 600-mile body of water that is also known as the Arabian Gulf currently has 34 oilfields with more than 800 wells. In addition, roughly 85% of the oil extracted in the Gulf countries is exported – 40% of the world export of crude oil and around 15% of the world’s total export of refined products come from the region – and more than half of all the oil is carried by ships. It is estimated that approximately 25,000 tanker movements sail in and out of the Strait of Hormuz, the only sea passage that connects the Persian Gulf to the open sea. Accidental spilling is unavoidable and, on average, 100–160 thousand tons of oil and oil products end up in the Gulf every year.
  • In 2017, ScanEx and the Institute of Oceanology of the Russian Academy of Sciences began conducting the pilot project on the satellite monitoring of the state of the water of the Persian Gulf. The results of the research confirmed the severe levels of oil pollution in the gulf waters and the damage, some of it which have been irreversible, on its marine life. “In addition to military-led pollution, other issues such as warming waters due to climate change and the increasing saline levels due to desalination efforts by countries in the Gulf area aggressively worsening marine productivity and habitats,” says George Stacey, an analyst working with Norvergence, an environmental advocacy NGO.
  • a combination of human activities was pushing at least 35 per cent of the fauna in the Gulf waters to extinction in the next 60 years.
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  • Fisheries of Bahrain, with a relatively large fishing industry, and Iran, with the highest catch and fewer employment alternatives due to sanctions, are pointed out to be particularly vulnerable
  • A lot of the damage done in the past few decades cannot be reversed completely but it is not too late to prioritize the sustainability of the marine ecosystems of the gulf waters right now because any damages to it will trickle down to impact the communities living on its coasts and reverse years of development and advancements.”
Ed Webb

Turkey Rattled by Weak Hand in Libya as Russia and Egypt Advance - 0 views

  • By assisting Egypt to protect its western border, Moscow has re-forged the military links of its former alliance with Cairo
  • The 75-year-old Haftar, who retains the loyalty of the parliament in Tobruk, is a central actor in the Libyan civil war. A former ally of deposed Libyan strong man Moammar Gadhafi who received his military training in the Soviet Union, Haftar maintains deep ties with Russia. Haftar’s forces control most of Libya’s oil facilities, particularly after they captured the ports along Libya’s “Oil Crescent” in September 2016, resulting in a rise in oil production from 300,000 barrels per day (bpd) to over 700,000 bpd in January 2017.  On February 21, 2018 Russian oil giant Rosneft signed an investment and crude oil purchasing agreement with Libya’s National Oil Corporation, paving the way for a major Russian role in Libya’s oil industry.
  • In January 2017, Haftar was invited aboard Russia’s aircraft carrier in the Mediterranean in order to conduct a video conference with Russian Defense Minister Sergei Shoigu
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  • During Ahmet Davutoğlu’s tenure as Turkey’s prime minister, relations between Ankara and the Tobruk-based parliament deteriorated to the point where all Turkish firms were expelled from Libya. 
  • Ankara's efforts to gain influence in Libya pale in comparison to the security assets that Moscow and Egypt may be preparing for a more expanded military presence in Libya. On November 7, 2018, Haftar and his senior staff visited Moscow for their latest meeting with Russia's defense minister Sergei Shoigu. Following the session, the Libyan Armed Forces released a video showing the presence of Yevgeny Prigozhin, an associate of Russian President Vladimir Putin and linked to several Russian private military companies, including the Wagner Group that allegedly participated in operations in Syria. Prigozhin's presence at the Haftar-Shoigu meeting has suggested to observers within Russia and beyond that Moscow may be gearing up for some form of increased intervention in Libya with operations similar to those conducted in Syria.
  • from November 3 to 16, Egypt hosted a two-week long joint exercise with the militaries of Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, and Jordan. Dubbed Arab Shield 1, the exercise involved land, naval, and air forces as well as Special Forces and took place at Egypt's base in Marsa Matrouh. While some view the exercises as a step toward creating an 'Arab NATO' to confront Iran, the massive joint Arab exercise on Egypt's Mediterranean coast sent a clear signal to Turkey and demonstrated the sort of coalition Egypt could muster should it decide to expand its military footprint in Libya
  • both Russia and Egypt have strategic incentives to escalate their support for the aging Libyan commander Field Marshal Khalifa Haftar.  In April 2018, the general suffered a stroke and required hospitalization in an intensive care unit in Paris.  Although two of Haftar's sons are commanders in the Libyan National Army, it is unclear whether either one of them could maintain the loyalty of the coalition of diverse factions that have united under the figure of Khalifa Haftar.  It would behoove both Moscow and Cairo to press their current advantage and deepen their respective positions in preparation for a post-Haftar era.
  • Moscow’s military presence in Libya would enable the Kremlin to complete a Russian ring around the southern half of the eastern Mediterranean. It is worth noting that Vladimir Putin's Russia is more popular than NATO in Greece and among Greek Cypriots. With only 195 nautical miles (360 km) separating Tobruk and Crete, Turkey thus faces the prospect of eventually finding itself encircled by a Russian presence among all of its regional adversaries
  • The change in the balance of power in North Africa in favor of Russia and Egypt inevitably and severely undermines Turkey's already challenging strategic position in the Eastern Mediterranean.
Ed Webb

How Dangerous Are U.S.-Iran Tensions? - Foreign Policy - 0 views

  • The Strait of Hormuz is one of the most critical chokepoints in the world. Nearly one-third of all seaborne crude oil (more than 18 million barrels a day) passes through the 21-mile-wide opening between Oman and Iran, as well as about 30 percent of all natural gas shipped on tankers. The strait is even narrower than it looks, since the deep-water shipping channel used by oil tankers is only two miles wide. Iran, with military presence on a number of islands near the strait and along the northern coastline, dominates that critical body of water.
  • While Saudi Arabia and the United Arab Emirates have some overland pipelines that can ship oil toward the Red Sea, thus bypassing Hormuz and any Iranian threat, those pipelines can only carry a fraction of what currently travels by ship
  • In the Iran-Iraq War in the 1980s, both sides targeted each others’ oil exports, leading to the so-called “tanker war,” which over nearly a decade saw more than 200 oil tankers attacked and more than 50 sunk or seriously damaged. By the waning years of the conflict, U.S. forces began escorting oil tankers through the Persian Gulf to ensure the free flow of oil. There, the risk of Iranian mines was made apparent, with a mine severely damaging a U.S. frigate. And as the British Navy learned in the 1915 Gallipoli campaign, in restricted waters, mines can hammer capital ships, and mine clearance can take an agonizingly long time.
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  • the U.S. Navy is trying to overhaul its minesweeping capability by relying less on dedicated minesweepers and more on underwater drones, helicopters, and more than a dozen mine-capable littoral combat ships.
  • “While Iran’s asymmetric assets do not provide it with the ability to win a major direct conflict with US forces, the coordinated, simultaneous use of Iran’s submarines, anti-ship cruise missiles (ASCMs), fast-attack craft, and swarm tactics in a first strike could inflict costly losses on US naval forces and commercial shipping in the Strait,” concluded Anthony Cordesman of the Center for Strategic and International Studies in an exhaustive study. “These assets and tactics, in combination with Iran’s large arsenal of naval mines, likely render Iran capable of closing the Gulf for a short while.”
Ed Webb

Suspected drone attack in Abu Dhabi kills 3, wounds 6 | AP News - 0 views

  • A possible drone attack may have sparked an explosion that struck three oil tankers in Abu Dhabi and another fire at an extension of Abu Dhabi International Airport on Monday that killed three people and wounded six
  • Yemen’s Houthi rebels claimed responsibility for an attack targeting the United Arab Emirates, without elaborating
  • Abu Dhabi largely has withdrawn its national forces from the conflict tearing apart the Arab world’s poorest nation while still supporting local militias there
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  • Police described the airport fire as “minor” and said it took place at an extension of the international airport that is still under construction
  • Police said the other blast struck three petroleum transport tankers near a storage facility for the Abu Dhabi National Oil Co. in the Musaffah area. The neighborhood, 22 kilometers (13 miles) from the center of Abu Dhabi city, also has an oil pipeline network and 36 storage tanks, from which transport trucks carry fuel nationwide.
  • Yemen’s government-aligned forces, aided by the UAE-backed Giants Brigades and with help from Saudi airstrikes, reclaimed the entire southern province of Shabwa from the Houthis earlier this month and made advances in nearby Marib province.
  • South Korea’s President Moon Jae-in visits the UAE. During the president’s meeting with Emirati Prime Minister and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum on Sunday, the two countries reportedly reached a preliminary deal valued at some $3.5 billion sell mid-range South Korean surface-to-air missiles to the UAE.
  • The Houthis have used bomb-laden drones to launch crude and imprecise attacks aimed at Saudi Arabia and the UAE over the course of the war. The group has also launched missiles at Saudi airports, oil facilities and pipelines, as well as used booby-trapped boats for attacks in key shipping routes.
  • The war has killed 130,000 people in Yemen - both civilians and fighters - and has exacerbated hunger and famine across the impoverished country
  • while suspicion likely would fall on the Houthis, Iraqi-based militias also have threatened the Emiratis with attacks
  • “The attack is another reminder of the highly complex missile and drone threat faced by the UAE and the region’s other main oil producers,”
Ed Webb

OPEC Sees Widening Gap in Iran's Oil Output Views - 0 views

  • Iran pegs its August crude-oil production at 3.7 million barrels a day, up 5% from last year and broadly stable since the beginning of the year.
  • But secondary sources cited by OPEC--shipping and oil-industry experts with close knowledge of the country's production--put Iran's output at 2.8 million barrels a day, about 1 million barrels a day lower than Iran's estimates and 24% down compared with last year.
Ed Webb

Oil World Turns Upside Down as U.S. Sells Oil in Middle East - Bloomberg - 1 views

  • in a trade that illustrates how the rise of the American shale industry is upending energy markets across the globe, the U.A.E. bought oil directly from the U.S. in December
  • The end of a ban on U.S. exports in 2015 coupled with the explosive growth of shale production, has changed the flow of petroleum around the world. Shipments from U.S. ports have increased from a little more than 100,000 barrels a day in 2013 to 1.53 million in November, traveling as far as China and the U.K.
  • U.A.E. crude production was 2.85 million barrels a day in January, according to data compiled by Bloomberg. Output has declined from 3.07 million at the end of 2016 as OPEC and allies cut production to reduce a global glut and prop up prices.
Ed Webb

Saudi Arabia's Energy Crisis | Arabia, the Gulf, and the GCC Blog - 0 views

  • consuming more and more of its precious petroleum resources, and within a decade may have to begin cutting back on its oil exports to the rest of the world
  • In a recent report entitled, “Burning to Keep Cool: The Hidden Energy Crisis in Saudi Arabia,” Chatham House researchers Glada Lahn and Prof. Paul Stevens said unchecked growth in energy consumption in Saudi Arabia was a “cause for international concern.” If it continues at its present rate, this would threaten the Kingdom’s ability to stabilize world oil markets.
  • Saudi crude export capacity would fall by about 3 million bpd to under 7 million bpd by 2028 unless domestic energy demand growth is checked
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  • Saudi Arabia hopes to buy itself some time with major energy conservation efforts. Saudi Aramco is pursuing an initiative in cooperation with the Kingdom’s utilities and business sector to generate massive energy savings on as rapid a timetable as possible. This initiative includes moves into renewable power sources like solar and wind, plus efforts to slash energy waste and duplication and create a business culture sensitive to energy efficiency
  • Plans to add renewable power would help maintain fiscal balance for another two or three years, but that’s all
  • Saudi Arabia currently relies on oil revenues for about 80 percent of its government spending
  • Chatham House believes “huge economic, social and environmental gains from energy conservation are possible in Saudi Arabia” but it cautions that the longstanding Saudi tradition of low energy prices and the Kingdom’s sluggish bureaucracy pose “challenges” to implementing needed pricing and regulatory reforms.
  • Saudi Arabia is aiming to generate about 10 percent of its power needs from solar energy by the year 2020
Ed Webb

Iran's economy: Sanctions begin to bite | The Economist - 0 views

  • ordinary Iranians are increasingly worried and indeed hurt by sanctions
  • Even taken together, the sanctions are unlikely to bring the world’s fifth-biggest crude-oil exporter to its knees. The loopholes remain big enough, and the attraction of Iran’s 75m-strong market strong enough, to keep goods and money flowing. Although South Korea joined Japan last month in slapping sanctions on a range of Iranian banks and firms, bringing it into line with other American allies, it remains keen to protect trade with Iran that topped $10 billion last year, so it quickly signed a deal to let Korean and Iranian traders settle accounts via special facilities in two Korean banks and in Korean currency. The Asian powerhouse, China, sees no need for such sleight of hand, and has rapidly expanded its share of Iran’s market, as has neighbouring Turkey.
  • Almost all the biggest international traders in refined petroleum products, for instance, have stopped dealing with Iran, forcing the country to rely on costlier small-scale overland shipments for much of the petrol that it still has to import because of underinvestment in refining.
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  • oil output is likely to fall by 15% and exports by as much as 25%
  • After crushing its reformist opponents, his conservative faction has broken out in increasingly rancorous internal wrangling. The biggest looming issue is Mr Ahmadinejad’s plan to slash consumer subsidies that cost his government $70 billion-100 billion a year, a quarter of GDP. Already lumbered with feeble economic growth and high unemployment, Iranians now face the prospect of sharp rises in prices of food, fuel and transport. The coming winter looks set to be harsh.
Ed Webb

The New Energy geopolitics and the Gulf Arab States - The Geopolitics - 0 views

  • today’s largest volumes of global seaborne crude oil – around 30% – along with a significant volume of LNG, passes through its Straits of Hormuz, making it the most important maritime oil chokepoint which connects the Gulf states with key global markets in the East and the West
  • The International Energy Agency (IEA) sees that the world can reach net-zero emissions by 2060, wherein 75% of reduction comes from energy efficiency and renewable energy, with another 14% from carbon capture and storage, 6% from nuclear and 5% from fuel switching. In this context, the fossil fuels’ share of the global energy mix falls from 82% in 2014 to 35% in 2060 under the 2°C scenario, or to 26% in the below 2°C scenario.
  • Renewable technologies and batteries require certain minerals for their production, such as cobalt, lithium, nickel and rare earth elements. Despite the fact that renewable endowments for wind, solar, geothermal and biomass are scattered geographically, controlling the production of these new commodities will have major geopolitical consequences as they are based only in a selected number of countries such as Chile, Bolivia, Mongolia, and the Democratic Republic of Congo (DRC).
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  • At present, China dominates the world’s investment and innovation in renewable energy technologies.
  • the importance of the Gulf Arab states will be eroded not only because of the decline in global demand for oil but also because Gulf countries are not rich in the minerals required to build renewable energy technologies, and are highly dependent on technology imports rather than in-house technology innovation and research and development
  • all hydrocarbon producer economies will see a fall in total rent of about 40% by 2040 compared with the ‘golden years’ of 2010-14 due to rigorous policies on fuel switching and efficiency to reach net-zero emissions in the second half of this century
  • In 2013, R&D investment in Gulf countries averaged 0.3% of the gross domestic product (GDP), compared with 2%–3% in industrialized countries. The 0.3% figure is far less than the minimum percentage (1%) needed for an effective science and technology base specified by UNESCO.
  • in the new energy era, the Gulf Arab states are still advantaged by their geographical location. These countries are specially positioned for harnessing wind and solar energy
Ed Webb

A Thousand Hezbollahs: Iraq's Emerging Militia State - Newlines Institute - 1 views

  • This intelligence briefing provides extensive, never before reported details on how Iran-linked Iraqi militias are creating a new order to dominate a strategic region of the country that connects Iraq and Syria. Iranian-linked militia groups are taking advantage of the vacuum caused by the collapse of ISIS’s caliphate to begin building security, social, political, and economic structures to dominate this strategic area of Iraq.
  • Local and provincial politicians cooperate with some of the militias
  • get their preferred academics put in charge of some of the more important colleges
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  • demographic engineering
  • Militia fighters from central and southern Iraq have registered as residents of Ninewa Plain and Mosul in order to legitimize the seizure of property there
  • took control of more than 72 oil fields in the Qayyarah area south of Mosul that ISIS had previously controlled, and the factions pilfer around 100 tanker trucks of crude oil daily
  • hundreds of thousands of dollars every day through extortion at illegal checkpoints they have set up across the country.
  • The January 2020 U.S. decision to assassinate a top leader of the PMF, Abu Mahdi al-Muhandis, along with the top Iranian commander, Maj. Gen. Qassem Soleimani – the architect of the Iran’s Iraqi Shiite proxy network – did strike a major blow to these militias but also emboldened them, and as a result they remain deeply rooted in the country. 
  • infiltration into police and security forces has allowed militias to control Iraqi citizens’ movements, trade, occupation, and other aspects of private life
  • context for future conflict and disorder
  • Iran moved to cultivate Shiite militias as a key instrument through which it could transform a state that represented a threat into a one that is weak and subordinate to its wishes
  • Through the critical role it played in the dismantling of the ISIS caliphate in Iraq, the Shiite militia coalition known as the Popular Mobilization Forces (PMF) established itself as a major force. By 2017, and as a consequence of its heavy involvement in the liberation of areas that had been taken over by ISIS, the Shiite militia alliance emerged as a power center rivaling Baghdad and a threat to human security in the country
  • this report shows how these nonstate actors have become a parallel state by creating their own political economy, which is riddled with corruption. Additionally, these Shiite militias have coerced their way into Iraq’s national security apparatus and have been recipients of official state funds
  • Frictions have escalated among the militias: between the militias loyal to Iran and those loyal to the Iraqi shrines, and between the Shiite militias and the Sunni and tribal militias, who receive fewer positions of authority and less effective weaponry and equipment than their Shiite counterparts
  • these militias have also begun to threaten Turkish forces trying to project influence into northern Iraq
  • consolidating their grip in northwestern Iraq and are enabling Iran’s broader regional strategy extending through the Levant to the Mediterranean
Ed Webb

Iran: We can destroy US bases 'minutes after attack' - www.jpost.com - Readability - 0 views

  • Haji Zadeh said 35 US bases were within reach of Iran's ballistic missiles, the most advanced of which commanders have said could hit targets 2,000 km (1,300 miles) away.
  • It was not clear where Haji Zadeh got his figures on US bases in the region. US military facilities in the Middle East are located in Bahrain, Qatar, the United Arab Emirates, Kuwait and Turkey, and it has around 10 bases further afield in Afghanistan and Kyrgyzstan.
  • Defense analysts are often skeptical about what they describe as exaggerated military assertions by Iran and say the country's military capability would be no match for sophisticated US defense systems.
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  • Iran has upped its fiery anti-West rhetoric in response to the launch on Sunday of a total European Union embargo on buying Iranian crude oil - the latest calibrated increase in sanctions aimed at pushing Tehran into curbing nuclear activity.
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