Rial at Historic Low

The Iranian currency rial continued loosing value against US dollar and finished the day at 13,070 rials per dollar, a historic low. Since Ahmadinejad has become president, the rial has lost more than 40% of its value against dollar.

‘US tightening noose around Iran neck?’ – Press TV

Iran’s state-run English-language Press TV today offered an analysis on the growing tensions in Iran-US relations. In a piece titled ‘US tightening noose around Iran neck?’, appearing prominently on its website, it examines the issue in the aftermath of the alleged Iranian assassination plot.

“Following the anti-Iran Saudi envoy assassination scenario, the US agenda to tighten its grip on the Islamic Republic has taken a new shape and form,” Press TV quotes its political analyst, Ismail Salami [Press TV, 30 October].

“A Republican-controlled congressional committee has recently heard testimony demanding an extensive range of covert operations against the country under the false pretext of Tehran's involvement in a plot to assassinate Saudi envoy to Washington,” Salami said.

“The US has been carrying out many covert operations to that effect since 2007 -- assassinating several Iranian scientists, including Massoud Ali-Mohammadi and Majid Shahriari, throwing support behind minority Ahwazi Arab and Baluchis and other opposition groups as well as gathering intelligence on Iranian nuclear sites, to name a few” [Press TV, 30 October].

In a related story, the New York Times reported today that the Obama administration plans to bolster the American military presence in the Persian Gulf after it withdraws the remaining troops from Iraq this year.

“That repositioning could include new combat forces in Kuwait able to respond to a collapse of security in Iraq or a military confrontation with Iran,” the Times reports. “In addition to negotiations over maintaining a ground combat presence in Kuwait, the United States is considering sending more naval warships through international waters in the region.

“With an eye on the threat of a belligerent Iran, the administration is also seeking to expand military ties with the six nations in the Gulf Cooperation Council (GCC)— Saudi Arabia, Kuwait, Bahrain, Qatar, the United Arab Emirates and Oman” [The New York Times, 30 October].

Pakistan Withdraws from Iran Pipeline Project

TAPI Pipeline Will Link Turkmenistan, Afghanistan, Pakistan and India

Iran’s popular news website Tabnak reported on Saturday that Pakistan has decided not to join the “Peace Pipeline” project, linking Iran’s southern gas fields to Pakistan’s national pipeline system. Pakistan has instead will stay with the proposed TAPI pipeline, importing gas from Turkmenistan via Afghan territory.

The proposed Iran-Pakistan gas pipeline was originally called IPI (Iran-Pakistan-India) pipeline. India withdrew from the project late last year and the name changed to Peace Pipeline. Iran has already constructed the Asalouyeh-Iranshahr portion of the pipeline, inside Iran, and the construction of the pipeline to the Pakistani border is scheduled to be completed later this year. Now with the Pakistani withdrawal, the pipeline will become an all-Iranian variety.

The TAPI pipeline will link Turkmen gas fields to Afghanistan, Pakistan and India. The final agreement among the four countries was signed in August.

Tabnak quotes Pakistani officials as saying that the US pressure on the country to withdraw from the Iranian proposed project was the main reason for the withdrawal.

Guardian Council Warning on Upcoming Parliamentary Elections

Ayatollah Ahmad Jannati, the chairman of Iran’s Guardian Council, the governmental body charged with approving the final list of candidates presented to the public for the upcoming parliamentary elections, warned those spending “unconventional” amounts of money in their campaigns that they would be disqualified to run for Majlis.

The supporters of President Ahmadinejad and his chief of staff, Esfandiar Rahim Mashaie, whom are routinely labeled “deviationists” by the ruling conservatives, are believed to be waging organized and well-financed campaigns. Jannati’s comments, delivered at Friday Prayer sermon, was a clear warning that the council might be planning to disqualify the group’s candidates under different pretexts, including their campaign budgets.

“Those candidates who spend unconventional sums of money for the election campaigns might have a problem in securing the approval of the Guardian Council,” Ayatollah Jannati said [IRNA, 28 October].

Jannati added that the council would be closely monitoring the election campaigns all across the country to identify the big spenders. Ayatollah Jannati was appointed to his post by the country’s supreme leader, Ayatollah Ali Khamenei.

The parliamentary elections are scheduled to be held on 2 March 2012.

Blast and Fire at Oil Rig, Refinery

An explosion at an oil field in southern Bushehr province today killed an employee of the National Iranian Drilling Company and injured three. Mehr News Agency reported that the blast at Bibi Hakimeh oil rig happened when a huge amount of gas was released during drilling.

In a separate incident, the Shazand Oil Refinery in the central city of Arak was also hit a blast and a fire. No reports of casualty or damage were available.

Shazand Oil Refinery was inaugurated last February at the cost of more than $3 billion and is one of the largest refineries in the Middle East. It is the largest facility producing gasoline in the country.

Majlis Calls Off Motion to Summon Ahmadinejad

The Iranian parliament, Majlis, today called off a motion to summon President Ahmadinejad to answer MP’s questions regarding the recent banking scandal and concerns over what MPs had termed as president’s disregard of laws passed by the legislative body. The motion had been sponsored by 100 conservative members of Majlis, but was withdrawn under heavy pressure from the speaker. Some parliamentarians had raised their own concerns that questioning the president would weaken the government during a time of heightened tensions with the US over an alleged plot to kill the Saudi ambassador to Washington and the expected tightening of economic sanctions against the country.

US Seeking Support for New Tougher Sanctions Against Iran

The Central Bank of Iran Reportedly Targeted

The US is seeking European support for tougher sanctions on Iran. The Treasury Undersecretary David Cohen today met with British officials in London to discuss potential new sanctions in the aftermath of the alleged Iranian plot to kill the Saudi ambassador to Washington. Cohen will also visit Berlin, Paris and Rome during the week.

“Iran needs to be held accountable for this plot,” Secretary Cohen said [AP, 24 October].

It is reported that the US is seeking the support for bringing sanctions against the Central Bank of Iran (CBI). Such move, if implemented, would by far be the most serious sanction against the country, with potentially devastating effects on the Iranian economy.

“We are going to continue to look at those financial institutions that are involved with proliferation activity for Iran and continue to try to isolate them from the international financial sector,” Cohen added.

Impeachment Proceedings Against Ahmadinejad’s Ministers

Twenty-eight members of Majlis, Iran’s parliament, today started the impeachment proceeding against President Ahmadinejad’s finance minister, Shamseddin Hosseini. The parliamentarians are said to be unhappy about the government’s handling of a $3 billion bank fraud, the largest in Iran’s history. A motion to impeach Energy Minister Majid Namjou was also filed at Majlis. The parliamentarians are dissatisfied with the latter's performance in office.

The impeachment proceedings against the ministers manifest the determination of the conservative majority in Majlis to keep pressure on Ahmadinejad. They have already accused his political confidant and chief of staff, Esfandiar Rahim Mashaie, of leading a “deviant” faction against the ideals of the Islamic Republic, regarding him as dangerous as the leaders of the 2009 Green Movement.

Ahmadinejad’s CNN Interview

Iranian President Mahmoud Ahmadinejad said on Saturday that US pursuit of “hegemonic” practices harbingers its downfall. During an interview by CNN, as reported by the Iranian media, Ahmadinejad said the US has earned itself the position of a “hated” government as it “encroaches upon the independence of sovereign nations.” He predicted the “collapse of the US Empire” [IRNA, 22 October].

“The American administration should change its policies as these have failed both domestically and internationally,” said Ahmadinejad.

Ahmadinejad also dismissed as “baseless” US allegations that Iran was involved in an assassination plot against the Saudi ambassador to Washington. He said the US was attempting to drive a wedge between Iran and Saudi Arabia.

Iran Rejects UN Human Rights Report

UN Rapporteur Had Accused Iran of Human Rights Violations

The Iranian officials today rejected a UN report on human rights situations in Iran written by Ahmed Shaheed, UN Special Rapporteur on the Situation of Human Rights in the Islamic Republic of Iran.

“We cannot accept human rights dictated by the West, as we have accepted a religious regime and defend Islam's human rights principles assertively and of course wisely,” said Ayatollah Sadeq Larijani, the head of Iran's judiciary.

The UN special rapporteur today defended his critical report on the country. Shaheed told reporters in New York that he is sure of the complete accuracy of the contents of his interim report, released last weekend, and will issue a more comprehensive report in the months to come.

“I'm confident the report is reliable and can be useful in producing information about what is happening in Iran,” Shaheed said [IPS, 20 October].

The report included allegations of obstructing free and fair elections, denial of freedom of expression and assembly, allegations of deprivation of the right to education, and the harassment and intimidation of religious and ethnic minorities, human rights defenders, and civil society and religious actors, IPS reports [20 October].

Since Shaheed's appointment, Iranian officials have not allowed him to enter the country. Saheed, the former foreign minister of the Maldives, said while he will continue to attempt a dialogue with Iranian authorities, he intends to move forward with a more comprehensive report, with or without Iran's cooperation.

Shaheed also expressed concern about the Iran's justice system, including certain practices that amount to torture, cruel, or degrading treatment of detainees; the imposition of the death penalty in the absence of proper judicial safeguards; the denial of reasonable access to legal counsel and adequate medical treatment; and the widespread use of both secret and public executions.

US Grand Jury Indicts Two Iranians

Accused of Conspiracy to Kill Saudi Ambassador to Washington

A US grand jury today formally indicted two Iranians suspected of being part of a conspiracy to kill the Saudi ambassador to Washington. One suspect, Mansour Arbabsiar, 56, was arrested on 29 September in New York, and the other, Gholam Shakuri, is reported by the US authorities to be a member of IRGC’s Quds Force, living in Tehran.

Mr. Arbabsiar is scheduled to be arraigned on Monday and will have a chance to enter a plea to the charges brought against him by the Justice Department. His defense attorney, Sabrina Shroff, has previously stated her client would plead not guilty. The two men are charged with one count of conspiracy to murder a foreign official, two counts of use of interstate and foreign commerce facilities in the commission of murder for hire and one count each of conspiracy to use a weapon of mass destruction and conspiracy to commit an act of terrorism. US District Judge John Keenan will oversee the case in Manhattan federal court.

UPDATE (24 October): Mr. Arbabsiar pleaded not guilty in federal court to plotting to kill the Saudi ambassador to Washington in a bomb attack.

Qaddafi Is Killed

An end to four decades of ruthless autocratic rule

The way ahead is to hold free elections and establish a new regime free of barbarianism and lifelong rule of an autocratic leader; paving the way for the proud people of Libya to establish democratic rule in their country.

Photo: Ismail Zitouni/Reuters/NY Times

Iran Khodro Company (IKCO), the country’s largest auto manufacturer, displayed its latest models, including its new sedan, Runna (pictured above), at an exhibition of Iran's export commodities that opened today in Ukrainian capital city, Kiev.

Photo: IRNA

Iran Currency Declining

The Iranian currency rial continued losing value against dollar on Tuesday, with the US dollar traded at 12,720 rials in open exchange markets in Tehran. At this rate, the dollar was being traded at 22 percent above the official rate of 10,660 rials set by the Central Bank of Iran (CBI).

Yesterday, CBI asked commercial banks to start selling dollar at the official rate. But Fars News Agency is reporting today that the banks have generally ignored CBI’s directive and were not offering dollar at that rate.

Iran Ready to “Seriously” Examine US Plot Allegations - FM

Iran’s Foreign Minister Ali Akbar Salehi said today in Tehran that Iran would examine “seriously” US allegations of an Iranian involvement in the plot to assassinate the Saudi ambassador to Washington. The foreign minister's statement was the first indication that Iran might be open to cooperate with the investigation.

“We are prepared to examine any issue, even if fabricated, seriously and patiently, and we have called on America to submit to us any information in regard to this scenario," Salehi said [IRNA, 17 October].

Meanwhile, the UN Secretary-General Ban Ki-moon said today he had passed correspondence about the US allegation of Iran's involvement in the plot to the UN Security Council.

Growing Tensions in Iran-US Relations

Khamenei Warns US Over Assassination Claims

Iran’s Supreme Leader Ayatollah Ali Khamenei today warned the US that any measures taken against the Islamic Republic over the alleged plot to assassinate the Saudi ambassador to Washington would elicit “resolute” Iranian response.

“If U.S. officials have some delusions, (they must) know that any unsuitable act, whether political or security, will meet a resolute response from the Iranian nation,” Khamenei said [Press TV, 16 October].

On Thursday, President Obama had vowed to push for “toughest sanctions” against Iran for its involvement in the alleged plot. The president said the main suspect in the case, Mr. Arbabsiar, had “direct links, was paid by, and directed by individuals in the Iranian government.”

Iranian officials have consistently denied the allegations since they first emerged last week.

Ayatollah Khamenei’s blunt comments manifest Iran’s concerns that Washington would use the case to gather international support to further isolate the country.

Khamenei: US Unable to Isolate Iran

Iran’s Supreme Leader Ayatollah Ali Khamenei today criticized the US for its “efforts aimed at isolating the Islamic Republic.”

“They (the US) say that they want to isolate Iran, (but) they are themselves isolated; today, no country is more hated than the US in the world,” Khamenei said in a speech in Gilan-e Gharb in the western province of Kermanshah [IRNA, 15 October].

On Thursday, US President Barack Obama had vowed to push for “toughest sanctions” against Iran for its involvement in an alleged plot to kill Saudi Ambassador to the US. The president said the main suspect in the case, Mr. Arbabsiar, had “direct links, was paid by, and directed by individuals in the Iranian government.”

Gareth Porter's take on alleged Iran terror plot

According to Gareth Porter:

While the administration of Barack Obama vows to hold the Iranian government "accountable" for the alleged plot to assassinate the Saudi ambassador in Washington, the legal document describing evidence in the case provides multiple indications that it was mainly the result of an FBI "sting" operation.

Although the legal document, called an amended criminal complaint, implicates Iranian-American Manssor Arbabsiar and his cousin Ali Gholam Shakuri, an officer in the Iranian Quds Force, in a plan to assassinate Saudi Arabian Ambassador Adel al-Jubeir, it also suggests that the idea originated with and was strongly pushed by a undercover DEA informant, at the direction of the FBI.

This is how the alleged Iran terror plot appears to have gone down:

Arbabsiar was seeking a drug deal and was caught in a DEA net. FBI/DEA prompted this into a drug/assassination deal.

The motivation of Arbabsiar and his contacts in Iran was negotiating a drug trafficking connection; the effort by FBI/DEA was to ensnare the deal into charges of assassination/bombings.

So the actual evidence appears to show the DEA informant involving Arbabsiar into the FBI/DEA initiated suggestion for an assassination/bombing deal, while Arbabsiar and any of his contact’s purpose is to establish a drug trafficking deal.

That’s how this makes sense.

The USG notion that this is a IRGC/Quds initiated terror plot appears to be misleading, as is the notion of any IRIG leadership involvement in the matter.

So the real question might be how high the initial idea for and approval of this FBI/DEA initiative reaches in the U.S. government, rather than pointing to leadership approval in Iran or even idea for and approval within IRGC/Quds. Which begs a second question: what is the ultimate object of this U.S. initiative?

For a complete reading of Gareth Porter's take on the matter, click HERE.

Oil Prices Rising

OPEC reported today that the price of its crude oil basket has risen to $107.68 a barrel, an increase of $2.07 over the previous day. Iran’s Heavy is one of the 12 crudes making up the OPEC basket [IRNA, 13 October].

Alleged Plot to Kill Saudi Ambassador Violates UN Treaty

The US and Saudi Arabia Could Take the Case to UN or CIJ

The alleged plot to assassinate the Saudi Arabian ambassador to the US may have violated a UN treaty protecting diplomats, Reuters reports. US authorities have arrested Iranian-American Manssor Arbabsiar for the alleged plot and accused a second Iranian, Gholam Shakuri, who is reported to be in Iran and a member of IRGC- Quds Force.

If the two Iranians were involved in the alleged plot to kill Saudi Ambassador Adel al-Jubeir, the case would be in violation of the ‘UN Convention on the Prevention and Punishment of Crimes Against Internationally Protected Persons.’ Iran signed the treaty in 1978, which would require Tehran to consider prosecuting Shakuri in its court system or extradite him to a requesting country, potentially the US or Saudi Arabia. [Reuters, 13 October].

The US and Saudi Arabia also have the option of pursuing action at the UN Security Council. Another option is for the US and/or Saudi Arabia to seek an arbitration and ultimately a ruling from the Court of International Justice (CIJ) in The Hague’s.

Meanwhile, the legal proceedings against Mr. Arbabsiar will proceed in the US District Court in New York where he will appear on 25 October for a preliminary hearing.

Mahan Air Added to US Sanctions List

The US Treasury’s Office of Foreign Assets Control (OFAC) on Wednesday added Iran’s Mahan Air to its Specialty Designated Nationals (SDN) list. The Treasury spokesman said that Mahan Air provides “financial, material and technological support to the IRGC-Quds Force and to (Lebanon’s) Hezbollah” [AP, 13 October].

The Treasury also charged the airliner with ferrying personnel between Iran and Syria for military training and helping IRGC-QF officers to covertly travel abroad. The airliner’s crews were also accused of shipping arms on behalf of Iran and Hezbollah.

On Sunday, the International Air Transport Association (IATA) suspended the Iranian national airline, Iran Air, after the Treasury’s OFAC had added it to its SDN list. IATA is expected to also suspend Mahan Air after Wednesday’s action by the Treasury. The suspension would prohibit Mahan to use other airlines' facilities and non-Iranian travel agents would not be able to book passengers on its flights. Such restrictions, if implemented by IATA, would severely limit Mahan Air’s ability to service its foreign destinations. Mahan Air is Iran’s most modern and fastest growing airline.

Photo: Mahan Air