Archive for the ‘Iran’ Category

OPEC+ cheered by economy, but will monitor Iran talks as it meets to discuss oil cuts – S&P Global

Highlights

23-country oil producer bloc set to meet online June 1

OPEC+ delegates say the plan remains to ease quotas

Iran sanctions deal, Asia coronavirus hotspots bear watching

Oil prices are nearing $70/b again, western economies are humming from robust COVID-19 vaccine campaigns and the summer driving season is about to kick off prime conditions for OPEC and its allies to be sending more crude into the market.

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But coronavirus crises in Asia and the potentially imminent prospect of sanctions relief for Iran are sure to remain top of mind for the OPEC+ coalition, as it prepares to convene online June 1 to discuss production policy.

For now, delegates told S&P Global Platts that the 23-country alliance will press on with plans to relax output quotas over the next two months, until more clarity emerges over the fate of the Iran nuclear deal and the impact of coronavirus containment measures in India, Japan, Taiwan, and other hotspots.

OPEC+ countries, which held almost 7 million b/d of production offline in April, are in the process of boosting output by some 2.1 million b/d from May-July roughly 2% of pre-pandemic demand of which 1.4 million b/d will come from Saudi Arabia.

"It is premature to decide to delay any further easing of the production cuts while no agreement has yet been signed on the lifting of Iranian sanctions," one delegate said on condition of anonymity. "Compared to the previous month, the outlook for the short term is brighter, although uncertainties continue to weigh on oil demand."

Beyond July, however, production levels are yet to be determined. The supply accord between OPEC and its allies calls for quotas to be held steady from July to April 2022, although rapidly changing market conditions as the global economy continues to emerge from the pandemic make it likely to be adjusted, with OPEC and its allies now meeting almost every month.

Ministers will actually be convening twice in June a second meeting for OPEC members only is scheduled for June 24.

"The good part of the monthly OPEC+ meeting is giving opportunities to monitor the market closely," another delegate said. "The market is good but still can become fragile at any time."

The OPEC+ talks will be happening at the same time as US, Iranian, and European diplomats converge for another round of nuclear deal talks in Vienna.

Platts Analytics estimates that if a framework agreement can be reached in the coming weeks, before Iran's June 18 presidential election, sanctions relief for Iran could bring about 1.05 million b/d of Iranian crude supply into the market between May and December, potentially complicating OPEC+ efforts to prevent oil prices from backsliding.

Dated Brent, which Platts assessed at $65.68/b on the day of the last OPEC+ meeting April 27, has mostly wobbled in the upper $60s/b since hitting a two-year high of $70.30/b May 5.

But strong economic indicators from the US, UK, and other western economies, supported by fiscal stimulus measures, could help absorb the coming barrels as more cars hit the roads and industrial activity rebounds, offsetting any demand weakness from Asian countries hit hard by resurgent coronavirus infections.

Platts Analytics forecasts robust global oil demand growth of 5.1 million b/d in June and July, with supply still bullishly remaining 1.5 million b/d in deficit.

"The summer demand uplift appears to make our expected timing of Iran's return to market fortuitous for OPEC+ and market balances," Platts Analytics said in a May 28 note.

The OPEC+ deliberations will begin May 31 with a meeting of the delegate-level Joint Technical Committee to review supply-demand forecasts and assess member country compliance with quotas, which Platts calculated at 111% for April.

A nine-country Joint Ministerial Monitoring Committee co-chaired by Saudi Arabia and Russia is then scheduled to convene June 1, followed by the full OPEC+ meeting as soon as that ends.

Conformity levels have been enhanced over the past few months by an extra 1 million b/d cut that Saudi Arabia has implemented, papering over lackluster adherence by Russia, Kazakhstan, Iraq, and others. But with Saudi Arabia now dialing back its extra cut by 250,000 b/d in May, 350,000 b/d in June and 400,000 b/d in July, collective OPEC+ compliance levels could begin to drop below 100%, and pressure from the kingdom and other members on quota busters could grow.

Under the deal, countries that exceeded their caps have until September to make so-called compensation cuts of equivalent volume, although there is meager evidence of members making good on this requirement since it was instituted last year.

OPEC+ ministers also will be holding their meeting with the oil industry under a darkening environmental cloud, with ExxonMobil and Chevron shareholders rebuking the companies over their sustainability shortcomings and a court ordering Shell to slash its carbon emissions.

These actions came just after the International Energy Agency unveiled its roadmap to a net-zero world by 2050, which would require no new upstream oil and gas investments and significant declines in fossil fuel consumption.

OPEC has warned that advocacy around the IEA's roadmap could destabilize the oil market and lead to damaging price volatility, and ministers have been keen to defend their lifeblood industry while underscoring their commitment to clean energy.

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OPEC+ cheered by economy, but will monitor Iran talks as it meets to discuss oil cuts - S&P Global

Five thousand years of mystical magnificence: Epic Iran at the V&A review – The Guardian

Typical. You go for months without any culture, then 5,000 years of it come along at once. Thats what the V&As luxury coach tour of a blockbuster promises, and delivers, including quite brilliant recreations of Irans two most renowned sites, Persepolis and Isfahan. Epic Iran shows there is a cultural history that connects the country as it is today with the people who lived here five millennia ago. To put this in perspective, thats like telling the story of Britain from before Stonehenge to the present and hoping it all connects up somehow. But in Iran, it does.

Thats partly because of a pride in history that preserved traditions across the millennia. The most important document of that is The Shahnameh, The Book of Kings, written at the start of the 11th century CE by the poet Ferdowsi. Iran had been converted to Islam in the seventh century, but Ferdowsis epic is packed with the heroic deeds and bloody battles of the ancient, pre-Islamic Sasanian empire. It is also written in Persian, as opposed to Arabic. There are gorgeous manuscripts of this classic. A masterpiece made in Tabriz in the 1500s for the Safavid ruler is open on a battle scene in which bejewelled horsemen charge each other across a sea-like expanse of blue: the painter takes time to depict little flowers blooming on the battlefield, just before the horses trample them.

That eye for nature is rooted in antiquity. A pottery jug in the shape of a humpbacked bull from 1200-800 BCE, a golden bowl from the same period with exquisite 3D gazelles bursting from it, and many more horned and frolicking beasts fill the earliest art here with animal life. In the Persian empire, which ruled much of the Middle East in the sixth and fifth centuries BCE, the beasts become even more mythic and ornate. An armlet has horned griffins on it, in gold, lapis lazuli and other precious stuffs.

The Persian empire is brought to stately, ceremonial life in one of the exhibitions big set pieces. Real treasures such as a spindly gold model of a chariot and huge horn of plenty drinking vessels are displayed among ever-changing virtual images of Persepolis, as it was and is now. Persepolis was built for rituals and tribute ceremonies, not living in: its mystique soaks in as you watch a cast of its sculptures change colour to show how it was originally painted. Yet even here there was room for artistic delicacy. A real chunk of the reliefs of Persepolis, lent by the Fitzwilliam Museum in Cambridge, shows one courtier touching his friends beard in a gesture of intimacy: the other reciprocates with a similarly warm tap on the shoulder.

Alexander the Great torched Persepolis and crushed the Persian empire. You can read the ancient Greek historian Herodotus if you want to see what the Persian empire looked like to outsiders and how the Greeks defined themselves, and hence the west, against it. What you get here is the view from inside. The ruler Cyrus the Great speaks for himself on the Cyrus Cylinder from the British Museum, a clay roll incised with cuneiform letters telling how Cyrus has restored religious rights in his empire.

The artistic richness of Iran has to have come from its geographical openness to east and west, absorbing influences from China, Mesopotamia, Greece, the Mongols. That gives Persian Islamic art a subtle strength that in turn influenced the whole Islamic world. Readers of Orhan Pamuks My Name is Red will know that as far away as Istanbul, miniaturists illustrated the Shahnameh and imitated the Persian masters.

This artistry went into overdrive when the Safavid empire united Iran behind Shia Islam in the 1500s. And the V&A makes its dazzling capital Isfahan materialise around you. One of the reasons it can do so is that the Victorian founders of this museum commissioned full size copies of some of Isfahans most beautiful decorated walls and domes. These flow up around you, their colours merging with video images of Isfahans architecture on a dome-shaped screen above. I have never been to Isfahan but in palaces and mosques Ive visited, it is the ensemble of light and space, sun catching on lustrous tiles, domes cooling the mood, that creates magic. They catch that rhapsodic feeling here.

Then, like Coleridge disturbed in his reveries of Kubla Khan, I was punched awake by reality. A 19th-century painting shows the women of a harem, and you realise the Persian past was not all poetry and paradise. Shirin Neshats 1998 video Turbulent makes a similar point. Across a dark space, two singers face each other on separate screens. While a man sings a medieval love poem by Jalal al-Din Rumi, a woman, alone in the dark, responds with an anguished wordless wail. There isnt any model for her feelings, or the world she imagines. Irans next 5,000 years are still to be written, and the past probably doesnt offer any answers.

Epic Iran at the V&A opens on 29 May.

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Five thousand years of mystical magnificence: Epic Iran at the V&A review - The Guardian

Iran’s Guards Tell Ahmadinejad To Keep Silent, As He Warns Of Regime Change – Iran International

Former President Mahmoud Ahmadinejad has revealed that the Revolutionary Guards' security chief for Tehran called on him at his house in east-Tehran Monday night, to tell him he was disqualified as a presidential candidate and ask him "to keep silent and cooperate."

Ahmadinejad had said during and after his registration as a candidate that if he is disqualified, he will not vote in the election, which was seen as a signal to his voters. However, fearing protests by Ahmadinejad's supporters, Iranian security officials installed security cameras all around his neighborhood during the past week and reports from Tehran said that his house has been surrounded by anti-riot forces from Monday night.

According to Ahmadinejad, the guards' security chief for Tehran told him that he is "not interested in arresting Ahmadinejad's supporters who are Hezbollahi and revolutionary individuals."

Several polls conducted in Iran and abroad indicated that Ahmadinejad could be the frontrunner in the June 18 presidential election if he were allowed by the Guardian Council to run.

The Guardian Council, an appointed body consisting of 6 high-ranking Shiite clerics and 6 lawyers, is a constitutional watchdog that vets parliamentary and presidential election candidates and operates under the supervision of Supreme Leader Ali Khamenei.

Reacting to the development, Ahmadinejad published a statement on his official website Dolate Bahar on Tuesday and said that he has told the same to General Hossein Nejat, the Commander of Sarallah Headquarters in charge of security in Tehran. Hours after the publication the page went temporarily off the grid.

Screen shot of a report Wednesday on Ahmadinejad's website about the IRGC threat.

In the statement, Ahmadinejad said: "The country's situation is really bad. The economic situation is catastrophic and the social situation is on the verge of collapse."

Ahmadinejad further charged that infiltrators have penetrated every part of the country. "It is a combination of weakness and treason," he said, in a veiled reference to multiple incidents against high-valued targets and individuals in the country.

He also reminded General Nejat whose real name is Mohammad Hossein Zibainejad, that a low turnout in election as a result of widespread disqualifications will have major domestic and international repercussions. "The system will fall in a way that it is hard to assume that it can rise once again," said Ahmadinejad.

"Why should they disqualify me. No one has the right to do that and I would never accept this or remain silent," Ahmadinejad stressed. He added that the Islamic Republic government and the Rouhani administration are responsible for his disqualification. "They can hardly explain that now but offering an explanation for my disqualification would be much more difficult in the future."

These were apparently threats and counter-threats exchanged by Nejat and Ahmadinejad, with the former alluding to arrests and the latter making reference to sending his supporters to defend him.

Meanwhile, Ahmadinejad warned that the "current trend" will quickly worsen and the enemies will seize the opportunity to make the regime surrender and give them concessions.

Ahmadinejad charged that as people distance themselves from the regime, some elements in Iran are after disbanding the IRGC, doing away with the Guardian Council and bringing about foreign supervision of elections in Iran while the country is on course for a referendum and regime change.

The former President said that the people of Iran do not expect him to accept oppression and remain silent in the face of injustice and simply watch the destruction of the regime and the revolution as it happens. "The society is on the verge of explosion," he warned, adding that he cannot ignore people's demands.

He reiterated that he would not support any candidate and will resist against his disqualification as long as he is alive and those who have disqualified him shall remain responsible for the consequences. However, he said that he would not endorse or support protest movements as a result of his disqualification. "But those who are behind this disqualification should know that this will end in nothing other than the people's confrontation with them," Ahmadinejad warned.

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Iran's Guards Tell Ahmadinejad To Keep Silent, As He Warns Of Regime Change - Iran International

Satellites in the row in Iran to be sent into space – Tehran Times

TEHRAN Iran is designing a number of satellites, some of which are in the row to be launched into space, IRNA reported on Friday.

Pars Plus satellite with an imaging resolution of five meters, Pars 2 with a five-meter resolution multispectral imaging system, and Rasam satellite with four meters resolution multispectral imaging system are among the satellites that are being designed.

The telecommunication Nahid 1 satellite, Zoljanah, Nahid 2, Simorgh, Remote Sensing Tollou, Pars 1, and Zafar 2 are being designed and produced to put satellites at LEO (Low Earth Orbit).

Irans strategic purpose for developing the space industry is to expedite space activities including the aerospace industry, tapping the countrys scientific capacities, commercialization of space and space service.

When rockets launch satellites, they put them into orbit in space. There, gravity keeps the satellite on its required orbit in the same way that gravity keeps the Moon in orbit around Earth.

LEO is generally defined as an orbit below an altitude of approximately 2,000 kilometers (1,200 mi). Given the rapid orbital decay of objects below approximately 200 kilometers (120 mi), the commonly accepted definition for LEO is between 160 kilometers (99 mi) (with a period of about 88 minutes) and 2,000 kilometers (1,200 mi) (with a period of about 127 minutes) above the Earths surface. Because its so close to Earth, satellites must travel very fast so gravity wont pull them back into the atmosphere. Satellites in LEO speed along at 17,000 miles per hour (27,359 kilometers per hour)! They can circle Earth in about 90 minutes.

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Satellites in the row in Iran to be sent into space - Tehran Times

U.S. and Iran Want to Restore the Nuclear Deal. They Disagree …

President Biden and Irans leaders say they share a common goal: They both want to re-enter the nuclear deal that President Donald J. Trump scrapped three years ago, restoring the bargain that Iran would keep sharp limits on its production of nuclear fuel in return for a lifting of sanctions that have choked its economy.

But after five weeks of shadow boxing in Vienna hotel rooms where the two sides pass notes through European intermediaries it has become clear that the old deal, strictly defined, does not work for either of them anymore, at least in the long run.

The Iranians are demanding that they be allowed to keep the advanced nuclear-fuel production equipment they installed after Mr. Trump abandoned the pact, and integration with the world financial system beyond what they achieved under the 2015 agreement.

The Biden administration, for its part, says that restoring the old deal is just a steppingstone. It must be followed immediately by an agreement on limiting missiles and support of terrorism and making it impossible for Iran to produce enough fuel for a bomb for decades. The Iranians say no way.

Now, as negotiators engage again in Vienna, where a new round of talks began on Friday, the Biden administration finds itself at a crucial decision point. Restoring the 2015 accord, with all its flaws, seems doable, interviews with European, Iranian and American officials suggest. But getting what Secretary of State Antony J. Blinken has called a longer and stronger accord one that stops Iran from amassing nuclear material for generations, halts its missile tests and ends support of terrorist groups looks as far away as ever.

That is potentially a major political vulnerability for Mr. Biden, who knows he cannot simply replicate what the Obama administration negotiated six years ago, after marathon sessions in Vienna and elsewhere, while offering vague promises that something far bigger and better might follow.

Iran and the United States are really negotiating different deals, said Vali R. Nasr, a former American official who is now at Johns Hopkins University School of Advanced International Studies. Its why the talks are so slow.

The Americans see the restoration of the old deal as a first step to something far bigger. And they are encouraged by Irans desire to relax a series of financial restrictions that go beyond that deal mostly involving conducting transactions with Western banks because it would create what one senior administration official called a ripe circumstance for a negotiation on a follow-on agreement.

The Iranians refuse to even discuss a larger agreement. And American officials say it is not yet clear that Iran really wants to restore the old deal, which is derided by powerful hard-liners at home.

With Irans presidential elections six weeks away, the relatively moderate, lame-duck team of President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif are spinning that an agreement is just around the corner. Almost all the main sanctions have been removed, Mr. Rouhani told Iranians on Saturday, apparently referring to the American outline of what is possible if Tehran restores the sharp limits on nuclear production. Negotiations are underway for some details.

Not so fast, Mr. Blinken has responded. He and European diplomats underscore that Iran has yet to make an equally detailed description of what nuclear limits would be restored.

But even if it does, how Mr. Biden persuades what will almost surely be a new hard-line Iranian government to commit to further talks to lengthen and strengthen the deal is a question American officials have a hard time answering. But Mr. Bidens aides say their strategy is premised on the thought that restoring the old deal will create greater international unity, especially with Europeans who objected strenuously to Mr. Trumps decision to exit a deal that was working. And even the old deal, one senior official said, put a serious lid on Irans nuclear program.

Hovering outside the talks are the Israelis, who continue a campaign of sabotage and assassination to cripple the Iranian program and perhaps the negotiations themselves. So it was notable that the director of the Mossad, who has led those operations, was recently ushered into the White House for a meeting with the president. After an explosion at the Natanz nuclear plant last month, Mr. Biden told aides that the timing just as the United States was beginning to make progress on restoring the accord was suspicious.

The split with Israel remains. In the meetings in Washington last week which included Mr. Blinken; the C.I.A. director, William J. Burns; and the national security adviser, Jake Sullivan Israeli officials argued that the United States was nave to return to the old accord, which they think preserved a nascent nuclear breakout capability.

Mr. Bidens top aides argued that three years of maximum pressure on Iran engineered by Mr. Trump and his secretary of state, Mike Pompeo, had failed to break its government or limit its support of terrorism. In fact, it had prompted nuclear breakout.

In Vienna, by all accounts, the lead negotiator, Robert Malley whose relationship with Mr. Blinken goes back to the high school they attended together in Paris has made a significant offer on lifting sanctions inconsistent with the original deal.

On Wednesday, Mr. Blinken said that the United States had demonstrated our very seriousness of purpose in returning to the deal.

What we dont yet know is whether Iran is prepared to make the same decision and to move forward, he told the BBC.

May 13, 2021, 6:20 p.m. ET

Iran wants more sanctions lifted than the United States judges consistent with the deal, while insisting on keeping more of its nuclear infrastructure in particular advanced centrifuges than that deal permits. Instead, Iran argues that the International Atomic Energy Agency should simply inspect the new centrifuges, a position that is unacceptable to Washington.

While the talks continue, Iran is keeping up the pressure by adding to its stockpile of highly enriched uranium and the equipment to make it, all in violation of the deal.

Both Iran and the United States are working under delicate political constraints. Even as Irans supreme leader, Ayatollah Ali Khamenei, has supported the Vienna talks, Mr. Rouhani and Mr. Zarif are mocked by powerful conservatives who do not trust Washington and who expect to capture the presidency.

For his part, Mr. Biden must contend with a Congress that is highly skeptical of a deal and largely sympathetic to the concerns of Israel.

But with the Iranian elections close, time is pressing, and the Biden administration lost significant chunks of it as its negotiating position has evolved, officials say. The Americans initially demanded that Iran return to compliance, and then chose to keep some of the Trump administrations sanctions in place as leverage to try to force a broader negotiation.

In two discussions in February, the Europeans urged American officials to start negotiating in earnest and lift some sanctions as a gesture of good faith toward Iran. Those suggestions were ignored. But when Ayatollah Khamenei said that the country could proceed to enrich uranium up to 60 percent purity as opposed to the 3.67 percent limit in the nuclear deal Washington took matters more seriously, officials said, fearing that it would further diminish the so-called breakout time for Iran to get enough material for a bomb.

It was only at the end of March that the two sides agreed to negotiate the whole deal at once, and the Vienna talks began in early April. Then it took more time for the Americans to concede that returning to the 2015 deal as it was written was the best and perhaps only way to build enough trust with Iran that its leaders might even consider broader, follow-on talks.

Three working groups have been established: one to discuss which sanctions Washington must lift, one to discuss how Iran returns to the enrichment limits and one to discuss how to sequence the mutual return. Iran has not yet engaged seriously on its plans, still insisting that Washington move first, but another sticking point remains: which sanctions will be lifted.

Mr. Trump restored or imposed more than 1,500 sanctions in an effort to prevent a renewal of the pact. The sanctions have been put into three baskets green, yellow and red, depending on how clearly they are inconsistent with the deal. Green will be lifted; yellow must be negotiated; and red will stay, including, for example, sanctions on individuals for human-rights violations.

Deciding which sanctions to lift is politically delicate for both countries. For example, in the yellow category, Iran insists that a Trump-era sanction of its central bank under a terrorism designation must be lifted because it damages trade. But it would be even more complicated for Washington to lift the terrorism designation on the powerful Islamic Revolutionary Guards Corps, the officials said.

For the Iranians to agree to a deal that does not resolve the designation of the Guards would be a hard sell, even for the supreme leader.

For Biden, its hard to justify lifting sanctions against institutions still threatening U.S. interests in the region, and its hard for Rouhani to go home boasting about lifting all sanctions except those on his rivals, said Ali Vaez, the Iran project director at the International Crisis Group.

Its a fragile process, Mr. Vaez said, noting Irans rocket attacks in Iraq. If a single American is killed, the whole process is derailed.

But how Mr. Biden gets Iran to move to negotiate a better or new accord is the question.

American officials have no real answer to this dilemma as they try to resurrect the old deal, but they assert that Iran, too, wants more benefits than the old deal provided, so it should be willing to talk further. The Americans say they are ready to discuss how to strengthen the deal to mutual benefit, but they say that would be a decision for Iran to make.

Despite Irans pressure tactics increasing enrichment to just short of bomb grade in small quantities and barring international inspectors from key sites in late February Mr. Zarif insists that these moves are easily reversible.

American intelligence officials say that while Iran has bolstered its production of nuclear material and is probably only months from being able to produce enough highly enriched uranium for one or two bombs even now, there is no evidence Iran is advancing on its work to fashion a warhead. We continue to assess that Iran is not currently undertaking the key nuclear weapons-development activities that we judge would be necessary to produce a nuclear device, Avril D. Haines, the director of national intelligence, said in a report last month.

The Israelis are more skeptical, arguing that evidence they stole from a warehouse archive of Irans nuclear program three years ago shows that Iranian scientists had already done extensive work on warhead design.

Mr. Blinken says that the Vienna talks are intended to return to the stability and oversight of Irans nuclear program that the 2015 deal provided until it was abandoned by Mr. Trump.

So theres nothing nave about this. On the contrary, its a very cleareyed way of dealing with a problem that was dealt with effectively by the J.C.P.O.A., Mr. Blinken said, referring to the 2015 deal. Well have to see if we can do the same thing again.

The atmosphere in Iran has been complicated by a recent scandal over Mr. Zarif, whose criticism of internal decision-making recently leaked, apparently in an effort to damage his reputation and any chance he had to run for the presidency.

Ayatollah Khamenei refuted the criticism without naming Mr. Zarif, but he said the comments were a big mistake that must not be made by an official of the Islamic Republic and a repetition of what Irans enemies say.

At the same time, by downplaying Mr. Zarifs role, the supreme leader reaffirmed his support for the talks while also sheltering them from criticism by hard-liners, said Ellie Geranmayeh of the European Council on Foreign Relations.

Steven Erlanger reported from Brussels, and David E. Sanger from Washington. Farnaz Fassihi contributed reporting from New York.

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U.S. and Iran Want to Restore the Nuclear Deal. They Disagree ...