Pompeo says Al Qaeda has new home base in Iran

By Humeyra Pamuk and Matt Spetalnick

WASHINGTON (Reuters) – U.S. Secretary of State Mike Pompeo said on Tuesday, without providing hard evidence, that al Qaeda had established a new home base in Iran and the United States had fewer options in dealing with the group now it was “burrowed inside” that country.

Pompeo alleged that Iran has given safe haven to al Qaeda leaders and support for the group, despite some skepticism within the intelligence community and Congress.

The New York Times reported in November that al Qaeda’s Abu Muhammad al-Masri, accused of helping to mastermind the 1998 bombings of two U.S. embassies in Africa, was gunned down by Israeli operatives in Iran. Iran denied the report, saying there were no al Qaeda “terrorists” on its soil.

Pompeo told a news conference at the National Press Club in Washington that he was announcing publicly for the first time that al-Masri died on Aug. 7 last year.

Pompeo said his presence in Iran was no surprise, and added:

“Al-Masri’s presence inside Iran points to the reason that we’re here today … Al-Qaeda has a new home base: it is the Islamic Republic of Iran.”

On Twitter, Iranian Foreign Minister Mohammad Javad Zarif dismissed Pompeo’s accusations as “warmongering lies.”

Iran has been a target throughout the Trump administration and Pompeo has sought to further ratchet up pressure on Iran in recent weeks with more sanctions and heated rhetoric.

Pompeo added that he was imposing sanctions on Iran-based al-Qaeda leaders and three leaders of al-Qaeda Kurdish battalions.

He also announced a reward of up to $7 million under for information leading to location or identification of Iran based al Qaeda leader Muhammad Abbatay — also known as Abd al-Rahman al-Maghrebi.

Earlier accusations by the George W. Bush administration of Iranian links to al Qaeda’s Sept. 11, 2001, attacks on the United States have been discredited. But reports have surfaced over the years of al Qaeda operatives hiding out in Iran.

A former senior U.S. intelligence official with direct knowledge of the issue said the Iranians were never friendly with al Qaeda before or after the Sept. 11 attacks and any claims of current cooperation should be viewed warily.

Shi’ite Iran and al Qaeda, a Sunni Muslim group, have long been sectarian foes.

(Additional reporting by Mark Hosenball, David Brunnstrom and Arshad Mohammed Editing by Rosalba O’Brien and Alistair Bell)

Iran vows “decisive response” to any Israeli move against it

DUBAI (Reuters) -Iran said on Tuesday it would deliver a “decisive response” to any Israeli move against it, after Prime Minister Benjamin Netanyahu said Israel would not allow Tehran to develop nuclear weapons, a news agency close to the Revolutionary Guards said.

On Monday, Iran said it resumed 20% uranium enrichment at a nuclear facility, a move that coincides with rising tensions with the United States. The decision is the latest of several Iranian breaches of a 2015 nuclear accord with world powers.

Netanyahu said the move was aimed at developing nuclear weapons and Israel would never allow Tehran to build them. Iran says it has never sought nuclear weapons.

Iran’s Nour News quoted an unnamed security official as saying: “This regime (Israel) should be aware that any aggression against Iran’s interests and security from any side and in any way, whether (Israel) admits or denies responsibility, will face a decisive response from Iran against this regime.”

The statement was widely carried by Iranian news agencies and state media.

Separately, Iran on Tuesday gave more details about its enrichment decision by saying it had the capacity to produce up to 9 kg of 20% enriched uranium per month.

“At present, we produce 17 to 20 grams of 20% uranium every hour,” Ali Akbar Salehi, head of Iran’s Atomic Energy Organization, said according to state media. “We have a monthly production capacity of 8 to 9 kg to reach the 120 kg stipulated by the law.”

The decision to enrich to 20 percent purity was one of many moves mentioned in a law passed by Iran’s hardline-dominated parliament last month in response to the killing of the country’s top nuclear scientist, which Tehran has blamed on Israel.

Tehran started violating the accord in 2019 in a step-by-step response to Trump’s withdrawal from the nuclear accord in 2018 and the re-imposition of U.S. sanctions lifted under the deal.

(Reporting by Dubai newsroom, Editing by William Maclean)

U.S. hits Iran with fresh sanctions

WASHINGTON (Reuters) -The United States on Tuesday blacklisted a Chinese company that makes elements for steel production, 12 Iranian steel and metals makers and three foreign-based sales agents of a major Iranian metals and mining holding company, seeking to deprive Iran of revenues.

In a statement, the U.S. Treasury Department named the China-based company as Kaifeng Pingmei New Carbon Materials Technology Co Ltd. (KFCC), saying it specialized in the manufacture of carbon materials and provided thousands of metric tonnes of materials to Iranian steel companies between December 2019 and June 2020.

Among the 12 Iranian companies blacklisted are the Pasargad Steel Complex and the Gilan Steel Complex Co, both of which were designated under Executive Order 13871 for operating in the Iranian steel sector.

The others are: Iran-based Middle East Mines and Mineral Industries Development Holding Co (MIDHCO), Khazar Steel Co, Vian Steel Complex, South Rouhina Steel Complex, Yazd Industrial Constructional Steel Rolling Mill, West Alborz Steel Complex, Esfarayen Industrial Complex, Bonab Steel Industry Complex, Sirjan Iranian Steel and Zarand Iranian Steel Co.

The Treasury said it was also designating MIDHCO’s Germany-based subsidiary GMI Projects Hamburg GmbH, its China-based World Mining Industry Co Ltd and U.K.-based GMI Projects Ltd for being owned or controlled by MIDHCO.

“The Trump Administration remains committed to denying revenue flowing to the Iranian regime as it continues to sponsor terrorist groups, support oppressive regimes, and seek weapons of mass destruction,” Treasury Secretary Steven Mnuchin said in the statement.

(Reporting by Arshad Mohammed, Daphne Psaledakis and Doina Chiacu; writiing by Arshad Mohammed; editing by Doina Chiacu and Jonathan Oatis)

Eyeing Gulf détente, Saudi Arabia opens summit with call to counter Iran threat

By Aziz El Yaakoubi

AL-ULA, Saudi Arabia (Reuters) -Saudi Arabia’s Crown Prince Mohammed bin Salman opened a Gulf Arab summit on Tuesday by taking aim at Iran and lauding a deal towards ending a long-running dispute with Qatar.

Prince Mohammed embraced Qatar’s emir, Sheikh Tamim bin Hamad al-Thani, on the airport tarmac in the historic Saudi city of al-Ula, an important signal of hopes to bury a conflict between major U.S. allies in the Middle East.

Leaders of the Gulf countries signed a document, although the contents were not immediately released.

Ahead of the gathering, Kuwait had announced that Saudi Arabia, which along with allies boycotted Doha in mid-2017, would reopen its airspace and borders to Qatar. A senior U.S. official said the deal would be signed in the presence of White House senior adviser Jared Kushner.

Kushner, tasked by U.S. President Donald Trump to work on the Gulf rift, was seen in the room in televised footage as Prince Mohammed delivered the opening speech.

“These efforts … led to the al-Ula agreement which will be signed at this blessed summit and which confirms Gulf, Arab and Islamic unity and stability,” Prince Mohammed, the kingdom’s de facto ruler, said without elaborating on the deal.

He said the threat posed by Iran’s nuclear and ballistic missile programs and it’s “subversive and destructive plans” necessitated “serious action” by the global community.

His father, King Salman, who chaired the last annual gathering, was not seen during the opening session of the summit held in a mirrored building reflecting the desert landscape.

The apparent breakthrough in the Gulf row is the latest in a series of Middle East deals sought by Washington to close ranks against Iran, following agreements between Israel and Arab states.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed diplomatic, trade and travel ties with Qatar over allegations Doha supports terrorism, a charge it denies.

While Riyadh made clear it intended to lift the embargo, the other three states did not immediately comment on the issue. But the U.S. official said “it’s our expectation” they would also join and that Doha will suspend lawsuits related to the boycott.

WORKING THE PHONES

Kushner was making phone calls on the emerging deal until the early hours of Monday, the U.S. official said.

“The détente within the GCC is very unlikely to significantly affect geopolitical dynamics beyond the Gulf.”

All the states are U.S. allies. Qatar hosts the region’s largest U.S. military base, Bahrain is home to the U.S. Navy’s Fifth Fleet, and Saudi Arabia and the UAE host U.S. troops.

Qatar says the boycott aims to curb its sovereignty.

The other countries had set Doha 13 demands, including closing Al Jazeera TV, shuttering a Turkish base, cutting links to the Muslim Brotherhood and downgrading ties with Iran.

(Additional reporting by Raya Jalabi in Dubai Writing by Ghaida Ghantous, Editing by Tom Hogue, John Stonestreet, Nick Macfie and Timothy Heritage)

Iran tests drones in military exercise

DUBAI (Reuters) – Iran launched exercises featuring a wide array of domestically produced drones on Tuesday, Iranian media reported, days after the anniversary of the U.S. killing of a top Iranian general by a drone strike in Iraq.

Iran and the regional forces it backs have increasingly relied in recent years on drones in Yemen, Syria, Iraq and the Strait of Hormuz at the mouth of the Gulf.

Iran’s armed forces are to test combat drones used as bombers, interceptors and in reconnaissance missions in the two-day exercises in central Semnan province, the semi-official Fars news agency said.

“The fingers of our heroic armed forces are on the trigger, and if enemies commit the slightest mistake, the armed forces will surely respond fiercely,” said Mohammad Baqeri, chief of staff of the armed forces, quoted by state media.

Foreign Minister Mohammad Javad Zarif has said U.S. President Donald Trump may be trying to find an excuse to attack Iran in his last days in office, or Israel might try to provoke a war. Israel rejected the allegation.

The exercises coincided with increased tensions between Iran and the United States, two days after the first anniversary of the killing of Iranian general Qassem Soleimani in a U.S. drone strike at Baghdad airport.

Beyond surveillance, Iranian drones can drop munitions and also carry out a “kamikaze” flight when loaded with explosives and flown into a target, according to a U.S. official who spoke to Reuters.

Iran has developed a large domestic arms industry in the face of international sanctions and embargoes barring it from importing many weapons. Western military analysts say Iran sometimes exaggerates its weapons capabilities, though concerns about its ballistic missiles contributed to Washington leaving the nuclear pact.

(Reporting by Dubai newsroom; Editing by Peter Graff)

Breakthrough reached in Gulf dispute with Qatar: senior Trump administration official

By Steve Holland

WASHINGTON (Reuters) – A breakthrough has been reached in Qatar’s three-year-old dispute with Saudi Arabia and three other Arab countries and an agreement to end their rift is to be signed in Saudi Arabia on Tuesday, a senior Trump administration official said.

“We’ve had a breakthrough in the Gulf Cooperation Council rift,” said the official, who spoke to Reuters on condition of anonymity.

The development is the latest in a series of Middle East deals sought by Washington – the others involving Israel and Arab states – aimed at building a united front against Iran. All of the countries involved in the deals are U.S. allies.

White House senior adviser Jared Kushner, assigned to work on the dispute by U.S. President Donald Trump, helped negotiate the deal and was working the phones on it until the wee hours of Monday morning, the official said.

When in December, Saudi Arabia’s foreign minister said a resolution to the dispute seemed within reach, Iran’s Foreign Minister Mohammad Javad Zarif in a Twitter post said he hoped Gulf reconciliation “contributes to stability and political and economic development for all peoples of our region.”

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have imposed a diplomatic, trade and travel embargo on Qatar since mid-2017 accusing it of supporting terrorism. Qatar denies it and says the embargo aims to undermine its sovereignty.

Kushner, joined by Middle East envoy Avi Berkowitz and Brian Hook, a special State Department adviser, were flying to the Saudi Arabian city of al-Ula to attend the ceremony, the official said.

Gulf Arab leaders are expected to gather in Saudi Arabia on Tuesday for an annual summit that is expected to announce a deal towards ending the rift.

Under the emerging agreement, the four countries will end the blockade of Qatar, and in exchange, Qatar will not pursue lawsuits related to the blockade, the official said.

“At the signing on the 5th, leadership from the Gulf Cooperation Council plus Egypt will be coming together to sign an agreement that will end the blockade and put an end to the Qatari lawsuits,” the official said.

If the deal holds, the Gulf dispute will be added to a string of diplomatic victories achieved by the Kushner team, a list that includes normalization deals last year between Israel and the United Arab Emirates, Bahrain, Sudan and Morocco.

“It’s just a massive breakthrough,” the official said. “The blockade will be lifted. It will allow for travel amongst the countries as well as goods. It will lead to more stability in the region.”

(Reporting by Steve Holland; Editing by Howard Goller)

Iran resumes 20% uranium enrichment amid rising tensions with U.S

By Parisa Hafezi

DUBAI (Reuters) -Iran has resumed 20% uranium enrichment at an underground nuclear facility, the government said on Monday, breaching a 2015 nuclear pact with major powers.

Benjamin Netanyahu, prime minister of Iran’s arch foe Israel, said the move was aimed at developing nuclear weapons and Israel would never allow Tehran to build them.

The enrichment decision, Iran’s latest contravention of the accord, coincides with increasing tensions between Iran and the United States.

Tehran started violating the accord in 2019 in a step-by-step response to Trump’s withdrawal from it in 2018 and the re-imposition of U.S. sanctions lifted under the deal.

The agreement’s main aim was to extend the time Iran would need to produce enough fissile material for a nuclear bomb, if it chose to, to at least a year from roughly two to three months. It also lifted international sanctions against Tehran.

“A few minutes ago, the process of producing 20% enriched uranium has started in Fordow enrichment complex,” government spokesman Ali Rabiei told Iranian state media.

The U.N. nuclear watchdog confirmed that Iran had started the process of enriching uranium to 20% purity at its Fordow site.

“Iran today began feeding uranium already enriched up to 4.1 percent U-235 into six centrifuge cascades at the Fordow Fuel Enrichment Plant for further enrichment up to 20%,” the IAEA said in a statement on a report that was sent to member states.

The step was one of many mentioned in a law passed by Iran’s parliament last month in response to the killing of the country’s top nuclear scientist, which Tehran has blamed on Israel.

“Our measures are fully reversible upon FULL compliance by ALL (parties to the deal),” tweeted Iranian Foreign Minister Mohammad Javad Zarif.

Tehran insists it can quickly reverse its breaches if U.S. sanctions are removed.

NUCLEAR WATCHDOG

The White House National Security Council had no comment, and referred queries to the U.S. State Department, which did not immediately respond to a request for comment.

Tehran’s move could further hinder efforts to salvage the pact as its breaches have increasingly worried some of the deal’s other parties, which have urged Iran to act responsibly.

In Brussels, a European Union Commission spokesperson said that the “move, if confirmed, would constitute a considerable departure from Iran’s commitments”.

On Jan 1, the IAEA said Tehran had told the watchdog it planned to resume enrichment up to 20% at the Fordow site, which is buried inside a mountain.

“The process of gas injection to centrifuges has started a few hours ago and the first product of uranium hexafluoride (UF6) gas will be available in a few hours,” Rabiei said.

Iran had earlier breached the deal’s 3.67% limit on the purity to which it can enrich uranium, but it had only gone up to 4.5% so far, well short of the 20% level and of the 90% that is weapons-grade.

U.S. intelligence agencies and the IAEA believe Iran had a secret, coordinated nuclear weapons program that it halted in 2003. Iran denies ever having had one.

In Jerusalem, Netanyahu said Iran’s enrichment decision could be explained only as a bid to “continue to carry out its intention to develop a military nuclear program.” “Israel will not allow Iran to produce nuclear weapons,” he added

(Additional reporting by Arshad Mohammed in Washington, Jeffrey Heller in Jerusalem, Michael Shields and Francois Murphy in Vienna and Marine Strauss in Brussels Writing by Parisa Hafezi; Editing by William Maclean)

Yemeni boy, ravaged by hunger, weighs 7 kg

SANAA (Reuters) -Paralyzed and severely malnourished, seven-year-old Faid Samim lies curled up on a hospital bed in the Yemeni capital Sanaa, having barely survived the journey there. “He was almost gone when he arrived but thank God we were able to do what was necessary and he started improving. He is suffering from CP (cerebral palsy) and severe malnutrition,” said Rageh Mohammed, the supervising doctor of the Al-Sabeen hospital’s malnutrition ward. Faid weighs only 7 kg (just over 15 lb) and his tiny, fragile frame takes up barely a quarter of a folded hospital blanket. His family had to travel from Al-Jawf, 170 km (105 miles) north of Sanaa, through checkpoints and damaged roads, to get him there. Unable to afford Faid’s medication or treatment, the family relies on donations to get him treated. Mohammed says malnutrition cases are on the rise and impoverished parents are forced to rely on the kindness of strangers or international aid to get their children treated.

Famine has never been officially declared in Yemen, where a six-year war has left 80% of the population reliant on aid in what the U.N. says is the world’s largest humanitarian crisis.

U.N. warnings in late 2018 of impending famine prompted an aid ramp-up. But coronavirus restrictions, reduced remittances, locusts, floods and significant underfunding of the 2020 aid response are exacerbating hunger.

The war in Yemen, in which a Saudi-led coalition has been battling the Iranian-aligned Houthi movement since 2015, has killed more than 100,000 people and left the country divided, with the Houthis holding Sanaa and most major urban centers.

(Reporting by Adel Khadr, Abdulrahman Ansi and Tarek FahmyEditing by Raissa Kasolowsky and Giles Elgood)

Iran’s probe into downing of airliner has major flaws – Canada report

By David Ljunggren

OTTAWA (Reuters) – Iran is not conducting its probe into the downing of a civilian airliner in January properly and many questions remain unanswered, an independent Canadian report into the tragedy said on Tuesday.

The 79-page document is the latest expression of frustration from Western nations into how Tehran is handling the aftermath of a disaster that claimed 176 lives.

Iran’s Revolutionary Guards say they accidentally shot down the Ukraine International Airlines plane shortly after take off, mistaking it for a missile when tensions with the United States were high. Many of the victims were Canadian citizens or permanent residents.

Former Canadian cabinet minister Ralph Goodale, charged with helping the victims’ families and examining how to deal with similar disasters in future, said “many of the key details of this horrific event” remain unknown.

“Iran bears responsibility for that because … it has not conducted its investigations (safety, criminal or otherwise) in a truly independent, objective and transparent manner, and answers to critical questions” are absent, he wrote in the report.

Last month, a governing panel at the United Nations’ aviation agency urged Iran to accelerate the investigation. Later in November, Ukraine said Iran was dragging its feet.

In the hours before the disaster, Iran had fired missiles at U.S. bases in Iraq. Five days earlier, Washington had killed a Revolutionary Guards commander with a drone strike in Iraq.

Goodale said Iran needed to explain how it had assessed the risks to civilian aircraft in its airspace and what it had told operators. He also said Tehran had to reveal why it had left the airspace open and also why exactly the Guards had decided to down the plane.

Canada, working with other nations who lost citizens, is pressing Iran for reparations while “seeking a full and candid accounting of what exactly happened” and a formal apology, Goodale said.

(Reporting by David Ljunggren; Editing by Alistair Bell)

Blinken is president-elect’s pick as U.S. secretary of state – Biden ally

By Matt Spetalnick and Trevor Hunnicutt

NEW YORK/WILMINGTON, Del. (Reuters) – Joe Biden will pick Antony Blinken as U.S. secretary of state, a person close to the president-elect’s transition said on Sunday, elevating one of his most seasoned and trusted aides as he prepares to undo President Donald Trump’s foreign policy.

Blinken is a longtime Biden confidant who served as No. 2 at the State Department and as deputy national security adviser in President Barack Obama’s administration, in which Biden served as vice president.

A second Biden ally said that Blinken was Biden’s first choice. An announcement is likely on Tuesday.

Blinken’s appointment makes another longtime Biden aide with a foreign policy background, Jake Sullivan, the top candidate to be U.S. national security adviser, the first source said. Bloomberg News first reported the expected roles.

Biden’s transition team declined to comment. Neither Blinken nor Sullivan responded to requests for comment.

While neither are household names, Blinken and Sullivan have helped Biden formulate a strategy that will include immediate outreach to U.S. allies who have often been antagonized by Trump’s “America First” approach, and to demonstrate a willingness to work together on major global problems like the coronavirus epidemic and its economic fallout.

Biden has vowed to rejoin a nuclear deal with Iran if the country returns to compliance, return to the Paris climate accord, abandon plans to leave the World Health Organization and end a U.S. rule that bans funding of aid groups that discuss abortion. Each move would reverse Trump’s policies and some could take place quickly after Biden takes office on Jan. 20.

Biden is also likely to name Linda Thomas-Greenfield as U.S. ambassador to the United Nations, media outlets reported on Sunday. Thomas-Greenfield is Black, an expert on Africa policy and held a top diplomatic post in the administration of former President Barack Obama.

‘DIPLOMAT’S DIPLOMAT’

Blinken, 58, has long touted the view that the United States needs to take an active leadership role in the world, engaging with allies, or see that role filled by countries like China with contrary interests.

“As much of a burden as it sometimes seems to play … the alternative in terms of our interests and the lives of Americans are much worse,” he said in an interview with Reuters in October.

When asked if relations with the United States might improve with Blinken replacing Mike Pompeo, Chinese Foreign Ministry spokesman Zhao Lijian sidestepped the question by saying he does not comment on U.S. domestic affairs.​

He reiterated that China was willing to improve communication, strengthen cooperation and manage differences with the United States.

People familiar with his management style describe Blinken as a “diplomat’s diplomat,” deliberative and relatively soft-spoken, but well-versed in the nuts and bolts of foreign policy.

After Democratic presidential nominee Hillary Clinton lost the 2016 election to Trump, Blinken became one of the founders of WestExec Advisors, a Washington consultancy advising corporations on geopolitical risks.

Having practiced law briefly, he entered politics in the late 1980s helping Democrat Michael Dukakis’ presidential campaign raise money.

He joined Democratic President Bill Clinton’s White House as a speechwriter and became one of his national security aides.

Under Obama, Blinken worked to limit most U.S. combat deployments to small numbers of troops. But he told Reuters last year that Trump had “gutted American credibility” with his pullback of U.S. troops in Syria in 2019 that left Kurdish U.S. allies in the lurch in their fight against Islamic State.

On the campaign trail, Blinken was one of Biden’s closest advisers, even on issues that went beyond foreign policy.

That trust is the product of the years Blinken worked alongside Biden as an adviser to his unsuccessful 2008 presidential campaign, as national security adviser early in his vice presidency and as the Democratic staff director of the Senate Foreign Relations Committee when Biden was chair.

Sullivan, formerly a close policy aide to Hillary Clinton, became one of the key policy advisers to Biden. He served as the former vice president’s national security adviser during the Obama administration.

A 43-year-old graduate of Yale, who was also a Rhodes scholar at Oxford and has a reputation as a behind-the-scenes operator, Sullivan took part in secret back channel talks with Iran that led to a 2015 international nuclear deal that Trump subsequently overturned.

He took on a broad portfolio on foreign and domestic policy, including the campaign’s views on the public health and economic response to the coronavirus pandemic, and was quickly chosen to stay on with Biden through the transition.

(Reporting by Matt Spetalnick in New York, Trevor Hunnicutt in Wilmington, Delaware, and David Brunnstrom in Washington; Additional reporting by Yew Lun Tian in Beijing; Editing by Diane Craft, Raju Gopalakrishnan and Toby Chopra)