Iran distances itself further from nuclear deal, alarming Russia, France

Iran distances itself further from nuclear deal, alarming Russia, France
By Parisa Hafezi

DUBAI (Reuters) – Iran has stepped up activity at its underground Fordow nuclear plant, state TV said on Wednesday, a move France said showed for the first time that Tehran explicitly planned to quit a deal with world powers that curbed its disputed nuclear work.

In another development that could also aggravate tensions between Iran and the West, diplomats said Iran briefly held an inspector for the U.N. nuclear watchdog and seized her travel documents, with some describing this as harassment.

The incident involving an International Atomic Energy Agency’s (IAEA) inspector appeared to be the first of its kind since Tehran’s landmark deal with major powers was struck in 2015, imposing restraints on its uranium enrichment program in return for the lifting of international sanctions.

Iran’s decision to inject uranium gas into centrifuges at Fordow, a move that further distances Iran from the accord, was described by Moscow as extremely alarming. Iran once hid Fordow from the IAEA until its exposure by Western spies in 2009.

“With the presence of inspectors from the International Atomic Energy Agency, Iran started injecting (uranium) gas into centrifuges in Fordow,” TV reported.

A central aim of the agreement was to extend the time the Islamic Republic would need to assemble a nuclear weapon, if it chose to do so, to a year from about 2-3 months. Iran has repeatedly denied any such intention.

The 2015 deal bans Fordow from producing nuclear material. But, with feedstock gas entering its centrifuges, the facility – built inside a mountain – will move from the permitted status of research plant to being an active nuclear site.

A spokesman for Iran’s Atomic Energy Organization, Behrouz Kamalvandi, told state TV later that the injection of uranium gas would start at midnight (2030 GMT). He said the centrifuges there would enrich uranium up to 4.5% fissile purity. Ninety percent purity is required for bomb-grade fuel.

President Hassan Rouhani, an architect of the 2015 deal, blamed Washington for Iran’s rolling back of its commitments, saying Fordow would soon fully resume uranium enrichment work.

“Iran’s fourth step in reducing its commitments under the JCPOA (the 2015 nuclear deal) by injecting gas to 1,044 centrifuges begins today. Thanks to U.S. policy and its allies, Fordow will soon be back to full operation,” Rouhani tweeted.

Last year, U.S. President Donald Trump exited the deal, saying it was flawed to Iran’s advantage. Washington has since renewed and intensified sanctions on Iran, slashing its economically vital crude oil sales by more than 80%.

“PROFOUND SHIFT”

Speaking in China, French President Emmanuel Macron called Iran’s latest move “grave”, saying it explicitly signaled Iran’s intent for the first time to leave the deal.

“I think that for the first time, Iran has decided in an explicit and blunt manner to leave the JCPOA, which marks a profound shift,” said Macron, who has been at the forefront of efforts by European signatories to salvage the deal after the United States withdrew.

When asked whether Paris would support triggering a dispute mechanism enshrined in the deal, Macron said technical and ministerial meetings would be held to discuss the wider implications of Iran’s actions.

In Moscow, Russian Foreign Minister Sergei Lavrov said events unfolding around the nuclear deal were deeply disturbing and called on Iran to stick to the terms of the deal.

But he added that Moscow understood why Tehran was cutting back on its commitments, and blamed the situation on the U.S. decision to pull out of the pact.

Responding to Washington’s “maximum pressure” policy, Iran has bypassed the restrictions of the deal step-by-step – including by breaching both its cap on stockpiled enriched uranium and on the fissile level of enrichment.

“Iran has taken its fourth step to decrease its nuclear commitments to the deal in reaction to the increased U.S. pressure and inactivity of European parties to the deal to save it,” Iranian state TV added.

SPEEDING UP ENRICHMENT

In Vienna, the U.N. nuclear watchdog said IAEA inspectors remained on the ground in Iran and would report back on relevant activities.

Iranian authorities said on Tuesday that Tehran will enrich uranium to 5% at Fordow, which will further complicate the chances of saving an accord that European powers, Russia and the European Union have urged Iran to respect.

The agreement capped the level of purity to which Iran can enrich uranium at 3.67% – suitable for civilian power generation and far below the 90% threshold of nuclear weapons grade.

On Monday, Iran said it had accelerated enrichment by doubling the number of advanced IR-6 centrifuges in operation, adding that it was working on “a prototype called the IR-9, which works 50 times faster than IR-1 centrifuges”.

The deal, under which international sanctions against Iran were lifted, was tailored to extend the “breakout time” – how long Iran would need to accumulate enough fissile material for a nuclear bomb.

Iran has given another two-month deadline to Britain, France and Germany to salvage the deal. Leaving room for diplomacy, Tehran says talks are possible if Washington lifts all the sanctions and itself returns to the nuclear deal.

The incident involving the IAEA inspector is due to be discussed at a meeting of the agency’s 35-nation Board of Governors on Thursday convened at short notice to discuss “two safeguards matters” not specified in the agenda.

“The agency wants to show how seriously they are taking this. It is a potentially damaging precedent,” one Western official said. An IAEA spokesman and Iran’s ambassador to the U.N. watchdog declined to comment.

(Additional reporting by Marine Pennetier, Maria Kiselyova, Francois Murphy and John Irish; Writing by Parisa Hafezi; Editing by William Maclean and Mark Heinrich)

Iran further distances itself from 2015 deal by fueling Fordow centrifuges

Iran further distances itself from 2015 deal by fueling Fordow centrifuges
GENEVA (Reuters) – Iran will start injecting uranium gas into centrifuges at its underground Fordow enrichment facility, Iranian President Hassan Rouhani said on Tuesday, a highly symbolic breach that will complicate European efforts to salvage Tehran’s nuclear deal.

Under the 2015 agreement between Iran and world powers, Iran agreed to turn Fordow into a “nuclear, physics and technology center” where 1,044 centrifuges are used for purposes other than enrichment, such as producing stable isotopes, which have a variety of civil uses.

Iran has gradually scaled back its commitments to the deal, under which it curbed its nuclear program in exchange for the removal of most international sanctions, after the United States reneged on the agreement and reimposed sanctions.

The pact allows Iran only to spin the centrifuges at Fordow, located inside a mountain near the Shi’ite holy city of Qom, without injecting gas. Uranium gas injection could allow production of enriched uranium, banned at the facility under the pact.

“Starting from Wednesday, gas will be injected into centrifuges at Fordow as part of part of our fourth step to reduce our nuclear commitments to the deal,” Rouhani said in a televised speech.

He did not specify what kind of gas would be injected into centrifuges at Fordow.

But Kazem Gharibabadi, Iran’s ambassador to the International Atomic Energy Agency (IAEA), said Iran had informed the agency over “the start of injecting UF6 (uranium hexafluoride) into centrifuges at Fordow on Wednesday”.

The deal bans nuclear material from Fordow and by injecting UF6 into centrifuges, the facility will become an active nuclear site rather than a research plant as permitted under the pact.

“The IAEA was requested to send its inspectors to monitor the process,” Gharibabadi said, quoted by state television. The IAEA monitors Tehran’s compliance with the deal.

The measure will further complicate the chances of saving the accord, which European powers have called on Iran to respect.

“The announcement by Iran on November 5 to increase its enrichment capacity goes against the Vienna agreement, which strictly limits activities in this area,” French foreign ministry spokeswoman Agnes von der Muhll said.

Iran said on Monday it had accelerated enrichment by doubling the number of advanced IR-6 centrifuges in operation, adding that it was working on “a prototype called the IR-9, which works 50-times faster than the IR-1 centrifuges”.

“The deal has become a no man’s land. We’re controlling less and less as it crumbles around us,” a senior European diplomat said. “In terms of credibility it becomes harder and harder to not react.”

Rouhani gave another two-month deadline to Britain, France and Germany to salvage the deal by protecting Iran’s economy from crippling U.S. sanctions reimposed in May after Washington’s withdrawal from the deal.

“We can’t unilaterally accept that we completely fulfill our commitments and they don’t follow up on their commitments,” Rouhani said.

Tehran says talks are possible if Washington lifts sanctions and returns to the deal.

“All these measures are reversible if other parties fulfill their commitments … We should be able to sell our oil and to transfer its money into the country,” Rouhani said, referring to U.S. sanctions on Iran’s oil and banking sectors.

(Additional reporting by John Irish in France, Francois Murphy in Vienna, Babak Dehghanpisheh in Geneva, Writing by Parisa Hafezi, Editing by Angus MacSwan)

Iran develops advanced machines to speed up enrichment: official

Iran develops advanced machines to speed up enrichment: official
By Parisa Hafezi

DUBAI (Reuters) – Iran said on Monday it would take another step away from the 2015 nuclear deal by developing centrifuges to speed up its uranium enrichment, its nuclear chief Ali Akbar Salehi said.

“Today, we are witnessing the launch of the array of 30 IR-6 centrifuges,” Salehi, who heads Iran’s Atomic Energy Organization, told state television. “Iran now is operating 60 IR-6 advanced centrifuges. It shows our capacity and determination.”

Under the agreement between Iran and world powers, Tehran is only allowed to enrich uranium with just over 5,000 of its first-generation IR-1 centrifuges. An IR-6 centrifuge can enrich uranium 10 times faster than the IR-1s.

“Our scientists are working on a prototype called the IR-9, that works 50 times faster than the IR-1s,” Salehi said.

The deal was aimed at extending the time Iran would need to obtain enough fissile material for a nuclear bomb, if it sought one – something sometimes referred to as “breakout time” to about a year from 2-3 months. Iran denies ever having sought to build a nuclear bomb.

The U.N. nuclear watchdog said in September that Iran had informed the agency about making modifications to accommodate cascades – or interconnected clusters – of 164 of the IR-2m and IR-4 centrifuge. Cascades of the same size and type were scrapped under the deal.

Tensions have risen between Tehran and Washington since last year when U.S. President Donald Trump withdrew from the accord under which Iran had agreed to rein in its nuclear program in exchange for relief from economic sanctions.

The United States has since renewed and intensified its sanctions, slashing Iran’s crude oil sales by more than 80%.

Responding to Washington’s “maximum pressure”, Iran has breached the restrictions of the deal step-by-step and has rejected the United States’ demand that a far-reaching deal should be negotiated.

Tehran, however, has left room for diplomacy by saying that talks are possible if Washington lifts all the sanctions and returns to the nuclear deal.

Iran has said it might take further steps in November if European parties to the pact fail to shield its economy from U.S. penalties.

While steps taken by Iran so far do not make a big difference to that breakout time for now, it further complicates the prospects of saving the accord by the European parties to the deal, who have criticized Trump for exiting it.

(Additional reporting by John Irish in Paris; Writing by Parisa Hafezi, Editing by Angus MacSwan)

Iranians chant ‘Death to America’ to mark U.S. embassy seizure

Iranians chant ‘Death to America’ to mark U.S. embassy seizure
DUBAI (Reuters) – Thousands of Iranians chanted “Death to America” near the old U.S. embassy on Monday, the 40th anniversary on the seizure of the mission, with the country’s army chief comparing the United States with a poisonous scorpion intent on harming Iran.

State television showed crowds packing the streets around the former mission, dubbed the “den of spies” after Iran’s 1979 Islamic revolution. Marches and rallies were being held in some 1,000 communities across the country, state media said.

Hardline Islamist students stormed the embassy soon after the fall of the U.S.-backed shah, and 52 Americans were held hostage there for 444 days. The two countries have been enemies ever since.

“Our fight with America is over our independence, over not submitting to bullying, over values, beliefs and our religion,” army chief Major General Abdolrahim Mousavi said in a speech at the rally outside the former embassy.

“They (Americans) will continue their hostilities, like the proverbial poisonous scorpion whose nature it is to sting and cannot be stopped unless it is crushed,” Mousavi said in remarks carried by state TV.

On Sunday, Supreme Leader Ayatollah Ali Khamenei renewed a ban on talks with the United States, describing the two countries as implacable foes.

“Those who believe that negotiations with the enemy will solve our problems are 100% wrong,” he said.

Meanwhile, Iran’s parliament gave initial approval to a measure requiring schoolbooks to inform students about “America’s crimes”. Lawmakers also chanted “Death to America”.

Relations between the two countries have reached a crisis over the past year since U.S. President Donald Trump abandoned a 2015 pact between Iran and world powers under which it accepted curbs to its nuclear program in return for lifting sanctions.

The United States has reimposed sanctions aimed at halting all Iranian oil exports, saying it seeks to force it to negotiate to reach a wider deal.

Khamenei has banned Iranian officials from holding talks unless the United States returns to the nuclear deal and lifts all sanctions.

(Reporting by Dubai newsroom; Editing by Robert Birsel, William Maclean)

Islamic State’s presence evolved worldwide despite Syria defeat: U.S. State Department

Islamic State’s presence evolved worldwide despite Syria defeat: U.S. State Department
WASHINGTON (Reuters) – The global presence of Islamic State continued to advance in 2018 through networks and affiliates, the State Department said in its annual terrorism report, even though the Trump administration declared it defeated the jihadi group in Syria and killed its leader last month in a U.S. raid.

Iran has also remained a top state sponsor of terrorism, the report said, and funneled nearly a billion dollars per year to support its proxies in the region despite Washington having significantly ramped up its sanctions against Tehran.

Terrorism tactics and the use of technologies have also evolved in 2018, while war-hardened fighters from groups such as Islamic State returning to their home countries began raising fresh threats, the report said.

“Even as ISIS lost almost all its physical territory, the group proved its ability to adapt, especially through its efforts to inspire or direct followers online,” said Nathan Sales, the U.S. counter-terrorism coordinator, whose office produced the congressionally mandated report.

“Additionally, battle-hardened terrorists headed home from the war zone in Syria and Iraq or traveled to third countries, posing new dangers,” he said.

Islamic State declared its so-called “caliphate” in 2014 after seizing large swathes of Syria and Iraq. The hard-line group established its de facto capital in the Syrian city of Raqqa, using it as a base to plot attacks in Europe.

In 2017, Islamic State lost control of Mosul in Iraq and Raqqa in Syria, and quickly thereafter almost all of its territory as a result of operations by U.S.-backed forces. Its leader, Abu Bakr al-Baghdadi, was killed last month in Syria in a raid by U.S. Special forces.

World leaders welcomed his death, but they and security experts warned that the group, which carried out atrocities against religious minorities and horrified most Muslims, remained a security threat in Syria and beyond.

The group on Thursday confirmed his death in an audio tape posted online and said a successor, identified as Abu Ibrahim al-Hashemi al-Quraishi, had been appointed. It vowed revenge against the United States.

(Reporting by Humeyra Pamuk; Editing by Dan Grebler)

As protests rock Baghdad and Beirut, Iran digs in

As protests rock Baghdad and Beirut, Iran digs in
BEIRUT/BAGHDAD (Reuters) – As governments in Iraq and Lebanon stagger and stumble under huge waves of popular protest, powerful factions loyal to Iran are pushing to quash political upheaval which challenges Tehran’s entrenched influence in both countries.

Lebanon’s Prime Minister Saad al-Hariri has resigned and the government of Iraq’s Prime Minister Adel Abdul Mahdi has been pushed to the brink of collapse.

Both governments have enjoyed backing from the West. But they have also relied on the support of political parties affiliated with powerful Iran-backed Shi’ite armed groups, keeping allies of Tehran in key posts.

That reflects the relentless rise of Iranian influence among Shi’ite communities across the Middle East, since Tehran formed the militant group Hezbollah in Lebanon in 1982 and after Saddam Hussein was toppled in Iraq in 2003.

Both Iraq and Lebanon have government systems designed to end sectarian conflict by guaranteeing a share of power to parties that represent different communities. In both countries, leading Shi’ite groups are closely associated with Iran, and have held on to weapons outside the official security forces.

Protesters are now challenging those power structures, which Iraqis and Lebanese blame for corruption, the dire state of public services and the squandering of national wealth, which Iraq brings in from oil and Lebanon from foreign backing.

WHO IS BEHIND THE PROTESTS?

Unusually in both countries where sectarian parties have previously dominated politics, most protesters are not linked to organized movements. In both countries they have called for the kind of sweeping change seen in the 2011 Arab uprisings, which brought down four Arab leaders but bypassed Lebanon and Iraq.

In Lebanon, demonstrations flared in late September against bad economic conditions as the country grappled with a deepening financial crisis. Nationwide protests broke out two weeks later against government plans to raise a new tax on calls using popular mobile phone software such as WhatsApp.

In Iraq, demonstrations began in Baghdad and quickly spread to the southern Shi’ite heartland.

WHAT IS AT STAKE?

In Iraq, the protests have taken place on a scale unseen since Saddam’s overthrow, with sweeping demands for change. The authorities have responded with a violent crackdown which left more than 250 people dead, many killed by snipers on rooftops firing into crowds.

“The fact that you were seeing that level of mobilization makes the protests more dangerous in the perception of the political elite,” said Renad Mansour, Iraq analyst at London-based Chatham House.

The mainly Iran-backed militias view the popular protests as an existential threat to that political order, Mansour said.

In Lebanon, the demonstrations come at a time of economic crisis widely seen as the worst since the 1975-1990 civil war. If Hariri’s resignation prolongs the political paralysis it will jeopardize prospects of rescue funding from Western and Gulf Arab governments.

HOW HAVE IRAN’S ALLIES RESPONDED?

Hezbollah leader Sayyed Hassan Nasrallah initially addressed the Lebanon protesters sympathetically, echoing Hariri’s conciliatory stance, before changing tone and accusing foreign powers of instigating the unrest. People loyal to Hezbollah and the Shi’ite movement Amal attacked and destroyed a protest camp in Beirut.

Hariri announced his resignation shortly afterwards despite pressure from Hezbollah, widely seen as the most powerful player in Lebanon, not to concede to the protests.

In the absence of an obvious replacement for Hariri, Hezbollah, which is under U.S. sanctions, faces a predicament. Although Hezbollah and its allies have a majority in parliament, they cannot form a government on their own because they would face international isolation, said Nabil Boumonsef, a commentator with Lebanon’s an-Nahar newspaper.

“It would be the quickest recipe for financial collapse. The whole world will be closed to them.”

In Baghdad, Abdul Mahdi’s government was saved for now after apparent Iranian intervention. Reuters reported this week that Qassem Soleimani, the head of the elite Quds force of Iran’s Revolutionary Guards, which sponsors Tehran’s allies abroad, flew to Baghdad for a secret meeting at which a powerful Shi’ite party agreed to keep the prime minister in office.

Iraqi security officials have said that snipers who shot down from rooftops at crowds last month were deployed by Iran-backed militias.

WHAT ARE THE LIMITS OF IRANIAN INFLUENCE?

While Shi’ite militia forces project unambiguous power, Iran’s political weight is often deployed behind the scenes.

In Lebanon, a longstanding accord on power-sharing means no single confession can dominate state institutions. For all its prominence, Hezbollah picked only three ministers in Hariri’s last cabinet.

“A winner-takes-all mentality just does not work in Lebanon,” said Nadim Houry, executive director of the Arab Reform Initiative, who said Hezbollah may have miscalculated by employing “scare tactics” against the protesters.

“This goes against the grain of Lebanese politics. They are going to have to compromise.”

In Iraq too “Iran has more influence than any other country … but it doesn’t have control over what happens there,” says Crisis Group’s Iran project director Ali Vaez.

WHAT IS THE INTERNATIONAL RESPONSE?

In Iraq it is too early to say. Tehran’s main rival, the United States, has so far kept mostly quiet on the protests, probably waiting to see the outcome.

In Lebanon, which urgently needs outside funding to keep its economy afloat, Tehran’s international foes have used their financial clout to challenge its influence more directly. Before he quit, Hariri failed to convince foreign donors to release $11 billion in aid pledged last year, in part because of Hezbollah’s prominence.

Wealthy Sunni Gulf Arab states, engaged in a proxy conflict with Iran across the region, had long funded Beirut, but Saudi Arabia cut back support sharply three years ago, saying Hezbollah had “hijacked” the Lebanese state.

Gulf Arab countries and the United States have coordinated moves against Iranian-linked targets with sanctions on 25 corporations, banks and individuals linked to Iran’s support for militant networks including Hezbollah.

“Gulf Arab states are bound by sanctions. Hezbollah are an integral part of the (Lebanese) government,” a Gulf source said. “Nobody has given up on Lebanon” but “the system is broken… Improvements need to be seen on several fronts, including fiscal discipline.”

Two U.S. officials said this week that President Donald Trump’s administration is withholding $105 million in security aid for Lebanon.

(Reporting by Reuters correspondents in Baghdad, Beirut and Dubai; writing by Dominic Evans; Editing by Samia Nakhoul and Peter Graff)

Exclusive: Iran intervenes to prevent ousting of Iraqi prime minister – sources

Exclusive: Iran intervenes to prevent ousting of Iraqi prime minister – sources
BAGHDAD (Reuters) – Iran has stepped in to prevent the ouster of Iraqi Prime Minister Abdel Abdul Mahdi by two of Iraq’s most influential figures amid weeks of anti-government demonstrations, sources close to both men told Reuters.

Populist Shi’ite cleric Moqtada al-Sadr demanded this week that Abdul Mahdi call an early election to quell the biggest mass protests in Iraq since the U.S.-led invasion that toppled Saddam Hussein in 2003. The demonstrations are fueled by anger at corruption and widespread economic hardship.

Sadr had urged his main political rival Hadi al-Amiri, whose alliance of Iran-backed militias is the second-biggest political force in parliament, to help push out Abdul Mahdi.

But in a secret meeting in Baghdad on Wednesday, Qassem Soleimani, head of the Iranian Revolutionary Guards’ elite Quds Force, intervened. Soleimani asked Amiri and his militia leaders to keep supporting Abdul Mahdi, according to five sources with knowledge of the meeting.

Spokesmen for Amiri and Sadr could not be reached for comment. An Iranian security official confirmed Soleimani was at Wednesday’s meeting, saying he was there to “give advice”.

“(Iraq’s) security is important for us and we have helped them in the past. The head of our Quds Force travels to Iraq and other regional countries regularly, particularly when our allies ask for our help,” the Iranian official said, asking not to be named.

Soleimani, whose Quds force coordinates Tehran-backed militias in Iraq, Syria and Lebanon, is a frequent visitor to Iraq. However, his direct intervention is the latest sign of Iran’s increasing influence in Iraq and across the region.

Iraqi security officials told Reuters earlier this month that Iran-backed militias deployed snipers on Baghdad rooftops to try to help put down the protests.

If Iraq falls further into crisis, Iran risks losing the influence it has steadily been amassing in the country since the U.S.-led invasion and which it sees as a counter to American influence in the region.

FATE UNCLEAR

Despite the maneuvering behind closed doors, Abdul Mahdi’s fate remains unclear. He took office a year ago as a compromise candidate between Amiri and Sadr but faces a wave of protests that has swelled in recent days.

In the 16 years since the fall of Saddam, a Sunni Muslim, Shi’ite Iran has emerged as a key power broker in Iraqi politics, with greater influence than the United States in the Shi’ite majority country.

But that proxy power battle has rankled ordinary Iraqis who criticize a political elite they say is subservient to one or the other of Baghdad’s two allies and pays more attention to those alliances than to Iraqis’ basic economic needs.

Despite their country’s vast oil wealth, many Iraqis live in poverty or have limited access to clean water, electricity, basic health care and education. Most of the protesters are young people who above all want jobs.

The protests have broken nearly two years of relative stability in Iraq. They have spread from Baghdad across the mainly Shi’ite south and met with a security crackdown that killed over 250 people.

Until earlier this week, it appeared that Amiri – who is one of Tehran’s key allies in Iraq and the leader of the Badr Organization of militia – was willing to support Abdul Mahdi’s departure.

Late on Tuesday night, Amiri issued a public statement agreeing to “work together” with Sadr after the cleric called on him to help oust the prime minister.

Wednesday’s meeting seemingly changed the course of events.

A Shi’ite militia commander loyal to Amiri – one of the five sources Reuters spoke to about the meeting – said there was agreement that Abdul Mahdi needed to be given time to enact reforms to calm the streets.

Many of the militia leaders raised fears at the meeting that ousting Abdul Mahdi could weaken the Popular Mobilization Forces, according to another source familiar with the meeting.

The PMF is an umbrella of mostly Shi’ite paramilitary groups backed by Iran who are influential in Iraq’s parliament and have allies in government. They formally report to the prime minister but have their own command structure outside the military.

Following the meeting with Soleimani, Amiri changed tune with Sadr. He told Sadr that getting rid of Abdul Mahdi would cause more chaos and threaten stability, a politician close to Sadr said.

In response, Sadr said publicly that without a resignation there would be more bloodshed and that he would not work with Amiri again.

“I will never enter into alliances with you after today,” he said in a statement.

(Reporting by Baghdad Newsroom; additional reporting by Dubai newsroom; Editing by Samia Nakhoul and Nick Tattersall)

Seven countries issue Iran-related sanctions on 25 targets

Seven countries issue Iran-related sanctions on 25 targets
WASHINGTON (Reuters) – The United States and six other countries imposed sanctions on Wednesday on 25 corporations, banks and people linked to Iran’s support for militant networks including Hezbollah, the U.S. Treasury Department said in a statement.

The targets were announced by the Terrorist Financing Targeting Center (TFTC) nations – which also include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates – as Treasury Secretary Steve Mnuchin was on a Middle East trip to finalize details of an economic development plan for the Palestinians, Jordan, Egypt and Lebanon.

All 25 targets were previously sanctioned by the United States.

“The TFTC’s action coincides with my trip to the Middle East, where I am meeting with my counterparts across the region to bolster the fight against terrorist financing,” Mnuchin said in the Treasury statement.

In Jerusalem on Monday, Mnuchin said the United States would increase economic pressure on Iran over its nuclear program, making the pledge during a Middle East trip that includes visits to U.S. allies Israel and Saudi Arabia.

Sanctions reimposed on Tehran by President Donald Trump after he withdrew the United States from world powers’ 2015 nuclear pact with Tehran have dried up Iranian oil revenues and cut Iranian banks’ ties to the financial world.

Twenty-one of the targets announced Wednesday comprised a vast network of businesses providing financial support to the Basij Resistance Force, the Treasury said.

It said shell companies and other measures were used to mask Basij ownership and control over multibillion-dollar business interests in Iran’s automotive, mining, metals, and banking industries, many of which have operate across the Middle East and Europe.

The four individuals targeted were Hezbollah-affiliated and help coordinate the group’s operations in Iraq, it said.

(Reporting by Doina Chiacu and Daphne Psaledakis; editing by Jonathan Oatis)

France worried by new phase in Iran’s breaching of nuclear pact

France worried by new phase in Iran’s breaching of nuclear pact
By John Irish

PARIS (Reuters) – France urged Iran on Wednesday not to scale back further on its commitments to a 2015 nuclear deal, saying Tehran’s new threat to speed up uranium enrichment next month was “especially worrying”.

Iran is breaching restrictions of the pact with major powers step-by-step in response to tough sanctions imposed by the United States, which pulled out of the deal last year.

Tehran has said its next move would be taken on Nov. 6 and diplomats fear this could force a response from European powers, who have been trying to salvage the accord. Britain, France and Germany, all signatories, have refrained from acting so far.

“Iran must abstain from crossing an especially worrying new phase of new measures that could contribute to an escalation in tensions,” French Foreign Ministry spokeswoman Agnès von der Muhll told reporters in a daily briefing.

Iranian President Hassan Rouhani said on Monday that Tehran was working on advanced IR-9 centrifuges for uranium enrichment.

The nuclear deal only lets Iran accumulate enriched uranium with just over 5,000 of its first-generation IR-1 centrifuges at Natanz. It lets Iran use small numbers of more advanced models for research, without producing enriched uranium.

Iran is now enriching uranium with advanced centrifuges and installing more that should come online in coming weeks.

Rouhani’s remarks suggested Iran was developing a new centrifuge, the IR-9, violating the deal which specifies the centrifuges Iran can use and making no mention of an IR-9.

French President Emmanuel Macron attempted and failed last month to broker talks between U.S. President Donald Trump and Rouhani in New York. Prospects of any talks in coming weeks seem slim with Tehran demanding U.S. sanctions are lifted first.

The nuclear deal aimed to extend the so-called “breakout time” Iran would need to obtain enough fissile material for a bomb, if it sought one, to a year instead of two or three months.

“Nov. 6 will be Iran’s fourth violation. Until now they have been political and symbolic with a limited impact on the breakout time, but the more they violate, the less choice and latitude they have that doesn’t impact the breakout time,” said a French diplomatic source.

“After November, the world doesn’t end, but it becomes much harder to save the deal,” the source added.

Iran says it has enriched uranium for civilian purposes and has never sought nuclear weapons, but the United States and IAEA believe it once had a nuclear weapons program that it ended.

“Iran is underscoring that it will no longer be hemmed in by the nuclear agreement, nor is it particularly alarmed by the increasingly concerned statements coming out of Europe,” Eurasia’s Iran analyst Henry Rome said.

“This is a recipe for a significant nuclear escalation in early November, not just another incremental step.”

(Reporting by John Irish; Editing by Catherine Evans and Edmund Blair)

Exclusive: U.S. carried out secret cyber strike on Iran in wake of Saudi oil attack: officials

Exclusive: U.S. carried out secret cyber strike on Iran in wake of Saudi oil attack: officials
By Idrees Ali and Phil Stewart

WASHINGTON (Reuters) – The United States carried out a secret cyber operation against Iran in the wake of the Sept. 14 attacks on Saudi Arabia’s oil facilities, which Washington and Riyadh blame on Tehran, two U.S. officials have told Reuters.

The officials, who spoke on condition of anonymity, said the operation took place in late September and took aim at Tehran’s ability to spread “propaganda.”

One of the officials said the strike affected physical hardware, but did not provide further details.

The attack highlights how President Donald Trump’s administration has been trying to counter what it sees as Iranian aggression without spiraling into a broader conflict.

Asked about Reuters reporting on Wednesday, Iran’s Minister of Communications and Information Technology Mohammad Javad Azari-Jahromi said: “They must have dreamt it,” Fars news agency reported.

The U.S. strike appears more limited than other such operations against Iran this year after the downing of an American drone in June and an alleged attack by Iran’s Revolutionary Guards on oil tankers in the Gulf in May.

The United States, Saudi Arabia, Britain, France and Germany have publicly blamed the Sept. 14 attack on Iran, which denied involvement in the strike. The Iran-aligned Houthi militant group in Yemen claimed responsibility.

Publicly, the Pentagon has responded by sending thousands of additional troops and equipment to bolster Saudi defenses – the latest U.S. deployment to the region this year.

The Pentagon declined to comment about the cyber strike.

“As a matter of policy and for operational security, we do not discuss cyberspace operations, intelligence, or planning,” said Pentagon spokeswoman Elissa Smith.

GULF TENSIONS RISE SHARPLY

The impact of the attack, if any, could take months to determine, but cyber strikes are seen as a less-provocative option below the threshold of war.

“You can do damage without killing people or blowing things up; it adds an option to the toolkit that we didn’t have before and our willingness to use it is important,” said James Lewis, a cyber expert with the Washington-based Center for Strategic and International Studies.

Lewis added that it may not be possible to deter Iranian behavior with even conventional military strikes.

Tensions in the Gulf have escalated sharply since May 2018, when Trump withdrew from the 2015 Joint Comprehensive Plan of Action with Tehran that put limits on its nuclear program in exchange for the easing of sanctions.

It was unclear whether there have been other U.S. cyber attacks since the one in late September.

Iran has used such tactics against the United States. This month, a hacking group that appears linked to the Iranian government tried to infiltrate email accounts related Trump’s re-election campaign.

Over 30 days in August and September, the group, which Microsoft dubbed “Phosphorous,” made more than 2,700 attempts to identify consumer accounts, then attacked 241 of them.

Tehran is also thought to be a major player in spreading disinformation.

Last year a Reuters investigation found more than 70 websites that push Iranian propaganda to 15 countries, in an operation that cybersecurity experts, social media firms and journalists are only starting to uncover.

Tensions with Iran have been high since the Sept. 14 attack. Tehran has said an Iranian tanker was hit by rockets in the Red Sea last week and warned that there would be consequences.

On Monday, President Hassan Rouhani reiterated his country’s policy toward the Trump administration, ruling out bilateral talks unless Washington returns to the landmark nuclear deal and lifts crippling U.S. economic sanctions.

(Reporting by Idrees Ali and Phil Stewart in Washington; Additional reporting by Parisa Hafezi in Dubai and Jack Stubbs in London Editing by Gerry Doyle, William Maclean)