Tag Archives: Turkey

Trump Kicks the Sanctions Can on Iran Oil, by Tom Luongo

Trump’s slithering away from full sanctions on Iran because the US can’t enforce them and it would disrupt the oil market the year before the 2020 election. From Tom Luongo at tomluongo.me:

Sanctions on Iran have failed. The weakness of the U.S. position in the oil markets is now complete. Donald Trump’s Energy Dominance strategy has failed.

The announcement by Secretary of State Mike Pompeo (R – The Eschaton) that no more sanctions waivers will be granted to importers of Iranian oil. Those that do so will face sanctions.

But let’s look at what is actually on the table. Waivers will be extended to a year from now during a ‘wind-down’ period. But, I thought these past six months were the ‘wind down’ period Don?

I told you these would get extended the minute they were granted. Because three of these countries — India, Turkey and China — are in open revolt over the policy.

And they have built plenty of infrastructure to get around these sanctions when or if they are ever implemented.

Three of the eight countries granted waivers — Italy, Greece and Taiwan — do not need waiver extensions as they’ve already cut their imports to zero.

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The U.S. Is Losing Influence In The World’s Biggest Oil Region, by Gregory R. Copley

The US is trapped in the Middle East by its own policymakers’ myopia and lack of understanding of the region. From Gregory R. Copley at oilprice.com:

Egyptian President Abdul Fatah al-Sisi’s visit to the White House on April 9, 2019, resulted in one of the worst setbacks for U.S. Middle Eastern policy under the Donald Trump Administration.

What was supposed to be a fence-mending exercise between the two countries essentially ended many of the meaningful strategic aspects of the U.S.-Egyptian relationship, despite the fact that the public appearances between the two presidents appeared to be cordial. There have been significant areas of difference and frustration between Egypt and the US, even since the Trump Administration came to office, but there was at least a concerted effort on both sides to work harmoniously.

The question now is who in the Washington bureaucracy will take the blame for pushing Trump to insist on actions by al-Sisi which any fundamental analysis of the situation points to being infeasible and against Egypt’s view of its own strategic interests.

That is not to say that Egypt wishes to end cordiality and cooperation between Washington and Cairo; it does not. But certain battle lines have been drawn in the greater Middle East, and Cairo and the U.S. are not altogether on the same side. Both sides will need to undertake significant, careful action to put relations back on a positive path before the break becomes calcified.

The failure on this occasion lay at the door of the U.S. for failing to realize that Washington now needs Egypt more than Egypt needs the U.S.

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New Middle East Alliance Shakes World Powers, by Yossef Bodansky

Turkey, Qatar, and Iran are emerging as the leaders of a new Middle Eastern power bloc. From Yossef Bodansky at oilprice.com:

Doha Qatar

A new bloc is emerging in the greater Middle East with the declared objectives of dominating the entire Arab world, confronting and containing the US and its allies; and controlling and benefiting from the entire hydro-carbon economy, from production to transportation.

The leading members of the new bloc are Turkey, Iran, and Qatar; with Iraq, Syria, Lebanon, and Jordan submitting to the new bloc.

Russian experts call the new bloc “the Middle Eastern Entente”.

The key to the success of the bloc is the emerging correlation of influence of the great powers in the af-termath of the wars in Syria and Iraq. Russia and the People’s Republic of China are ready to compromise with the regional powers in order to secure their vital and global interests, while the US, Saudi Arabia and, to a lesser extent, Israel, are the nemeses of the bloc.

The roots of “the Middle Eastern Entente” are in Doha. Qatar in Summer 2017 initiated a myriad of bilat-eral and trilateral discussions with Iran and Turkey after Saudi Arabia and the GCC allies imposed the siege on Qatar in June of that year. However, it was not until the second half of 2018, with the initial impact of the siege largely ameliorated, that the long-term post-war posture of the greater Middle East became a major priority.

It was then that Doha, Tehran, and Ankara started talking about forming a coherent strategic bloc.

According to Iman Zayat, the Managing Editor of The Arab Weekly, in late November 2018, the three coun-tries struck a deal in Tehran to create a “joint working group to facilitate the transit of goods between the three countries”. This was the beginning of a profound realignment of the three regional powers. “Qatar has irrevocably joined with Ankara and Tehran against its former Arab allies. It has conclusively positioned itself in a regional alliance that pursues geopolitical dominance by driving instability,” Zayat noted.

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Is Turkey “City Zero” in Global Contagion, by Tom Luongo

The world is so mired in debt that virtually anything can ignite a crisis. From Tom Luongo at tomluongo.me:

Last year Turkey’s lira crisis quickly morphed into a Euro-zone crisis as Italian bond yields blew higher and the euro quickly reversed off a major Q1 high near $1.25.

It nearly sparked a global emerging market meltdown and subsequent melt-up in the dollar.

This week President Erdogan of Turkey banned international short-selling of the Turkish lira in response to the Federal Reserve’s complete reversal of monetary policy from its last rate hike in December.

The markets responded to the Fed with a swift and deepening of the U.S. yield curve inversion. Dollar illiquidity is unfolding right in front of our eyes.

Turkish credit spreads, CDS rates and Turkey’s foreign exchange reserves all put under massive pressure. Unprecedented moves in were seen as the need for dollars has seized up the short end of the U.S. paper market.

Martin Armstrong talked about this yesterday:

The government [Turkey] simply trapped investors and refuses to allow transactions out of the Turkish lira. Turkey’s stand-off with investors has unnerved traders globally, pushing the world ever closer to a major FINANCIAL PANIC come this May 2019.
There is a major liquidity crisis brewing that could pop in May 2019.

Martin’s timing models all point to May as a major turning point. And the most obvious thing occurring in May is the European Parliamentary elections which should see Euroskeptics take between 30% and 35% of seats, depending on whether Britain stands for EU elections or not.

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What If They Started a War and No One Showed Up? by Philip Giraldi

The Trump foreign policy clown posse is leading, but nobody but the usually sycophants are following. From Philip Giraldi at strategic-culture.org:

The humiliation of United States Secretary of State Mike Pompeo in Warsaw last week was a good thing. The ancient Greeks, exercising their demonstrated ability to synthesize defining characteristics, had a word for it: hubris. Hubris is when one develops an extreme and unreasonable feeling of confidence in a certain course of action that inevitably leads to one’s downfall when that conceit proves to be based on false principles.

Pompeo was in Warsaw for a “summit” arranged by the US State Department in partnership with the Polish government to discuss with representatives of sixty nations what to do about the fractious situation in the Middle East. In advance, he promised that the meeting would “deliver really good outcomes.” The gathering was initially conceived as a “war against Iran” precursor, intended to pull together a coalition against the Persians, but when it became clear that many of the potential participants would balk at such a designation, it assumed a broader agenda concerning “Peace and Security in the Middle East.”

Iran, Iraq, Lebanon, Palestine and Syria were not, not surprisingly, invited as some of them were the expected targets of whatever remedial action the conference might recommend. Israel’s Benjamin Netanyahu was, of course, present, tweeting in advance of the gathering that it would be all about “war against Iran.” He also characteristically delivered a warning that Iran was planning a “second holocaust” for his country.

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As US and EU Prove Unreliable Partners for Peace, Iran looks East, by Pepe Escobar

The US is pushing Iran, Turkey, Russia, and China into each others’ arms. From Pepe Escobar at mintpressnews.com:

Iran is already looking East – considering its top Asian energy clients and the close ties with the Belt and Road Initiative and the EAEU. Team Rouhani now knows, in realpolitik terms, they cannot trust the US; and the EU is an immensely problematic partner.

On the 40th anniversary of the Islamic Revolution, this past Friday, Supreme Leader Ayatollah Khamenei made an effort to express Iran’s geopolitical stance in simple terms: ‘We have good relations with all nations in the world, we don’t want to break relations with any European nation’, and an explanation of the slogan ‘Death to America’.

The Ayatollah said ‘Death to America’ “means death to Trump, John Bolton, and Mike Pompeo. It means death to American rulers. We have no problems with the American people.”

So, the slogan is indeed a metaphor – as in death to US foreign policy as conducted for much of the past four decades.

That includes, of course, the dismantling, by the Trump administration, of the nuclear deal with Iran, known as the Joint Comprehensive Plan Of Action (JCPOA).

In a rash rebuke of the centrist government of President Hassan Rouhani and Foreign Minister Muhammad Javad Zarif – who negotiated the JCPOA with the Obama administration, as well as Russia, China, France, the UK and Germany – Khamenei stressed he would not have signed it. His legendary distrust of the US now seems more than vindicated.

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Talk of Western intervention in the Black Sea is pure fantasy, by Pepe Escobar

The notion of the US and the rest of its alliance intervening in the Black Sea isn’t dismissed out of hand as farfetched, but the notion of Russia steaming into, say, the Great Lakes is inconceivable. Why? From Pepe Escobar at atimes.com:

Crimea is essential to Russia strategically and economically, but speculation over Ankara helping to boost the US presence in the Black Sea is far-fetched given Turkey’s energy deals with Moscow

The frigate Admiral Essen from Russia's Black Sea Fleet returns to the permanent naval base in Sevastopol, Crimea. It was part of Russia's Mediterranean taskforce from August 2018, spending about 300 days at sea. Photo: AFP/ Alexey Malgavko / Sputnik

The frigate Admiral Essen from Russia’s Black Sea Fleet returns to the permanent naval base in Sevastopol, Crimea. It was part of Russia’s Mediterranean taskforce from August 2018, spending about 300 days at sea. Photo: AFP/ Alexey Malgavko / Sputnik

A power struggle over the Black Sea between Russia and the US plus NATO has the potential to develop as a seminal plot of the 21st century New Great Game – alongside the current jostling for re-positioning in the Eastern Mediterranean.

By now it’s established the US and NATO are stepping up military pressure from Poland to Romania and Bulgaria all the way to Ukraine and east of the Black Sea, which seems, at least for the moment, relatively peaceful, just as Crimea’s return to Russia starts to be regarded, in realpolitik terms, as a fait accompli.

After a recent series of conversations with top analysts from Istanbul to Moscow, it’s possible to identify the main trends ahead.

Just as independent Turkish analysts like Professor Hasan Unal are alarmed at Ankara’s isolation in the Eastern Mediterranean energy sphere by an alliance of Greece, Cyprus and Israel, Washington’s military buildup in both Romania and Bulgaria is also identified as posing a threat to Turkey.

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