Much happening, but I want to get this up and out. Hopefully more later.

The Iranians are acting like the finalization of the draft bill to shut off Iranian oil to the EU is the same as having passed it.

I don’t know… maybe it is. Sometimes we have things like ’sense of the senate’ resolutions, and our president acts upon them. Or not. Anyway, we in the West may be missing some of the intricacies of the Iranian political system. Or, like us sometimes, maybe they’re just making it up as they go along.

In any event, Saturday Iran time, Oil Minister Rostam Qassemi clearly said in a press conference for this express purpose, “Export of oil to certain European countries will certainly be cut. We will decide on stopping oil exports to other European countries later.”

That was “certainly”.

Not if the legislation passes.

“Certainly.”

He continued, “Even if we are not able to sell a barrel of oil, propaganda campaigns and political pressures won’t be able to make us budge and give concessions to any other country. We will not give up our righteous stance.”

This comes a day or so after their Supreme Leader inveighed against the West and promised destruction all round if the West continues to hassle Iran. He didn’t say it exactly like that, and it took longer, but that was the gist of the message.

So it looks like Iran is not going to wait around for negotiations with the IAEA and/or G5+1.

Wonder what this will do to the price of oil worldwide. U.S. benchmark oil has risen $1.47 since Iran’s announcement, but this news is currently in such small corners of world media, the impact has not yet started in earnest.

Wonder what will happen next.

As I said at the top of the post, hopefully will post more later.

Confusing? Yes. Because everything is morphing back and forth very quickly. But bear with me through the changes, and it will get more solid before the end of this post.

Sunday morning, Iran time, an important United Nations’ International Atomic Energy Agency (IAEA) team, led by Deputy Director General Herman Nackaerts, Head of the Department of Safeguards, arrived in Tehran for a much-heralded three-day “mission to Iran to investigate allegations of secret military dimensions to the Iranian nuclear program,” as official U.S. media put it.

This visit seems to have been seen by the Iranians as a last-ditch, do-or-die, final chance to bring the IAEA around to their point view regarding their country’s uranium enrichment. As a welcoming present, all mention of the Iranian legislation that would immediately stop the flow of Iran’s oil to the European Union, and which was to be passed as early as today… disappeared from Iranian media.

Except for a very confused yes-no-yes-no article early Sunday morning in official English-language Iranian media…

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An incorporeal specter is wafting on the winds of war, unseen or at least unreported by Western sources. Is it that our media mavens do not believe in it? Or are squinching their eyes tightly shut because of the horror it manifests?

Or is that overstating the case? You decide.

The issue is legislation in the Iranian Majlis (mäj’lis - parliament) that would immediately halt oil exports to the European Union. This would circumvent the phase-in period for EU sanctions on Iranian oil.

Everyone is talking about how Iran may or may not close the Strait of Hormuz, and speculating how a military closure would be partial and gradual as the EU sanctions slide into place, and Europe secures oil from the nations of the Arab League. Frankly, how could the closure be gradual? Once military actions start, it is difficult to comprehend how they would not escalate logarithmically in a flash. Perhaps literally.

This legislation bypasses all that, and accomplishes much the same thing for the Iranians without a military component.

One can only wonder how great a shock it would be for world markets. Greece, one of the EU’s shakiest economies, depends heavily on Iranian oil, which they have been receiving on credit. Other EU countries have varying dependencies on oil from the sands of the ancient Persian empire.

Now… the burning question. How likely is it to happen? (more…)

Drumbeats of War - Iran To Stop Oil To EU

“A number of representatives of the Majlis and I are seeking to approve a bill according to which all European countries that made Iran the target of their sanctions will not be able to buy even one drop of oil from Iran, and oil taps will be turned off to them so that they will not play with fire again.”
– Nasser Soudani, member of Iran Majlis (parliament) Energy Committee

This proposed legislation could be ratified as early as Sunday, says official Iranian media… quoting Russian media. Why do they do that? I think when the Iranians quote another source for their own actions, it is to give it more gravitas, more weight, in the eyes of English speaking people who may have a bias against Iran. Is a Russian source more acceptable? Apparently they believe so.

Be that as it may…

Legislation to deny all Western warships entry into the Persian Gulf without Iranian permission was supposed to have been ratified some weeks ago. It is still hanging fire in the Majlis. Seems to have been an empty threat. But it could go though at any time, I suppose. Probably would mean war, though, so there is a good reason to bury it in committee.

This new legislation stopping oil from going to the 27 countries of the European Union may be the same sort of deal, and may never pass.

On the other hand… if it does, the EU is going to be in very dire straits short term. Saudi Arabia can increase oil production some, and other OPEC nations could do the same. But that takes time. The shortfall in the EU would have to be made up from strategic oil reserves… the Saudi’s, the U.S.’s, or any other country willing to donate.

But even that takes time to organize. In the meantime there would be some degree of shortfall.

One wonders what that would do to the price of oil.

One projection based on similar events (more…)

When I read President Obama’s State of the Union Address delivered Tuesday night at 9 pm EST, I scanned it to see if anything was said about Iran. Toward the end of the hour-plus speech, there it was…

“Look at Iran. Through the power of our diplomacy, a world that was once divided about how to deal with Iran’s nuclear program now stands as one. The regime is more isolated than ever before; its leaders are faced with crippling sanctions, and as long as they shirk their responsibilities, this pressure will not relent.”

I wondered several things, like how China’s agreement to take all the oil Iran can produce could fit into President Obama’s vision of a world that ’stands as one’… but I shrugged it off.

“Let there be no doubt: America is determined to prevent Iran from getting a nuclear weapon, and I will take no options off the table to achieve that goal.”

Okay, standard boilerplate. Exactly what Israel and the Israeli lobby wants to hear. Expected. Ho hum.

Then my eyes opened wide with surprise.

“But a peaceful resolution of this issue is still possible, and far better, and if Iran changes course and meets its obligations, it can rejoin the community of nations.”

Peace… still possible.

Not probable. Things that are ’still possible’ have moved out of the realm of probable. They have passed through the time when all things are possible but some are less likely. They have arrived at the sad place where something is, sigh, still possible, perhaps. But no longer probable.

The opposite of peace is war.

War has replaced peace as most probable.

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Instant replay: U.S. Secretary of State Panetta head-fakes Iran. He stands on the deck of the old supercarrier USS Enterprise and declares it will transit the Strait of Hormuz in March. The next day, more modern supercarrier USS Abraham Lincoln suddenly leaves the Sea of Oman and transits the Strait of Hormuz without prior announcement. The Iranians let it pass unmolested, whether taken by surprise, or simply exhibiting the better part of valor and retreating from their stance against U.S. warcraft going through the Strait.

Or did they retreat from their position? What they actually told the U.S. was to not send the supercarrier USS Stennis back through the Strait. The U.S. did not. It is said that we sent Stennis back home. So technically, the Iranians were not obligated to stop Lincoln. But it still made them seem like a paper tiger for allowing it through.

Back to the game: as you know, China is buying Iranian oil despite all sanctions. Today, Iranian media showcased two of their new star players, both of them large supertankers which will take to China a substantial amount of Iranian oil that was apparently contracted after the sanctions went into effect. The media also mentioned that oil tankers Davar and Hoda are already on their way toward China, but that they had passed through the Strait of Hormuz about January 11, before the latest U.S. and EU sanctions were enacted.

The Iranians really spotlighted two other ships, both supertankers, one named as Qi Lian San, and another player to be announced later.

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The European Union today formalized sanctions against the Central Bank of Iran today, long thought to be a sanction that would ‘cripple’ Iran’s oil-based economy. However, at this point in time, according to Iranian official media, “the CBI does not have even one single Rial (Iran’s currency unit) in Europe.”

Likewise, on Monday night, Washington D.C. time, President Obama started activating legislation that is meant to impose ‘crippling’ sanctions on Iran. He shut down payments through Bank Tejarat, Iran’s third-largest bank. Okay, Tejarat is not the supposedly crucial Central Bank, but it should have taken a chunk out of Iran’s oil trade… except India announced today that they would be happy to pay for Iranian oil in gold, and they will take all the oil Iran wants to sell them. China had previously indicated their willingness to do the same, and although another currency had been proposed, it is likely they will now also take the gold train to the light, sweet crude of Iran. Together, those two countries already use nearly half of Iran’s oil production.

Sanctions are dead.

But not forgotten.

Iranian media has floated the idea that Iran should simply cut oil deliveries to the EU… right now. Not wait for the six months it will take for current EU contracts with Iran to run their course while Saudi Arabia gears up production. Now. The Iranians ask the rhetorical question of what would that do to the fragile economies of Europe and the whole West?

So, you ask, what about all the Iranian pronouncements that Western mainstream media - and this blog - interpreted as a promise that Iran would close the Strait of Hormuz if sanctions were actually imposed… as they were today?

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According to the official U.S. media outlet just five minutes ago, USS Abraham Lincoln transited the Strait of Hormuz Sunday into the Persian Gulf ‘without incident’… just a few hours after Defense Secretary Panetta said USS Enterprise would take that trip in March.

Iran allowed the passage without the slightest movement, physical or in the media.

Questions abound.

Have the Iranians surrendered the Gulf to ‘Western powers’, despite their promise that they would not? Or do they have some sort of action planned? They have been saying they would respond ‘appropriately’ to any Western move. What would be ‘appropriate’ in this instance? Close the Strait? Send their fast small boats and submarines to challenge the Lincoln? Make a move on some other level, like sending one of their proxies against Israel in some way?

If Iran has folded, then the rumored clandestine negotiations between the U.S. and Iran may come out of the shadows. Is it possible that, despite the rhetoric on both sides, a real agreement is in the process of being reached regarding Iran’s nuclear program? Has President Obama promised to put an end to sanctions if Iran promises to bring their nuclear program either to a halt or continue only under strict IAEA supervision?

If U.S. and Iran are coming to some agreement that includes Iran becoming a ‘nuclear nation’, as Obama has been said to be willing to accept, would that make Israel decide the only option to stop Iran from someday making a nuclear weapon would be a unilateral preemptive strike without U.S. permission?

If there is no agreement in the works, will today’s actions signal to the Israelis that the U.S. will back them up if they make an airstrike against Iranian nuclear facilities?

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According to the Royal Navy, HMS Daring left Gibraltar Friday morning after a drill defending against two fast patrol boats of the Royal Navy.

After the drill, she is said to have sailed off into the Mediterranean on her deployment to the Persian Gulf.

The delay in departure from Gibraltar until Friday, for whatever reason, postpones her arrival in the Gulf by a few days. Perhaps by the middle or end of next week, if there are no problems with her propulsion systems.

First the U.S. Carriers…

USS Abraham Lincoln, USS Carl Vinson, USS John Stennis

Two of the three U.S. Aircraft Carrier Battle Groups listed above are now on station south of the Persian Gulf, according to official pronouncements by the U.S. Navy… Lincoln joined Vinson today, Thursday.

The official stance of the U.S. Navy is that Stennis ‘left in the past few days and is now traveling back through the western Pacific’ to its home port. Strange to hear ‘past few days’ rather than an exact time of departure.

The official stance keeps being contradicted by various sources that say Stennis is still on post. So it is not crystal clear whether there are two or three Carrier Battle Groups in the 5th Fleet Area of Responsibility. That is of some importance, since the Iranians specifically forbade the U.S. to return Stennis to the Gulf. In a strictly military sense, it is of less importance, since the U.S. has a truly mighty amount of firepower that is not even being discussed, and whose location is always secret.

Not exactly official, but carried by mainstream media that usually bases their reports on handouts from the government, is analysis that ‘all the elements’ are now in place for the U.S. to send warships back through the Strait of Hormuz into the Persian Gulf. That echos yesterday’s pronouncement by U.S. Defense Secretary Panetta that the U.S. is “fully prepared to deal with that situation now.”

That still begs the question whether everything is actually in place or not. The French flagship nuclear carrier Charles de Gaulle is likely on station wherever it is meant to be, wherever that may be. But British warships actually used, or like those used, in the Libyan intervention… plus HMS Daring, the new darling of the British fleet… are all still on their way to the Gulf (see previous post). This makes it seem that the gang will not all be there until next week or so.

Israel Demands Action

And now we come to today’s bombshell from Israeli Prime Minister Netanyahu.

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