Tuesday, June 25, 2019

Business Recorder Editorial June 25, 2019

Dangerous escalation

Things are on the verge of spiralling out of control in the rapidly escalating confrontation between the US and Iran. The alarm bells were already ringing when Washington blamed Iran for the recent spate of attacks on oil tankers and other ships in and around the Gulf. Now the shooting down of a US drone by Iran on June 20, 2019, claimed by Tehran to be in its airspace but denied by Washington that claims it was in international airspace, have brought matters to the brink of the outbreak of hostilities. US President Donald Trump has claimed he cancelled three strikes against Iranian targets as retaliation for the drone shoot down just 10 minutes before being unleashed because, as he put it, the US did not want war and asked for negotiations with Iran on a host of issues. Any talk of negotiations while the crippling sanctions imposed by the US after Trump unilaterally pulled out of the nuclear restraint agreement signed by his predecessor Barack Obama, the European Union and international organisations such as the UN and IEAE with Iran, and which Tehran scrupulously adhered to, are still hurting Iran, particularly its oil exports, has been categorically rejected more than once by Supreme Leader Ayatollah Ali Khomeini. Reports speak of the Iranians receiving a warning from Trump through Oman that the strikes were imminent, followed by the ‘no war’ and talks message. But in a startling counter-report, it is claimed that Trump offered Iran three strikes on ‘empty’ spaces that would avoid casualties and damage but provide Washington with a face saving claim of retaliation and in the process prevent any further escalation of the confrontation. Whether this is correct or not, it may reflect Trump’s well known position on withdrawing from the wars the US was currently bogged down in and avoid military involvement in any further conflicts, as evidenced by his frequent statements on the issue and his campaign promises. But the problem is that the US President, and even more his administration, particularly well-known hawks such as John Bolton, National Security Advisor, and Mike Pompeo, Secretary of State, continue to send out contradictory messages regarding the policy towards Iran. Even now, despite Trump’s stated reluctance to escalate the standoff over Iran’s nuclear and missile programmes and its alleged support for proxies throughout the Middle East, he has not categorically ruled out the military option. After the shipping attacks, Trump moved an aircraft carrier and two contingents, one after the other, of 1,500 and then 1,000 US troops to the Gulf region. Now, despite all this sabre rattling in practice while adopting a seemingly reasonable and peace oriented tone in public, Trump has called for a UN Security Council meeting to discuss the crisis. That inadvertently provides a reminder that neither the UN, nor Europe, nor indeed the world can be seen anywhere in efforts to mediate the dangerous escalation taking place under their noses. Iran too has sent messages to the UN Security Council and Secretary General Antonio Guterres to take note of the situation.

One immediate fallout of the drone downing is the decision by leading airlines to avoid the Gulf region out of fears for the safety of civil aviation. This inevitably means longer flight times, delays, and problems for travellers. Iran’s position on the issue is clear. If it is not allowed to export its oil in the face of incremental tightening of the sanctions screws, it threatens to shut down all oil exports through the Straits of Hormuz. That implies a cut off of some 20 percent of the world’s oil, with catastrophic consequences for the world economy. In the light of this threat that is still on the table, the present confrontation has already exerted upward pressure on international oil prices, a trend likely to continue and grow worse if the hostile atmosphere is not defused. The sobering fact is that Trump has discussed the situation with Saudi Crown Prince Mohammad bin Salman, whose country is considered one of the main regional players in the Middle East theatre. The elephant in the room remains Israel, whose Prime Minister Benjamin Netanyahu is credited with being behind the original decision by Trump to withdraw from the carefully crafted nuclear restraint agreement. Between regional warmongers and the hawks inside his own administration, Trump has to tread carefully not to be railroaded into a war he says he does not want. And the world has to shed its complacent silence on the crisis if another catastrophe in the region is to be prevented.

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