
The US-Iran talks have given Pezeshkian a boost
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The National
an hour ago
- The National
Iraq security deal with Iran sparks tension with US
A security agreement between Iran and Iraq has faced backlash from Washington, which for years has opposed Tehran's close ties with Baghdad. The deal comes as Ali Larijani, head of Iran's Supreme National Security Council, visited Iraq on Monday amid deep divisions in the country over a proposed law that would further formalise the role of the Popular Mobilisation Forces, a coalition composed mainly of pro-Iran paramilitary groups. Baghdad has been under pressure from Washington to rein in the Iranian-backed militias. 'We support genuine Iraqi sovereignty, not legislation that would turn Iraq into an Iranian satellite state,' US State Department spokesman Tammy Bruce said late on Tuesday. She added that Washington opposes any deal that is inconsistent with US goals and that would 'counter' its efforts to strengthen state institutions in Iraq. 'We've been clear, in this particular instance certainly and others, that the future of nations should be in the hands of the people of those nations,' she said. 'Our commitment here, as we've made clear, this particular dynamic runs counter to what our commitment has been regarding security in general." In response, Iran 's embassy in Baghdad described the comments made by Washington as "interfering remarks". The statements reflect 'ongoing efforts by American decision-makers to sow division among neighbouring and Muslim people", the embassy said in a statement published by Iranian media. The embassy also reaffirmed the 'shared determination' of Iran and Iraq to deepen relations based on mutual respect. Iraq's embassy in Washington said on Wednesday that Baghdad has the right to independently draw up agreements with any sides. Iraq 'has the right to enter into agreements in accordance with its constitution and national laws, in a manner consistent with its supreme interests", state news reported. The country is "not subordinate to the policies of any other state" and Baghdad's actions are based on its 'independent national will', the statement added. What is the deal about? The agreement signed on Monday aims to tighten border security co-operation between Iran and Iraq. A statement from the office of Iraq 's National Security Adviser, Qasim Al Araji, said he held talks with Mr Larijani on the implementation of the agreement, as well as Israel's war on Gaza. The office of Iraqi Prime Minister Mohammed Shia Al Sudani said in a statement that he oversaw the signing of the deal. The agreement is a continuation of a pact made in March 2023 to increase security in the Iraqi Kurdistan region, which Tehran accuses of harbouring armed opposition groups. Officials in Baghdad have said the agreement aims to curb cross-border infiltration by Kurdish groups that Iran says has caused unrest. "Iraq has a security protocol with the Islamic Republic of Iran, signed on March 19, 2023, known as the Joint Security Agreement on border security and the specific measures to neutralise the Iranian Kurdish opposition present in the Kurdistan Region," said a statement given to The National by Mr Al Sudani's office. "The coordination was carried out to convert this security protocol, or memorandum of understanding (MoU), to the same content regarding border security, security cooperation, and matters related to the Iranian Kurdish opposition and its five parties," said the statement. Iran suffered blows during a 12-day war with Israel in which the US also launched attacks on its major nuclear sites.


Middle East Eye
an hour ago
- Middle East Eye
Iranian press review: US-brokered Azerbaijan-Armenia deal a 'great betrayal'
'A graveyard for Trump's mercenaries' The agreement reached at the White House between the leaders of Armenia and Azerbaijan to secure peace in the South Caucasus has provoked fury among Iranian conservatives, with one saying the region will be turned into a 'graveyard for Trump's mercenaries'. Iranian politicians have hit out at the plan to create the Zangezur corridor – a proposed land link between Azerbaijan and its autonomous exclave, Nakhchivan – with the involvement of US forces. The plan also involves the corridor being developed by American companies and rebranded the Trump Route for International Peace and Prosperity (Tripp). Ali Akbar Velayati, international affairs adviser to Iran's Supreme Leader Ayatollah Ali Khamenei, said: 'Is the South Caucasus an unclaimed area that Trump can rent? The Caucasus is one of the most sensitive regions in the world. This passage will not become a corridor owned by Donald Trump, but a graveyard for Trump's mercenaries.' New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters The Kayhan daily echoed Velayati, writing: 'Finally, both Armenia and Azerbaijan have agreed to this great betrayal! They have opened the path to create a military and intelligence base for the United States and Israel in the north of our country.' Kayhan, which is run by hardline groups close to Iran's supreme leader, also called for the Strait of Hormuz to be closed to US and Israeli ships. Ali Bagheri Kani, a member of the Strategic Council on Foreign Relations, also condemned the deal, saying, 'This is not an issue Iran can easily ignore… Foreigners, especially the United States, wanting to enter the Caucasus region is unacceptable to Iran.' Tensions between Tehran and Baku had already worsened before the agreement, when Iran accused Israel of using Azerbaijani airspace during the 12-day Iran-Israel war. Israel branded 'world's number one water thief' In response to a video from Israeli Prime Minister Benjamin Netanyahu about Iran's water crisis, Iranian Parliament Speaker Mohammad Baqer Qalibaf called Israel 'the world's number one water thief'. Netanyahu has released several videos addressing the Iranian people since the start of Israel's attacks on Iran. In his latest message, he referred to the country's water and electricity shortages and urged Iranians to rise up against their government. Israel counts high cost of Iran war as censorship masks full damage Read More » He also said that if Iran's government falls, Israel would be ready to share its expertise to solve the water crisis. Qalibaf responded on X, accusing Israel of stealing water from neighbouring countries and comparing its policies to those of the Nazis in World War Two. Referring to Israeli strikes during the 12-day war that hit a water treatment facility in northern Tehran, he wrote: 'The 21st century Nazis struck the main water artery of northern Tehran in Tajrish Square with missiles in broad daylight to cut off water to the city. 'In the occupied territories and in Gaza, these same criminals have been the world's number one water thieves for years, using thirst as a weapon to kill Palestinians,' he said. 'Their crimes are always louder than their nonsense.' Rice hoarding scandal highlights corruption The discovery of 4,000 tonnes of hoarded rice, worth about $1m, has again fuelled debate in Iran over economic corruption and rent-seeking. The rice was uncovered at a time when prices for some basic goods had been rising in the days following the 12-day war with Israel, and local media had reported shortages of certain items. 'The Iranian economy is caught in a cycle of state control, rent-seeking, and institutional corruption' – Arman daily newspaper The Arman daily wrote that the hoarding of essential goods was not linked to the war with Israel, but was instead the result of deep-rooted corruption and Iran's closed economy. 'The Iranian economy is caught in a cycle of state control, rent-seeking, and institutional corruption,' the daily wrote. Economist Mehdi Pazuki told the newspaper: 'We now have a rent-seeking class that is waging a full-scale economic war against Iran. This group controls the economy through income from a closed system.' Former nuclear negotiator rejects US talks Saeed Jalili, the supreme leader's representative on the Supreme National Security Council, has criticised moderators who support resuming nuclear talks with the United States and other western countries, calling President Masoud Pezeshkian's policies ineffective. Jalili, a politician close to Iran's hardliners and a former senior negotiator with the West, pointed to the recent Iran-Israel war as a victory for Iran and said that restarting talks would be a mistake. 'You have defeated that arrogance that used all its power. You have reached a new stage, and then, only a few days later, some of you say let's go back to the same path [of negotiations],' Jalili said. He also attacked moderate groups that claim that talks with the US would remove the threat of war and bring economic benefits. 'You said several trillion dollars of capital would come. But in this recent round of talks, in the middle of the negotiation, you see America and its offspring, with all the shamelessness it has, attacking you,' he said.


Zawya
2 hours ago
- Zawya
Stocks take a breather, Fed rate-cut drumbeat weighs on dollar
LONDON/SINGAPORE - Traders ramped up Fed rate cut bets on Thursday, pinning the dollar near multi-week lows, while a global stock rally paused as investors awaited data on U.S. producer prices later in the day that may show how tariffs are impacting inflation trends. MSCI's global share index flatlined, after hitting all-time peaks for the two previous sessions, while an equivalent gauge of Asian equities outside Japan lingered near its loftiest level since September 2021. Futures markets signaled Wall Street stocks were set for a muted start, having led global shares higher all week and hit records on Tuesday and Wednesday. This blistering global rally has been fueled by strong U.S. tech earnings and speculation that Federal Reserve rate cuts will help protect businesses and households from the impact of White House tariffs. Traders now see a September cut as almost certain, per CME's FedWatch tool, and the U.S. administration is continuing to pressure the Fed to ease more quickly. Treasury Secretary Scott Bessent said on Wednesday that the Fed funds rate, which has been in a range of 4.25%-4.5% since December, should be as much as 175 bps lower. Monthly U.S. jobs data came in surprisingly weak on Aug. 1, but a U.S. producer prices report later on Thursday could shift the market's focus towards the risks of tariffs taking inflation too high for the Fed to cut rates, investors said. About 70% of global investors expect U.S. stagflation to become the dominant market narrative within three months, a Bank of America survey found this week. "Inflation is starting to come through. It's not massive yet but that could certainly continue in coming months and amplify that part of the story," Russell Investments global chief investment strategist Paul Eitelman said. U.S. Treasury markets show investors are growing queasy about the damage higher-for-longer inflation could wreak on longer-dated debt, by eroding the real value of bonds' fixed-interest coupons over time. Two-year Treasury yields, which track monetary policy bets, traded at 3.67% on Thursday, down from about 3.95% at the beginning of August. But yields on 30-year Treasuries, which are the most sensitive to inflation expectations, are now 112 bps higher than the two-year notes, with the yield differential having risen from about 95bps on Aug. 1. SOGGY DOLLAR The U.S. dollar was struggling to make headway from a two-week low against a basket of major currencies on Thursday and Japan's yen made broad based gains, hitting its strongest in three weeks at 146.38 per dollar. This came after Bessent said the Bank of Japan would raise interest rates because it was behind the curve in dealing inflation risks. The BOJ has so far justified keeping borrowing costs ultra-low because its underlying inflation measure that focuses on domestic demand and wages is below its target and it wants more clarity on how U.S. tariffs will impact exporters. The euro stood at $1,16722, nudging off the previous day's two-week high while European government debt largely tracked moves in Treasuries. Germany's 10 year yield was down 2 bps at 2.66%. EYES ON UKRAINE Commodities markets were subdued ahead of Friday's summit between U.S. President Donald Trump and his Russian counterpart Vladimir Putin. Trump on Wednesday threatened "severe consequences" if Putin did not agree to peace in Ukraine and has also floated the idea of a second summit that would include Ukrainian President Volodymyr Zelenskiy. Brent crude, the global oil marker, traded at around $65.86 a barrel on Thursday, just off a two-month low and down from almost $70 in early August. Spot gold prices, which tend to rise when investors focus on geopolitical risks, fell about 0.5% to $3,3925 per troy ounce. Goldman Sachs analysts wrote in a note to clients that lack of progress towards a Ukraine ceasefire could lead to renewed White House sanctions on Russian oil but this would only cause a "limited risk" of supply disruptions. J.P. Morgan strategists said a peace deal could lift the euro against the dollar but warned that the bar for achieving a ceasefire was high. (Reporting by Naomi Rovnick in London and Jaspreet Kalra in Singapore; Editing by Muralikumar Anantharaman, Kim Coghill and Christina Fincher)