It is early in the morning on the wharfs in Sharjah, just below the Museum of Islamic Civilization, where the heavy wooden ships known as dhows are being loaded with cargo. Pakistani laborers hoist engine blocks, plasma monitors and mineral oil into the ships’ holds. When asked where the dhows are headed, they say, matter-of-factly: “Iran.”
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Trade between the United Arab Emirates (UAE) and their neighbor across the Strait of Hormuz is an everyday occurrence that hardly deserves mention on the docks.
The same families are often on both shores. The business relationships between them have grown over generations and are more enduring than any war or embargo.
Of course, shipping engine blocks to the Iranian port city of Bandar-e Lengeh is not prohibited. But the busy import and export trade in the dhow ports of the emirates of Sharjah, Dubai and Ras al-Khaimah shows how difficult it is to isolate Tehran.
‘Astonishingly Honest’
This makes the words uttered last Tuesday by the UAE’s ambassador to the United States, Yousef Al Otaiba, in Aspen, Colorado, more than 12,500 kilometers to the west, all the more interesting. Otaiba was attending a forum at the Aspen Institute’s Ideas Festival, and the mood was relaxed, or at least it was too relaxed for diplomatic restraint.
The discussion revolved around the Middle East. When asked whether the UAE would support a possible Israeli air strike against the regime in Tehran, Ambassador Otaiba said: “A military attack on Iran by whomever would be a disaster, but Iran with a nuclear weapon would be a bigger disaster.”
These were unusually candid words. A military strike, the diplomat continued, would undoubtedly lead to a “backlash.” “There will be problems of people protesting and rioting and very unhappy that there is an outside force attacking a Muslim country,” he said.
But, he added, “if you are asking me, ‘Am I willing to live with that versus living with a nuclear Iran,’ my answer is still the same. We cannot live with a nuclear Iran. I am willing to absorb what takes place at the expense of the security of the U.A.E.”
Democratic Congresswoman Jane Harman said afterwards that she had never heard anything like it coming from an Arab government official. Otaiba, she added, was “astonishingly honest.”
Notwithstanding the shocking nature of his remarks, Otaiba was merely expressing, in a public forum, “the standard position of many Arab countries,” says Middle East expert Jeffrey Goldberg, a writer for The Atlantic Monthly who moderated the panel discussion in Aspen.
The fact that some Western politicians are unfamiliar with this position has to do with their own ignorance, and with the diplomatic skill with which the smaller Gulf states, in particular, have managed to hide their opposition to their powerful neighbor until now.
“The Jews and Arabs have been fighting for one hundred years. The Arabs and the Persians have been going at (it) for a thousand,” argues Goldberg on The Atlantic‘s Web site.
Almost all Arab neighbors have a hostile relationship with the Islamic Republic. Saudi Arabia suspects Iran of stirring up the Shiite minority in its eastern provinces. The Arab emirates accuse Iran of occupying three islands in the Persian Gulf. Egypt has not had regular diplomatic relations with Iran since a street in Tehran was named after the murderer of former Egyptian President Anwar el-Sadat.
Jordanian King Abdullah II warns against the establishment of a “Shiite crescent” between Iran and Lebanon. And Kuwait, fearing the Iranians, installed the Patriot air defense missile system in the spring.
Closely Aligned
Arab governments are concerned about a strong Iran, its nuclear program and the inflammatory speeches of Iranian President Mahmoud Ahmadinejad. They share these concerns with another government in the Middle East — Israel’s.
Never have the strategic interests of the Jewish and Arab states been so closely aligned as they are today. While European and American security experts consistently characterize a military strike against Iran as “a last option,” notable Arabs have long shared the views of Israel’s ultra-nationalist foreign minister, Avigdor Lieberman. If no one else takes it upon himself to bomb Iran, Saudi cleric Mohsen al-Awaji told SPIEGEL, Israel will have to do it. “Israel’s agenda has its limits,” he said, noting that it is mainly concerned with securing its national existence. “But Iran’s agenda is global.”
Sometimes that agenda leads to actions that are as absurd as they are typical. In February, for example, Tehran issued a landing ban on all airlines that used the phrase “Arab Gulf” instead of “Persian Gulf” in their on-board programming.
But Arab countries are pursuing a delicate seesaw policy. The UAE cannot afford to openly offend Iran, which explains why Ambassador Otaiba was promptly ordered to return home on Wednesday.
This caution only conceals the deep divide between the Arabs and the Persians. Despite their public expressions of outrage over Israeli behavior, such as the blockade of the Gaza Strip, Arab countries in the region continue to pursue their pragmatic course. On June 12, The Times in London wrote that Saudi Arabia had recently “conducted tests to stand down its air defenses to enable Israeli jets to make a bombing raid on Iran’s nuclear facilities” — in the event of an attack on the nuclear power plant in Bushehr. In March, Western intelligence agencies reported that there were signs of secret negotiations between Jerusalem and Riyadh to discuss the possibility.
“We are aligned (with the United States) on every policy issue there is in the Middle East,” Ambassador Otaiba said in Aspen.
Pragmatism and Shifting Alliances
“The UAE has chosen to side with the camp of those who apply to the letter the new United Nations resolution of June 9,” wrote French philosopher Bernard-Henri Lévy, noting that it was “truly a blow to the regime” in Iran. For Lévy, the “union sacrée” of Muslim countries against the “Zionist enemy” is a fantasy. The countries that feel threatened by Tehran, he added, now have the opportunity to form an alliance of convenience.
Next to Jordan, the UAE is the only Arab country with soldiers deployed in Afghanistan — fighting on the side of the United States. Abu Dhabi, the richest of the seven emirates, has reportedly been pressuring Dubai to keep closer tabs on the many influential Iranians living there.
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In late June, the UAE’s central bank froze 41 accounts, some of which could be directly linked to Iran’s Revolutionary Guard. The accounts were allegedly being used to conduct transactions tied to the smuggling of materials listed under the embargo against Iran.
Before that, the UAE had announced tighter controls on ships in the Dubai free trade zone. “Security forces have interdicted scores of ships suspected of carrying illicit cargo,” said Hamad Al Kaabi, the UAE’s permanent representative to the International Atomic Energy Agency.
The Arab nations on the Gulf are pursuing realpolitik in their dealings with Iran. When in doubt, they come down on the side of the Americans, but they prefer to pursue the route of negotiation and trade. The ruler of a Gulf emirate recently told a delegation of senior European politicians: “The best way to handle the Iranians is to trade with them.”
Translated from the German by Christopher Sultan
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July 15, 2010
DEBKAfile, Political Analysis, Espionage, Terrorism, Security.
DEBKAfile Special Report July 15, 2010, 11:16 AM (GMT+02:00)
Tags: energy deal
Russia-Iran
US sanctions for Iran 
Sergei Shmatko opens Russian energy lifeline for Iran
Countering the new US embargo on petroleum and oil distillates embargo on Iran, Russian Energy Minister Sergei Shmatko and Iranian Oil Minister Masud Mir-Kazemi Wednesday, July 14 signed a series of far-reaching energy-related agreements, including a deal to sell Tehran Russian petroleum products and petrochemicals.
debkafile‘s Moscow sources report that the pacts aim squarely at the law signed by President Barack Obama on July 2 to hit Iran’s Revolutionary Guards Corps’ prime source of income, imported refined oil products including gasoline. The Russian and Iranian energy ministers contracted specifically to “increase cooperation in transit, swaps and marketing of natural gas as well as sales of petroleum products and petrochemicals.”
The accords also set up “a joint bank to help fund bilateral energy projects.”
This latter provision bypasses the US ban on the banks and insurance companies involved in funding refined oil supplies to Iran by creating a shared banking instrument for handling the funding of fuel purchases. Russian insurance firms connected with the new joint bank may insure shipments.
By this step, Moscow moved to offset the penalties America imposed on Iran in the wake of UN Security Council sanctions of June 9 and challenged the United States to blacklist Russian firms by invoking the new US law closing American markets to companies and banks doing energy business with Iran.
Important multinationals have already complied with this US edict, including two oil giants, the American-British BP and the French Total – which have ordered their vast networks of partners and subsidiaries to deny fuel to Iranian consumers – and Lloyds insurance as well as the United Arab Emirates.
But punishing Russian breakers of the US sanction could trigger a serious crisis in relations with Russia.
Sources on Moscow do not believe Obama will find upsetting his newly “reset” ties with Russian President Dmitry Medvedev and Russian Prime Minister Vladimir Putin worth the candle, especially in the light of the new joint mechanisms and bank for conducting their business.
At the same time, debkafile sources predict that US inaction against the Russian sanctions-busting transactions with Iran will encourage other countries and international business interests, particularly in the Caucasus and Central Asia which share borders with Iran, to follow their lead and defy the US embargo.
According to the latest rumors flying around the oil markets, China and Turkey are willing to help Iran evade the fuel sanctions. Pictures have appeared in some Western media showing long convoys of hundreds of fuel tankers standing by on the Iraqi Kurdistan border and waiting to cross into Iran to deliver tons of petroleum.
Even the heavy presence of US and Iraqi troops nearby appears to pose no deterrent to the prospective traffic – much less its absence on Iran’s other borders.
An important factor too is Putin’s personal and active support – disclosed here by debkafile‘s Moscow sources – for the mechanisms to break Obama’s anti-Iran fuel embargo.
These mechanisms could not have been set up overnight; they required time and attention. So they must have been completed by Monday, July 12, when President Medvedev commented that Iran was closer than ever to building a nuclear weapon, knowing that the US maneuver for deterring Iran from making the last leap in its race for a nuke was about to be sabotaged by his own government.
As for the impact on Israel, debkafile‘s sources note that the Russian step has demolished the last remnant of Prime Minister Benjamin Netanyahu’s strategy which, during all his eighteen months in office, relied on Tehran being held back from attaining a nuclear weapon by expanded international sanctions harsh enough to hurt its economy. He trusted Obama’s new energy sanctions to be the ultimate preventative – until Wednesday, when Moscow stepped in to pull their punch.
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