
By Nidhi Verma Jul 26, 2018 Reuters
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Exclusive: India’s HPCL cancels Iran oil shipment after insurer excludes coverage: sources
{Creating instability has its price. Too much risk and the insurance companies back out. Combine this with sanctions and you effectively have an oil blockade imposed on Iran. – LS}
NEW DELHI (Reuters) – India’s Hindustan Petroleum Corp (HPCL) canceled the purchase of an Iranian oil cargo earlier this month after its insurance company refused to provide coverage for the crude because of U.S. sanctions, three sources with knowledge of the matter said.
HPCL, India’s third-biggest state-owned refiner, renewed its installation insurance, which protects against any accidents at its refinery or storage sites, in early July. However, the new policy would not protect against any incidents involving Iranian oil processed or stored at its refineries, the sources said.
The refiner had planned to load 1 million barrels of Iranian crude onto the Suezmax tanker Ankaleshwar in early July but canceled the purchase after it was unable to sell it on to another buyer, said the sources who declined to be identified because of the sensitivity of the matter.
India is the second-biggest buyer of Iranian crude after China and without insurance coverage to protect their plants, the country’s refineries may have to cut off their imports earlier than anticipated.
The United States said in May it plans to re-impose some sanctions against Iran starting in August, with full sanctions in place by November, after withdrawing from a 2015 accord with Iran limiting its nuclear program.
“HPCL faced problems in lifting cargo from Iran because its annual insurance policy was renewed in July after the U.S. pulled out of the nuclear deal in May,” said one of the sources, adding the company will not be able to lift any Iranian oil.
HPCL’s Iranian imports account for only 20,000 barrels per day (bpd) of its full demand of 316,000 bpd but other Indian refiners that take larger volumes are likely to face the same problem if their annual policy is up for renewal before November.
HPCL did not respond to requests from Reuters for a comment.
Companies have until Nov. 4 to fully wind down activities with Iran or risk exclusion from the U.S. financial system. However, banks, shipping firms and insurance companies are already cutting ties with Iran and without financing or insurance coverage refiners will have to halt their purchases.
Iran had hoped to sell more than 500,000 bpd of oil to India during the current fiscal year that started in April, Oil Minister Bijan Zanganeh said in February.
However, the insurance issues may mean a reduction in imports even as India is intent on continuing dealings with Iran.
HPCL did not respond to requests from Reuters for a comment.
Companies have until Nov. 4 to fully wind down activities with Iran or risk exclusion from the U.S. financial system. However, banks, shipping firms and insurance companies are already cutting ties with Iran and without financing or insurance coverage refiners will have to halt their purchases.
Iran had hoped to sell more than 500,000 bpd of oil to India during the current fiscal year that started in April, Oil Minister Bijan Zanganeh said in February.
However, the insurance issues may mean a reduction in imports even as India is intent on continuing dealings with Iran.
“The problem in procuring Iranian barrels appears to be happening much before the Nov. 4 deadline,” said Senthil Kumaran, a senior analyst at consultants FGE. “Most of the reinsurance market is based in the U.S. so without the blessing of the U.S., Iranian oil buyers will find it almost impossible to take and process Iranian cargoes.”
{This bears repeating….“Most of the reinsurance market is based in the U.S. so without the blessing of the U.S., Iranian oil buyers will find it almost impossible to take and process Iranian cargoes.”…and that, my friends, is why Iran is so damned pissed. Enjoy. – LS}
Indian insurers rely on state-run General Insurance Corp for reinsurance, which depends on western re-insurers to hedge its risk. General Insurance did not reply to a request for comment.

The outlet cites senior figures in the government of Malcolm Turnbull, who believe the United States is “prepared” to bomb Iran’s nuclear sites. The grim prediction suggests the move could happen as early as next month.
The report comes at a time when tensions between Washington and Tehran are hitting boiling point. In one of the latest exchanges of threats between the two nations, Iran said that a war with it would be the “mother of all wars.” This prompted Donald Trump to issue a harsh response, warning that Iran would face“consequences the likes of which few throughout history have ever suffered before.”
READ MORE: ‘War will destroy everything you own,’ head of Iran’s elite troops warns Trump
Australia, a member of global intelligence alliance known as the Five Eyes, is reportedly poised to play a part in the operation, providing its defense facilities to identify targets in Iran. The same assistance may be offered by the UK, while two other parties in the alliance – Canada and New Zealand – “would be unlikely to play a role in any military action in Iran,” according to ABC.
However, the outlet’s security sources noted the significant difference between a country directly participating in a mission, and providing intelligence on Iranian facilities.
“Developing a picture is very different to actually participating in a strike,” the unnamed security source said.
Australian Prime Minister Malcolm Turnbull dismissed the ABC’s report calling it a “speculation.” He acknowledged though that “the whole world” is aware of Trump’s attitude towards Iran.
The commander of the Iranian elite Quds Force cautioned Trump, should he resort to military action, saying on Thursday that “war will destroy everything you own.” He also warned the US against further public outbursts against Iran’s leadership and its people.
US-Iranian relations has been on a downward spiral since the US leader put into action his longstanding threat to withdraw from the landmark Iran nuclear deal in May, citing its supposed flaws and Iran’s malign activities. However, the International Atomic Energy Agency has repeatedly confirmed that Tehran had not been violating the agreement.
The European signatories of the deal, known as the Joint Comprehensive Plan of Action (JCPOA), were reluctant to comply with Trump’s calls to rip it apart. On the contrary, they vowed to maintain it – even without Washington’s participation – and hold additional talks with Tehran. America’s withdrawal was also condemned by Russia and China, which are also signatories of the JCPOA.
Head of the Russian Upper House Committee for International Relations Senator Konstantin Kosachev warned that the world may face a crisis worse than that seen on the Korean peninsula if world powers sit idle in the wake of Trump’s decision.
Minister Yisrael Katz harshly criticizes the defense minister’s conduct against terrorism: tLiberman’s policy is impossible and incorrect,’

Intelligence Minister Yisrael Katz (Likud) said Friday morning that the incitement propagated by the Palestinian Authority is what leads to terrorist attacks such as the the deadly stabbing attack in the town of Adam last night.
“It’s interesting that this terrorist came from the same village from which the terrorist who massacred the Salomon family came. This is proof of the inspiration and the atmosphere. It is enough to see Abu Mazen (Mahmoud Abbas), who also claims that he will pay the last shekel he has as an incentive to the families of the terrorists, to understand the picture in the region. This is the time to implement the law that determines the cessation of funding and the transfer of a budget exactly equal to amount that Abu Mazen funds the families of the terrorists,” Minister Katz said in an interview with Nissim Mishal on Radio 103FM.
Katz mentioned his initiative to pass a law calling for the expulsion of families of terrorists to Gaza: “I am no longer talking about punishment. It is a means of deterrence beyond the demolition of a house whose purpose is to save lives. I called on the prime minister to allow the advancement of the law, because Hamas encourages such terrorism and they receive support and incentives from Abu Mazen.”
He also addressed the security situation in the south and harshly criticized the defense minister. “Israel has no clear policy vis-à-vis Gaza, and there are two options for dealing with the situation in Gaza: complete civil disengagement, or creating a plan for Hamas to decide. The policy Liberman supports is to keep Hamas’ head above water, and that is a failed policy. It is an impossible and incorrect policy.”
“In the Hamas decision, there are military elements that I will not discuss. I always suggest separating from Gaza, but I am being prevented from making a final decision on this proposal, and I have been proposing for years to separate from Gaza and to create a border, like Lebanon and Syria, It is absurd. How can it be that with Nasrallah, who heads an army of 150,000 rockets in Lebanon, we have succeeded in creating a deterrent force, but in Gaza, where there are enormous power gaps, Hamas leaders [are not dettered] from harming the IDF soldiers. Something is wrong with Israel’s policy, and it does not allow itself to express its full power,” added Minister Katz.
According to Katz, the problem is the lack of a consistent policy vis-à-vis Hamas in Gaza. “The defense minister still thinks Hamas should be made to decide on a proposal, in my opinion, if the peace is not restored, we are very close to another battle in Gaza. It is important to understand that I am not pushing for war. We want to supply fuel, electricity, concrete, cement, or water to Gaza, as the security establishment is doing today. As far as I’m concerned, this is not a normal situation, and it is impossible to leave the residents of the State of Israel in the situation they are in.”
Israel Cooperated to Secure Trump’s Prisoners Deal with Erdogan, But the Turks Cheated

Photo Credit: Screenshot – Pastor Andrew Brunson
President Trump thought he had a deal, after his meeting with Turkish President Recep Tayyip Erdogan earlier this month had ended with a smile, a fist-bump and what Trump thought was an agreement to free Andrew Brunson, an American pastor imprisoned in Turkey, the Washington Post reported Friday (A fist bump, then a rancorous call: How Trump’s deal to free an American pastor in Turkey fell apart).
The deal involved Israeli Prime Minister Netanyahu’s agreeing to release Ebru Özkan, a Turkish woman suspected of helping Hamas in return for Brunson’s release. But the deal fell apart on Wednesday, when a Turkish court ordered Brunson’s transfer to house arrest for the duration of his trial.
Turkey’s judicial system will have the ultimate say on a detained American pastor, Turkish Justice Minister Abdulhamit Gul tweeted on Thursday. “Turkey is a fully independent and sovereign country that determines its own destiny,” Gul added, “The Brunson case will proceed in its own way, as it should be in a fully independent and sovereign country, and supreme Turkish justice will have the ultimate say.”
Israel deported Özkan on July 15, a week after indicting her for ties to Hamas. She had been arrested by Israel while on a tourist visa in June.
Brunson, an evangelical pastor of the Izmir Resurrection Church, was arrested in October 2016 for “Christianization” activities. The arrest took place during the government purges that followed the 2016 alleged Turkish coup d’état attempt, when tens of thousands of Turkish military personnel, civil servants, educators, academics, dissidents, and journalists were arrested. Brunson’s Protestant church has about 25 congregants.
Trump, who was proud of his skill at cementing the prisoners’ exchange, was raging on Thursday when he tweeted: “The United States will impose large sanctions on Turkey for their long time detainment of Pastor Andrew Brunson, a great Christian, family man and wonderful human being. He is suffering greatly. This innocent man of faith should be released immediately!”
Vice President Pence said in as speech Thursday that should Turkey not free Brunson, it must be “prepared to face the consequences.”
Source: US senators warn Europe against flouting Iran sanctions – Israel Hayom
In letter to ambassadors of Britain, France and Germany, 10 U.S. senators say that they would be “particularly troubled” by any efforts to evade or undermine sanctions “passed by Congress, signed by President Obama and to be enforced by President Trump.”
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Sen. Ted Cruz (R-Texas) is one of 10 U.S. senators who issued a warning letter to Europe this week
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A group of Republican senators on Thursday warned European nations against flouting U.S. sanctions on Iran, which will soon be reimposed after U.S. President Donald Trump withdrew from a landmark nuclear accord in May.
The 10 senators, all of whom opposed the 2015 international accord, said in a letter to the ambassadors of Britain, France and Germany that they would be “particularly troubled” by any efforts to evade or undermine the sanctions.
They said attempts to do so could be met with congressional action.
Following Trump’s withdrawal from the accord, the U.S. plans to reimpose a first set of U.S. sanctions, lifted by the Obama administration under the terms of the nuclear deal, on Aug. 4. A second set of sanctions will be reimposed on Nov. 4.
The senators, including outspoken Iran deal critics Ted Cruz of Texas, Marco Rubio of Florida and Tom Cotton of Arkansas, noted that the sanctions are matters of U.S. law and had been eased only because the previous administration had approved of the deal.
“We write to urge you to comply with all American sanctions but also to emphasize we would find it particularly troubling if you sought to evade or undermine American statutes,” the senators wrote. “These laws were passed by Congress, signed by President Obama and will be enforced by President Trump.”
“Any attempt to evade or subvert them could well prompt congressional action, in coordination with other elements of the U.S. government, to ensure their integrity,” they said.
Alongside the U.S. and Iran, Britain, France, China, Russia, and Germany were the other parties to the nuclear deal that was one of then-President Barack Obama’s signature foreign policy ventures. Trump campaigned against the agreement, which he has called the worst deal ever negotiated by the United States, and followed through on that pledge to the anger of the other parties who remain in it.
Some European officials, who believe the deal is vital for the security of the continent, have suggested trying to work around the reimposed U.S. sanctions to preserve the deal. Those sanctions would penalize foreign governments or firms, including financial institutions that do business with Iran.
Source: A tale of two fronts – Israel Hayom
Israel’s attention is currently split between the Gaza and Syria borders, as tensions on both may erupt unexpectedly • The Gaza border is highly volatile, and while Hamas proved it can be pressured, Israel will have to be flexible, too.
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Smoke rises following an explosion in Syria’s Quneitra province
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Israel found that it had to split its attention this week between its border with Syria, where tensions are high but the risk of escalation is low, and its border with the Gaza Strip, where the potential for escalation is very high, but the threat level is much lower.
The number of security incidents on both borders was unusually high, and sometimes resembled an ongoing conflict. The challenge Israel is facing on both borders is maintaining deterrence without actually going to war.
While it seems the Gaza border poses a constant headache to the IDF and the government, especially given that the tenuous truce with Hamas collapsed after only four days, Israel remains focused on the northern sector.
Israel’s concern lies in two circles and in a broader perspective, in three.
The first circle is tactical and it is currently being waged in the Golan Heights, where the Syrian army is in the midst of a massive offensive to recapture the border area from rebels.
The majority of the territory is already under Syrian President Bashar Assad’s control. Some areas surrendered without a fight to avoid being pummeled to the ground. Villages whose residents insist on resisting the Syria army receive the familiar treatment, which over the past seven years has left hundreds of thousands of Syrians dead across the war-torn country.
The majority of the fighting is currently being waged between the Syrian army and the Khalid ibn al-Walid Army, a Salafi jihadist group affiliated with the Islamic State group.
Israel is not a party to this fight. Its rumored ties with Syrian rebel groups are no longer relevant and any effort vis-à-vis the local population is mainly humanitarian. But Israel has no intention of containing the ricochets of the Syrian civil war.
IDF policy has always been to retaliate over every case of errant Syrian fire that hit Israeli territory. Now, as the Syrian army’s grip on the other side of the border grows stronger that policy is more important than ever.
The fighting on the Syrian side of the Golan border challenged the IDF three times this week: The first time was on Monday, when Syrian missiles launched at rebel forces triggered the David’s Sling defense system, whose operational debut proved a failure; the second time was on Tuesday, when a Syrian fighter jet inadvertently breached Israeli airspace and was shot down; and the third time was on Thursday, when suspected ISIS rockets fired at Syrian forces hit the Sea of Galilee.
Israel was not the target in either case but retaliated in all three. The rationale for that is simple – there are no minor violations of the 1974 cease-fire agreement between Israel and Syria, and Israel will not elasticize its policy on the matter. After all, any sign that Israel’s air defenses are less than complete could be exploited by far more hostile elements, such as Iran and Hezbollah.
This policy will likely be maintained in the future, but it is doubtful it could trigger a security escalation. The Syrian army is battered and bruised by the relentless civil war and it has no interest in taking on the IDF.
This policy also plays an important part in the second circle, which is waged much farther from the northern border and seeks to prevent Iran from entrenching itself militarily in Syria.
In this respect, the past week was highly complex.
From a military standpoint, the Israeli strikes on Iranian assets in Syria continued, including – according to foreign media reports – on a major weapons production facility.
From a diplomatic standpoint, Israel was unable to convince Russia that Iran is a problem, rather than a solution. Russian Foreign Minister Sergey Lavrov and Chief of Staff Gen. Valery Gerasimov, who visited Israel this week suggested allowing Iranian forces to deploy 100 kilometers (62 miles) from the border – an improvement over a prior, 80-kilometer (50-mile) proposal – but Israel refused, as this was merely a minor difference that, given their firepower, would have no real impact on the Iranians.
It is doubtful that Israel alone could thwart Iran’s plans to tighten its grip on Syria. To truly achieve that it needs the United States and Russia, which is why it is taking a great interest in the third, strategic circle, which involves U.S.-Russian talks about Syria’s future.
It is there – and there alone – that the question of Iran’s presence in Syria will be decided. Israel may be able to disrupt Iran’s efforts in Syria in a myriad of ways, but without the help of world powers, it will find it exceedingly difficult to remove Iran from Syria.
Under these circumstances, the northern sector will continue to engage Israel intensively even after the Syrian army completes its takeover of the country’s southwest. In the post-war era, the IDF’s activity will be more complex, because Assad and his forces will have gained confidence. For this reason, if Israel does not want to wake up to a reality where its hands are tied, it must shape the rules of the game it wishes to apply without delay – and make them clear to both Washington and Moscow.
The end of optimism
Meanwhile, on the Gaza border, Israel’s patience is wearing thin.
Last weekend’s flare-up triggered a massive Israeli strike on Hamas targets and prompted the terrorist group to reach out to Egypt and ask for a cease-fire. This, together with a sharp decrease in Palestinian arson terrorism, gave Israel the impression that calm could be restored to the area without a full-scale military operation.
This slight optimism was shattered Wednesday when a Palestinian sniper shot and wounded an IDF officer whose troops were trying to keep a group of Gazan children away from the border.
While the gunman was an operative affiliated with one of the smaller, rogue terrorist groups in Gaza, the message this incident sent was both clear and highly problematic, namely that Hamas is either unable or unwilling to enforce the cease-fire, and that the Palestinian terrorists are eager to recreate last weekend’s successful slaying of an Israeli soldier.
Givati Brigade Staff Sgt. Aviv Levi, 21, who was killed by a Hamas sniper in a border clash last Friday, was the first IDF fatality on the Gaza front since Operation Protective Edge in 2014.
Many in Israel this week called on the IDF to pummel/crush/topple Hamas. Militarily, Israel has no problem doing that, as the disparity in military might is so dramatic that it would take a great deal of self-flagellation mixed with a fundamental misunderstanding of the situation to conclude that Israel is the one wary of confrontation.
But the question, as always, is bigger than the mere deployment of fighter jets and tanks. This is a matter of policy and Israel, even last week, still had not defined the objectives of a potential war in Gaza, should it be dragged into one.
Outline these objectives is crucial precisely because the next clash is right around the corner. These objectives will determine not only the conflict’s immediate results in terms of property damage and potential casualties but also – and mainly – its long-term results and the ability to change Israel’s reality vis-à-vis Gaza.
For now, things seem to be taking their time. The aid package U.N. Middle East envoy Nickolay Mladenov is trying to put together for Gaza has yet to be completed and even when it is, it would take a great deal of optimism to believe that the Arab countries that pledge their help will stick to their word, especially given that behind the scenes, Palestinian Authority President Mahmoud Abbas is sparing no effort to undermine these moves, knowing it would lead to war.
Israel would be better off running things itself. Contrary to public perception, which can lead one to believe that Israel is constantly dancing to Gaza’s tune, the past few weeks have proven that it is Hamas that succumbs to pressure and is wary of a confrontation.
This can be used to promote a dialogue that could secure significant achievements, from restoring peace and quiet to the Gaza-vicinity communities, through the return of the remains of two IDF soldiers and the two Israelis held by Hamas, to the potential regulation of the weapon smuggling and production issues.
This would require Israel to keep an open mind and pursue strategic – not political – thinking, which would prioritize Israel’s broader interest while making it clear to the public that there is no such thing as a “good war.”
Source: Trump readying to strike Iran say Australian government sources – report | The Times of Israel
Prime Minister Malcolm Turnbull rejects report, says ‘no reason’ to believe attack, which sources said would use Australian and UK intelligence, is imminent
US President Donald Trump may have plans to bomb Iran’s nuclear facilities as early as next month, senior Australian government sources said according to a Thursday report, though Prime Minister Malcolm Turnbull said he had “no reason” to believe a strike was imminent.
Sources said that Australian and British intelligence services would be involved in identifying targets for a strike, Australia’s ABC news reported.
However, the sources told the paper that Australia would not actively participate in an attack on Iran.
“Developing a picture is very different to actually participating in a strike,” a source told ABC.
“Providing intelligence and understanding as to what is happening on the ground so that the Government and allied governments are fully informed to make decisions is different to active targeting,” he said.
Turnbull appeared to reject the report, saying it was “speculation” and he had “no reason” to believe a strike was imminent.
“I saw a story today claiming that on the ABC, and citing senior Australian government sources,” he said. “It’s speculation, it is citing anonymous sources.”
He said that the ABC report information did not come from any of the relevant senior government officials.
“President Trump has made his views very clear to the whole world, but this story … has not benefited from any consultation with me, the Foreign Minister, the Defense Minister or the Chief of the Defense Force,” he said.
Australia and the UK partner with the US in the “Five Eyes” intelligence program, along with Canada and New Zealand, though the latter are unlikely to play any role in an attack on Iran, the sources told ABC.
On Sunday Trump issued an intense warning against Tehran, threatening that it would “suffer consequences the likes of which few throughout history have ever seen before.”
The response came after Rouhani earlier Sunday issued his own warning to the US leader not to “play with the lion’s tail,” saying that conflict with Iran would be the “mother of all wars.”
However, Trump tempered the threat Tuesday, saying “we’re ready to make a real deal” with Iran.
The back-and-forth came after the Trump administration withdrew the United States from the Iran nuclear deal forged under former President Barack Obama.
The move sets in motion a renewal of sanctions against the Islamic Republic that were removed once the landmark accord was implemented in January 2016.
Those sanctions are now set to be reimposed in November, causing more than 50 international firms to exit the Iranian market, according to State Department policy and planning director Brian Hook.
Eric Cortellessa and Associated Press contributed to this report.
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