Middle East Inside Line: Turkey-Hamas-Israel, Netanyahu Denies "Map", No Russia Missiles to Iran?

Turkey, Hamas, and Israel: Turkish Foreign Minister Ahmet Davutoglu, having gone to Damascus for discussions with Syrian President Bashar Assad and Lebanese Prime Minister Saad Hariri, also reportedly met Hamas political bureau chief Khaled Meshaal on Monday. They spoke about the future of the reconciliation talks between Fatah and Hamas and the continuation of efforts to lift the siege on Gaza.

Meanwhile, Israel took a  positive step towards Ankara. "In light of the calm in Turkey and the absence of large-scale anti-Israeli demonstrations," Israel's Counter Terrorism Bureau lifted a severe warning to Israelis to avoid travel to Turkey.

Middle East Inside Line: Syria-Turkey-Lebanon Condemn Israel, Netanyahu Map “Gap”, Israel’s Iron Dome System

However, this is not the end of the story. The Israeli Foreign Ministry requested assurances from Turkey that three ships belonging to the Turkish organisation IHH, backer of May's Freedom Flotilla will not be used for another attempt to run the blockade on Gaza. The Turkish daily Hurriyet reported that in past cases, Israel has required assurances only from the organizers rather than the Government.

Israel Denies Map for Talks with Palestine: The Prime Minister's Office stated on Tuesday that Benjamin Netanyahu had not presented a map of a possible border agreement and land swaps in recent discussions over Palestine, as alleged by the London-based Al-Sharq al-Awsat.

Russia Not Selling S-300s to Iran?: According to Interfax, Russian military official Alexander Fomin on Tuesday, without referring to the S-300 by name, but pledged Moscow would desist from supplying “large missile systems” to Iran in accordance with the sanctions backed by Russia at the United Nations.

Israel welcomed Moscow's statement.

Israel's "Close" Relations with Greece: Greek Prime Minister George Papandreou is coming to Israel on Wednesday. This will be the first visit to Israel by a Greek prime minister since Konstantinos Mitsotakis came in 1992.

Ahead of the visit, The Jerusalem Post reports:

People in government said there was no doubt that the recent tension with Turkey has led to a warming of the relationship between Israel and some of Turkey’s historic rivals, such as Greece, Cyprus and Bulgaria. The Cypriot and Bulgarian foreign ministers paid visits to Israel earlier this year.

According to one diplomatic official, the Greeks – looking at the Israeli-Turkish, andTurkish-US tensions – are realizing that strategic alliances in the region are changing, and that this might be a good time to get closer to Israel as a way of warming ties with Washington.

When Israel had a close strategic alliance with Turkey, the official said, Athens gave up any thought of forging such an alliance with Israel.

But now the situation with Ankara has changed, and Athens is seeing more opportunities with Israel.

The Latest from Iran (17 July): Back to "Normal"?

2020 GMT: A Just Republic. Meeting students, former President Mohammad Khatami has declared that people want freedom and a republic compatible with religion.

2015 GMT: Electricity Squeeze. Power shortages are reportedly causing daily losses of millions of dollars for domestic companies, especially in Tehran area. The schedule of rotating closures announced by the Ministry of Energy is not being implemented.

NEW Change for Iran: Why Twitter Has Made a Difference
UPDATED Iran Analysis: When “War Chatter” Poses as Journalism (Step Up, Time Magazine)
Iran: Thursday’s Suicide Bombings in Zahedan
The Latest from Iran (16 July): Explosions and Conflict

2005 GMT: The Sanctions. It appears that Germany may be accepting the restrictions on Iranian banks: reports indicate Bank Sepah accounts in Frankfurt will be closed.

A study by a former US Treasury Department analyst had found that five German banks continue to do business with Iranian entities sanctioned by the most recent UN Security Council measures and that four major Iranian banks sanctioned by the Treasury Department or the Security Council continued to operate in Germany.

1940 GMT: Not Diplomatic Immunity (cont.). The Swiss and Iranian Governments have denied earlier reports (see 1605 GMT) in Iran's state media that Switzerland's Ambassador was detained for hours on a journey to northeastern Iran.

Switzerland's foreign ministry said Ambassador Livia Leu Agosti had only been "checked by local police during a trip". Iranian foreign ministry spokesman Ramin Mehmanparast said that the story had "been covered inaccurately and wrongly".

1935 GMT: Rafsanjani Watch. Former President Hashemi Rafsanjani has joined in the condemnation of Thursday's bombing in Zahedan,  "Historical records show that in Iran and countries like Iraq, Afghanistan and Palestine..., terrorists and occupiers have never been and never will be able to achieve their ominous objectives through bloodshed and the massacre of innocents."

However, Rafsanjani --- at least in the summary of his remarks --- did not echo the theme of blaming outside powers such as the US for supporting the attacks.

1815 GMT: The Bazaar Strikes. Green Voice of Freedom, summarising this week's strikes, adds Isfahan and Mashaad to Tehran and Tabriz.

1605 GMT: Not Diplomatic Immunity. Iranian authorites detained the Swiss Ambassador, Livia Leu Agosti, freeing her a few hours later.

Agosti was travelling in North Khorasan Province in northeastern Iran when she was arrested Diplomatic immunity did not apply, according to the Iranian Foreign Ministry, ""because her identity was not established at the time".

It is not clear why the Ambassador was detained.

1545 GMT: Russia, Iran, and the Oil Squeeze. I thought, given this week's news about agreement for a joint oil bank, that Moscow and Tehran were now good energy buddies despite the international sanctions.

So how to explain this bit of Tehran pressure?

Oil Minister Massoud Mirkazemi warned on Saturday that Iran will blacklist foreign firms like Russian energy giant Lukoil that pull out of projects because of sanctions against Tehran: "If one of the companies acts against Iran, we will be forced to consider the reality and put that company on a blacklist."..."They will no longer work in our country," he said.

Mirkazemi singled out the case of Lukoil, which announced it was pulling out in March as new UN, US and EU sanctions over Tehran's controversial nuclear programme loomed. The minister said the Russian firm had reneged on its commitments in the Anaran oilfield which it discovered in western Iran in 2005.

But he added that Iran might consider continuing to work with Lukoil "if we can adjust the content of the agreement."

1410 GMT: A Different Line on Zahedan Bombing. An interesting alternative to the US-Iran dynamic on blame for Thursday's two suicide bombings in southeastern Iran. The reformist Islamic Iran Participation Front has said that “an iron fist” is not an adequate response to the problems in Sistan & Baluchistan . Indeed, the violence occurs amidst the “coup d’etat government’s policies of intimidation, violence, and oppression which is being forced on every aspect of every single Iranian's life, equally”.

1245 GMT: In Case Another Excuse Was Needed for US-Iran Scrapping. President Obama has condemned the Zahedan bombings as an "intolerable offense".

Those words, however, are not going to stem the Iran Government's rhetoric over the attack. Revolutionary Guard commander Massoud Jazayeri has warned, "Jundollah has been supported by America for its terrorist acts in the past....America will have to await the fallout of such criminal and savage measures."

And it looks like Speaker of Parliament Ali Larijani is going to join in: "The terrorist attack in the southeast of the country took place with the backing of the US....We have strong documents and intelligence that [executed Jundullah leader Abdolmalek] Rigi was linked to the US, and the US supported him in terror against Iran."

1100 GMT: The Zahedan Bombings. The Government's changing line on Thursday's suicide bombings --- Jundullah is no longer responsible since they had been "defeated" --- is being challenged. Heshmatollah Fallahatpisheh, a member of Parliament's National Security Commission, has demanded publication of documents about Jundullah.

1050 GMT: Parliament v. President (On All Fronts). Challenges here, there, and everywhere....

Ahmad Tavakoli has maintained his leading role in the pressure against the Government, asking for an investigation of former Tehran Prosecutor General and current Presidential aide Saeed Mortazavi over the Kahrizak Prison abuse case.

On the economic front, Elyas Naderan has announced a plan to return Iran Telecom to public control. Emad Hosseini has declared that there is no possibility of implementing subsidy cuts.

And just getting personal, reformist Abdollah Ramezanzadeh has filed a complaint against pro-Ahmadinejad MP Sattar Hedayatkhah.

1045 GMT: More Feuding over Universities. The Guardian Council has rejected a Parliament project supporting the establishment and strengthening of independent academic centres.

1010 GMT: Parliament v. President. Khabar Online claims 80% of members of Parliament have approved the demand for impeachment of Minister of Agriculture Sadegh Khaliliyan.

1005 GMT: Regime Moves to "Hard War"? Bahram Rafiee in Rooz Online posts the analysis that the rhetoric of the regime is shifting from a "soft war" to "hard war" with its enemies. He cites an example in the Supreme Leader's speech to Revolutionary Guard commanders this week, “All national officials must carry out their heavy duties in the various fields and be ready to confront anything as they have been for the past 31 years. Certainly, and without any doubt, the great Iranian nation and the Islamic republic will continue to emerge victorious from this perpetual struggle, as they have been in the past.”

0830 GMT: After the Bombings. Iranian state media reports that 40 suspects have been arrested over Thursday's double suicide bombing in southeastern Iran. State TV has shown thousands attending victims' funerals, chanting "Death to Terrorists" and "Down with the US".

0810 GMT: We have posted a Saturday feature, "Change for Iran: Why Twitter Has Made a Difference".

0710 GMT: A Philosopher's Stand. The German philosopher Otfried Höffe has written in Frankfurter Allgemeine that he will not attend UNESCO's World Day of Philosophy in Tehran, given the human rights abuses of the "unpredictable dictatorship": "With [Immanuel] Kant's reflections on the relationship between philosophy and revelation, I wanted to contribute to our understanding of religion in a highly industrialized country. But now I see myself forced to withdraw from the commitment."

0625 GMT: Political Prisoner Watch. Azeri activist Firouz Yousefi has been released on bail after being arrested for acts against national security.

0555 GMT: Beyond the tragedy of at least 27 lives lost and 300 people wounded in Thursday's explosions in southeastern Iran (see yesterday's updates), there was the curiosity of the Iranian regime trying to resurrect the "normal" after the event.

Initially, Iran's state media had blamed the Baluch insurgent group Jundullah --- who did indeed claim responsibility --- for the two suicide bombings. Then some official somewhere realised that this would expose the recent narrative that, with a crackdown on Jundullah and the executive Abdolmalek Rigi, order and security had been restored.

And so the media line was revised: the bombings were no longer the work of Jundullah but of some mysterious "hard-line" Sunni group. "Normal" would come in the allegation --- for this is always the allegation --- that "the US, Israel, and some European countries" (the Revolutionary Guard's Yadollah Javani) were behind "terrorist attacks...trained, financed and equipped form beyond the borders" (Deputy Minister of Interior Ali Abdollahi). Washington even hid its perfidy behind the false "humanitarian gesture" of Secretary of State Hillary Clinton's condemnation of the bombings.

But this was not only the curiosity of the "normal". For the not-exactly-normal incident in Zahedan might serve the regime by deflecting attention from life that is not-exactly-normal elsewhere. With Iran back to work today, one question is whether bazaar merchants in Tehran and Tabriz join in or whether some stoppage or strike continues.

And there is the bread-and-butter conflict within the establishment. The New York Times has taken notice in an article, "Iran’s President Now Aims at Rivals Among Conservatives" --- which might also should have considered, "Iran's Conservatives Now Aim at the President" --- and adds this information. "Moderate conservative" Morteza Nabavi said in an interview published Friday, "“Now that they [the Government] think they have ejected the reformists, maybe they think it is time to remove their principalist opponents.”

Nabavi also indicated that part of the conflict stems from the beliefs of Ahmadinejad and allies over the return with Shia's "disappeared" or "hidden Imam: “These people say they have direct contact with the 12th imam so they can lead us. This is not just a matter of opposition to government by the clergy but something much deeper.”

The Latest from Iran (16 July): Explosions and Conflict

2049 GMT: In a meeting with journalists, Grand Ayatollah Sane'i has said, “One of the issues that the media should pay attention to is the topic of lying and its transformation to a culture which unfortunately has deepened its roots in our society these days. For some individuals, it is not only a culture but has become part of their nature and telling the truth does not have any meaning for them anymore.”

2045 GMT: The Bazaar Strikes. Human Rights Activist News Agency claims that intelligence agents are trying to intimidate bazaaris in Tabriz, going to their house and threatening them over closing their stalls.

1920 GMT: Political Prisoner Watch. Isa Khan-Hatami --- director and editor of the banned magazine Iran Mehr, secretary of Solidarity for Democracy and Human Rights in Iran, and member of Iran National Front central council --- has been sentenced to two years in prison for  assembly and conspiring to commit crimes against national security, anti-regime propaganda, and disturbing the public order.

Khan-Hatami was detained on 28 December and  released on 7 February on $50,000 bail.

An appeals court has upheld a six-year sentence imposed on student activist Salman Sima.

NEW Iran: Thursday’s Suicide Bombings in Zahedan
Iran Follow-Up: The Story Beyond the Opposition, Enduring America, and US “Neoconservatives”
The Latest from Iran (15 July): The Zahedan Bombing

1915 GMT: The Bazaar Strikes. Back from a break to find that influential MP Habibollah Asgharowladi and his Parliamentary group are pressing Bazaaris to accept the Government's deal of a 15% business tax hike.

1410 GMT: Relieving the Oil Squeeze? Mehr News is reporting that, during the summit between Russian and Iranian Energy Ministers, agreement was reached for a joint oil bank within three months.

In contrast, the construction firm linked to the Islamic Revolution Guards Corps has pulled out of a $2 billion natural gas project in the South Pars field. The firm was supposed to fill the gap left by the withdrawal of foreign companies such as Royal Dutch Shell and Spain's Repsol.

1405 GMT: Your Tehran Friday Prayer Update --- "Boobquake" Seddiqi Bounces Back.

Since his spectacular "Women's Breasts = Earthquake" performance early this week, Hojatoleslam Kazem Seddiqi has struggled to find form. His repetition of the West is Bad, Iran is Doing Mighty Fine line just hasn't matched up for originality and exercise.

Well, today Seddiqi bounced back. Some have been putting out their deep, dark thoughts on the Shahram Amiri defecting/abducted scientist/non-scientist case; others have been raising the real story behind yesterday's Zahedan suicide bombings.

Seddiqi's magic trick was to put the two together: "This act of terror [in Zahedan] aims to cover up America's loss of face and the trampling of its intelligence authority in the international arena over Shahram Amiri's case."

Bravo, sir. But if I may, you could have gone even further with this stop-stopper: there was an earthquake in Washington, DC last night.

1310 GMT: The Bazaar Strike and Politics. HomyLafayette posts some excellent observations on what appears to be a curious development: why would the "conservative" news site Alef post photographs confirming that some stalls in the Tehran Bazaar were closed on Thursday, given that state media were trying to ignore the existence of a strike? Here's the answer:

The web site, Alef, is run by Ahmad Tavakoli, Majlis representative (Tehran) and head of the legislature's research center. Tavakoli is a cousin of Speaker Ali Larijani -- he is the son of Larijani's aunt -- and has been a critic of Mahmoud Ahmadinejad since his first term as president. Tavakoli, who obtained his doctorate in economics from the University of Nottingham in the 1990s, was one of the first Malis deputies to accuse Ali Kordan, interior minister in Ahmadinejad's first administration, of faking his doctorate. The late Kordan was subsequently impeached. Tavakoli and several of his close allies in the Majlis have continued to denounce the government's economic policies, the level of the post-election crackdown, and the fake doctorates of several ministers and vice-presidents.

The article which was posted yesterday on Alef contended, "While [National Traders' Council chief] Ghassem Nodeh [Farahani] has spoken of the conclusion of discussions on traders' taxes [...] and business as usual in the bazaar in recent days, Alef's journalist's report shows that some portions of the bazaar remain closed." Alef posted photos of the bazaar which were purportedly taken at noon on Thursday.

HomyLafayette also considers readers' reactions to the posting of the article noting that many criticised the bazaaris, this did not translate into support for the Government. Instead, readers lambasted the state-run media for ignoring the issue.

1225 GMT: The Pretence of Justice. Zahra Rahnavard, activist and wife of Mir Hossein Mousavi, has visited Narges Mohammadi, the women's rights activist recently released from detention, at Mohammadi's home. Rahnavard said, "It is a shame that such things happen in the prisons of a country, whose leaders pretend they are defending justice."

1215 GMT: Political Prisoner Watch. Amnesty International and Reporters Without Borders have issued a statement on Iran's political prisoners, "Their most basic rights are being violated, starting with the right to adequate medical treatment."

The organisations continue, "[We] are outraged by the conditions in which these prisoners are being held. These conditions have had a considerable physical and psychological impact on their health and most of them are ill. The two organisations believe that the purpose of the denial of medical treatment is to put pressure on them and their families."

Peyke Iran claims that student Sina Golchin and Vahid Asghari are at risk because of the lack of medical care in Section 350 of Evin Prison.

1210 GMT: Parliament v. President. Emad Hosseini, the chair of Parliament's Energy Commission, has warned that the delay in implementation of subsidy cuts is breaking the law and that the Government no longer wants to introduce them.

1200 GMT: The Ascent of Mesbah Yazdi? The opposition website Peyke Iran posts photos of Ayatollah Mesbah Yazdi --- who this week has put out some interesting statements regarding the Supreme Leader and the President --- greeting Revolutionary Guard commanders. The caption: "Mesbah Yazdi's Rise to Power".



0925 GMT: Refugees. New Media Journal publishes a report on "Iranian Refugees: A Human Rights Disaster".

0855 GMT: Political Prisoner Watch. Green Voice of Freedom reports on the prevalence of Hepatitis A in the women's section of Evin Prison.

0750 GMT: Parliament v. President. MP Hamidreza Fouladgar has said that the sale of 18% of Iran's Saipa automobile company is as "superficial", i.e., fraudulent. as the  privatisation of Iran Telecom and is not in line with Article 44 of Iran's Constitution.

0745 GMT: Food Fight. Khabar Online claims that the head of Tehran's Institute of Standards will be dismissed because he confirmed imports of polluted rice, contradicting the head of  the Institute of Standards and Industrial Research of Iran and Minister of Health, who said all was fine.

0730 GMT: Remembering the Past for the Present. Gozaar has interviewed Roya Boroumand about the Abdorrahman Boroumand Foundation's recent report on the execution of thousands in the 1980s in Iran. Boroumand says:

I believe it’s always the “right time” for the truth of events like the 1988 massacre to be made public. In any event, the officials who helped cover up or provide justification for this event must own up to the truth someday. If we don’t acknowledge the reality of what happened, such incidents and atrocities will continue to occur without anyone ever accepting any responsibility.

0650 GMT: Remembering. During Thursday's memorial service for Mohsen Ruholamini, abused and killed in Kahrizak Prison a year ago, a war veteran cut off Hojatoleslam Abutorabi-Fard's sermon and asked why former Tehran Prosecutor General Saeed Mortazavi, now a Presidential aide, had not been held accountable.

0640 GMT: Iran Changes Mind "Psychology & Sociology Useless". According to Khabar Online, the head of Iran's judiciary, Sadegh Larijani, has said that condemned theories of psychoogy and sociology, asserting that it makes no sense to teach them when their ideas are incompatible with religious assumptions.

Less than a month ago, Larijani had said on national television:

Don't...crimes need a cultural discussion...? Don't drugs need a cultural discussion? Doesn't armed robbery need a cultural discussion? In the whole world this is discussed. The psychology of crimes is itself a topic of discussion. Why does a robber go after robbery? Or why do some want to abuse people's families? Some of these people may actually be sick. Well all of this needs cultural work, even psychological work, and sociological work.

0630 GMT: Shutting Down Students. So you think sanctions have no effect? TOEFL (Teaching of English as a Foreign Language), one of the two leading tests taken by Iranian students who want to study in English-speaking countries, has been suspended because its provider is "unable to process payments from Iran" after the latest UN sanctions.

That restriction complements those already in place by Iran's Ministry of Higher Education. The ministry is refusing to send students to British universities because of the political situation, and it is reported that candidates are being vetted for "reliability" as well as academic merit.

0520 GMT: Yesterday's news was overtaken, if only for a dramatic moment in this post-election conflict, by the double suicide bombing in Zahedan. We have latest updates and analysis in a separate entry.

Meanwhile....

The Nuclear Scientist/Non-Scientist Defection/Abduction Case



The battle for propaganda advantage over Shahram Amiri, the scientist who was in the US for 14 months before returning to Iran this week, continues. It appears that US officials are trying to counter any impression that the time and effort expended on Amiri was largely wasted on information of limited use.

The latest line, handed out to The New York Times, is that Amiri had been a CIA informant inside Iran for several years. He was "one of the sources" for the central 2007 National Intelligence Estimate on Iran's nuclear programme. (The officials don't seem to care that, if true, this would indicate Amiri provided information against the immediate military development of nuclear weapons: the NIE said that Tehran would not have that capability, even if it had the intention, for several years.)

Doesn't take much to guess who the primary casualty of this campaign may be. Despite the smiles in the photographs as Amiri returned to Tehran, the US statements --- regardless of truth --- put the black mark on him in Iran. A US official was forthright, “His safety depends on him sticking to that fairy tale about pressure and torture. His challenge is to try to convince the Iranian security forces that he never cooperated with the United States.”

The Latest from Iran (15 July): The Zahedan Bombing

2130 GMT: The Zahedan Bombing. Back from a family break to learn about the two explosions, reportedly caused by suicide bombers, which have killed more than 20 people and wounded more than 100 in the southeastern Iranian city of Zahedan in Sistan-Baluchestan Province.

The explosions occurred in front of Zahedan's Grand Mosque. The first was at 9:20 p.m. local time (1650 GMT) and was followed by a second blast within minutes. A local MP claimed the first suicide bomber, dressed as a woman, tried to get into the mosque but was prevented

There are reports that members of the Revolutionary Guard are amongst the dead.

Deputy Interior Minister Ali Abdollahi has always described the incident as a "terrorist act". The prime suspect will be the Baluch insurgent group Jundullah, whose leader Abdolmalek Rigi was recently executed.

NEW Iran Follow-Up: The Story Beyond the Opposition, Enduring America, and US “Neoconservatives"
Iran: Understanding That Nuclear Scientist/Abduction Case (All It Takes is 1 Cartoon)
Iran Through the Looking Glass: “Never Judge Enduring America by Its Cover”
The Latest from Iran (14 July): Getting to the Point

1709 GMT: Rafsajani Watch. Former President Hashemi Rafsanjani, in an interview with Ertebatat monthly, has said, "Under the pretext of opposition to me, [Mohammad] Khatami, Nategh Nouri and [Mehdi] Karroubi, Ahmadinejad has put on sale all the achievements of the Revolution."

1700 GMT: Today's All-Is-Well Alert. From Press TV:

Iran's jet fuel production will soon surpass its local demand, as the country is boosting its production capacity in central Iran, an official says. Ali Dehqanian, a senior official with Isfahan Oil Refining Company (IORC), said the company currently produces 1.3 million liters of fuel jet per day, noting that Iran needs 4 million liters of fuel jet per day....

He added that an optimization project is underway in the company's fuel production unit that when complete will increase its jet fuel production to 5 million liters per day.

The official noted that 70 percent of the project has already been completed.

1658 GMT: The Electricity Squeeze. Rah-e-Sabz claims the Iran Khodro and Saipa automobile companies will close down on certain days during the week. The same is expected for other big firms.

1655 GMT: The Bazaar Strikes. Radio Zamaneh interviews two leading merchants from the Tehran Bazaar: "We Do Not Trust the Government's Promises".

1645 GMT: What is Ayatollah Yazdi Up To? Okay, so here's a summary of the statement by Ayatollah Mesbah Yazdi at a meeting for the "Velayat Project" at Shahid Beheshti University:

Some think that the Supreme Leader has a representative function like the British Queen, but this is not true. Ayatollah Khomeini said: If the chosen President is not appointed by the Supreme Leader, he is a "taghout" (monarchist) and following him is haram (forbidden).

On the surface, that looks to be a straight-forward defence of Ayatollah Khamenei. But EA's Ms Zahra thinks there may be another interpreation: "This is a preparation for Yazdi's own succession as Leader and a justification of Ahmadinejad. He pretends to defend Khamenei's right to intervene in all matters, but even raising the "untrue" comparison with the Queen is an indirect attack.

1525 GMT: The Bigger Guardian Council Story? We noted the immediate headline today that the Supreme Leader had re-appointed three clerical representatives on the Guardian Council (see 1412 GMT).

This, however, is much more interesting. Sadegh Larijani, the head of Iran's judiciary, now names three of the "legal" representatives. His short-list --- Mohammad Salimi, Ahmad Beygi Habib-Abadi, Mohammad Reza Alizadeh, Mohammad Hadi Sadegh, and Siamak Rahpeyk --- excludes two candidates, current Council member Gholam-Hossein Elham and Assembly of Experts member Ayatollah Ka'abi, who are seen as pro-Ahmadinejad.

1455 GMT: The Bazaar Strikes. Alef has posted pictures of Tehran Bazaar today. Some show vendors doing business, others are of rows of closed stalls:

1450 GMT: Remembering. An activist translates Fereshteh Ghazi's account of the life and death of Amir Javadifar, who was abused and killed in Kahrizak Prison a year ago.

1428 GMT: Russia's Carrot-and-Stick Play. Meeting his Iranian counterpart Massoud Mir-Kazemi in Moscow, Russian Minister of Energy Sergei Shmatko praised “active cooperation between Russian and Iranian companies in the oil, gas and petrochemical sectors, which are developing and widening in their joint work”.

Yet Russian President Dmitry Medvedev seems to have put out a wordy warning to Tehran over the nuclear issue, "I would like to say that Iran is our rather active trading partner and has been tested by time, but that does not mean we are indifferent to the way Iran is developing its nuclear programme and we are not indifferent to how the military components of the corresponding programme look."

Analysis, please: is Moscow indicating that the recently-toughened UN sanctions are not a restriction on Iran's energy sector or is Shmatko's statement just a bit of rhetorical "balancing" to avoid a complete detachment from Tehran while his President stands alongside the "West"?

1412 GMT: The Guardians of the Guardian Council. Back from travels to find that the Supreme Leader has reinstated Ayatollah Ahmad Jannati, Ayatollah Gholam Reza Rezvani, and Ayatollah Mohammad Reza Modarresi Yazdi, three of the six clerics on the 12-member Guardian Council.

0914 GMT: We've posted an analysis by Mr Verde of the bigger significance yesterday's opinion piece on the opposition website Rah-e-Sabz: "The Story Beyond the Opposition, Enduring America, and US 'Neoconservatives'".

0910 GMT: The Bazaar Strikes. Kalemeh, the website linked to Mir Hossein Mousavi, claims that the gold market in Tehran Bazaar is still closed.

0635 GMT: On Guard! General Amir Ahmad-Reza Pourdastan, commander of Iran's land forces, has announced that large parts of southern Iran will become "armed territory".

However, the foreign threat is not the main concern of Hojatoleslam Ali Saidi, the Supreme Leader's representative to the Islamic Revolution Guards Corps. He has declared that the "smallest mistake of officials will be punished heavily".

0630 GMT: Economy Watch (Revolutionary Guard Edition). The Minister of Economy, speaking in the Parliament, has spoken about the privatisation of Iran Telecom. He said that a rival of the Islamic Revolution Guards Corps was eliminated from the bidding after the demand of  "one of the securityforces organisations".

0625 GMT: Government Retreat on Subsidy Cuts? Mohammad Reza Farzin, the Deputy Minister of Economy, has said the subsidy cut plan could be postponed. The current intention is to start reductions in Mehr (September/October), but Farzin says this is "perhaps too early".

0620 GMT: The Universities Dispute. Rah-e-Sabz reports that the head of Iran's judiciary, Sadegh Larijani, has met former President Hashemi Rafsanjani to discuss the conflict over control of Islamic Azad University, but there has been no resolution.

0555 GMT: To Lose One Journalist is a Misfortune, To Lose Four Looks Like Carelessness. Peyke Iran claims that a cultural reporter for Fars News has fled to France. His departure follows those of Hossein Salmanzadeh of the photo section, photojournalist Javad Moghimi, and political journalist Farahmand Alipour.

0530 GMT: Many thanks to readers for providing a rolling service of news and analysis while I was busy in the International Summer School on Wednesday.

Catching Up with the News....

Amiri Not A Nuclear Scientist Shocker

Iranian state media is setting out the line on the curious case of scientist Shahram Amiri, who returned to Iran from the US yesterday, purportedly through his words on his 14 months outside the country. Press TV has him saying:

The US administration has connected my abduction to Iran's nuclear case to pursue certain goals and exert pressure on the Iranian government. While I was being interrogated by US intelligence agents, they urged me to announce that I carried a laptop containing important information and applied for asylum.

The statement links back to the Americans' claim in recent years that they have an Iranian laptop proving Iran's pursuit of a nuclear weapons, a claim disputed by many analysts. There are flourishes such as "Israel agents" at Amiri's interrogation, the "heaviest mental torture", and an offer of $10 million to appear on CNN and announce his defection.

Interestingly, Amiri is no longer a "nuclear scientist" in the article. He is an "academic".

Why the US would put so much effort into abducting a mere "scholar" is not made clear by Press TV.

And He Doesn't Get His $5 Million, Either

The US Government line, put out in The Washington Post, is a good-bye to Amiri with the sneer, "We're keeping your defection money."

Officials say Amiri was paid more than $5 million by the CIA before breaking off "significant cooperation" and "abruptly returning" to Iran because he missed his family:

Anything he got is now beyond his reach, thanks to the financial sanctions on Iran. He's gone, but his money's not. We have his information, and the Iranians have him.

Iran Analysis: Assessing Europe's Sanctions & Tehran's Oil (Noel)

Writing on Race for Iran, Pierre Noël offers an interesting analysis of European sanctions and Iran's oil and gas position, both regarding exports and imports. In the end, its significance is not as much economic --- Noël does not, for me, get to the heart of the tensions over whether Iran can satisfy its domestic demand, given the gap in imports and production left by the withdrawal of foreign companies, as well as cope with the restrictions on its exports --- as political: "Any issue that allows EU [European Union] member states to present a united front and make Europe exist on the world stage looks like a gift from heaven":

Iran is a country with very large reserves of natural gas, a lot of it relatively low-cost to produce.  With the right investment, Iran could become a gas exporter of global significance in about a decade.  Europe is one of the largest gas markets in the world.  Its combination of liberalized electricity markets and ambitious environmental policies has the effect of favoring gas as a fuel for power generation, at least in the mid-term.  Russia’s position in the European gas market raises concerns about market power and the politicization of gas supplies from Russia.  The EU supports new gas pipeline projects from Central Asia and the Middle East through Turkey to diversify Europe’s sources of natural gas; the availability of Iranian gas could be essential to the success of this diversification strategy.  Russia, on the other hand, should want to prevent or delay the emergence of Iran as a large gas exporter.

However, there are a number of uncertainties, which, taken together, raise serious questions about the practical validity of these interlinked propositions.  First, at the moment we do not know to what extent the latest EU sanctions will add to the difficulties already experienced by the Iranian oil and gas industry to source technology and finance.  These is a log of oil and gas activity going on in Iran, but large-scale gas export projects combining complex financing and cutting-edge engineering are not part of this activity.  This is certainly the case for LNG [liquified natural gas] projects, an area where the relevant technology is still largely controlled by Western companies; it is unclear to what extent big pipeline export projects could be carried on.

Second—and more fundamentally—it is far from certain that becoming a large gas exporter is a strategic priority for Iran, or even a clearly defined objective.  Iran’s potential to become a large gas exporter has been recognized for decades, but that potential has never materialized.  Iran imports roughly 5 billion cubic meters of gas per year (bcm/y) from Turkmenistan and exports roughly the same amount to Turkey.  The Islamic Republic’s small export contract with Turkey is notoriously unstable and has led to numerous rows over price and delivery.  European majors such as Total and Shell have had a terrible experience negotiating with Iran over LNG projects (and, during the 1990s, over oil projects as well).  When the European companies pulled back from new projects in Iran three years ago, ostensibly because of sanctions, the companies were not in a position to make final investment decisions on these projects for commercial reasons.

Becoming a large gas exporter would require a strategic decision by Iran, based on a wide political consensus—such as the one underpinning the Iranian nuclear program—to open the sector for real to foreign investors.  There is deep opposition to such a move in the Iranian political culture and the culture of its oil and gas bureaucracy, rooted in the memories of the U.S.-sponsored coup of 1953 following the nationalization of British oil concessions by the nationalist Mossadegh government.  If becoming a large gas exporter was a strategic objective for Iran, then the Iranian government would appear hopelessly incompetent at pursuing it.  Bu tgeology is not destiny; Iran may not want to be the next Qatar.

Furthermore, Iran is itself a large and fast-growing gas market, now 30% larger than the largest European markets, the UK and Germany.  Iran needs to continue developing some of its reserves simply to supply its domestic market; that is what Iran’s gas-related exploration and production activity has been about for some time and—I would suggest—that is what Iran’s gas-related exploration and production activity will continue to be mainly about.  The existing sanctions have been effective at killing proposed LNG export projects—but these projects might not have gone ahead anyway, in the absence of sanctions, for commercial reasons.  There is no indication that the sanctions have had any impact on the growth of gas production in Iran.  I do not know to what extent the Iranian industry’s exploration and production effort relies on European technology and services that would be made unavailable by new EU sanctions, and would not be replaceable by technology and services from Asian or South American companies.

This does not mean that Iran has no strategic energy policy.  In the context of the standoff with the “international community” over its nuclear program, Iran is obviously trying to use the attractiveness of its energy resources and geographical position to its political benefit.  The growing interest of Chinese oil and gas companies in Iran has been widely documented—but it has not led to any new gas export project.  Turkey’s ambition to increase its access to Turkmen gas via Iran has already been discussed on www.TheRaceForIran.com (see here andhere).  Given how strategic Turkmen gas (and the trans-Caspian pipeline) is to Europe’s Nabucco concept, Iran has an option to provide Turkey with both access to gas and leverage on Europe.  The Iran-Pakistan pipeline project, for which the Pakistani government has just reaffirmed its support, is another example where Iran uses its energy assets strategically to raise the cost of the U.S.-EU Iran policy.

The final point is about Europe’s plans for a large pipeline across Turkey that would bring gas from Central Asia and the Middle East to the EU, especially south-east and central Europe....

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