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    Oil Realpolitik Has Returned With a Vengeance

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    The Guardian view on Biden’s risky gamble: betting on lowering oil prices | Editorial

    The Guardian view on Biden’s risky gamble: betting on lowering oil pricesEditorialThe climate agenda risks being derailed by energy market disruptions caused by Russia’s war in Ukraine Joe Biden’s trip to Saudi Arabia this month highlights the paradox of American power. The US has the economic heft to punish an opponent – but not enough to alter the behaviour of a determined adversary. Sanctions will see Russia’s economy contract by 9% next year. But Washington needs more nations to join its camp to halt Moscow’s brutal invasion of Ukraine. Mr Biden has been forced to prioritise war objectives over ethics in meeting Crown Prince Mohammed bin Salman, who the CIA says ordered the barbaric murder of the prominent journalist Jamal Khashoggi.The havoc that Russia’s war has caused on the world’s energy markets is contributing to an economic crisis that is playing into the hands of Mr Biden’s domestic opponents. This highlights the west’s failure to confront the climate emergency with a less carbon-intensive economic model. The green agenda risks being derailed by sky-high hydrocarbon prices. This scenario could have been averted if western nations had accelerated their net zero agendas by driving down energy demand – the lack of UK home insulation is one glaring failure – and spending on renewables to achieve energy security. Instead, this week the G7 watered down pledges to halt fossil fuel investment over fears of winter energy shortages as Moscow squeezes supplies.Boycotts and bans against Russia, even as they take a toll on the global economy, will cause ordinary Russians hardship. But this has not moved Vladimir Putin. Soaring crude prices fuel Moscow’s war machine. A price cap on Russia’s petroleum exports might choke off the cash. But a concern is that China and India will buy Mr Putin’s oil at a price that still lets the Kremlin profit. Clever technical solutions mask hard choices. Sanctions drive up energy prices for consumers unless there are alternative supplies available. Right now, to bring down oil prices means producing more planet-destroying energy. That requires US engagement with Saudi Arabia and the United Arab Emirates, both of which bear responsibility for the disastrous Yemen war. Washington might have to woo Venezuela and Iran, nations which will play Moscow off against the west.The US is pursuing a three-pronged strategy: increasing pressure on Russia; getting more oil into markets to bring prices down; and allowing central banks to raise interest rates to levels that look as if they might cause a recession. The latter is designed to signal to oil producers that energy prices will collapse. The painful recessions of the 1970s and early 1980s played a part in bringing down oil prices after energy shocks – and contributed to the Soviet Union’s disintegration. But this took 15 years. Mr Putin’s Russia may not be as powerful as its forerunner. It might be more brittle than the Soviet Union. But there are few signs of imminent collapse.As the west seeks to reduce its reliance on Russian hydrocarbons, there seems to be a global “gold rush” for new fossil fuel projects defended as temporary supply measures. The risk, with the US as the largest hydrocarbon producer, is that the world becomes locked into an irreversible climate catastrophe. Europe might become as reliant on US gas as it once was on Russian gas. Donald Trump proved America could be an unreliable ally. Rightwing supreme court justices have hobbled Mr Biden’s power to limit harmful emissions. Meanwhile, China has emerged as a world leader in renewable energy as well as the metals on which it depends. Mr Biden had wanted to transition the US away from oil. Yet during his time in office the sector’s market value has doubled because prices have risen. Jarringly, as the climate emergency grows ever more urgent, fossil fuel appears the pivot on which the war in Ukraine will turn.TopicsUkraineOpinionClimate crisisJoe BidenUS politicsSaudi ArabiaMohammed bin SalmanOileditorialsReuse this content More

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    The Evolution of National Security in the UAE

    The United Arab Emirates, a small and ambitious country in the Persian Gulf, faces a variety of security threats. Its geographic location puts it at the center of instability, sectarianism and regional rivalries in the Middle East, which has led the country to pay particular attention to its security. 

    In recent years, the Arab countries of the Persian Gulf, especially the UAE, have recognized that trusting foreign governments, such as the United States, cannot offer them the best possible protection. The US has had a presence in the Persian Gulf since the 1990s and the Gulf Arab countries have relied on it to provide security. However, events in recent years have shown that the Gulf Arab states cannot rely solely on Washington.

    Can Self-Help Diplomacy Lower Political Heat in the Middle East?

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    Such developments include the Taliban takeover of Afghanistan amid the US withdrawal; the US pivot to Asia; the US retraction of most advanced missile defense systems and Patriot batteries from Saudi Arabia; and the lack of a US military response to threats, missile and drone attacks on Saudi oil bases by the Houthis in Yemen.

    This has encouraged the Arab countries in the Persian Gulf to pursue security autonomy. The UAE, in particular, has sought to transform its strategy from dependence on the US and Saudi Arabia to a combination of self-reliance and multilateral cooperation.

    Self-Reliance Security Strategy

    Although the UAE is an important ally of America in the Persian Gulf, over recent years, the US has sought to push the Emiratis toward security self-reliance. Sociopolitical events in the Middle East over the last decade following the Arab Spring of 2010-11 have made it clear to the UAE that the primary goal of ensuring national security, in addition to benefiting from international cooperation, should be the use of national facilities and resources.

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    Hosni Mubarak’s ouster from Egypt during the Arab Spring protests and the reluctance of the US to defend him as an ally — which led to the rise of Egyptian President Mohamed Morsi of the Muslim Brotherhood — further demonstrated to Abu Dhabi that it should not exclusively depend on the US for security assistance. Thus, the UAE began to develop a professional army.

    The UAE‘s self-reliance strategy is divided into different branches, but most of all, its military security efforts have been given the highest priority. The UAE‘s determination to create an independent and professional military is evident from its years of investment in the defense industry.

    Indeed, security is a top priority for the United Arab Emirates, and defense spending continues to make up a large portion of the national budget. The UAE’s defense spending typically accounts for 11.1% to 14% of the total budget. In 2019, the UAE’s defense spending was $16.4 billion. This was 18% more than the 2018 budget of $13.9 billion.

    The UAE has invested heavily in the military sector and defense industry in recent years. In November 2019, the UAE formed the EDGE Group from a merger of 25 companies. The company has 12,000 employees and $5 billion in total revenue. It is also among the top 25 advocacy groups in the world, ahead of firms such as Booz Allen Hamilton in the US and Rolls-Royce in the UK.

    EDGE is structured around five clusters: platforms and systems, missiles and weapons, cyber defense, electronic warfare and intelligence, and mission support. It comprises several major UAE companies in the defense industry, such as ADSB (shipbuilding), Al Jasoor, NIMR (vehicles), SIGN4L (electronic warfare services) and ADASI (autonomous systems). The main goal of EDGE is to develop weapons to fight “hybrid warfare” and to bolster the UAE’s defense against unconventional threats, focusing on electronic attacks and drones.

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    The UAE has also come up with detailed plans to improve the quality of its military personnel, spending large sums of money each year on training its military recruits in American colleges and war academies. It also founded the National Defense College; most of its students are citizens of the UAE, because of its independence in military training. In addition, in 2014, the UAE introduced general conscription for men between the ages of 18 and 30 to increase numbers and strengthen national identity in its military. As a result, it gathered about 50,000 people in the first three years.

    Contrary to traditional practice, the UAE’s growing military power has made it eager to use force and hard power to protect its interests. The UAE stands ready to use military force anywhere in the region to contain Iran’s growing influence and weaken Islamist groups such as the Muslim Brotherhood. Participating in the Yemeni War was a test of this strategy.

    The UAE‘s military presence in Yemen began in March 2015. It sent a brigade of 3,000 troops to Yemen in August 2015, along with Saudi Arabia and a coalition of Arab countries. Over the past five years, the UAE has pursued an ambitious strategic agenda in the Red Sea, building military installations and securing control of the southern coasts of Yemen along the Arabian Sea in the Bab al-Mandab Strait and Socotra Island. Despite reducing its military footprints in Yemen in 2019, the UAE has consolidated itself in the southern regions. It has continued to finance and impart training to thousands of Yemeni fighters drafted from various groups like the Security Belt Forces, the Shabwani and Hadrami Elite Forces, Abu al-Abbas Brigade and the West Coast Forces.

    The UAE‘s goal in adopting a self-reliance strategy is to increase strategic depth in the Middle East and the Horn of Africa. Thus, along with direct military presence or arms support for groups engaged in proxy wars, it affects the internal affairs of various countries in the region, such as Yemen, Somalia, Eritrea, Ethiopia, Sudan, Egypt and Libya. With its influence, the UAE can turn the tide in its favor in certain areas.

    Multilateralism Security Strategy

    The United Arab Emirates faces a variety of security challenges in the Middle East, and addressing them requires cooperation with other countries. Currently, the most significant security threats in the UAE are: countering Iranian threats and power in the Middle East, especially in Arab countries under Iranian influence, such as Yemen, Syria and Lebanon; eliminating threats from terrorist groups and political Islam in the region, the most important of which — according to the UAE — is the Muslim Brotherhood; and economic threats and efforts to prepare for the post-oil world.

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    In its multilateral strategy, the UAE seeks to counter these threats with the help of other countries in the region or beyond. It has used soft power through investments or providing humanitarian aid, suggesting that economic cooperation is more important than political competition and intervention. In this regard, the UAE has cooperated with Turkey, Saudi Arabia, Egypt, Britain and France, as well as normalized relations with Israel.

    On August 13, 2020, the UAE became the first Gulf state to normalize relations with Israel. The UAE‘s goal in normalizing relations with Israel is to counter threats from Iran and the region. The Abraham Accords have not only a security aspect, but also an economic one. Following the signing of the accords, on October 20, 2020, the US, Israel and the UAE announced the establishment of the Abraham Fund, a joint fund of $3 billion “in private sector-led investment and development initiatives,” aimed at “promoting economic cooperation and prosperity.” In addition, it outlined a banking and finance memorandum between the largest banks in Israel and Dubai, and a joint bid between Dubai’s DP World port operator and an Israeli shipping firm for the management of Israel’s Haifa port.

    Through the Abraham Accords, the United Arab Emirates seeks to invest and transfer Israeli technologies to the UAE through mutual agreements. The UAE has discovered that Israel is one of the bridges to the US economy and high technology. If the UAE intends to have an oil-free economy in the future, Israel may be the best option to achieve this by pursuing a strategy of multilateralization.

    UAE relations with Turkey also have a multilateral dimension to reaching common security goals. The two countries had good relations until the Arab Spring protests jeopardized ties between them. Abu Dhabi and Ankara began to defuse tensions after a phone call in August 2021 between UAE Crown Prince Mohamed bin Zayed Al Nahyan and Turkish President Recep Tayyip Erdogan. The nations mainly have differences around issues in Libya, Syria and Egypt. The UAE is trying to resolve its disputes with Turkey by investing in the country.

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    Turkey is the largest backer of the Muslim Brotherhood in the region. The Turks claim the UAE participated in the failed coup of July 2016 against the Turkish government. Nonetheless, the UAE wants to end frictions with Turkey and has attracted Ankara by investing and increasing commercial ties. The Turkish lira has depreciated in recent years and Erdogan’s popularity has plummeted due to mismanagement in Turkey. Erdogan will not miss this economic opportunity with the UAE and welcomes Emirati investments. In this way, the UAE will likely easily resolve its differences with Turkey.

    The current tendency to use force is contrary to traditional Abu Dhabi policy, yet increasing the strategic depth of the UAE is one of Abu Dhabi‘s most achievable goals in its strategy of self-reliance. This plan is the exact opposite of multilateralism. Unlike the use of force and hard power, Abu Dhabi seeks to achieve its objectives by using soft power, investment and humanitarian aid. In this situation, the tactical exploitation of economic cooperation takes precedence over political competition and military intervention in the region.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Trump’s Peace review: dysfunction and accord in US Israel policy

    Trump’s Peace review: dysfunction and accord in US Israel policyBarak Ravid has written a fascinating account of four chaotic years in which some progress was nonetheless made Trump’s Peace is a blockbuster of a book. Barak Ravid captures the 45th president saying “Fuck him” to Benjamin Netanyahu and reducing American Jews to antisemitic caricatures. Imagine the Republican reaction if Barack Obama had done that. Sean Hannity, Tucker Carlson and Laura Ingraham would plotz. But Trump? Crickets.The State of Israel vs The Jews review: fierce indictment of a rightward lurch Read moreRavid also delivers a mesmerizing tick-tock of the making of the Abraham Accords, the normalization of Israel’s relations with four non-neighboring Arab states.Donald Trump, Jared Kushner, Yousef al-Otaiba – the United Arab Emirates ambassador to the US – and members of Israel’s government took the time to talk. Ravid footnotes the receipts.The result is a well-paced and engrossing read, if in Hebrew only for now. Israel-born and based, Ravid writes for Axios and Walla, an Israeli website. He knows his subject. Netanyahu is caught telling Avi Berkowitz, Kushner’s deputy and a US negotiator, not to leak to the author. Instead, Berkowitz talked on the record.Technically, the Abraham Accords are a joint declaration signed by the US, Israel, the UAE and Bahrain. Practically, the agreements represent the first major breakthrough in Middle East peace since the October 1994 treaty between Israel and Jordan. Unlike the Hashemite kingdom, the UAE and Bahrain do not border Israel, are graced with petroleum reserves, and stare at Iran across the Persian Gulf.According to Ravid, the nuclear threat posed by Tehran and the unrest that followed the Arab Spring reshaped policies and thinking towards normalizing relations with Israel. The Palestinians no longer occupied center stage.Ravid reports that Netanyahu backtracked on a commitment to annex part of the West Bank after being subjected to US pressure. Apparently, the Trump administration made clear it would continue to shield Israel in the United Nations security council but would not at the International Criminal Court. Netanyahu got the message. It came down to a UAE ultimatum: settlements or peace. Netanyahu blinked.Ravid regards Sheikh Mohammed bin Zayed, also known as MBZ, crown prince of Abu Dhabi, as an unsung hero. He compares MBZ to Anwar Sadat of Egypt, who made peace with Israel then paid with his life.By the numbers, the Abraham Accords are yielding dividends. The UAE has announced a $10bn investment fund in key Israeli economic sectors and envisions more than $1tn in trade over a decade. Saudi Arabia looks to Bahrain as a conduit for investment in Israel and the Biden administration is “leaning” into the accords, after first hesitating.Ravid portrays Trump and Netanyahu as divisive leaders who threatened their countries’ democratic moorings. He recounts the 6 January insurrection in the US and Netanyahu’s resort to incitement. And yet, Ravid argues, fairness demands that both receive credit for this particular accomplishment.Understandably, Ravid is more ambivalent toward the US withdrawal from the Iran nuclear deal, a legacy of the Obama administration hated by Netanyahu and Trump. In Trump’s telling, his decision to pull out was not the result of Israeli urging. Rather, the deal was flawed and deserved to be scrapped.That verdict is not unanimous. Ravid quotes Udi Lavie, former deputy chief of the Mossad, who says the US withdrawal did not benefit Israel but hurt it. At the same time, Ravid observes that Netanyahu and Yossi Cohen, a former head of the Mossad, harbor no such regrets.Negotiations with the Iranian regime continue, with no tangible signs of progress. As Israel girds for possible conflict, its message is conflicted.A recent New York Times headline blared: Israeli Defense Officials Cast Doubt on Threat to Attack Iran. On the other hand, Amos Yadlin, a former air force general, told the paper his country has the capability for a successful strike.“Can the American air force can do it better? Definitely. But they don’t have the will.”Or necessarily the same strategic interests. Trump’s ascendance in 2016 was directly related to the Iraq war and its casualty count.Ravid also offers his take on Trumpworld. He stresses that Kushner was neither ideologue nor idealist. At heart he was a businessman, sympathetic to Israel but not seeing annexation as a personal cause. Nor, Ravid says, was Kushner driven by religious sentiment – as was Mike Pompeo, Trump’s secretary of state. The Messiah could wait.Nor, unlike Condi Rice, George W Bush’s secretary of state, did Kushner regard Palestinians stuck at Israeli check-points as – in Ravid’s words – “the reincarnation of Rosa Parks on a bus in Alabama”.In contrast to Kushner, David Friedman, Trump’s bankruptcy lawyer and ambassador to Israel, viewed the two-state solution as an “illusion”. Before he took office, he derided Jews on the left as “worse than Kapos”. His nomination narrowly cleared the Senate.‘We are family’: the Israelis sharing life and hope with PalestiniansRead moreAs ambassador, Friedman was close to Netanyahu, sitting in on Israeli government meetings until he was tossed out by cabinet members. Ravid describes Friedman as “flesh of the settlers’ flesh”. Friedman has taken issue with portions of Ravid’s reporting – and has a book due in February.Earlier this year, Friedman told the Times he would not rule out becoming a US-Israeli dual national, but not until Trump’s plans for 2024 were known.“I’m going to stay American-only for at least four years,” he said. “I want to give myself every opportunity to return to government.”Maybe, maybe not. Trump remains on the stage, ready to kneecap any competitor for the Republican nomination. Netanyahu is standing trial on bribery and corruption charges while leading the opposition bloc in Israel’s Knesset.Paradoxically, his efforts to cling to power may be the best insurance policy for the current coalition government. One thing is certain: the two men created facts on the ground that will outlast them both.
    Trump’s Peace: The Abraham Accords and the Reshaping of the Middle East is published in Israel by Yedioth Ahronoth Books
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    Can Self-Help Diplomacy Lower Political Heat in the Middle East?

    Since the end of the 1973 Arab-Israeli War, the United States has been the unchallenged dominant power in the Middle East and North Africa. As such, it often saw its role, for better or worse, as fixing the region’s many problems. The Israeli-Palestinian conflict, Iraq and Saddam Hussein, Iran, high oil prices, Gulf security, Western Sahara, menacing non-state organizations, counterterrorism, human rights, democracy, autocratic leaders, failed states — whatever the concern or challenge, the Americans came to view them as priority issues and their responsibility. Moreover, many regional states and even their citizens often saw America’s involvement as a necessity, sometimes even an obligation to tamp down the region’s frenzied political climate.

    Will Saudi-Iran Talks Lead to Anything?

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    But times have changed. Three recent presidents — Barack Obama, Donald Trump and now Joe Biden — have made efforts to distance the US from its endless, exasperating entanglements in the Middle East. Those efforts had distracted the United States from its principal challenges in the world — China and Russia — and sapped it of its military, economic and political might and influence. America received very little in return on its investment. Furthermore, years of US involvement in the region had also fractured the American public’s support for the more critically important role it must play in anchoring the international order.

    Enter the Others

    Downgrading America’s involvement in the Middle East isn’t necessarily a bad thing. For decades, many in the Middle East and in the US had argued that the region’s problems must be tackled by the governments and people of the region. Outsiders can play a supporting role, but the tough decisions can only be made by the governments themselves. That may now be happening.

    But handing off the task of addressing the region’s manifold challenges got off to a poor start. Neither the US, nor the international community, nor the states of the Middle East seemed able to solve the conundrum of the region’s three failed states.

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    Then, starting around 2015, Saudi Crown Prince Mohammed bin Salman started ordering others around — imposing a blockade on Qatar, detaining the Lebanese prime minister, jailing courageous dissidents and largely harmless millionaires, ordering a hit job on journalist Jamal Khashoggi and jumping into the Yemeni Civil War. And it all went bad, very bad in fact. Additionally, it provoked other would-be movers and shakers to get in the act, including the United Arab Emirates, Turkey, Iran, China, Russia and even Israel. And not always with good intent or positive results.

    After years of misdirection, however, governments now seem to be taking a more sober and responsible approach that could prove genuinely beneficial for the region. For starters, they have embarked on a simple approach: dialog. They are talking about their problems, especially those between and among one another. Dialog leads to understanding, which can lead to shared interests. Ultimately, to be effective, dialog must lead to compromise. That involves the inevitable give-and-take that allows nations, especially those close to one another, to live and thrive in peace and prosperity.

    It’s a Start

    One of the most encouraging initiatives may be the most unexpected: dialog between the Middle East’s two major powers, Iran and Saudi Arabia, and hosted by perhaps the most unlikely state, Iraq, unquestionably the region’s most conflict-ridden for decades. The issues are many between these two historic rivals, separated by a narrow gulf on whose name neither seems able to agree. But the larger gulf lies in their differing views of the other, their competing religious sects — the Saudi uber-conservative Wahhabi Sunni Islam vs. Iran’s clerically-led, conservative Shia Islam — perceptions of the other’s role and intentions in the region, their wealth, and relations with and ties to the broader international community, almost non-existent in the case of Iran.

    One especially neuralgic issue for both is their respective roles in the Yemen War. It is now abundantly clear that the Saudis’ overwhelming military power, bolstered by the US and some European nations, cannot defeat the Houthi rebels. Nor can it end either the war or even its costly intervention in it. The Saudis need help. Enter the Iranians, who have been supporting the Shia-affiliated Zaydi Houthis in this war since 2013. With ideology and much-needed weapons and funding, though much less than what Saudi Arabia has expended, the Iranians have empowered the rebels to the point where they are now an established power in a future Yemen, whether unified or bifurcated.

    So, the two regional powers are talking it out. The Saudis want out of the war, but they also want reliable security along their southwestern border. The Iranians want a Shia power on the Arabian Peninsula, but preferably one at peace.

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    Yemen may be the most immediate challenge for the two states. But there are others. More broadly, Saudi Arabia and Iran need to reach a modus vivendi in the region. On-again, off-again formal relations, menacing behavior toward each other’s oil and shipping interests, and verbal assaults do little more than increase the temperature in a region plagued by heat, literally and figuratively.

    Brothers Reconcile?

    Saudi Arabia has also launched a campaign to repair the frayed relations among its Arab neighbors. Last week, Mohammed bin Salman week began a PR campaign to demonstrate a new and improved political environment. In a swing through the neighboring Gulf states of Oman, the UAE, Bahrain and, most importantly, Qatar, he seems to be trying to rebuild what once had been the region’s preeminent multilateral organization, the Gulf Cooperation Council.

    Mohammed bin Salman single-handedly fractured the Gulf alliance when he imposed his 2017 blockade on Qatar, joined by the UAE, Bahrain and Egypt. It backfired. Qatar remained in the good graces of the US, drew the political and military support of peripheral power Turkey and earned the support of Iran. Consider it the young prince’s on-the-job training in global as well as regional politics. He is now devoting particular attention to Doha in the hope of what yet we aren’t quite certain. But this repair work and goodwill tour cannot help but create progress.

    And not to be outdone, the Gulf’s other power, the UAE, has embarked on its own diplomatic repair mission. Like the Saudis, the Emiratis want to lower the temperature in the Gulf, and their position as the region’s prime economic entrepôt gives them special heft. The UAE’s ties to the US, still the unquestioned but now quiescent power in the Gulf, also lend special weight.

    Could It All Be for Naught?

    Looming over all of these laudable efforts, however, is Iranian behavior in the region. All eyes are now on the recently restarted talks over the Joint Comprehensive Plan of Action (JCPOA) in Vienna, Austria. Following a near-six-month hiatus at Iran’s request, the P5+1 group and Iran renewed negotiations to reinstate the JCPOA — aka the Iran nuclear deal.

    But it is the critical non-dialog between the US and Iran — the two countries are still not meeting face-to-face but rather communicating through the intermediation of the other P5+1 countries — that bears the most serious watching. Unless they can agree on a way forward that puts Iran’s nuclear weapons potential well into the very distant future while also lifting America’s onerous and inescapably crippling sanctions on the Islamic Republic, the heat in the Middle East will become white hot.

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    Judging from the US State Department’s uncharacteristically downcast semi-official readout of the first round of the negotiation restart, there is cause for concern. Iran’s counterproductive, albeit predictable, maximalist opening gambit soured the P5+1, even China and Russia. Negotiators met again last week. Unless there is a greater attitude toward compromise, however, pessimism will win out. Positions will harden. And more extreme (and dangerous) measures will become viable.

    President Biden has reiterated the US pledge that Iran will not get nuclear weapons. But neither he nor his secretary of state, Antony Blinken, will state what the consequences of failed talks might be.

    Israel, however, is not so coy. Recent Israeli statements confirm that the military option is very much in play. As if to put an even finer point on the matter, US Defense Secretary Lloyd Austin visited Jerusalem late last week for meetings with his Israeli counterpart, Defense Minister Benny Gantz. Both men are retired top generals of their respective armed forces and will have discussed military and other options.

    Military action would be an unspeakable disaster for the Middle East. But so would a nuclear-armed or even nuclear-capable Iran. Even an approach that stops short of armed conflict will impose extraordinary hardship on the region, certainly prompting other states to consider acquiring nuclear weapons and further isolate Iran.

    It would be unfair to place the entirety of the burden for the success of these talks on Tehran. However, unless Iran understands the futility of its mindless pursuit of nuclear weapons, no effort at fostering understanding elsewhere can temper the region’s mercury-popping political heat.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Thomas Barrack, Trump Fund-Raiser, Is Indicted on Lobbying Charge

    Mr. Barrack, the chairman of Donald Trump’s inaugural committee, was accused of failing to register as a lobbyist for the United Arab Emirates, obstruction of justice and lying to investigators.WASHINGTON — Thomas J. Barrack Jr., a close friend of former President Donald J. Trump’s and one of his top 2016 campaign fund-raisers, was arrested in California on Tuesday on federal charges of failing to register as a foreign lobbyist, obstruction of justice and lying to investigators.A seven-count indictment accused Mr. Barrack, 74, of using his access to Mr. Trump to advance the foreign policy goals of the United Arab Emirates and then repeatedly misleading federal agents about his activities during a June 2019 interview.Federal prosecutors said Mr. Barrack used his position as an outside adviser to Mr. Trump’s campaign to publicly promote the Emirates’ agenda while soliciting direction, feedback and talking points from senior Emirati officials.Once Mr. Trump was elected, they said, Mr. Barrack invited senior Emirati officials to give him a “wish list” of foreign policy moves they wanted Washington to take within the first 100 days, first six months, first year and by the end of Mr. Trump’s term, prosecutors said.Among other key Emirati objectives, Mr. Barrack pushed for the Trump administration not to hold a summit with Qatar, a rival Persian Gulf power that was under a blockade that the Emirates and Saudi Arabia, an Emirati ally, had organized, they said.Mr. Barrack is latest in a long string of former Trump aides, fund-raisers and associates to face criminal charges. The former president’s company, the Trump Organization, and its chief financial officer were indicted this month on state fraud and tax charges. Mr. Trump’s former personal lawyer, Michael D. Cohen, pleaded guilty in a hush-money scandal.Mr. Trump pardoned his 2016 campaign manager, Paul Manafort, who had been convicted in the special counsel’s investigation, and his former chief strategist, Stephen K. Bannon, who had been under federal indictment on charges that he misused money he helped raise for a group backing Mr. Trump’s border wall.Authorities have scrutinized a number of Trump aides and associates over suspicions that they improperly provided governments or other foreign interests access to Mr. Trump, his campaign or his administration. The indictment portrayed Mr. Barrack as a flagrant example of abusing such influence.“The defendant is charged with extremely serious offenses based on conduct that strikes at the very heart of our democracy,” the prosecutors in the case wrote to a federal judge in Los Angeles, asking her to detain Mr. Barrack pending his removal to New York for a bail hearing. “The defendant is charged with acting under the direction or control of the most senior leaders of the U.A.E. over a course of years.”Matt Herrington, a lawyer for Mr. Barrack, said: “Tom Barrack has made himself voluntarily available to investigators from the outset. He is not guilty and will be pleading not guilty.”Two other men were also charged with acting as Emirati agents without registering with the Justice Department, as required: Matthew Grimes, a former top executive at Mr. Barrack’s company, and Rashid al-Malik Alshahhi, an Emirati businessman who is close to the Emirates’ rulers.Mr. Grimes, 27, was arrested on Tuesday. Authorities were unable to arrest Mr. al-Malik, 43. An Emirati citizen, he had long lived primarily in California, prosecutors said. But three years ago, after the F.B.I. interviewed him, he left the country and has not returned, prosecutors said in court papers. Lawyers or representatives for the two men could not reached for comment.Prosecutors said Mr. Trump was among those betrayed by Mr. Barrack’s hidden allegiance to a foreign government from early 2016 to early 2018. And Mr. Barrack’s hopes to influence Mr. Trump or his aides were sometimes dashed.For example, Mr. Barrack had hoped that Mr. Trump would name him to be a Middle East envoy or an ambassador to the Emirates. Prosecutors said that Mr. Barrack advised Mr. al-Malik that such posts would empower the Emirates, and that Mr. al-Malik agreed Mr. Barrack could “deliver more” in such roles.But Mr. Trump did not give Mr. Barrack either job, and he remained an outside adviser to the administration.The indictment suggests that Mr. Barrack was working in direct cooperation with Crown Prince Mohammed bin Zayed, the de facto ruler of the Emirates and ostensibly one of Washington’s closest partners in the region. That could have implications for current U.S. policy.The indictment does not explicitly name Crown Prince Mohammed, but appears to clearly refer to him as “Emirati Official 1.” For instance, it states that “Emirati Official 1” met with Mr. Trump at the White House on May 15, 2017, the same day Crown Prince Mohammed met with the president. Other descriptions also match that of Crown Prince Mohammed, often referred to by American officials as M.B.Z.The indictment said that “Emirati Official 1” worked with Mr. Barrack to help scuttle U.S. plans for a conference at Camp David, Md., to press the Emirates to mend the rift with Qatar, another American partner.The indictment also referred to Mr. Barrack’s work with “Emirati Official 5,” who appears to fit the description of the Emirates’ influential ambassador to Washington, Yousef al-Otaiba. The indictment said that early in the Trump transition, the official wrote to Mr. Barrack to ask if he had insight into the new administration’s foreign policy appointments.“I do, and we are working through them in real time and I have our regional interest in high profile,” Mr. Barrack wrote back, according to the indictment.Mr. Barrack’s real estate and private equity firm, Colony Capital, profited from substantial investments from the Emirates and Saudi Arabia, countries that are closely aligned. In the three years after Mr. Trump became the Republican Party’s nominee for president in July 2016, Colony Capital received about $1.5 billion from those two Persian Gulf countries through investments or other transactions. Of that, about $474 million came from sovereign wealth funds controlled by their governments.Mr. Barrack stepped down as Colony Capital’s executive chairman in March. The firm was recently renamed DigitalBridge. According to a filing this month with Securities and Exchange Commission, Mr. Barrack owns 10 percent of that firm and is one of its directors.Mr. Barrack has been friends with Mr. Trump since the 1980s. He helped raise money for Mr. Trump’s first presidential campaign and ran his transition team after Mr. Trump won. He was perhaps best known for leading Mr. Trump’s inaugural committee, which raised $107 million — the most money ever collected and spent to celebrate an inauguration.Critics claimed the committee became a hub for peddling access to foreign officials or business leaders, or those acting on their behalf, but investigations by several local jurisdictions into the committee’s activities petered out with no charges filed.The federal inquiry into Mr. Barrack’s ties with foreign leaders was an outgrowth of the investigation led by Robert S. Mueller III, the special counsel, into Russian interference in the 2016 presidential election.The special counsel’s work put a spotlight on violations of the Foreign Agents Registration Act, known as FARA, and led to a greater effort by the Justice Department to enforce it. The law requires those who work for foreign governments, political parties or other entities to influence American policy or public opinion to disclose their activities to the department.Several former Trump aides who were charged by the special counsel acknowledged violating the statute in guilty pleas, including Mr. Manafort, the 2016 campaign chairman, and Rick Gates, the deputy chairman. Mr. Mueller referred Mr. Barrack’s case to the U.S. attorney’s office in Brooklyn, apparently because the allegations went beyond his investigative mandate.According to the indictment, Mr. al-Malik was a key intermediary between Mr. Barrack and the Emirati leadership. In court papers, prosecutors said Mr. Barrack told State Department officials in 2017 that he did not know where Mr. al-Malik was from or whether he was affiliated with any foreign government. But privately, prosecutors said, Mr. Barrack repeatedly referred to Mr. al-Malik as the Emirates’ “secret weapon” to advance its foreign policy agenda with the Trump campaign and administration.After one media appearance, Mr. Barrack emailed Mr. al-Malik, boasting that he had “nailed it” for the “home team” — meaning the Emirates, the indictment said. The two men repeatedly met personally with high-level leaders of the Emirates and Saudi Arabia, including in May, August and December of 2016, court papers say. Late Tuesday, a federal magistrate detained Mr. Barrack and Mr. Grimes, pending a bail hearing on Monday. Prosecutors had described Mr. Barrack as a flight risk, citing his wealth, Lebanese citizenship, private jet and deep ties to the Emirates and other Persian Gulf countries.The indictment comes at a delicate moment for U.S. diplomacy in the region because the Emirates is waiting for the Biden administration to finalize approval of a $23 billion sale of high-tech weaponry agreed upon under Mr. Trump — including 50 F-35 fighter jets, as well as sophisticated drones.Sharon LaFraniere More

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    How Dubai and Abu Dhabi See the World Cup

    With the Euros over, attention outside the UK is turning to the 2022 FIFA World Cup in Qatar. The focus in Britain, quite rightly, remains on the racist abuse directed at black members of the English football team and the extent to which the prime minister and the home secretary contribute to enabling a culture in which such abuse can flourish.

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    In the Gulf, the lucrative rights to World Cup packages are now being awarded. In Kuwait, ITL World has been appointed the sales agent. The company’s CEO, Siddeek Ahmed, could hardly contain his delight at being able to offer “fans a unique opportunity to purchase ticket-inclusive hospitality packages” for the World Cup. In addition to game tickets, the packages include flights, accommodation, transport and “leisure” programs. According to Arabian Business, the deals for the main venue, the 80,000-seat Lusail Stadium, will run from $14,350 to $74,200. That buys you all 10 matches hosted there, including the quarter-final, semi-final and final. If you are not short on cash, you can pick up a 40-seat suite at the stadium for just $2.6 million.

    In Dubai, Expat Sport Tourism DMCC won the rights, with its website urging football fans to be a part of history to see the first World Cup held in the Arab world. “From the pinnacle in high end corporate experiences to individual hospitality solutions for football fans, we can cater for all those wishing to be part of FIFA World Cup 2022” is how the firm put it.

    Not Everyone Is Happy

    With an estimated 1.5 million fans heading to Qatar next year, Dubai, with its well-established tourism and entertainment sectors, sees itself as ideally placed to cash in on the World Cup bonanza. Yet others in the United Arab Emirates are less welcoming.

    Embed from Getty Images

    Mohammed al-Hammadi is the president of the Emirates Journalists Association and editor-in-chief of the newspaper Alroeya, based in Abu Dhabi. Among the core values listed on the paper’s website are “apply best practice in line with the journalism codes” and “be an objective and trustworthy information tool.”

    Hammadi is a strong proponent of normalization. He spoke at a webinar in October 2020, after the UAE and Bahrain had announced their plan to normalize relations with Israel. The event was organized by a pro-Israeli think tank, the Washington Institute for Near East Policy (WINEP). Hammadi said he believed in both peace and advancing the rights of Palestinians, but people like him who “speak in favor of peace are stigmatized … and find themselves falling under attack.” He added that the word normalizing “has a very negative connotation in our region.”

    In June, he drew the ire of African journalists with a ham-fisted attempt to have them join a coordinated media attack on the World Cup in Qatar. They adopted a resolution denouncing efforts to “use Africa and its institutions as political football in order to settle scores in a political dispute.” The statement said:

    “While journalists in the East African region struggle to preserve their independence and freedom from rogue government and commercial interests that threaten the integrity of journalists, an outside actor is behind attempts to manipulate, divert and involve journalists in an issue completely outside the scope and powers of journalists and their unions.
    In the same way that journalists and their unions in East Africa are calling, confronting and protesting against governments for their interference in the work of journalists and the curtailment of their freedoms, all foreign powers that have a negative and false agenda must be condemned and publicly challenged as a matter of principle and consistency.”

    Twelve days later, the website Emirates Leaks, citing what it called “reliable sources,” alleged that Hammadi had attempted to pressure the heads of the journalism unions of Norway and Finland. According to the site, he wanted them to influence journalism unions in Asia and Africa to “coordinate attacks against Qatar and tarnish its image before hosting the World Cup.”

    His efforts occasioned a written question on June 23 in the European Parliament from Fulvio Martusciello. The Italian MEP accused the head of the Emirates Journalists Association of leading a smear campaign against Qatar: “Al Hammadi asked the Finnish and Norwegian Journalists Federations to exercise influence on journalists unions that he supports financially to engage in the Abu Dhabi campaign and offend Qatar. He also tried to offer them financial bribes and expensive gifts in return for achieving Abu Dhabi’s inflammatory goals.”

    So, while Dubai can barely contain its World Cup excitement, Abu Dhabi appears set to continue its anti-Qatar campaign. Imagine for a moment that the UAE was a football side and its two big stars had separate agendas and were playing only for themselves. That is not a winning formula and it’s something a good manager, like England’s Gareth Southgate, would quickly sort out.

    *[This article was originally published by Arab Digest, a partner organization of Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More