Obama's Iran dilemma



Amid Iran's ongoing political turmoil, in the US the Obama administration has come under domestic pressure to speak out in support of Iranian protesters who are seen as a pro-democracy movement. So far, Mr Obama has assiduously avoided taking sides in the election dispute and has emphasised that the pre-eminent responsibility of the United States at this juncture is to avoid creating the impression that the US has any desire to meddle in Iranian politics. Reuters reported: "Several analysts said on Monday the White House was in a no-win situation but the best option was to stand back rather inject US views into the Iranian political debate. "The United States also wants to keep open the chance of talking to Iran's government about its nuclear programme, which the West suspects is aimed at building a bomb and Tehran says is to generate electricity. " 'The US ability to do harm in Iranian politics is much greater than doing good,' said Middle East expert Jon Alterman of the Center for Strategic and International Studies. "Obama told reporters on Monday he was 'deeply troubled' by the post-election violence but made clear Washington did not want to become a 'handy political football' in the election dispute. " 'It is up to Iranians to make decisions about who Iran's leaders will be. We respect Iranian sovereignty and want to avoid the United States being the issue inside of Iran,' he said, adding Washington wanted to pursue a 'tough, direct' dialogue with Tehran." In The Washington Independent, David Weigel reported: "Critics of the Obama White House are very much aware of the fears that have, up to now, forestalled a statement from the president. As one official told TWI over the weekend, there is great caution about appearing to favour one side over another. On Monday, White House spokesman Robert Gibbs would only say that there was 'concern' about the election results and that 'Iranians are looking into this.' After news that one man had been killed at a massive Tehran rally, State Department spokesman Ian Kelly would only say that the administration was 'deeply troubled' by events. At the end of the day, the president responded to events with a four minute-long statement that recognised the nation's 'sovereignty,' credited the nation with 'looking into' the election results, and pleased few critics of Iran. " 'Why would a statement supporting the freedom of the Iranian people undermine the movement?' asked Michael Ledeen, the freedom scholar at the Foundation for the Defense of Democracies whose books about Iran include The Iranian Time Bomb and Accomplice to Evil: Iran and the War Against the West. Ledeen, like many critics of the official stance, framed the choice as a moral one. 'Would a statement supporting the mullahs strengthen the opposition? Ridiculous. If America stands for anything it stands for freedom. We should have supported the Iranian people a long time ago. The current silence from the White House is shameful.' "Some pro-Iranian activists have disagreed with this sentiment and portrayed the administration's silence as unfortunate but politically necessary. Over the weekend, Trita Parsi of the National Iranian American Council [NIAC] told TWI that an Obama statement might allow Iran's leaders to portray the unrest as a western conspiracy. But Ledeen dismissed the spokesman and the argument. 'Trita Parsi is not a human rights activist,' Ledeen said. 'He's a leading apologist for the regime.' " Spencer Ackerman reported that in the US congress: "Sen Joseph Lieberman, issued a statement urging Obama and others to 'speak out, loudly and clearly, about what is happening in Iran right now and unambiguously express their solidarity with the brave Iranians who went to the polls in the hope of change and who are now looking to the outside world for strength and support.' "But some Iranian human rights activists backed Obama's cautious approach. 'I think it's wise for the US government to keep its distance,' said Hadi Ghaemi, a New York-based spokesman for the International Campaign for Human Rights in Iran, which wants the international community not to legitimise the Iranian regime's claim that Ahmadinejad won the election. While the Obama administration ought to express support for the Iranian opposition's safety and for human rights in Iran as the regime clamps down on dissent, any expression of political support for the protesters would only 'instigate the cry that the reformers are somehow driven and directed by the United States, whether under [former President George W Bush] or under Obama, and there's no reason to give that unfounded allegation' any chance to spread. "Trita Parsi, the founder of the NIAC who has played a leading role in the American press over the weekend in denouncing Ahmadinejad and defending the protesters, said that Obama was taking care not to subvert the Iranian opposition. 'The framing that Ahmadinejad is presenting is one in which essentially the whole [opposition] is a western media conspiracy,' he said. 'If the administration is saying things or doing things before Moussavi and the opposition figures out what the plan is, then that's a real problem, because then it seems like it's between Ahmadinejad and the West and not Ahmadinejad and the opposition. So the administration is doing exactly the right thing. They're not rushing in and they're not playing favourites. They might prefer the democratic process to be respected, but that's different than [supporting a] specific faction.' " Meanwhile, Israel's intelligence chief, Meir Dagan, told a parliamentary committee on Tuesday that the riots in Iran over the election results will die out in a few days rather than escalate into a revolution, Haaretz reported. "The reality in Iran is not going to change because of the elections. The world and we already know [Iranian President Mahmoud] Ahmadinejad. If the reformist candidate [Mir Hossein] Mousavi had won, Israel would have had a more serious problem because it would need to explain to the world the danger of the Iranian threat, since Mousavi is perceived internationally arena as a moderate element ... It is important to remember that he is the one who began Iran's nuclear programme when he was prime minister." According to Dagan, "Election fraud in Iran is no different than what happens in liberal states during elections. The struggle over the election results in Iran is internal and is unconnected to its strategic aspirations, including its nuclear programme."

pwoodward@thenational.ae

World Cup warm up matches

May 24 Pakistan v Afghanistan, Bristol; Sri Lanka v South Africa, Cardiff

May 25 England v Australia, Southampton; India v New Zealand, The Oval

May 26 South Africa v West Indies, Bristol; Pakistan v Bangladesh, Cardiff

May 27 Australia v Sri Lanka, Southampton; England v Afghanistan, The Oval

May 28 West Indies v New Zealand, Bristol; Bangladesh v India, Cardiff

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The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
  2. Look beyond school fees
  3. Keep an open mind

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Duterte Harry: Fire and Fury in the Philippines
Jonathan Miller, Scribe Publications

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Tuesday's fixtures
Group A
Kyrgyzstan v Qatar, 5.45pm
Iran v Uzbekistan, 8pm
N Korea v UAE, 10.15pm
The%20specs
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Scoreline

Germany 2

Werner 9', Sane 19'

Netherlands 2

Promes 85', Van Dijk 90'

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

2025 Fifa Club World Cup groups

Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).

Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

COMPANY%20PROFILE
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A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

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Bio:

Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour

Favourite Hobby: Serving poor people 

Favourite Book: The Alchemist by Paulo Coelho

Favourite food: Fish and vegetables

Favourite place to visit: London

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances