Mohammed Fadhil,
Apache attack helicopters are constantly hovering over Baghdad now. Tracking them from my home in this city I can often estimate where the action is taking place.
[…]
Although the major Baghdad plan isn’t officially launched yet, every day we see several joint operations against targets in and around the city. Still, according to the latest leaked reports, it seems as if the major implementations of the plan are going to wait until the beginning of next month,.
The government here says they are waiting for the buildup of participating troops to be completed, but I think it’s more likely that they are waiting for the Ashura ceremonies to end to allow pilgrims to travel between Baghdad and the shrines safely.
The waiting is proving to be more of a burden on the people of Baghdad than the operation itself would be. Patience is fading under the pressure of the increasing numbers of suicide attacks and the civilian deaths they cause. Baghdadis are desperately waiting for the operation to begin because they hope it can reduce the occurrence of these deadly attacks that distribute death equally among civilians.
And on a different and equally important front – signs of an economic assault against Iran as crude prices continue to drop;
Saudi Oil Minister Ibrahim al-Naimi even said during a recent trip to India that oil prices are headed in the “right direction.”
Not for the Iranians.
Moreover, the traders believe the Saudis are not doing this alone, that the other Sunni-dominated oil producing countries and the U.S. are working together, believing it will hurt majority-Shiite Iran economically and create a domestic crisis for Iranian President Mahmoud Ahmadinejad, whose popularity at home is on the wane. The traders also believe (with good reason) that the U.S. is trying to tighten the screws on Iran financially at the same time the Saudis are reducing the Islamic Republic’s oil revenues.
For the Saudis, who fear Iran’s religious, geopolitical and nuclear aspirations, the decision to lower the price of oil has a number of benefits, the biggest being to deprive Iran of hard currency. It also may create unrest in a country that is its rival on a number of levels and permits the Saudis to show the U.S. that military action may not be necessary.
A bit of trivia I’ll bet you didn’t know – Iran is the second largest importer of gasoline in the world, after the US.
And since Iran sells gasoline at a rate comparable to the rest of the Gulf states — around 33 cents a gallon — it must subsidize the price on a massive scale. In fact, say traders, Iran is paying about $1.50 per gallon to subsidize domestic gasoline consumption — the world market price of gasoline minus the tiny price per gallon — a practice that is costing Iran billions of dollars annually and eating up most of the state-run oil company’s discretionary funds.
Iran has other problems that make it vulnerable. Inflation is officially running at 17 percent, the highest since the revolution, and unemployment is at 11 percent. U.S. intelligence, though, believes the real figures are much higher, with inflation as high as 50 percent and joblessness much higher among the country’s restless youth). In addition, capital outflow is estimated at $50 billion annually and budget deficits are a chronic problem, leading to overseas borrowing.
Read them both.