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Tehran faced deeper isolation yesterday after a major Western energy company withdrew from a giant Iranian gas field project and international threats to attack the country’s nuclear facilities grew.
Total, the French energy group, said that it was freezing its role in a $10 billion project to develop the South Pars fields in the Gulf, the world’s largest gas reserves. The decision was a big step in a US campaign to put pressure on Iran to stop enriching uranium.
Iran’s decision to carry out missile tests — with a second round yesterday — also prompted Ehud Barak, the Israeli Defence Minister, to suggest that his country was ready to launch a pre-emptive strike if necessary. “Israel is the strongest country in the region and has proved in the past that it does not hesitate to act when its vital security interests are at stake,” Mr Barak said. Tehran had said this week that Tel Aviv would be “set on fire” if Israel were to attack.
Iran’s warlike language led to a warning yesterday from Condoleezza Rice, the US Secretary of State. “We are sending a message to Iran that we will defend American interests and the interests of our allies,” she said.
Dr Rice, who was speaking in the former Soviet republic of Georgia, said that Iran’s missile tests justified US plans for an anti-missile shield with bases in Eastern Europe. Russia is strongly opposed to the plan. Total said that it was not cutting ties with Iran and would continue to export 15,000 barrels a day of hydrocarbons from its operations. The decision to put investment in Iran on ice is, however, an advance for the US-led push for sanctions. It underlines Iran’s isolation as it persists in its nuclear programme and will slow its drive to exploit the largely untapped South Pars reserves it shares with Qatar.
Washington has put pressure on the French group after Shell and Repsol, the Spanish company, withdrew from other Iranian projects this year.
Tehran needs technology that only the Western groups possess in order to extract and liquefy gas from the field. It could turn to Gazprom but the Russian energy giant lacks the necessary expertise, industry experts said.
Russia may also not be keen to help Iran to create a rival to its own domination of Western Europe’s gas supplies. Tehran expected South Pars to produce 751 million cubic metres (26 billion cubic feet) of natural gas a day when completed by 2014.
Total had been hoping to continue with South Pars, which has been in suspension since 2006, but it bowed to pressure from Washington and from President Sarkozy, a strong supporter of the drive to force Tehran to stop enriching uranium. Total was not given an order but it was told further involvement in Iran would be unwelcome.
“The political context made it unfavourable to continue,” Burkhard Riuss, a Total spokesman, said. Christophe de Margerie, the chief executive, said that his company intended to maintain its relations with the Iranian National Oil Company but could not risk being pilloried for doing new business there. “Total’s decision was not a surprise,” Francis Perrin, director of the Arab Centre for Oil Studies in Paris, said. “It was difficult for Total to shrug off this pressure.”
Mr Sarkozy has become as outspoken as President Bush in his belief that Iran is developing nuclear weapons. In Israel last month he told the Knesset: “We have no choice but to reinforce Iran’s isolation with new UN and EU sanctions . . . and with the restraint of firms doing business with Iran.” Israel intensified speculation about a pre-emptive strike on Iran’s facilities with a practice attack last month. In Japan this week the leaders of the G8 sought to calm the atmosphere, calling on Tehran to negotiate. They dispatched Javier Solana, the EU’s foreign policy chief, to Tehran for talks on July 19.
Mixing their signals Iranian leaders also said that they were ready to compromise. In Washington Robert Gates, the US Defence Secretary, said: “There’s a lot of signalling going on, but everybody recognises what the consequences of a conflict would be.”
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"In the US national interest" It may not be in the national interest of the rest of the World.
Here in Canada we are fed up with their arrogance,stupidity and bravado,
Winslow, Toronto, Canada
Robert Berke, Oakland, CA
There should be enough oil to go around for all. The producing countries are entitled to sell oil to anyone freely so long as they receive payment. But some would like to control these countries so that oil would only flow to them. Thus the great interest in M/E.
18070
Lim , Johor Bahru, Malaysia
It is very funny that the only country who has used Nuclear Weapons, to wipe of a race two times, wanna give a lecture on ethics and wanna take care of (a specific part of) the world about violating from nuclear program.
Are they ignoring our intelligence?
John, Toronto,
Israel started the sabre rattling when their air force had a dress rehearsal for attacking Iran. Israel has broken and is breaking more International Laws than Iran. The Bully Boy of the Middle East is the Nuclear Power Israel. A possible solution is to disarm both Israel and Iran of their Nuclear
mike Ryan, Dorset, uk
What an enormous miscalculation by the French firm and the West, removing the one major inducement for Iran to forego nuclear development, access to Europe's gas markets, while leaving the door wide open to Russia, China, and India.
Robert Berke, Oakland, CA
I have to agree with talking to them. As much as I think there are a few apples short of the barrel running this place, the people are decent. Israel provided assisstance prior to Ayatollahs, shame America deposed the shah then...Nothing stopping us all getting along to be honest, its sad really.
Garry, London, UK
to "Keith S, Winnipeg". Quick to condemn USA and UK, and apologist for Iranian regime that executes minors, persecutes religious and political minorities, hosts Holocaust deniers, directs murders of pensioners in Argentina, sponsors anti-Jewish cartoons . You cannot be serious!
steve aulger, tel-aviv, israel
Turn up for the books, the French coming out in sympathy. Is there a bigger contract on the go?
kirk, Rotherham, UK
To Steven in St Ives:
Its the Israelis/Americans that will drop the first bomb and not the Iranians
Charlie, london, uk
"Iran/Iraq war : 8 yrs, chemical weapons, and 375,000 iranians dead. Do they never learn?"
It is well known that Iraq's Saddam started that war by invading Iran.
When Iran attacked Iraq it was in self-defense after being attacked by them.
The US and UK cannot make the same claim.
Keith S, Winnipeg, Canada
The rest of the world will not forgive both Israel and America for the destruction of their economies, because of sky high oil prices, not that they care about the rest of us
donald, essex, uk
pre-emptive strike?huh.
Iran will attack no-one unless attacked first, Its surrounded by bigger, more powerful and dangerous enemies.
The leaders of iraq may be crazed religinuts but they are not a global power, or even a threat unless attacked first.
ayla, london,
The last time Iran initiated a war with another country was 1502.
Has Iran ever run a terrorist training camp like the CIA's School of the Americas? So has the US, UK, Israel and Saudi Arabia.
The terrorists are the warmongers who lead the US, UK, Israel in threatening the world with their WMDs.
Keith S, Winnipeg, Canada
Iran/Iraq war : 8 yrs, chemical weapons, and 375,000 iranians dead. Do they never learn?
Israel provided assistance before the Ayatollahs- who now seek Israel's destruction. 70M people, oil oceans, yet lower standard of living than Israel. Iranians, channel your efforts for life not death.
steve aulger, tel-aviv, israel
Interesting to see that Robert Gates acknowledges "... everyone recognises what the consequences of a conflict would be".
Yeah, just think of the mess that would exist in Iraq without American forward planning.
Douglas Miller, Fulham,
The US could impose 100% sanctions by banning any company doing business in Iran from selling in the US. Why does'nt it do this?
Barry Samways, London, UK
Bombing is never been a solution and it is not going to be one. Therefore all parties should act sagaciously to over come this situation. The world economy is directly linked with oil prices and Isolation of Iran (A major player in Oil Market) through sanctions will only aggravate the economic situation. I believe table talks can resolve the issues whereas cluster bombs can only take innocent lives.
Zahid Mehmood, Islamabad, Pakistan
Just speak to the Iranians, and trade with them: commerce is a great healer. Only one belligerent act will shoot oil to $250 a barrel, and then we are all stuffed - or is this the plan?
C Smith, Norwich, Norfolk
Remember, one Iranian missile explodes in Israel, it's bye-bye Tehran.
Stephen, St. Ives, England
Iran faked several missile launches in today's photos, and its bellicose posturing is meant only to hide its military -- and moral -- weakness. Iran is terrified of a Western attack....as it ought to be.
Charles, Cleveland,
WPO, the Iraq/Iran war began with Iraq invading Iran to further Saddam's Sunni rule over Shia. Iran then tried to free Iraq's Shia majority.
In invading Iraq, US/UK/Aus took on Iran's task of toppling Saddam.
Now the US wants topple the most democratically elected government in the Middle East?
Keith S, Winnipeg, Canada
We don't see Iragi WMD?
We did see Saddam Hussein Fall
We see Western OIl companies Now
So what is it? It is IRAQI OIL
Is it Iranian Nukes?
Is it Iranian axis of evil?
Is it Iranian threats
Or is it Iranian OIL?
OIL OIL OIL
100708
Lim , Johor Bahru, Malaysia
A bunch of Wahhabi Sunnis attack the WTC on 9-11, and some confusion, the USA allies itself with Sunnis to attack Iraq's and Iran's elected S'hia lead governments.
It is as if the Americans had allied with the Japanese after Pearl Harbour.
Keith S, Winnipeg, Canada
Have our intelligence agencies not checked their maps (again)? Iran can't invade Israel there is no common border.
Why the scare tactics and xenophobia?
Because Bush wants to curry favour with the Wahhabi-Sunnis that lead Saudi Arabia. Members of the same sect that attacked the WTC on 9-11.
Keith S, Winnipeg, Canada
"Israel is the strongest country in the region..." really Mr Barak, we didn't think so when the IDF couldn't beat a ragtag army of civilian militias in Lebanon a few years ago. I think there won't ever be a 6-day war again ever, eh?
Taiki, Singapore,
Iran can cause way more problems to our economies by witholding oil or gas than we can to theirs by threatening sanctions. Try diplomacy...it just might work.
Clem, Jersey City, USA
Irans terrorist leader needs to wakeup and understand he will stand alone when Israeli and US forces drop some Steal Rain on his door step. Iran needs to stop supporting terrorists and start acting like a respective member of the world community. Iran is in the process of brining their weapons into the 20 century, but is forgetting to bring their attitudes and responsibility with them. Statements such as calling for the destruction of Israel and the pursuit of nuclear weapons can not be allowed.
Mike, Berkley, USA
Iran is stronger then it was since fighting Saddam. Clearly the Israeli's know this & know their own limitations(the Israeli army failed to take a village held by the Hezbollah in Lebanon 2006) resorting to dropping cluster bombs on civilian areas. No nuclear weapons in the Middle-East, incl Israel.
yusuf ola, Batley, UK
Perspective helps, Iran fought Iraq for a long time and killed thousands of Iraqui's and Iranians, and failed to resolve the conflict. Face it, this is a third level nation, posturing, imagine for a moment that they obtain a nuclear thing, and use it in Tel Aviv, so where does the fallout go ?
wpo, warsaw, ny
bomb these sites before its too late for Goodness sake!
Peter Smith, Wrenchford, UK