ODNI Chief Clapper, Hacked Again

Teen Who Hacked CIA Email Is Back to Prank US Spy Chief

Motherboard: One of the “teenage hackers” who broke into the CIA director’s AOL email account last year hasn’t given up targeting government intelligence officials. His latest victim is the Director of National Intelligence James Clapper, Motherboard has learned.

A group of hackers calling themselves “Crackas With Attitude” or CWA made headlines in October, hacking into CIA Director John Brennan’s email account and apparently getting access to several online tools and portals used by US law enforcement agencies.The hackers’ exploits prompted the FBI to issue an alert warning government officials of their attacks.

One of the group’s hackers, who’s known as “Cracka,” contacted me on Monday, claiming to have broken into a series of accounts connected to Clapper, including his home telephone and internet, his personal email, and his wife’s Yahoo email. While in control of Clapper’s Verizon FiOS account, Cracka claimed to have changed the settings so that every call to his house number would get forwarded to the Free Palestine Movement. When they gained notoriety last year, Cracka and CWA claimed their actions were all in support of the Palestine cause.

“I’m pretty sure they don’t even know they’ve been hacked,” Cracka told me in an online chat.

But Brian Hale, a spokesperson for the Office of the Director of National Intelligence, confirmed the hack to Motherboard on Tuesday.

“We’re aware of the matter and we reported it to the appropriate authorities,” Hale said, declining to answer any other questions on the record. (The FBI declined to comment.)

Cracka, or whoever is pretending to be him, taunted authorities on Twitter (the hacker used a new Twitter account, not the same one he used at the time of the Brennan hack. But the hacker also is in control of a chat app account who’s been using to communicate with me since last October).
Cracka provided me with what he claimed to be Clapper’s home number. When I called it on Monday evening, I got an answer from Paul Larudee, the co-founder of the Free Palestine Movement. Larudee told me that he had been getting calls for Clapper for the last hour, after an anonymous caller told him that he had set Clapper’s number to forward calls to him. Larudee said that one of the callers said he was sitting in Clapper’s house next to his wife.

According to public records, the phone number does belong to James Clapper’s household. Cracka also provided another number, a cellphone, which he said belonged to either Clapper or Clapper’s wife, Susan. When I called, a woman picked up and I asked if this was Susan Clapper. The woman responded that Susan wasn’t there, but that she’d tell her to call me back. But nobody ever did.

Cracka also claimed to have gotten into Susan’s Yahoo email account, as well as Clapper’s email account. He provided a series of screenshots to prove he had control of their Verizon FiOS account, as well as Susan’s Yahoo account. Motherboard couldn’t independently verify the authenticity of the screenshots.

The hacker also sent me a list of call logs to Clapper’s home number. In the log, there was a number listed as belonging to Vonna Heaton, an executive at Ball Aerospace and a former senior executive at the National Geospatial-Intelligence Agency. When I called that number, the woman who picked up identified as Vonna Heaton. When I told her who I was, she declined to answer any questions.

“A journalist? Oh my gosh” she said, laughing uncomfortably. “I have somebody on the line, I’m sorry, I have no insight into that. But that’s really unfortunate, have a great day.”

“I just wanted the gov to know people aren’t fucking around, people know what they’re doing and people don’t agree #FreePalestine.”
Michael Adams, an information security expert who served more than two decades in the US Special Operations Command, said that this looks “more of a social engineering hack than a real hack,” but also added that “every serious hack starts with social engineering.”

Adams also said that it’s “insane” that Clapper doesn’t do more to hide his home address and phone number (both can be found with a Google search).

“If I’m the Director of National Intelligence of the United States of America nobody is going to know where the fuck I live, nobody is going to have my goddamn phone number or address,” Adams told me in a phone interview.

On Tuesday, Cracka asked me not to name him in the article, saying he “doesn’t like the attention.”

“You Asked why I did it,” he added. “I just wanted the gov to know people aren’t fucking around, people know what they’re doing and people don’t agree #FreePalestine.”

 

Saudi Arabia Reveals Iran Spy Ring and JPOA

Saudi Cites Iran Spy Ring

ABU DHABI [MENL] — Saudi Arabia, amid a propaganda war, has reported an Iranian espionage presence in the Gulf Cooperation Council kingdom.

Officials said authorities have launched prosecution of four Iranians on charges of espionage. They said at least one of the defendants was accused of working for Iranian intelligence and recruited Saudi nationals.

This marked the second alleged Iranian spy cell dismantled in Saudi Arabia over the last year. Officials said a fifth Iranian was also accused of being part of the cell and linked to attacks in the Gulf Cooperation Council kingdom since 2003.

Officials said the fifth Iranian, sentenced to 13 years, was convicted of recruiting Saudis in Iran and sending them to fight in Afghanistan. The Iranian, who was not identified, was also charged with relaying funds for recruitment.

The Iranian espionage cell, reported in the Saudi-controlled media, was disclosed amid the crisis with Teheran fueled by Riyad’s execution of a leading Shi’ite cleric. The Saudi leadership has responded to Iranian condemnations by releasing information on Teheran’s executions of hundreds of dissidents over the last two years.

The Saudi media said the latest Iranian espionage cell stemmed from the arrival of an Iranian intelligence officer to the annual pilgrimage in the Saudi city of Mecca. The media said the cell, detected as early as 2014, also planned attacks but did not elaborate.

Riyad was said to have dismantled a previous Iranian cell in 2013. The Saudi media said the cell consisted of at least 27 alleged members, 24 of them Saudis and the rest nationals from Iran, Lebanon and Turkey.

Officials said Iran has sought to infiltrate Saudi Arabia from both the northern and southern border. On Jan. 8, the Saudi military battled hundreds of Iranian-backed Houthi fighters from neighboring Yemen, 35 of them were killed in the Raboua region.

“We are looking at additional measures to be taken if it [Iran] continues with its current policies,” Saudi Foreign Minister Adel Al Jubeir said on Jan. 9.

Meanwhile, there is little in the news about the JOPA, the P5+1 Iranian nuclear deal and there are good reasons…..lifting sanctions.

The Implications of Sanctions Relief Under the Iran Agreement

Congressional testimony by Mark Dubowitz

 

 

(1) The Joint Comprehensive Plan of Action’s (JCPOA) major design flaws, which provide Iran with patient paths to nuclear weapons and greater ballistic missile, heavy weaponry, and economic capabilities;

(2) The interplay between the P5+1 economic sanctions “snapback” and Iran’s “nuclear snapback” in limiting the ability of the United States to impose sanctions (a) to address Iranian non-compliance with the JCPOA and, (b) to punish Iranian illicit conduct in a range of non-nuclear activities such as support for terrorism; and,

(3) How sanctions relief under the JCPOA benefits the most hardline elements in Iran including the Islamic Revolutionary Guard Corps (IRGC) and Iran’s Supreme Leader Ali Khamenei.

First, on so-called “Implementation Day,” Iran will receive substantial sanctions relief with which it can defend its economy against future sanctions pressure. Iran may also use sanctions relief to increase its support for terrorism and other rogue regimes and to expand its conventional military power. The JCPOA front-loads sanctions relief, providing Iran with access to around $100 billion in restricted oil revenues and reconnecting Iranian banks, including the Central Bank of Iran, back into the global financial system. Sanctions on Iran’s crude oil export transactions will be lifted, as will sanctions on key sectors of the Iranian economy including upstream energy investment and energy-related technology transfers, the auto industry, petrochemicals, and shipping, as well as the precious metals trade. This sanctions relief will enable Iran to build greater economic resilience against future pressure—both sanctions aimed at isolating other illicit financial conduct and so-called “snapback” sanctions in the event of Iranian nuclear non-compliance.

Then, after five years, or earlier if the International Atomic Energy Agency (IAEA) reaches a broader conclusion that Iran’s nuclear program is only for peaceful purposes, the international arms embargo will be lifted, meaning that Iran can also expand its conventional military capabilities and those of its proxies. Former Under Secretary of State for Political Affairs Nicholas Burns, one of the other witnesses at this hearing, noted one week before the announcement of the JCPOA that lifting the arms embargo “would be a great mistake. Iran is selling arms, giving arms, fueling civil wars in Yemen, in Lebanon, in Syria and Iraq, and so those arms prohibitions on Iran are very important.”1 He also has explained that the arms embargo was put in place “for very good reason.” He continued that it is not in the interest of the United States “to see these arms embargos lifted from Iran. It is an issue that should not be part of these negotiations. … I think we ought to maintain these U.N. embargos.”2 In five years, however, they will disappear, giving Iran access to combat aircraft, attack helicopters, battle tanks, among other advanced weapons systems. Read the full testimony here.

 

Hagel: Obama Squandered 5 Years, ISIS Prevails

It was always after a top ranking administration official leaves their post that larger truths are told. There was no love loss between the White House and the Pentagon when it came to previous defense secretaries under Barack Obama and this is especially the case with regard to former Secretary Chuck Hagel. It appears most of the division was born out of Hagel slowing walking approvals on transfers of Gitmo detainees. Yet there is more, where Hagel’s true message is to the next president: “Listen to the military”, which fundamentally says the Obama administration DID have real disdain for military leadership.

DefenseNews: WASHINGTON — Former Secretary of Defense Chuck Hagel said he believes the government of Iraq “squandered” the five-year stretch from 2008 to 2013, paving the way for the rise of the Islamic State group and the chaos of the last two years.

Speaking Monday in Washington, Hagel, who served in that role from 2013 to 2015, also hinted at dissatisfaction with how the Obama administration dealt with the Pentagon during his tenure, indicating that future administrations should lean more on the opinions of the uniformed personnel when weighing foreign policy decisions.

Asked to reflect on the situation in Iraq, Hagel showed disappointment and frustration with what happened once the US President George W. Bush signed a Status of Forces Agreement with Iraq in December 2008, which set off the clock for US forces to leave Iraq in the hands of the local government of Prime Minister Nouri al-Maliki.

“We couldn’t run that government, we should have never tried, couldn’t impose our values,” Hagel said. “But I think the Iraqi leadership of that country so squandered five years, that allowed to happen what happened over the last two years.

“The breakdown in the Sunni-Shia relationship, the breakdown of the Shia-Kurd relationship, [the] prime minister did not fulfill any of the constitutional requirements and the promises he had made to bring Iraq together,” Hagel continued. “I don’t blame all that on him – there were forces that were probably bigger than he was able to deal with – but in my opinion, that’s what happened in Iraq. The five years were squandered, were wasted, and that’s what’s led to so much of the turmoil, the trouble, the chaos, the slaughter and the killing in Iraq today.”

Asked about the legacy of President Barack Obama on the eve of his final State of the Union speech, Hagel demurred, saying it was “nonsense” to judge Obama until years down the road, let alone before his administration has ended.

However, Hagel indicated dissatisfaction with the way the Obama administration has handled the Pentagon.

During the roundtable event hosted by the National Committee on US-China Relations, Hagel urged politicians to lean more on the advice of top DoD officials.

“I would say as someone who has walked on both sides of the street, the political side and the administration side, politicians have to listen more to our military,” Hagel said. “And I don’t mean changing the Constitution. I mean listen to our military. They get it better than most politicians on things like this. And some of the finest statesmen I’ve ever met in my life are in military uniform.”

Asked later what his biggest advice for the next president would be when dealing with the Pacific, Hagel limited his response to one word: “Listen.”

The comments come weeks after Hagel told Foreign Policy magazine that the Pentagon was hamstrung by interference from the Obama White House. Hagel is long-believed to have butted heads with National Security Adviser Susan Rice, something he did not dispel in that interview.

Asked Monday if he felt advice from the Pentagon had been ignored to the detriment of the Obama presidency, Hagel did not change his tune.

“Well, I’ve made some comments on this and I think the comment I made here, I’ll let that stand,” he said.

Obama Broke the Middle East Alliance and Equilibrium

Imagine what the Obama administration is leaving as unfinished terror business for the next president and further, imagine what more can happen for the rest of 2016.

Shall we begin with HizBu’llah?

Russia Is Arming Hezbollah, Say Two of the Group’s Field Commanders

DailyBeast – BEIRUT — Lebanese Hezbollah field commanders with troops fighting in Syria tell The Daily Beast they are receiving heavy weapons directly from Russia with no strings attached. The commanders say there is a relationship of complete coordination between the Assad regime in Damascus, Iran, Hezbollah, and Russia. At the same time they say the direct interdependence between Russia and Hezbollah is increasing.

The United States and the European Union have both listed Hezbollah as a terrorist organization with global reach and accuse it of serving Tehran’s interests. But there is more to it than that. Organized, trained, funded, and armed by Iran with Syrian help after the Israeli invasion of Lebanon in 1982, it initially gained fame for suicide bombings hitting Israeli, French, and American targets there, including the U.S. Marine barracks in Beirut where 241 American servicemen were killed in 1983.

Hezbollah is directly receiving long-range tactical missiles, laser guided rockets, and anti-tank weapons from Russia.

Badran/FDD: In response to the crisis in relations between Saudi Arabia and Iran, following the latter’s assault on the Saudi consulate and embassy in Iran, the Obama administration has taken to the media to unleash a furious rebuke. But the administration’s condemnation was not aimed primarily at Tehran; instead it’s been largely directed at America’s longstanding ally: Saudi Arabia.

Administration officials have charged that, by executing radical Shiite cleric Nimr al-Nimr, the Saudis have exacerbated sectarian tensions in the region and jeopardized U.S. policy in Syria. “This is a dangerous game they are playing,” an unnamed U.S. official told the Washington Post. “There are larger repercussions,” including damage to “counter-ISIL initiatives as well as the Syrian peace process.” This is a common thread that runs through the administration’s briefings against the Saudis, which reveals the White House’s backing of Iran’s regional position over and against the traditional U.S. alliance system.

The claim that the Saudis were damaging the supposed Syrian “peace process” sounds surreal on its face. But it is quite revealing, not just about how the White House defines success, but also about its overall policy in Syria.

The administration believes it has achieved a critical diplomatic feat by bringing Iran into the diplomatic talks over Syria and that this constitutes a major breakthrough in itself. “The United States has succeeded in leading the international effort to bring all sides together to try to bring about a political resolution inside of Syria,” White House spokesman Josh Earnest said in a briefing after the Saudi-Iranian spat. The way the administration sees it, for a true discussion to take place, all so-called “stakeholders” in Syria must be gathered around the table in order to reach a settlement.

The administration’s self-congratulation aside, it’s worth exploring what this means in practice. By declaring Iran a legitimate “stakeholder,” the White House is not only saying that Syria is a recognized Iranian sphere of influence, but it also is recognizing Iran’s “stake” as legitimate. In fact, President Obama stated explicitly last month that the solution in Syria should be one that allows the Iranians to ensure “that their equities are respected.”

This begs the question of what, exactly, is Iran’s “stake” or “equities” in Syria? The answer is straightforward: Iran’s interest is to maintain a logistical bridge to Hezbollah through which it could supply the group with missiles and arms, thereby enabling it to continue to threaten U.S. allies like Israel and destabilize the region. The White House’s legitimization of Iran as a stakeholder in Syria risks licensing Iran to continue arming Hezbollah.

But this was hardly the only cost of President Obama’s policy. The key for safeguarding Iranian interests in Syria is ensuring the continuity of the Syrian President Bashar Assad regime. And so, in order to obtain Iranian “buy-in,” the administration abandoned what’s supposed to be the main objective in Syria, which is the removal of Assad and his regime. Assad, the administration now concedes, gets to stay on for an indefinite period as part of an indeterminate “transitional period.” In other words, when it comes to Syria, not only did Obama force Iran down his allies’ throat — he also fully endorsed its position.

Now, to top it off, the administration is attacking the Saudis for supposedly jeopardizing a process designed to safeguard Iran’s unchanged objectives in Syria. As the White House sees it, the Saudis’ only job is to bring the Syrian opposition to the table essentially to sign a surrender. What’s more, as part of this process, Iran, which has underwritten and partaken in Assad’s mass slaughter, gets a say in determining which opposition groups are listed as terrorists.

When it comes to the case of Nimr, the radical Saudi Shiite cleric, the administration has applied the same core premise of its Syria policy — that Iran has legitimate “equities” in Arab countries that should be “respected.”

Since his execution, the administration has made a point of repeatedly disclosing that it had tried to intervene with the Saudis not to go ahead with Nimr’s execution. The administration is now saying that the Saudis were told that the Iranians would react negatively to Nimr’s execution. Hence, the Saudi decision, the administration is saying, was a wanton provocation of Iran.

The underlying premise of the administration’s position is not only that Iran has a legitimate claim to represent Arab Shiites but also that since it has claimed Nimr, a Saudi, as a protégé, the Saudi government should not touch him. Therefore, the message the administration was effectively sending the Saudis was that Iran has a say in domestic Saudi affairs.

The truth is that the Obama administration has been aligning with Iran’s regional position for a while now — certainly since the beginning of the Syrian revolution. With the nuclear deal now in hand, and with a year left in President Obama’s term, the White House is becoming explicit about this major shift in the historic U.S. position in the region.

The president’s position on the Saudi-Iranian row is a public announcement that his administration is dissolving its traditional alliance system, along with the regional order it had underwritten for decades, and embracing Iran instead.

*** The blame actually goes deeper on the migrant crisis:

Former Obama Adviser Dennis Ross: U.S. Inaction in Syria Led to Refugee Crisis and ISIS

Amb. Ross/Tower: The Obama administration’s failure to address the brutality of the Iran-backed regime of Bashar al-Assad in Syria led to a “vacuum” that allowed “a humanitarian catastrophe, a terrible refugee crisis, a deepening proxy war and the rise of ISIL in Iraq and Syria” to occur, Dennis Ross, a former White House adviser to President Barack Obama, wrote in Politico on Sunday.

Ross explained that the administration’s failure to act stemmed from a reluctance to repeat the mistakes that the United States made during the Iraq War, but added that Syria was different from Iraq, as Syria would involve aiding “an internal uprising” against Assad rather than an American invasion. According to Ross, Assad had turned the uprising against him into a sectarian conflict in the hope that his Alawite sect and other Syrian minorities would have a stake in his survival.

Soon, thereafter, it was transformed into a proxy war largely pitting Saudi Arabia and Turkey against Iran. A vacuum was created not by our replacing the Assad regime but by our hesitancy to do more than offer pronouncements—by overlearning the lessons of Iraq, in effect. And, that vacuum was filled by others: Iran, Hezbollah and Iran’s other Shia militia proxies; Saudi Arabia, Turkey and Qatar; Russia; and ISIL. Unless the U.S. does more now to fill this vacuum, the situation will spin further out of control.

Ross observed that the vacuum in Syria was part of a greater American retreat in the Middle East, which “has helped to produce the increasing competition between Iran and Saudi Arabia.” Without fear of American action, he argued, Qassem Soleimani– the commander of Iran’s Islamic Revolutionary Guard Corps elite Qods Force– was transformed from a “shadowy figure” to one who was present at seemingly every major battle in Iraq and Syria. Eventually, given Iran’s continued aggressiveness and America’s passivity, Saudi Arabia sought to push back against Tehran on its own.

While Ross argued that the growing Iranian-Saudi tensions were not likely turn into a hot war, he noted that the escalation hurts efforts to address the humanitarian catastrophe in Syria. In addition, without the U.S. taking an active role in the Middle East, Russia actively entered and further complicated the fray. Until Moscow agrees to pressure Assad “to respect a ceasefire, stop the barrel bombs, and permit the creation of humanitarian corridors” to deliver food and aid to non-ISIS opposition groups, Ross wrote, there is no hope of getting Saudi Arabia or other Sunni nations to join the fight against ISIS.

In order to address the vacuum, Ross suggested that the U.S. take a number of steps to regain control of the situation without getting too deeply involved. These include putting “troops on the ground, including deploying spotters for directing air attacks, embedding forces with local partners perhaps to the battalion level, and using special operations elements for hit-and-run raids.”

 

In 2014, Ross noted that the administration’s growing closeness to Iran was concerning American allies in the Middle East. For “the Arabs, the fear is that the deal with come at their expense,” he explained. His recent suggestion that the administration must somehow restrain Iran’s client, Assad, before it can exert any influence in Syria demonstrates that this fear still remains intact.

Assad and Iran’s Militia in the Middle East

Those operating in the Middle East at the behest of Iran for Iran and Syria have been identified, now what? Saudi Arabia with the cooperation of other Gulf nations has been quite assertive to end the conflicts in Syria, Yemen, Iraq and so forth yet Iran, Syria and Russia have zero interest in stopping Assad. How long into the future will this fester and will it eventually plateau only when the United States has a new president and who can lead and be effective among the candidates?

To understand the history between Shiite and Sunni, click here.

Iran won’t surrender militias that conduct Assad’s war

Not long before the Riyadh-Tehran diplomatic row that followed the execution of Saudi Shia cleric Nimr Al Nimr, a showdown between the two countries unfolded in New York. While it is difficult to draw a direct correlation between the two events, the incident can help us understand the depth of the continuing crisis.

On December 18, heated debate ensued between representatives of the two countries at a meeting in New York over the listing of armed groups operating in Syria for possible determination as terrorist organisations. The list, which Jordan was asked to develop, would name extremist groups that must be defeated as part of the UN-sponsored political process for Syria.

A month earlier in Vienna, Saudi Arabia had insisted on including in the list foreign Shia militias fighting on the side of president Bashar Al Assad. Riyadh argued that all foreign fighters must leave Syria, regardless of which side they supported. In New York, Iran, joined by Russia, strongly objected to the demand and the standoff caused a deeper rift between the two countries.

For now, the designation of terror groups in Syria has been referred to a committee comprising several European and regional countries. They first determined indicators and criteria of what constitutes a terrorist organisation, then named armed groups currently fighting in Syria. There is a preliminary list of more than 160 Sunni and Shia organisations.

Iran categorically rejects including any Shia groups in the list. For Tehran, the fate of the Assad regime it supports is critically tied to the presence of those Shia militias. It is a fact that adds to the many issues that compound the conflict in Syria – issues that the international community would seemingly rather sweep under the carpet instead of deal with head on.

The Syrian regime controls about 30 per cent of the country, though it probably controls over 50 per cent of the population. According to the defence think tank IHS Jane’s, the regime lost 16 per cent of its territory over the past year. These figures are particularly damning if one considers that foreign Shia militias were on the front line of key battles against the rebels – in the Qalamoun region, Aleppo and central and western Syria – over this period.

The growing role of these militias last year came as the Syrian army showed signs of internal weakening, something that Mr Al Assad has admitted. During his most recent speech, almost exactly a month before the Russian intervention in September, the president said that the army lacked “manpower”. Also last year, paramilitary fighters with the National Defence Forces (NDF) began to focus on their local areas rather than deploy in the front lines elsewhere – a task that foreign fighters took on.

Youssef Sadaki, a Syrian researcher who closely focuses on Shia militias, says those foreign fighters acted as the main strikers in battles outside the regime’s heartlands, while the NDF fighters defended their areas or secured and held newly-captured areas.

According to Mr Sadaki, foreign militias lead the regime’s battles in southern Aleppo, and the front lines between Idlib, Aleppo, Latakia, Homs and Hama. Hizbollah has spearheaded key battles in southern Syria near the Lebanese borders, while other militias guard the front lines in Damascus and fought in Deraa.

Phillip Smyth, a close observer of Shia militancy, says that most of the regime’s offensives over the past two years were led by foreign forces, including in areas where the regime’s elite units operate, such as in Damascus.

“When we look at Aleppo, the entire offensive there was spearheaded and planned by the Iranians, it was their Shia militia proxy forces which showcased the entire campaign,” said Mr Smyth, from the University of Maryland. “It’s quite clear that they are a – if not the main – fighting force in many areas.”

Last month on these pages, I highlighted that while Iran and Russia might in theory be willing to accept the removal of Mr Al Assad, there are practical reasons why they would not do that, because consequences are unpredictable and the result is not guaranteed.

For the rebels, no peace is possible while Mr Al Assad is in power, so his future complicates the peace talks. So does the presence of Shia militias in Syria.

Reliance on these foreign forces means that their departure will have to follow the consolidation of the government’s military control over the country. They operate in critical areas and the regime’s army or NDF do not appear to be prepared to take their place.

The presence of Shia militias is important for the regime and for its backer in Tehran. Many of these militias are also key Iranian proxies in Iraq, with recent reports suggesting that Iran has diverted them to Syria to assist in the wake of the Russian intervention in Syria. So the issue has also a regional dimension that cannot be ignored.

Iran finds itself in a situation where it seeks to save the regime in Syria through the help of religious zealots, while pushing for the designation as terrorists of Sunni extremists fighting on the side of the opposition.

In western capitals, strangely, that seems to be a reasonable position. For the opposition and regional backers such as Saudi Arabia, that is double dealing that further complicates the already-complex conflict in Syria.

Meanwhile, back to Iran and the big money. What future trouble will the monetary windfall coming for Iran play in the region?

Iran to Receive Major Economic Windfall as Nuclear Deal Begins

FreeBeacon: Expert: ‘Kerry might as well have wired the money directly into the Revolutionary Guards’ bank accounts’

Iran’s economy is set to receive a substantial boost in the next two years as a result of billions in sanctions relief from the nuclear deal, according to a new forecast, a windfall that could also secure more resources for the Iranian military and its terrorist proxies.

The World Bank said in a report that Iran’s GDP is projected to increase by 5.8 percent this year, compared to just 1.9 percent last year. Economic growth is then estimated to rise by 6.7 percent in 2017.

As part of the nuclear agreement reached between Iran and world powers last year, the Islamic regime could collect as much as $150 billion in unfrozen assets from foreign accounts after it places some restrictions on its nuclear program. Tehran will also be permitted to resume more oil exports, which could increase its sales by 0.5 to 0.7 million barrels per day this year.

The nuclear deal “opens the door for reintegration of [Iran] into the global economy and the reinvigoration of its oil, natural gas, and automotive sectors,” the World Bank said in its global economic prospects report.

“Sanctions could begin to be lifted in early 2016 if the International Atomic Energy Agency (IAEA) indicates the Iranian government has fulfilled its commitments under the pact,” the report continued. “Renewed optimism about the potential of the Iranian economy has already generated a flurry of investment interest by foreign companies.”

Michael Rubin, an expert on Iran and the Middle East at the American Enterprise Institute, said in an email that he also expects the Iranian economy to grow in the wake of the nuclear deal, though he cautioned that the World Bank can be too reliant on flawed statistics from Tehran. Rising growth in Iran would represent a stark contrast to the economic situation before the nuclear negotiations, when the country’s economy contracted under the weight of U.S.-led sanctions.

At the talks, U.S. Secretary of State John Kerry turned in “probably the worst negotiating performance any U.S. secretary of state has had in the last century,” Rubin said, because he failed to pressure Iran into eliminating all aspects of its nuclear program.

“Rather than use Iran’s precarious economic situation as leverage in U.S. negotiations, Secretary of State John Kerry effectively caved,” said Rubin, who is also a former Pentagon official in the George W. Bush administration.

“The Obama administration effectively bailed Iran out,” he added.

Analysts have raised concerns that the Islamic regime could devote billions of its sanctions relief to the Islamic Revolutionary Guard Corps (IRGC), the elite paramilitary unit that also supports terrorist groups in Lebanon, Gaza, and Yemen. The American Action Forum estimated last year that the Guard Corps’ budget could increase by about $3 billion after the nuclear deal is fully implemented.

“If Iran’s economy does grow—and that growth is not eroded from significant inflation from the hard currency influx—then the chief beneficiaries will be the Islamic Revolutionary Guard Corps who have a stranglehold over the oil industry, import-export, and construction,” Rubin said. “Kerry might as well have wired the money directly into the Revolutionary Guards’ bank accounts, because that is the net effect.”

Iran could also use the sanctions relief to bolster its ballistic missile program. Iranian forces have tested two ballistic missiles since the nuclear agreement was reached, including one in October that was capable of carrying a nuclear warhead and violated a United Nations Security Council ban. President Hassan Rouhani has said the military should allocate more resources to its missile program if the United States decides to impose sanctions for the missile tests.

Additionally, an Iranian military with more funding could further exacerbate sectarian tensions in the Middle East. Following the execution of a Shiite cleric by Saudi Arabia, a Sunni Muslim nation and Iran’s bitter regional rival, Iranian protesters stormed the Saudi embassy in Tehran, prompting the Saudis to break off diplomatic relations. Iran has now accused a Saudi-led coalition of launching airstrikes near its embassy in Yemen.

Rubin warned that Iran previously capitalized on negotiations and trade in the early 2000s to augment its nuclear program.

“Between 1999 and 2005, Europe’s trade with Iran almost tripled and the price of oil about quintupled,” he said. “Iran put about 70 percent of that hard currency windfall into its nuclear and ballistic missile programs.”

“The reason for the expansion of Iran’s illicit programs early the last decade was too much diplomacy, not too little,” he continued. “The Supreme National Security Chairman at the time directing those programs? Hassan Rouhani. Kerry is simply making the same mistake twice.”