Exclusive: US, Iran plan ‘oil for goods’ deal to ease sanctions

US Secretary of State Mike Pompeo visited Iraq in May amid increasing tensions between Washington and Tehran. (AP)
Updated 07 June 2019
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Exclusive: US, Iran plan ‘oil for goods’ deal to ease sanctions

  • Alleged deal to be similar to UN oil-for-food program, US sources deny

BAGHDAD: Iranian and US officials may have reached an initial agreement to smooth the US-imposed sanctions on Iran by allowing Iran to sell hundreds of thousands barrel of oil per day in exchange for certain goods, Iraqi sources told Arab News. 

The unconfirmed deal suggests that export and import operations will be through Iraq, officials in Baghdad familiar with the talks say. 

Iran has been suffering a “suffocated” conditions since US withdraw from the nuclear deal and imposed economic sanctions on Iran. The tension between the two sides is at peak as US threaten to militarily respond if Iran targeted any of the US interests in the Middle East.

The alleged deal which may have been reached between the US and Iranian officials, would have been made in Baghdad in cooperation with the Iraqi side, however several US government sources that Arab News spoke to have denied that such a deal exists between Iran and the US. 

However, according to one senior Iraqi official familiar with what he described as ‘ongoing talks’, the deal could be considered “a good-will gesture offered by the Americans to calm the escalation between the two countries, but it is still in its preliminary stages. 

“The involved parties have agreed on the general lines which state allowing Iran to export a specific amount of oil and getting specific goods in return.
“Iraq will be the transit area for both importing the goods and exporting the oil,” he added. 

Iran has been controlling dozens armed factions operating in Iraq, Syria, Lebanon and Yemen. The activities of these groups have been representing a serious threat to the US and its’ allies in the region.

US-imposed economic sanctions on Iran aim to halt its nuclear program and prevent it from funding and equipping these factions.

“The main goal that the Americans are looking to achieve it is preventing the Iranians from getting any cash money,” a second Iraqi official familiar with the talks told Arab News in condition of anonymity.

“The deal will allow the Americans to monitor and control everything, the amount of the exported Iranian crude oil, the kinds of the imported goods and being sure that no cash will be paid back.
“This will paralyze the Iranians and force them to abandon the armed factions they fund and will keep them busy dealing with the internal Iranian situation,”.

The “initial” deal which has been concluded by Bijan Zanganeh, the Iranian Minister of Oil who was in un announced visit to Iraq lasted for few days, has not became final yet as the three sides have not agreed on the details including the amount of oil, the kind of goods and the key buyer of the Iranian oil, Iraqi officials told Arab News.
The suggested amount of oil which supposed to allow Iran to export a certain amount of barrels per day but “this point still under discussions” two officials at least told Arab News. Also the key buyer in this deal “still one of the disagreement points between the Iranians and Americans”.

“Iranians have suggested one of the European countries as a key buyer but the Americans have refused,” one of the sources who is familiar with the talks told Arab News.

“The confirmed thing so far in this deal is, that Iraq will be the transit area for the exchange operations (import and export), so US can closely monitor the commitment of the Iranians,”.

Oil for goods

The alleged agreement, which is still in its early stages of negotiations, is inspired by the oil-for-food program implemented in Iraq in 1995 by a Security Council resolution to ease the impact of the economic embargo imposed on Iraq following the invasion of Kuwait in the early 1990s. The oil-for-food program allowed Iraq to export a quantity of its oil in return for securing the humanitarian needs of the Iraqi people under the supervision of the United Nations.

“The targeted shape of the suggested deal is almost a copy of the oil – for – food program which used to apply in Iraq in 1990s, but Iraq will replace the UN as the supervisor of procurement and receipt and disbursement of funds received,” a prominent Shiite leader and a member of the Oil and Power parliamentary committee familiar with the talks told Arab News.
“The proposal is to open a bank account in the Iraqi Central Bank in favor of Iran to deposit the money obtained from the sale of Iranian oil and then Iraq to pay bills of Iranian purchases later using this money.

“This mechanism will enable the Americans to follow the dollar closely and monitor Iran's disbursements,”.

Iraq has been importing 1100 MW of electricity per day from Iran since years, in addition to 28 million cubic meters of gas oil which secure another 4,000 MW.

Iran stopped supplying Iraq with electricity and gas oil last summer because of the inability of Iraq to pay its dues as a result of US financial sanctions imposed on Iran. The resulted serious shortage of electricity led to the outbreak of angry and violent demonstrations in the Shiite-dominated provinces in southern Iraq. At least 17 people including a number of security forces were killed and many government and party offices, including the Iranian consulate were burned.

A prominent Shiite leader familiar with the deal told Arab News that the negotiations started less than a month ago in Baghdad and the deal included maintaining all the contracts that Iran was signed before imposing the sanctions with European, Chines and Asian  companies to supply medical substances and spare  parts fo the oil and industry and Iraq will financially cover these contracts from the deposit money in the suggested bank account
To bypass US sanctions and ensure they are not breached, the Iraqi government last year has opened a bank account at the Central Bank of Iraq on behalf of Iran to deposit the money owed by Iraq and then use it to pay Iranian purchase bills to other countries, Iraqi officials said.
“The proposed opening of the bank account, the receipt of the sold oil money and the payment of the invoices of Iran’s purchases, among the points agreed upon,” another member of the oil and power parliamentary committee, said.


King Abdullah, Bulgarian president co-chair Aqaba Process meetings in Sofia

Updated 7 sec ago
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King Abdullah, Bulgarian president co-chair Aqaba Process meetings in Sofia

  • Initiative aims to bolster cooperation on security, counterterrorism issues
  • King held separate talks with several regional leaders on sidelines of event

LONDON: King Abdullah II of Jordan and Bulgarian President Rumen Radev co-chaired the third round of the Aqaba Process meetings in Sofia on Friday, bringing together international leaders to address pressing security challenges in the Balkans and beyond, the Jordan News Agency reported.

The Aqaba Process Balkans III forum, jointly organized by Jordan and Bulgaria, tackled issues such as regional security, counterterrorism efforts, online radicalization and illegal migration. The participants also explored opportunities for greater international cooperation, including intelligence sharing and strategic partnerships in combating extremism.

Attending the event were heads of state, government officials and security representatives from Serbia, Albania, North Macedonia, Montenegro, Slovenia, Kosovo, Bosnia and Herzegovina, Croatia, Spain, Greece, Italy, France, the UK, US and Japan.

Prince Ghazi bin Muhammad, King Abdullah’s personal envoy and chief adviser on religious and cultural affairs, was among the attendees, while several international organizations, including the EU, Interpol, Global Internet Forum to Counter Terrorism and the Organization for Security and Cooperation in Europe, were also represented.

On the sidelines of the forum, King Abdullah held meetings with several regional leaders, including Slovenian President Natasa Pirc Musar, Albanian President Bajram Begaj, Kosovan President Vjosa Osmani-Sadriu, North Macedonian President Gordana Siljanovska Davkova, Montenegrin President Jakov Milatovic and Serbian President Aleksandar Vucic.

Launched by the king in 2015, the Aqaba Process is designed to enhance coordination between regional and international actors in the fight against terrorism and extremism. It fosters military, security and intelligence cooperation, focusing on counterterrorism strategies and the exchange of expertise.

Previous meetings have been hosted by Jordan, Albania, Brazil, Indonesia, the Netherlands, Nigeria, Norway, Rwanda, Singapore, Spain, the US and the UN General Assembly.

Discussions have covered diverse regions such as East Africa, Southeast Asia, Latin America, West Africa and the Sahel.


In Tunisia, snails inch toward replacing red meat as people turn to cheaper protein

Updated 46 min 22 sec ago
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In Tunisia, snails inch toward replacing red meat as people turn to cheaper protein

  • Snails have been consumed in Tunisia for more than seven millenia
  • Low in fat and high in iron, calcium and magnesium, snails offer both nutritional value and economic relief

AKOUDA, Tunisia: In fields outside their hometown in central Tunisia, an increasing number of unemployed young men are seeking a new way to make a living, picking snails off of rocks and leaves and collecting them in large plastic bags to take to the local market to be sold.
More and more people, they say, are buying the shelled wanderers as the price of market staples remains high and out of reach for many families.
“They’re profitable, beneficial and quite in demand,” said Karim, a 29-year-old snail seller from the village of Akouda said.
Snails have been consumed in Tunisia for more than seven millenia, according to research published last year in the journal Archaeological and Anthropological Sciences. In today’s world considered mostly a bistro delicacy, they’re again gaining traction in Tunisia as a practical alternative to red meat — a protein-rich substitute that pairs perfectly with salt, spices, and bold seasonings.
The snails are a lifeline for some in Tunisia, where youth unemployment now hovers above 40 percent and inflation remains high, three years after spiking to its highest levels in decades. A lack of opportunity has fueled social discontent throughout the country and, increasingly, migration to Europe.
Low in fat and high in iron, calcium and magnesium, snails offer both nutritional value and economic relief. In a country where unemployment runs high and median wages remain low, they cost about half as much as beef per kilogram and often less when sold by the bowl.
“Snails are better for cooking than lamb. If lamb meat costs 60 dinars ($19.30), a bowl of snails is five dinars ($1.60),” a man named Mohammed said at the Akouda market.
As the price of meat and poultry continues to rise, more Tunisians are turning to affordable, alternative sources of protein. Beyond their economic appeal, these substitutes are also drawing interest for their environmental benefits. Scientists say they offer a more sustainable solution, producing far fewer carbon emissions and avoiding the deforestation linked to traditional livestock farming.
Wahiba Dridi, who serves snails at her restaurant in Tunis, cooks them in a traditional fashion with peppers and spices. She said they were popular throughout this year’s Ramadan, which ended last week. Though Tunisian Muslims traditionally eat red meat at the meals during which they break their daily fasts, a kilogram of snails costs less than 28 Tunisian dinars ($9) compared to beef, which costs 55 dinars per kilogram ($18).
“If people knew the value of snails they would eat them all year long,” Dridi said.


US sending Israel 20,000 assault rifles that Biden had delayed, say sources

Updated 04 April 2025
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US sending Israel 20,000 assault rifles that Biden had delayed, say sources

  • The rifle sale is a small transaction next to the billions of dollars worth of weapons that Washington supplies to Israel
  • The March 6 congressional notification said the US government had taken into account “political, military, economic, human rights, and arms control considerations“

WASHINGTON: The Trump administration moved forward with the sale of more than 20,000 US-made assault rifles to Israel last month, according to a document seen by Reuters and a source familiar with the matter, pushing ahead with a sale that the administration of former president Joe Biden had delayed over concerns they could be used by extremist Israeli settlers.
The State Department sent a notification to Congress on March 6 for the $24 million sale, saying the end user would be the Israeli National Police, according to the document.
The rifle sale is a small transaction next to the billions of dollars worth of weapons that Washington supplies to Israel. But it drew attention when the Biden administration delayed the sale over concerns that the weapons could end up in the hands of Israeli settlers, some of whom have carried out attacks on Palestinians in the Israeli-occupied West Bank.
The Biden administration has imposed sanctions on individuals and entities accused of committing violence in the Israeli-occupied West Bank, which has seen a rise in settler attacks on Palestinians.
On his first day in office on January 20, Trump issued an executive order rescinding US sanctions on Israeli settlers in a reversal of US policy. Since then, his administration has approved the sale of billions of dollars worth of weapons to Israel.
The March 6 congressional notification said the US government had taken into account “political, military, economic, human rights, and arms control considerations.”
The State Department did not respond to a request for comment when asked if the administration sought assurances from Israel on the use of the weapons.

CLOSE TIES
Since a 1967 Middle East war, Israel has occupied the West Bank, which Palestinians want as the core of an independent state, and has built settlements that most countries deem illegal. Israel disputes this, citing historical and biblical ties to the land.
Settler violence had been on the rise prior to the eruption of the Gaza war, and has worsened since the conflict began over a year ago.
Trump has forged close ties to Netanyahu, pledging to back Israel in its war against Hamas in the Gaza Strip. His administration has in some cases pushed ahead with Israel arms sales despite requests from Democratic lawmakers that the sales be paused until they received more information.
The US Senate on Thursday overwhelmingly rejected a bid to block $8.8 billion in arms sales to Israel over human rights concerns, voting 82-15 and 83-15 to reject two resolutions of disapproval over sales of massive bombs and other offensive military equipment.
The resolutions were offered by Senator Bernie Sanders of Vermont, an independent who caucuses with Democrats.
The rifle sale had been put on hold after Democratic lawmakers objected and sought information on how Israel was going to use them. The congressional committees eventually cleared the sale but the Biden administration kept the hold in place.
The latest episode in the decades-old Israeli-Palestinian conflict began with a Hamas attack on Israeli communities on October 7, 2023 with gunmen killing 1,200 people and taking more than 250 hostages, according to Israeli tallies. Israel’s campaign has so far killed more than 50,000 Palestinians, Gaza health authorities say.
Israel’s National Security Minister Itamar Ben-Gvir, a far-right member of Prime Minister Benjamin Netanyahu’s government, oversees the Israeli police force. The Times of Israel newspaper in November 2023 reported that his ministry has put “a heavy emphasis on arming civilian security squads” in the aftermath of October 7 attacks.


Medecins Sans Frontieres ‘appalled’ by second staff member killed in Gaza within weeks

Updated 04 April 2025
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Medecins Sans Frontieres ‘appalled’ by second staff member killed in Gaza within weeks

  • Hussam Al Loulou died in the strike on Apr. 1 in central Gaza

GENEVA: Global medical charity Medecins Sans Frontieres said on Friday it was appalled and saddened by the killing of one of its staff by an air strike in Gaza, the second within two weeks.


Hussam Al Loulou died in the strike on Apr. 1 in central Gaza, alongside his wife and 28-year-old daughter, the organization said.


Uganda president holds talks with South Sudanese leaders to try to avoid civil war

Updated 04 April 2025
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Uganda president holds talks with South Sudanese leaders to try to avoid civil war

  • Goc said that the country’s leadership had assured Museveni of its commitment to implement the peace agreement
  • Uganda last month deployed troops to South Sudan to support the government

NAIROBI: Uganda’s President Yoweri Museveni was expected to meet South Sudanese officials on the second day of his trip to the capital, Juba, as the UN has expressed concern of a renewed civil war after the main opposition leader was put under house arrest.
Museveni, who is among the guarantors of a 2018 peace agreement that ended a five-year civil war, held closed-door discussions with President Salva Kiir on Thursday.
South Sudan’s Foreign Minister Mohammed Abdallah Goc said that the country’s leadership had assured Museveni of its commitment to implement the peace agreement.
South Sudan’s political landscape remains fragile and recent violence between government troops and armed groups allied to the opposition have escalated tension.
Uganda last month deployed troops to South Sudan to support the government, but it was criticized by South Sudan’s main opposition party SPLM-IO, whose leader Riek Machar is under house arrest on charges of incitement.
In early March, the armed group loyal to Machar attacked a UN helicopter that was on a mission to evacuate government troops from the restive northern Upper Nile State.
Western countries including Germany and Norway have temporarily closed their embassies in Juba while the USand the UK have reduced embassy staff.