China State Media Cautious on New U.S. Defense Plan

BEIJING - China's official Xinhua news agency said Jan. 6 it welcomed a bigger U.S. presence in Asia, but only if it helped promote peace in the region, after President Barack Obama unveiled a new military strategy.

The plan calls for the U.S. military to strengthen its presence in Asia and prepare for possible challenges from countries such as China, while downplaying future huge counter-insurgency campaigns such as those in Iraq and Afghanistan.

Beijing has given no official response to the review, but Xinhua said Jan. 6 that the United States was welcome to make "more contribution to peace and stability in the Asia Pacific region", while urging it against "warmongering".

"The U.S. role, if fulfilled with a positive attitude and free from a Cold War-style zero-sum mentality, will not only be conducive to regional stability and prosperity, but be good for China," it said in a comment piece.

"However, while boosting its military presence in the Asia Pacific, the United States should abstain from flexing its muscles," it added. "If the United States indiscreetly applies militarism in the region, it will be like a bull in a china shop, and endanger peace instead of enhancing regional stability."

The United States is increasingly focusing its attention on the Asia-Pacific region, where commanders worry about China's growing military power.

The People's Liberation Army is the world's largest active military, and is extremely secretive about its defense programs, which benefit from a huge and expanding military budget.

In November, Obama went on a week-long tour of the Pacific in a bid to enhance the role of the United States in the region, positioning Marines in northern Australia and pushing for a trans-Pacific trade pact.

Shortly afterwards, China announced it would conduct routine naval exercises in the Pacific Ocean, in what some saw as a symbolic move aimed at the United States. Meanwhile, the Global Times - an official, nationalistic daily newspaper - accused the United States of trying to contain China and called on Beijing to "strengthen its long-range strike abilities and put more deterrence on the U.S."

"The U.S. must realize that it cannot stop the rise of China and that being friendly to China is in its utmost interests," it said in en editorial.

The new U.S. strategy unveiled Jan. 5 calls for a leaner military, and also focuses on preventing Iran from securing nuclear weapons.

Iran to Hold New War Games in Strait of Hormuz

TEHRAN - Iran is to hold fresh military exercises in and around the strategic Strait of Hormuz within weeks, the naval commander of its powerful Revolutionary Guards was quoted as saying Jan. 6.

The maneuvers are to be held in the Iranian calendar month that runs from Jan. 21 to Feb. 19, the Fars news agency quoted Ali Fadavi as saying.

They will underline Iran's assertion that it has "full control over the Strait of Hormuz area and controls all movements in it," Fadavi added.

The announcement - which narrowed down a timeframe for the exercises the Guards had previously only given as "soon" - risked aggravating tensions with the West over the strait.

The waterway is the world's "most important chokepoint" for oil tankers, according to the U.S. Energy Information Administrations. Some 20 percent of the world's oil flows through the narrow channel at the entrance to the Gulf.

Iran's regular navy completed 10 days of war games to the east of the strait, in the Gulf of Oman, early this week with tests of three anti-ship missiles.

Iran's military and political leaders have warned they could close the strait if increased Western sanctions halt Iranian oil exports.

The navy has also warned it will react if the United States tries to redeploy one of its aircraft carriers to the waterway.

The Revolutionary Guards, who use high-speed skiffs mounted with missile launchers and other lightweight vessels, periodically hold maneuvers in and around the Strait of Hormuz.

The last ones took place in July 2011 and included the firing of several anti-ship missiles, including two Khalij Fars missiles with a range of 190 miles.

Fadavi did not give details of the new maneuvers.

"The 7th in the series of Great Prophet Maneuvers will be conducted in the area of the Persian Gulf and the Strait of Hormuz. They will have significant differences from the previous ones," Fars quoted him as saying.

Israel and U.S. to Hold Joint Missile Drill

JERUSALEM - Israel and the United States are to hold a joint missile defense exercise, the Israeli military said late Jan. 5.

Although the exercise, codenamed "Austere Challenge 12," comes at a time of spiraling regional tensions over Iran's suspected nuclear arms program, the army said the maneuvers were planned in advance.

"The exercise scenario involves notional, simulated events as well as some field training and is not in response to any real-world event," the military said in a written response to an AFP query

"The U.S. European Command and the Israel Defence Forces periodically conduct routine exercises in Israel. These exercises, which are part of along-standing strategic partnership, are planned in advance and part of a routine training cycle designed to improve the interoperability of our defence systems."

It did not say when the exercise would take place. Local media said that it would get underway in the spring and would be the biggest ever joint maneuvers between the two allies.

Israel and the United States have a longstanding strategic alliance and are jointly developing the Arrow anti ballistic missile system.

In November the Jewish state staged a major civil defense drill in the Tel Aviv region aimed at simulating a response to conventional and non-conventional missile attacks.

Although Iran says its nuclear program is for civilian use only, the international community believes it is striving to acquire nuclear arms and Israel says that it is a prime target of the Islamic republic.

Iran has threatened to close the strategic Strait of Hormuz, through which 20 percent of the world's oil flows, if it is hit with sanctions, and has warned the United States not to send an aircraft carrier back into the Gulf.

Last week it test-fired three missiles during war games east of the strait at the entrance to the Gulf.

Iran Renews Warning to U.S. on Aircraft Carriers

TEHRAN, Iran - Iran on Jan. 4 renewed its warning to America against keeping a U.S. Navy presence in the oil-rich Persian Gulf, underlining a threat that Washington has dismissed as a sign of "weakness" from Tehran.

"The presence of forces from beyond the [Gulf] region has no result but turbulence. We have said the presence of forces from beyond the region in the Persian Gulf is not needed and is harmful," Defense Minister Ahmad Vahidi said, according to state television's website.

"The long-term presence of the United States in the region increases insecurity and the possibility of tensions and of confrontation," the deputy chief of Iran's forces, Masoud Jazayeri, said, according to the Revolutionary Guards website.

"As a result ... the United States must leave the region," Jazayeri said.

Jazayeri noted the exit of the U.S. aircraft carrier John C. Stennis from the Gulf last week and said: "Since you've gone, don't come back, otherwise you'll be responsible for any problems."

The comments echoed a Jan. 3 warning that Iran would unleash its "full force" if a U.S. carrier is redeployed to the Gulf.

"We don't have the intention of repeating our warning, and we warn only once," Brig. Gen. Ataollah Salehi, the armed forces chief, said as he told Washington to keep its carrier out of the Gulf.

The White House on Jan. 3 brushed off the warning, saying it "reflects the fact that Iran is in a position of weakness" as it struggles under international sanctions.

The U.S. Defense Department said it would not alter its deployment of warships to the Gulf.

Iran has just finished 10 days of navy war games near the strategic Strait of Hormuz, at the entrance of the Gulf, meant to show it was capable of controlling the channel and closing it if necessary. Twenty percent of the world's oil ships through the strait.

The exercises climaxed on Jan. 2 with the Iranian navy test-firing three types of missile designed to sink warships.

The head of Iran's parliamentary national security and foreign policy commission, Aladdin Borujerdi, was quoted by the Fars news agency saying the U.S. description of Iran being weak "is a completely illogical stance."

He added: "The U.S. talks about sanctioning our oil but they should know that if Iran's oil exports from the Persian Gulf are sanctioned, then no-one will have the right to export oil through the Strait of Hormuz."

The developments have helped send the prices of oil soaring, though they pulled back a little on Jan. 4. Brent North Sea crude contracts in London were selling for $111.58 per barrel. New York trading of West Texas Intermediate crude was at $102.30 per barrel.

The Pentagon said in a statement it would continue the rotation of its 11 aircraft carriers to the Gulf to support military operations in the region and keep the Strait of Hormuz open.

"We are committed to protecting maritime freedoms that are the basis for global prosperity; this is one of the main reasons our military forces operate in the region," it said in a statement.

The increasingly tense situation in the Gulf was taking place as Iran struggled with turmoil on its domestic currency market.

Foreign exchange shops on Jan. 4 were shuttered as traders refused to comply with a central bank order putting an artificial cap on the value of the dollar against the Iranian rial, which has come under intense pressure in recent days.

The central bank also cut in half, to $1,000, the amount of dollars travelers flying abroad could buy.

Iranian authorities were trying to shore up their currency following its slide to a record low Jan. 2, days after the United States enacted new sanctions targeting Iran's central bank.

Tehran, however, insisted the volatility of the rial was not because of sanctions.

It "definitely has nothing to do with sanctions," foreign ministry spokesman Ramin Mehmanparast said Jan. 3.

The United States and other Western nations have imposed sanctions on Iran's economy over Tehran's controversial nuclear program, which they believe is being used to develop atomic weapons. Iran has repeatedly denied that allegation, saying the program is purely for energy and medical uses.

Mideast Weapon Sales Part of Long-Term Plan: U.S.

The final days of 2011 saw the Obama administration finalize two important weapon sales with countries in the Middle East: a $3.48 billion sale of a Lockheed Martin-made missile defense system to the United Arab Emirates, and a $29.4 billion sale of Boeing-made F-15 fighter jets to Saudi Arabia.

While the announcements come as tensions between the United States and Iran continue to rise over a dispute regarding access to the Strait of Hormuz, the deals themselves are not meant to address current events, State Department officials said.

The F-15 deal was finalized with Saudi Arabia on Dec. 24. However, the White House first notified Congress of that sale, which includes 84 new aircraft and the modernization of 70 existing aircraft as well as missiles, spare parts, training, maintenance and logistics, in October 2010.

During a Dec. 30 State Department news conference, Andrew Shapiro, assistant secretary of state for political-military affairs, told reporters that the deal was not directed toward Iran, adding that work on the sale precedes the latest news out of the region.

"We did not gin up a package based on current events in the region," he said.

Over the last several weeks, the United States and Iran have stepped up the economic and military pressure on each other, with the latest threat coming from Iran, which warned the United States not to return one of its aircraft carriers to the gulf.

On Jan. 3, the Pentagon dismissed Iran's warnings.

"The deployment of U.S. military assets in the Persian Gulf region will continue as it has for decades," Pentagon Press Secretary George Little said in a statement. "Our transits of the Strait of Hormuz continue to be in compliance with international law, which guarantees our vessels the right of transit passage."

Meanwhile, Undersecretary of State for Political Affairs Wendy Sherman is on a four-day trip to Saudi Arabia and the UAE.

"While in the gulf region, she will consult with senior Saudi and Emirati officials on a wide range of bilateral and regional issues," according to the State Department. Her trip "further illustrates the robust strategic relationship the United States shares with both Saudi Arabia and the United Arab Emirates."

While the latest sales to the Middle East are being placed in this geopolitical context, the late December announcements are not tied to the escalating tensions, but part of a longer-term security plan, said Danny Sebright, president of the U.S.-UAE Business Council and a counselor at the Cohen Group, Washington.

"The overall sales with regard to both countries are definitely the result of a long-term concern with Iranian intentions, a long-term concern with wanting to improve individual countries' defense capabilities," Sebright said. "But, is the announcement of these two deals specifically tied to Iran? I would say no to that. I would say it's much more about internal decision-making in both countries - some with regard to terms and conditions of the sale, some with regard to budgeting, and some with regard to the Arab Spring."

According to Sebright, the United States gave the formal Letter of Offer and Acceptance to Saudi Arabia last spring and the Saudi government has been holding on to it until it was ready to sign.

"The basic deal had all but been done over a year ago, but they waited for internal and external reasons," he said.

A State Department official said, "While we decline to get into the specifics on the negotiations, the timeline here is not particularly atypical. A sale of this magnitude and complexity required close, continual consultations with our Saudi and industry partners to sort out the details."

Congress was first notified of the plan to sell UAE the Terminal High Altitude Area Defense System (THAAD) in September 2008. After negotiating the details of the contract, the United States and UAE signed the THAAD deal on Dec. 25. Lockheed Martin is on contract for four THAAD batteries for the U.S. Army, but the UAE deal is the program's first foreign sale.

Lockheed Martin's portion of the $3.48 billion sale is $1.96 billion. The overall deal includes two THAAD batteries, 96 missiles, two AN/TPY-2 radars, and 30 years of spare parts, support, and training to the UAE, according to the Pentagon.

Since the 2008 congressional notification, UAE trimmed the buy.

At first it was expected the country would buy three THAAD fire units, 147 missiles, and four radar sets for an estimated value of $6.95 billion.

The United Arab Emirates has asked Lockheed not to publicly discuss the delivery schedule of the weapon system, said Dennis Cavin, vice president of corporate business development at Lockheed Martin.

"This sale is an important step in improving the region's security through a regional missile defense architecture, and follows a number of recent ballistic missile defense-related sales," Little said in a Dec. 30 statement.

Sales from earlier in the year include a $1.7 billion direct commercial sales contract to upgrade Saudi Arabia's Patriot missiles and the sale of 209 Patriot GEM-T missiles to Kuwait, valued at about $900 million.

Loren Thompson, a defense analyst at the Lexington Institute, also put the sale in the context of December's announcement that Iraq would buy Lockheed's F-16s and Oman's decision to double the size of its F-16 fleet.

"When combined with the modernization of the Saudi Air Force and the extensive F-16 inventory of the United Arab Emirates, it is clear Arab gulf states will be positioned to greatly outmatch the antiquated tactical aircraft fleet of Iran," he wrote in a blog for Forbes.

According to Lockheed Martin, demand for missile defense capabilities continues to climb around the world.

"With regional threats in the Middle East and the uncertainties of what's going on in North Korea, demand for a very capable missile defense system has never been stronger," Cavin said. "The U.S. government is in discussion with a number of countries who have expressed interest in the THAAD, but we'd prefer that the Missile Defense Agency address any specifics with regard to which countries have contacted them."

The Missile Defense Agency declined to provide further details.

In announcing the Saudi deal, the State Department emphasized it would improve interoperability between the Saudi and American air forces.

In addition to greater cooperation with the United States, the sales also bolster internal cooperation among the Gulf Cooperation Council countries, which include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, Sebright said.

The gulf countries have taken more steps to improve internal coordination and work toward multilateral defense policies in the last year than they have over the last 25, he said.

Iran Keeps Tensions High Over Oil Strait

TEHRAN - Iran kept tensions simmering Dec. 31 over its threat to close the Strait of Hormuz to oil tankers by readying war game missile tests near the entrance to the Persian Gulf.

AN IRANIAN WAR-BOAT fires a missile Dec. 30 during the 'Velayat-90' navy exercises in the Strait of Hormuz. (Ali Mohammadi / AFP via Getty Images)

Washington has warned a closure of the strait "will not be tolerated" after Iranian Vice President Reza Rahimi's threat this week that "not a drop of oil" will pass through the channel if more Western sanctions are imposed over Tehran's nuclear program.

Iran has brushed off the warning from the United States, which bases its Fifth Fleet in the Gulf, with Iranian navy chief Adm. Habibollah Sayari saying it would be "really easy" to close the strait.

A spokesman for the Iranian navy, Commodore Mahmoud Mousavi, told state television on Dec. 31 that, "in the next days, we will test-fire all kinds of surface-to-sea, sea-to-sea and surface-to-air as well as shoulder-launched missiles" in the final stages of the war games.

He did not say exactly when the launches would start, but explained they would involve tests of "medium- and long-range missiles" to evaluate their operational effectiveness.

The navy exercises started Dec. 24 and are due to end on Jan. 2.

Twenty percent of the world's oil moves through the Strait of Hormuz, at the entrance of the Gulf, making it the "most important chokepoint" globally, according to information released Dec. 30 by the U.S. Energy Information Administration.

Around 14 crude oil tankers per day pass through the narrow strait, carrying a total 17 million barrels. In all, 35 percent of all seaborne oil transited through there this year.

On Dec. 29, a U.S. aircraft carrier and an accompanying missile cruiser passed through the zone where the Iranian navy was conducting its drill. U.S. officials insisted it was a routine passage.

No confrontation occurred, though an Iranian military aircraft flew in close to record video of the aircraft carrier, which was then shown on state television.

Analysts and oil market traders have been watching developments in and around the Strait of Hormuz carefully, fearing that the intensifying war of words between arch foes Tehran and Washington could spark open confrontation.

With tensions rising, the United States said it has signed a $29.4-billion dealto supply Iran's chief rival in the Middle East, Saudi Arabia, with 84 new fighter jets.

The sale was a "strong message" to the Gulf region, Washington said.

Iran is subject to four rounds of U.N. sanctions over its nuclear program, which many Western countries allege is being used to develop atomic weapons.

Tehran denies the allegation.

The United States and its allies have also imposed unilateral sanctions on Iran's economy.

The last lot of unilateral sanctions triggered a demonstration in Tehran that led to members of the Basij militia controlled by the Revolutionary Guards ransacking the British embassy. London reacted by closing the mission and ordering Iran's embassy in Britain closed.

More sanctions are on the way.

U.S. President Barack Obama is expected to soon sign into law additional restrictions on Iran's central bank, which acts as the main conduit for Iranian oil sales.

The European Union is considering other measures that could include an EU embargo on Iranian oil imports, with foreign ministers to meet on the issue in a month's time.

Iran's oil minister, Rostam Qasemi, told the Aseman weekly that sanctions "will drive up the price of oil to at least 200 dollar" per barrel.

Iran's top nuclear negotiator, Saeed Jalili, was quoted by the Iranian media telling Islamic republic's envoys who have been gathered in Tehran that "we will give a resounding and many-pronged response to any threat against the Islamic Republic of Iran."

But he and other officials also left the door open to resuming long-stalled talks on Iran's nuclear program.

Addressing world powers involved in the talks, Jalili said: "We officially told them to come back to the negotiation based on cooperation."

Iran's ambassador to Germany, Alireza Sheikh-Attar, told the Mehr news agency on Dec. 31 that "we will soon send a letter, after which (new) talks will be scheduled."

Foreign Minister Ali Akbar Salehi was also quoted by a website of the state broadcaster as telling a visiting Chinese foreign ministry official that "Iran is prepared for the continuation of nuclear negotiations" on the basis of a Russian proposal.

Iran to Test-Fire Missiles in Hormuz War Games

TEHRAN - Iran, which has been carrying out war games in the Strait of Hormuz over the past week, is to test fire shorter- and longer-range missiles in the key oil waterway on Dec. 31, the navy said.

"Shorter- and longer-range, ground-to-sea, surface-to-surface and surface-to-air missiles will be tested on Saturday," the ISNA news agency quoted navy spokesman Commodore Mahmoud Mousavi on Dec. 30.

The move is likely to stoke tensions between Tehran and Washington, already running high over a warning by Iran this week that "not a drop of oil" would pass through the strait if Western governments followed through with planned additional sanctions over its nuclear program.

The U.S. State Department said Dec. 29 that Iran's threat to close the waterway, through which more than a third of the world's tanker-borne oil passes, exhibited "irrational behavior" and "will not be tolerated."

The naval maneuvers launched by Iran in the strait on Dec. 24 have so far included mine-laying and the use of aerial drones, according to Iranian media.

Analysts and oil market traders have been watching developments in and around the Strait of Hormuz carefully, fearing that the intensifying war of words between arch foes Tehran and Washington could spark open confrontation.

U.S. Warships Cross Hormuz Despite Iran Threats

WASHINGTON - Two American warships have crossed through the Strait of Hormuz without incident despite Iranian threats to close the strategic oil route, the U.S. Navy said Dec. 29.

THE U.S. AIRCRAFT carrier Stennis is seen where Iranian ships are conducting 10 days of wargames in the Persian Gulf, accoridng to Iranian officials. (Fars News / AFP via Getty Images)

The aircraft carrier John C. Stennis and the guided-missile cruiser Mobile Bay "conducted a pre-planned, routine transit through the Strait of Hormuz" on Dec. 27, said Fifth Fleet spokeswoman Lt. Rebecca Rebarich.

The U.S. military reported no friction with Iran's naval forces after Iranian leaders warned of possibly shutting down the vital strait if the West went ahead with more punitive sanctions over its suspect nuclear program.

"Our interaction with the regular Iranian Navy continues to be within the standards of maritime practice, well-known, routine and professional," Rebarich said in an email from Fifth Fleet headquarters in Bahrain.

The U.S. warships paid a visit to the port of Jebel Ali in the United Arab Emirates before traveling through the strait to the Arabian Sea, where the vessels will provide air power for NATO-led forces in Afghanistan, she said.

In response to Tehran's threats, the U.S. military said Dec. 28 that any attempt to disrupt shipping in the Strait of Hormuz would not be tolerated.

The U.S. aircraft carrier and cruiser made their through the narrow channel as Iran's navy was carrying out war games to the east of the Strait of Hormuz in a show of military might.

Iran's navy commander, Adm. Habibollah Sayari, said the aircraft carrier was monitored as it passed through the strait to the Gulf of Oman, according to Iranian state television.

The strait is a choke point at the entrance to the Gulf through which more than a third of the world's tanker-borne oil passes.

Although Iran could lay mines to disrupt shipping through the narrow channel, Tehran relies on the route for its own oil exports and analysts say the Islamic republic is unlikely to take such drastic steps.

Iran-U.S. Brinkmanship Over Oil Strait Worsens

TEHRAN - A showdown between Iran and the United States over Tehran's threats to close the strategic Strait of Hormuz to oil tankers worsened Dec. 29 with warships from each side giving weight to an increasingly bellicose exchange of words.

THE U.S. AIRCRAFT carrier Stennis is seen where Iranian ships are conducting 10 days of wargames in the Persian Gulf, accoridng to Iranian officials. (Fars News / AFP via Getty Images)

Iran's Revolutionary Guards rejected a warning that the U.S. military would "not tolerate" such a closure, saying they would act decisively "to protect our vital interests."

The tough language came as Iran's navy said a U.S. aircraft carrier entered a zone where its ships and aircraft were in the middle of 10 days of wargames designed to be a show of military might.

The area was in waters to the east of the Strait of Hormuz, a choke point at the entrance to the Gulf through which more than a third of the world's tanker-borne oil passes.

Iranian Vice President Mohammad Reza Rahimi warned this week that "not a drop of oil will pass through the Strait of Hormuz" if the West followed through with planned additional sanctions against Iran over its nuclear program.

A U.S. Defense Department spokesman replied with a declaration Dec. 28 that "interference with the transit ... of vessels through the Strait of Hormuz will not be tolerated."

But Brig. Gen. Hossein Salami, the deputy commander of Iran's powerful Revolutionary Guards, told Fars news agency Dec. 29 that "our response to threats is threats."

"We have no doubt about our being able to carry out defensive strategies to protect our vital interests - we will act more decisively than ever," he was quoted as saying.

"The Americans are not qualified to give us permission" to carry out military strategy, he said.

Iran's navy chief, Adm. Habibollah Sayari, said the U.S. aircraft carrier was monitored by Iranian forces as it passed from the Strait of Hormuz to the Gulf of Oman, according to state television.

The network showed footage of an aircraft carrier being followed by an Iranian plane.

An Iranian navy spokesman, Commodore Mahmoud Mousavi, told the official IRNA news agency the aircraft carrier went "inside the maneuver zone" where Iranian ships were conducting their exercises.

He added that the Iranian navy was "prepared, in accordance with international law, to confront offenders who do not respect our security perimeters during the maneuvers."

The U.S. aircraft carrier was believed to the John C. Stennis, one of the American navy's biggest warships.

U.S. officials said Dec. 28 that the ship and its accompanying carrier strike group was moving through the Strait of Hormuz.

The United States maintains a navy presence in the Gulf in large part to ensure oil traffic there is unhindered.

Iran, which is already subject to several rounds of sanctions over its nuclear programme, has repeatedly said it could target the Strait of Hormuz if attacked or its economy is strangled.

Such a move could cause havoc on world oil markets, disrupting the fragile global economy.

Its navy maneuvers included the laying of mines and the use of aerial drones, according to Iranian media. Missiles and torpedoes were to be test fired in coming days.

Analysts and oil market traders are watching the developing situation in and around the Strait of Hormuz carefully, fearing a spark could ignite open confrontation between the longtime foes.

The United States had proposed a military hotline between Tehran and Washington to defuse any "miscalculations" that could occur as their navies brush against each other. Iran rejected the offer in September.