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Ambrose Evans-Pritchard
Ambrose Evans-Pritchard has covered world politics and economics for 30 years, based in Europe, the US, and Latin America. He joined the Telegraph in 1991, serving as Washington correspondent and later Europe correspondent in Brussels. He is now International Business Editor in London. Subscribe to the City Briefing e-mail.
West's 30-year vendetta with Iran is finally buried in Davos
By Ambrose Evans-Pritchard Economics Last updated: January 23rd, 2014
171 Comments Comment on this article
Photo: GETTY
The Iranian nuclear deal is on. Hassan Rouhani's charm offensive in Davos has been a tour de force, the moment of rehabilitation for the Islamic Republic. His words were emollient.
"The world hasn't seen a speech like that from an Iranian leader since the Revolution," tweeted Ian Bremmer from the Eurasia Group.
Anybody betting on oil futures in the belief that Iran's nuclear deal with great powers is a negotiating ploy to gain time should be careful. There is a very high likelihood that the sanctions against Iran will be lifted in stages, leading to an extra 1.2 barrels a day on the global market just as Libya, Iraq, and the US all crank up output.
One of the theoretical and practical pillars of my government is constructive engagement with the world. Without international engagement, objectives such as growth, creativity and quality are unattainable," said Rouhani.
"I strongly and clearly state that nuclear weapons have no place in our security strategy, he said.
Behind closed doors in Davos, the Iranian leaders made a sweet sales pitch to oil executives. BP said it is eyeing the "potential". Chevron and ConocoPhillips have been approached, assured by Iran's leader that there are "no limitations for U.S. companies." Total's Christophe de Margerie hopes to restart work at the South Pars field.
The strategic reality is that sanctions have brought Iran's economy to a standstill, with a 5pc contraction of GDP over the last year. The currency is worthless. The Iranian Islamic Revolution is a spent ideological force, near the end of the political road.
You can never be sure about the first thaw following a long freeze, yet this feels like the Gorbachev moment for the old USSR. Margaret Thatcher recognised at once that something had changed. Others clung to their Cold War reflexes.
More by Ambrose Evans-Pritchard:
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Mr Rouhani could not resist as swipe at Saudi Arabia the Sunni arch-enemy for Tehran deploring "despotic states that depend on foreigners."
Nor could he bring himself to hold out an olive branch to Israel. When asked if he was willing to make peace with everybody, he deflected the question twice saying only that Iran would "normalise relations with all countries that we have officially recognised".
The counter-attack from Israel's Benjamin Netanyahu was swift, and from the very same chair in the Congress hall in Davos. Rouhani is continuing with the Iranian show of deception. At a time when Rouhani talks about peace with the countries of the Middle East, he refuses even today to recognise the existence of the state of Israel, and his regime daily calls for the destruction of the state of Israel.
At a time when Rouhani claims that Iran is not interested in a nuclear project for military purposes, Iran continues to strengthen its centrifuges and heavy water reactor, and to arm itself with intercontinental missiles, the sole purpose of which is for nuclear weapons, he added.
Mr Netanyahu is of course in a very difficult position. His country has been left in the lurch as the Obama White House conducts a pirouette like the Kissinger switch on China in the early 1970s turning its entire Mid-East diplomacy upside down. It is not easy for anybody to adjust, whether the Sunni monarchies of the Gulf, or Israel, or even Sunni Turkey.
This is the new reality. The 30-year US vendetta with Iran is over in all but name. Davos may have clinched it.
Ambrose Evans-Pritchard has covered world politics and economics for 30 years, based in Europe, the US, and Latin America. He joined the Telegraph in 1991, serving as Washington correspondent and later Europe correspondent in Brussels. He is now International Business Editor in London. Subscribe to the City Briefing e-mail.
West's 30-year vendetta with Iran is finally buried in Davos
By Ambrose Evans-Pritchard Economics Last updated: January 23rd, 2014
171 Comments Comment on this article
Photo: GETTYThe Iranian nuclear deal is on. Hassan Rouhani's charm offensive in Davos has been a tour de force, the moment of rehabilitation for the Islamic Republic. His words were emollient.
"The world hasn't seen a speech like that from an Iranian leader since the Revolution," tweeted Ian Bremmer from the Eurasia Group.
Anybody betting on oil futures in the belief that Iran's nuclear deal with great powers is a negotiating ploy to gain time should be careful. There is a very high likelihood that the sanctions against Iran will be lifted in stages, leading to an extra 1.2 barrels a day on the global market just as Libya, Iraq, and the US all crank up output.
One of the theoretical and practical pillars of my government is constructive engagement with the world. Without international engagement, objectives such as growth, creativity and quality are unattainable," said Rouhani.
"I strongly and clearly state that nuclear weapons have no place in our security strategy, he said.
Behind closed doors in Davos, the Iranian leaders made a sweet sales pitch to oil executives. BP said it is eyeing the "potential". Chevron and ConocoPhillips have been approached, assured by Iran's leader that there are "no limitations for U.S. companies." Total's Christophe de Margerie hopes to restart work at the South Pars field.
The strategic reality is that sanctions have brought Iran's economy to a standstill, with a 5pc contraction of GDP over the last year. The currency is worthless. The Iranian Islamic Revolution is a spent ideological force, near the end of the political road.
You can never be sure about the first thaw following a long freeze, yet this feels like the Gorbachev moment for the old USSR. Margaret Thatcher recognised at once that something had changed. Others clung to their Cold War reflexes.
More by Ambrose Evans-Pritchard:
Trying to deleverage China without blowing up the system
$60 oil will finish Russia's Putin regime
Ford's pull-out threat on Brexit greatly inflates relevance of dying EU
Mr Rouhani could not resist as swipe at Saudi Arabia the Sunni arch-enemy for Tehran deploring "despotic states that depend on foreigners."
Nor could he bring himself to hold out an olive branch to Israel. When asked if he was willing to make peace with everybody, he deflected the question twice saying only that Iran would "normalise relations with all countries that we have officially recognised".
The counter-attack from Israel's Benjamin Netanyahu was swift, and from the very same chair in the Congress hall in Davos. Rouhani is continuing with the Iranian show of deception. At a time when Rouhani talks about peace with the countries of the Middle East, he refuses even today to recognise the existence of the state of Israel, and his regime daily calls for the destruction of the state of Israel.
At a time when Rouhani claims that Iran is not interested in a nuclear project for military purposes, Iran continues to strengthen its centrifuges and heavy water reactor, and to arm itself with intercontinental missiles, the sole purpose of which is for nuclear weapons, he added.
Mr Netanyahu is of course in a very difficult position. His country has been left in the lurch as the Obama White House conducts a pirouette like the Kissinger switch on China in the early 1970s turning its entire Mid-East diplomacy upside down. It is not easy for anybody to adjust, whether the Sunni monarchies of the Gulf, or Israel, or even Sunni Turkey.
This is the new reality. The 30-year US vendetta with Iran is over in all but name. Davos may have clinched it.
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