Khobar Towers Bombing: Iran Becomes Expert in Concealing Tools of Sabotage

Investigators inspect the Khobar Towers complex after an attack in Khobar, Saudi Arabia in June 1996. (Reuters)
Investigators inspect the Khobar Towers complex after an attack in Khobar, Saudi Arabia in June 1996. (Reuters)
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Khobar Towers Bombing: Iran Becomes Expert in Concealing Tools of Sabotage

Investigators inspect the Khobar Towers complex after an attack in Khobar, Saudi Arabia in June 1996. (Reuters)
Investigators inspect the Khobar Towers complex after an attack in Khobar, Saudi Arabia in June 1996. (Reuters)

“The truth will be revealed in the future.” This was the response of former Iranian President Hashemi Rafsanjani in December 1996 when asked if his country was involved in the Khobar Towers bombing in June of that year. This was just a statement from an interview then Asharq Al-Awsat Editor-in-Chief Othman Al Omeir conducted with the former ruler.

“You always speak of Iran’s good intentions and then come the accusations, such as the one related to the Khobar bombing. Can you confirm otherwise?” Al Omeir asked at the time. Rafsanjani replied: “The rumors over this issue are similar to previous ones. There is no doubt that the truth will be revealed in the future.”

He added that he was officially informed that those involved were Saudi residents, some of whom fled the Kingdom. He said they may have turned to Iran. “We have seriously searched for them, but could find no trace of them in Iran,” he added. One of the suspects is known to authorities, he continued, revealing that it was alleged that he was in Iran, but it turned out that he died in prison in Syria.

In June 1996, Khobar was rocked late at night by a massive truck bombing that destroyed an eight-story building in a housing complex. The building was home to American and other western families. The entire complex also housed Saudi families, but the building was targeted specifically because it was home to mostly Americans.

Nineteen Americans and a Saudi were killed in the attack, which also left 400 people wounded. Days later, the United States officially accused the Hezbollah Al-Hejaz party of being behind the bombing, which was one of the strongest attacks against Saudi Arabia. The US Justice Department formally charged 13 Saudis and a Lebanese man in the attack.

Facts revealed
Riyadh and Washington continued to cooperate with each other in the investigation. In June 2001, the US indicted 13 members of the Hezbollah Al-Hejaz, saying they received backing from Iran. In 2002, the Iranian government was demanded to respond to accusations that it, along with the Revolutionary Guards and Hezbollah, were involved in the crime.

In 2004, an American federal judge ordered Iran to pay 254 million dollars in damages to the families of 17 American military personnel who died in the attack. An indictment was issued against the Iranian government and its Ministry of Intelligence and Security, as well as the Revolutionary Guards. High court judge Royce Lamberth ruled that the attack was carried out by people recruited by Guards General Ahmad Shah Cheraghi. The truck used in the assault was put together at a Hezbollah and Guards base in the Lebanese Bekaa region and Iranian supreme leader Ali Khamenei approved the bombing.

“The totality of the evidence at trial . . . firmly establishes that the Khobar Towers bombing was planned, funded, and sponsored by senior leadership in the government of Iran," Lamberth said. The terrorists carried out the attack and then fled to Iran. They include prime suspect, Ahmed Al-Mughassil, who led the military wing of the Hezbollah Al-Hejaz. He remained in Iran from 1996 to 2015. He was wanted by the FBI that offered 5 million dollars for anyone who would provide information that would directly lead to his whereabouts.

Mughassil arrest
In August 2015, Asharq Al-Awsat ran the exclusive news of Mughassil’s arrest in Beirut from where he was flown to Riyadh. According to official Saudi sources at the time, Saudi security services received confirmed information that the suspect was in the Lebanese capital. They swooped in, putting an end to a 19-year search.

Another suspect, Jaafar Shuweikhat, reportedly died in his cell three days after his arrest by Syrian authorities. Plans were underway for his deportation to Saudi Arabia. He allegedly committed suicide by swallowing a bar of soap. A third suspect, Abdulkarim al-Nassar, is still at large and believed to be in Iran, where authorities are giving him safe haven. Other suspects include Ibrahim al-Yacoub and Ali al-Houri.

New judgment against Iran
On Friday, a US judge ordered Iran to pay another $879.1 million over the bombing, ruling again that Tehran bore responsibility. President Donald Trump's administration hailed the judgment, the latest over the attack against Iran, which denies involvement and refuses to pay.

Beryl Howell, the chief judge of the US federal district court in Washington, cited previous evidence as she wrote that Iran "aided Hezbollah in carrying out a horrific, violent attack that killed 19 people and injured hundreds more."

In a July 2 ruling that was made public this week, she ordered the damages for 14 US service members who were injured in the attack as well as 21 family members. Explaining why the amount includes punitive damages, she said that the plaintiffs "suffered physical injuries and psychological trauma" and that "there is a need to deter future terrorist attacks."

State Department spokeswoman Morgan Ortagus hailed the decision, writing on Twitter: "Justice is overdue for the many victims of Iranian-supported terror."

Howell in 2018 had ordered Iran to pay $104.7 million in a similar case over the Khobar Towers bombing.

Hezbollah Al-Hejaz
The Revolutionary Guards first started to form the Hezbollah Al-Hejaz in 1980. The terrorist group was formally established in 1987 after the Hajj incidents and clashes with Saudi security forces that left dozens of pilgrims and members of the security dead. The terrorists were trained in Iranian camps to carry out attacks in Saudi Arabia.

The group operated with a political and military council under the Revolutionary Guards. It made its first statement a week after the Hajj incidents, vowing to work against Saudi leaders. It was behind the August 1987 bombing of an Eastern Province gas plant and the March 1988 bombing of oil installations at Ras Tanura and Jubail.



Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT
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Trump's Week of Tariff Turmoil Rings Recession Alarm

An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura  REFILE - QUALITY REPEAT
An electronic board shows Shanghai and Shenzhen stock indices as people walk on a pedestrian bridge at the Lujiazui financial district in Shanghai, China April 11, 2025. REUTERS/Go Nakamura REFILE - QUALITY REPEAT

A week of turbulence unleashed by US President Donald Trump's tariffs showed little sign of easing on Friday, with financial markets again whipsawing and foreign leaders grappling with how to respond to a dismantling of the world trade order.

A brief reprieve for battered stocks seen after Trump decided to pause duties for dozens of countries for 90 days quickly dissipated, as attention returned to his escalating trade war with China that has fueled global recession fears.

US Treasury Secretary Scott Bessent tried to assuage sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations. Trump himself expressed hope of a deal with China, the world's No.2 economy.

But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic.

The S&P 500 index ended 3.5% lower on Thursday and is now down about 15% from its all-time peak in February.

Asian indices mostly followed Wall Street lower on Friday with Japan's Nikkei down 4%, though markets in Taiwan and Hong Kong turned positive and European stocks were set to open slightly firmer.

A sell-off in government bonds - which caught Trump's attention before Wednesday's pause - picked up pace on Friday with US long-term borrowing costs set for their biggest weekly increase since 1982. Gold, a safe haven for investors in times of crisis, scaled a record high.

"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at investment fund Janus Henderson.

Bessent on Thursday shrugged off the renewed market turmoil and said striking deals with other countries would bring certainty.

The US and Vietnam have agreed to begin formal trade talks, the White House said. The Southeast Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the United States via its territory in the hope of avoiding tariffs, Reuters exclusively reported on Friday.

Japanese Prime Minister Shigeru Ishiba, meanwhile, has set up a trade task force that hopes to visit Washington next week. Taiwan said it also expects to be included in the first batch of trading partners to hold talks with Washington.

CHINA DEAL?

As Trump suddenly paused his 'reciprocal' tariffs on other countries hours after they came into effect earlier this week, he ratcheted up duties on Chinese imports as punishment for Beijing's initial move to retaliate.

Trump has now imposed new tariffs on Chinese goods of 145% since taking office, a White House official said.

Chinese officials have been canvassing other trading partners about how to deal with the US tariffs, most recently talking to counterparts in Spain, Saudi Arabia and South Africa.

Trump told reporters at the White House he thought the United States could make a deal with China, but he reiterated his argument that Beijing had "really taken advantage" of the US for a long time.

"I'm sure that we'll be able to get along very well," Trump said, adding that he respected Chinese President Xi Jinping. "In a true sense he's been a friend of mine for a long period of time, and I think that we'll end up working out something that's very good for both countries."

China, which has rejected what it called threats and blackmail from Washington, restricted imports of Hollywood films, targeting one of the most high-profile American exports.

The US tariff pause also does not apply to duties paid by Canada and Mexico, whose goods are still subject to 25% fentanyl-related tariffs unless they comply with the US-Mexico-Canada trade agreement's rules of origin.

With trade hostilities persisting among the top three US trade partners, Goldman Sachs estimates the probability of a recession at 45%.

Even with the rollback, the overall average import duty rate imposed by the US is the highest in more than a century, according to Yale University researchers.

The pause also did little to soothe business leaders' worries about the fallout from Trump's trade war and its chaotic implementation: soaring costs, falling orders and snarled supply chains.

One reprieve came, however, when the European Union said on Thursday it would pause its first counter-tariffs.

The EU had been due to launch counter-tariffs on about 21 billion euros ($23 billion) of US imports next Tuesday in response to Trump's 25% tariffs on steel and aluminium. It is still assessing how to respond to US car tariffs and the broader 10% levies that remain in place.

Finance ministers from the 27-country bloc will brainstorm on Friday how to use the pause to get a trade deal with Washington and how to coordinate their efforts to handle tariffs if they do not.

European authorities estimate the impact of the US tariffs its economy would total 0.5% to 1.0% of GDP. Given the EU economy as a whole is forecast to grow 0.9% this year, according to the European Central Bank, the US tariffs could tip the EU into recession.