Israeli Intelligence: Trump's Actions Will Cause Significant Damage to Iran

People shop at the Grand Bazaar in the center of Tehran, Iran. (Reuters)
People shop at the Grand Bazaar in the center of Tehran, Iran. (Reuters)
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Israeli Intelligence: Trump's Actions Will Cause Significant Damage to Iran

People shop at the Grand Bazaar in the center of Tehran, Iran. (Reuters)
People shop at the Grand Bazaar in the center of Tehran, Iran. (Reuters)

The Israeli military intelligence services issued a confidential report on the repercussions of US President Donald Trump’s withdrawal from the 2015 Iran nuclear deal.

Submitted to Prime Minister Benjamin Netanyahu’s government, the report said that "the serial and cumulative reaction on Trump's decision to withdraw from the nuclear deal has gained more importance than expected in Iran in many fields, mainly due to its extensive economic and social damage.”

Trump withdrew from the deal in May, threatening at the same time to reinstate harsh sanctions against the Iranian oil industry and foreign firms that trade with it.

“These steps are supposed to go into full effect at the beginning of November. Some American companies, among them airplane manufacturer Boeing and General Electric, which signed contracts to supply equipment to Iran’s outdated oil industry, are already preparing to halt their investments in the country,” the report said.

Sports equipment maker Nike canceled at the last minute a delivery of football cleats to the Iranian national squad, which is participating in the World Cup starting Thursday in Russia.

In Europe, British Petroleum announced that it would end its investment partnership with the Iranian oil company in deep-sea drilling off the Scottish coast.

In a meeting with French President Emmanuel Macron last week, Netanyahu said that he did not ask France to withdraw from Iran deal because he thinks “it will be dissolved by the weight of economic forces.”

“This is the right time to exert maximum pressure on Iran” in order for the latter to leave Syria, said Netanyahu.

In this context, ministers from Britain, France, Germany and the European Union sent a letter at the beginning of June to Trump administration cabinet members, in which they asked the United States to exempt energy, aviation and health companies from the secondary American sanctions – which target European companies trading with Iran.

European giant Airbus signed contracts worth one billion dollars with Iran after the nuclear deal was signed in 2015. Another large European company liable to be hurt by the sanctions is French energy company Total.

According to Israeli intelligence, Iran had hoped to reap sizable profits from deals with European and American companies during the coming period.

Now, however, the Tehran regime faces abandonment by companies that already signed contracts, in addition to the negotiations with other companies, because of the American move.

Internal pressure on the regime, in the form of frequent demonstrations by the opposition in cities across the country, is also coming into play. Most of the demonstrations focus on the cost of living, the Israeli report noted.

Israeli intelligence officials have the impression that doubled economic pressure, domestically and from abroad, is accelerating divisions at the top of the Iranian regime between the conservative camp and the more moderate one.

Part of the dispute involves the question of Iranian foreign aid to terrorist organizations across the Middle East.

According to various assessments, Tehran disburses nearly one billion dollars annually to these clients, including “Hezbollah”, Shiite militias fighting on its behalf for the Assad regime in Syria, Houthi rebels in Yemen and two Palestinian organizations in the Gaza Strip, Hamas and Jihad.



French Govt Faces Collapse after Opposition Says It Will Back No-Confidence Vote

Party leader of Rassemblement National (RN) Marine Le Pen (C) talks to journalists after the French National Assembly debate on parts of France's 2025 budget bill, in Paris, France, 02 December 2024. (EPA)
Party leader of Rassemblement National (RN) Marine Le Pen (C) talks to journalists after the French National Assembly debate on parts of France's 2025 budget bill, in Paris, France, 02 December 2024. (EPA)
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French Govt Faces Collapse after Opposition Says It Will Back No-Confidence Vote

Party leader of Rassemblement National (RN) Marine Le Pen (C) talks to journalists after the French National Assembly debate on parts of France's 2025 budget bill, in Paris, France, 02 December 2024. (EPA)
Party leader of Rassemblement National (RN) Marine Le Pen (C) talks to journalists after the French National Assembly debate on parts of France's 2025 budget bill, in Paris, France, 02 December 2024. (EPA)

The French government is all but certain to collapse later this week after far-right and left-wing parties said they will vote in favor of a no-confidence motion against Prime Minister Michel Barnier.

Investors immediately punished French stocks and bonds as the latest developments plunged the euro zone's second-biggest economy deeper into political crisis.

"The French have had enough," National Rally (RN) leader Marine Le Pen told reporters in parliament, saying her party would put forward its own no-confidence motion and will also vote for any similar bill by other parties. The left will also propose a similar motion.

"Maybe (voters) thought with Michel Barnier things would get better, but it got even worse."

Barring a last-minute surprise, Barnier's fragile coalition will be the first French government to be forced out by a no-confidence vote since 1962.

A government collapse would leave a hole at the heart of Europe, with Germany also in election mode, weeks ahead of Donald Trump re-entering the White House.

RN lawmakers and the left combined would have enough votes to topple Barnier. They now have 24 hours to put forward their no-confidence motions.

Their comments came after Barnier said on Monday that he would try to ram a social security bill through parliament without a vote after a last-minute concession proved insufficient to win RN's support for the bill.

French stocks reversed course, while a sell-off in the euro gathered pace and bonds came under pressure, pushing up yields.

The CAC 40 was last down 0.6%, having risen by as much as 0.6% after Barnier's concessions. The euro fell 1% and was heading for its largest one-day drop since early November. The yield on French government 10-year debt was up 2.7 basis points to 2.923%, having traded at a session low of 2.861% earlier.

'CHAOS'

Mathilde Panot of the left-wing France Unbowed, said: "Faced with this umpteenth denial of democracy, we will censure the government ... We are living in political chaos because of Michel Barnier's government and Emmanuel Macron's presidency."

Barnier urged lawmakers not to back the no-confidence vote.

"We are at a moment of truth ... The French will not forgive us for putting the interests of individuals before the future of the country," he said as he put his government's fate in the hands of the divided parliament which was the result of an inconclusive snap election Macron called in June.

Since it was formed in September, Barnier's minority government has relied on RN support for its survival. The budget bill, which seeks to rein in France's spiraling public deficit through 60 billion euros ($63 billion) in tax hikes and spending cuts, snapped that tenuous link.

Barnier's entourage and Le Pen's camp each blamed the other and said they had done all they could to reach a deal and had been open to dialogue.

A source close to Barnier said the prime minister had made major concessions to Le Pen and that voting to bring down the government would mean losing those gains.

"Is she ready to sacrifice all the wins she got?" the source close to Barnier told Reuters.