Iran’s aggressive tactics in international waters in recent years, including increased acts of hijacking and attacking vessels carrying oil and other vital commodities, have escalated tension in the already volatile Middle East.
These acts are seen by Tehran as strategic moves in its long-running struggle with the West, mainly the US, over its nuclear programme. Iran is also seeking to assert its influence on key maritime checkpoints such as the Strait of Hormuz.
“It is part of Iran's tit-for-tat strategy to create chips they can use in their negotiations with the US and the West,” Randa Slim, senior fellow and director of the Conflict Resolution and Track II Dialogue Programme at the Washington-based Middle East Institute, told The National.
There has been an increase in these attacks since 2019, a year after the collapse of the Iran nuclear deal when then-US president Donald Trump ditched the agreement and reimposed sanctions that have crippled Iran's economy. Efforts to revive the pact have failed.
“The higher costs Tehran can impose on the West through disruptions to international commerce, the better they believe their chances are to force the US and allies to sit at the negotiation table with them,” Ms Slim said.
In July 2023, the US said Iran had “attacked or seized” nearly 20 internationally flagged merchant vessels since 2021. Since May last year, the US Navy has increased its presence in the Strait of Hormuz, a crucial transit route for a fifth of the world's crude oil and oil products.
Iran has seized two oil tankers in January as tension continues to simmer in the region with the Israel-Gaza war now nearing its fourth month.
Tehran's proxies have also escalated their attacks on US forces in Iraq and Syria as well as on vessels crossing the Red Sea, in what they say is a response to Washington's support of Israel in the conflict.
On Sunday, Iran's Islamic Revolutionary Guard Corps seized a foreign oil tanker and detained its 14-member Asian crew, the state-run Islamic Republic News Agency reported.
Iran has accused the unidentified vessel of transporting two million litres of “smuggled fuel”, and it was seized by court order 96km off the coast of Bandar-e-Bushehr. No more details have emerged since then.
Earlier this month, the Iranian navy boarded a Marshall Islands-flagged oil tanker once at the centre of a dispute between Washington and Tehran.
The seizure was in retaliation for a “violation committed by the Suez Rajan ship … and the theft of Iranian oil by the United States”, Iranian news agency Irna reported.
Although, these Iranian operations are “part of the shadow war” between Washington and Tehran that has carried on for years, they add “other potential flashpoints to an already volatile situation” in the region, Ms Slim added.
The latest Iranian moves coincide with a series of Red Sea attacks by Yemen’s Iran-backed Houthi rebels, compounding the risk to a high-traffic maritime trade route. The Houthis say they are acting in retaliation for Israel’s war in the Gaza Strip.
The latest turmoil in the Middle East has increased fears of supply bottlenecks as well as skyrocketing oil, good and shipping prices.
Although, crude oil fell below $77 a barrel on Tuesday, the market will monitor with caution any strong US response to conflict in the Middle East that could take prices higher.
The White House is weighing potential action after Iranian-backed militants killed three soldiers in a drone assault, while Tehran has sought to distance itself from the attack.
That incident followed a Houthi missile strike Friday on a vessel carrying Russian fuel for Trafigura Group, the most significant attack yet on a ship carrying energy products.
Company%20profile
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World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
The biog
Age: 30
Position: Senior lab superintendent at Emirates Global Aluminium
Education: Bachelor of science in chemical engineering, post graduate degree in light metal reduction technology
Favourite part of job: The challenge, because it is challenging
Favourite quote: “Be the change you wish to see in the world,” Gandi
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019