Tony Blair Says US-led Invasion Did Not Cause Present Iraq Crisis

Tony Blair hits back saying 2003 invasion did not cause Iraq crisisReuters

Tony Blair has refuted claims that the ongoing crisis in Iraq was the result of the US-led invasion in 2003.

Blair, who was the prime minister during the Iraqi invasion, said pointing fingers at Western nations for the crisis is "bizarre".

"We have to liberate ourselves from the notion that 'we' have caused this. We haven't," Blair, who is presently an envoy to the Middle East, wrote on his website.

He said the latest conflict in Iraq was caused by the ineffective and sectarian administration of Prime Minister Nouri al-Maliki and the Syrian civil war.

"We have to put aside the differences of the past and act now to save the future. Where the extremists are fighting, they have to be countered hard, with force," he said.

Sunni militants of the Islamic State of Iraq and the Levant (Isis) are waging a deadly war against the Shiite-led government. They have captured several cities and are heading to the capital Baghdad.

Blair's passionate defence through his long essay comes when the US is weighing airstrikes in Iraq. According to reports, the US has ordered its aircraft carrier USS George HW Bush, flanked by two guided missile cruisers, into the Persian Gulf close to Iraq.

Blair said: "On the immediate challenge President Obama is right to put all options on the table in respect of Iraq, including military strikes on the extremists; and right to insist on a change in the way the Iraqi government takes responsibility for the politics of the country."

Pakistan Airstrikes in North Wazirisitan Target Uzbek Militants 'Killing 150'

Pakistan airstrikes in North Wazirisitan target Uzbek militants 'killing 150'Reuters file photo

Pakistan has launched deadly airstrikes on suspected militant hideouts in North Waziristan, reportedly targeting Uzbek insurgents, killing up to 150 people.

Amid local reports suggesting the death toll could sharply rise, the counter offensive by the Pakistani forces has reportedly destroyed at least eight insurgent camps in the stronghold of the Taliban and al-Qaida Islamists.

It is feared that the victims of the airstrikes include civilians, especially women and children.

There is no confirmation as yet whether any high-profile target has been killed in the bombings, which were carried out on the mountainous Dehgan area.

Abu Abdul Rehman al-Maani, who is believed to have orchestrated the recent Karachi airport siege, is thought to be among those killed, but there is no official word on this.

The fighter jets pounded the tribal area following reports that there was a gathering of the insurgents.

"The strikes were carried out based on confirmed reports about the presence of Uzbek and other militants in the area," a security official said, according to the BBC.

The local administration has imposed an indefinite curfew in the area following the attack.

The five-hour high-profile attack on Jinnah International Airport, the biggest and the busiest in Pakistan, was claimed by both the Pakistani Taliban and Uzbek fighters.

This is the second such aerial attack by the Pakistani forces in recent days. Earlier, on 10 June, military planes bombarded the Tirah Valleh, killing 25 suspected militants.

Afghanistan Election: 46 People Killed in Violence as 60% Brave Polls

Afghan election workers prepare to start counting ballot papers after voting closed at a polling station in Mazar-I-Shariff.Reuters

Forty-six people were killed as violence marred Afghanistan's landmark presidential election, according to government officials.

Despite increased security, militants fired rockets in the eastern Khost province killing six people while a mortar killed two civilians in Logar province. Other explosions were reported in the Afghan capital of Kabul.

The attacks brought the death toll to just under 50 people, Interior Minister Mohammad Umar Daudzai told a news conference after the polls had closed.

Approximately 60% of those eligible to vote turned out to cast their ballots in the face of Taliban threats to disrupt the democratic process.

An Afghan woman holds up her ink-stained finger after voting at a polling station in Kabul.Reuters

Out of 12 million eligible to vote, 7 million Afghans cast their ballots, almost the same as in the election's first round.

The election's second round run-off saw former foreign minister Abdullah Abdullah pitted against ex-World Bank official and former finance minister Ashraf Ghani Ahmadzai.

None of the eight candidates in the first round secured a majority so it was left to Ahmadzai, second with 31.6%, and Abdullah, first with 45% of the vote, to face off.

Both candidates are promising to sign a security agreement with the United States if they are elected.

"Today your vote will lead Afghanistan toward a better future, better government and a better life," current Afghan president Hamid Karzai said in a statement.

"Afghanistan is taking another step forward in a transition toward security, progress and stability."

The results of the election will be revealed on 2 July.

Oil Futures Jump 4% on Iraq Supply Concerns

A view of West Qurna oilfield is seen in Basra, southeast of Baghdad.Reuters

Oil futures rose on 13 June, and added 4% for the week, amid rising political tensions and violence in Iraq, where civilians are volunteering to join the ongoing fight against Isis militants who are making rapid advances.

A long-drawn-out crisis could hit supplies from Opec-member Iraq.

August Brent contract finished four cents higher at $112.46.

July Brent contract finished 39 cents, or 0.4%, higher at $113.41 a barrel on 13 June. The contract expired on Friday.

Both contracts gained some 4% for the week as a whole.

July US contract finished 38 cents, or 0.4%, higher at $106.91 a barrel on 13 June.

Prices gained 4.1% for the week.

Capital Economics said in a 13 June note to clients: "The immediate risks from the fighting in the north are limited, as Iraq's oil industry is concentrated in the south and in the autonomous Kurdish region. Of course, this is yet another reminder of the instability across the Middle East in the wake of the "Arab Spring". This in turn is the most important reason why the cost of a barrel of Brent crude has averaged $110 since 2011. Nonetheless, the current price (of around $113) is still not far above that average, so the latest spike is not that significant in itself.

"Admittedly, vague warnings of US intervention might signal the risk of further contagion. But it is surely unlikely that the West would want to become embroiled again, given the recent disengagements (from Afghanistan and Iraq itself) and inaction elsewhere (from Syria to Ukraine). More likely, the West would write off Iraqi production for an extended period, seeking instead to offset any shortfall in supply from other sources, and if necessary by releases from ample strategic reserves."

"We will not therefore be revising our oil price forecasts in the light of the latest events alone, although our current view that Brent will drop back below $100 by year-end is clearly looking even more of a stretch," Capital added.

Iraqi oil.Bloomberg, Commerzbank Research

Commerzbank Corporates & Markets said in a 13 June note: "...Indeed, the risk premium is rising amid the unrest in the north of Iraq. While crude oil exports from this region are markedly lower than exports from the south of the country, even in normal times, at almost 500,000 barrels a day compared with about 2.5 million barrels (and are zero in any case at present), the pace with which militant Islamists are occupying new regions of the country is worrying."

"Iraq's second-biggest city Mosul has been seized. This Islamist offensive could endanger the recent rapid rise of Iraqi oil production. In February, the country's oil production climbed to 3.6 million barrels a day thanks to new production facilities in the south of Iraq, this being the highest output level since 1979 according to International Energy Agency data (IEA).

Opec oil.Commerzbank Research

"Consequently, Iraq is a beacon of hope among OPEC countries.[In 2013], the IEA expected the production to expand by almost 1.6 million barrels a day through 2018. Its latest estimate of the medium-term supply and demand outlook to 2019 will be released [on 17 June].

"It will be interesting to see whether production in the USA is viewed even more optimistically and what feedback effects are expected on supply and demand. Up to now, the IEA has expected global production capacity to rise at a stronger rate than demand through 2015 and OPEC capacity to only pick up again from 2016," Commerzbank added.

Gold Prices to Rise Further Amid Middle East Tensions

Gold prices to rise further next week.Reuters

Gold prices are set to rise further next week with geopolitical tensions in the Middle East expected to boost the precious metal's safe-haven status.

As many as 16 of 24 analysts polled in a Kitco Gold Survey said they expected gold prices to trade higher next week, while three predicted that prices will drop and five forecast prices to trade sideways.

However, analysts also said that traders are heading towards the energy market, and away from precious metals, in their pursuit of safe-haven assets.

In addition, the US Federal Reserve's monetary policy statement and Fed chief Janet Yellen's press conference, on 18 June, will influence gold prices.

Kevin Grady, owner, Phoenix Futures and Options, said developments in Iraq this week supported gold.

But traders are using crude oil as a safe-haven play, and not gold, partly because the yellow metal is nearing the technical chart resistance, he added.

Afshin Nabavi, head of trading at MKS in Geneva said: "I think the Iraq situation shook everybody up. Oil rallied sharply and we were able to push gold higher.... But I'm not convinced that we won't see more downside. I think you can cautiously sell rallies if we get to $1,280.

"Thirteen hundred is the big resistance. If we don't find any more news then we'll probably go back to $1,240. There's the FOMC next week; that's worth watching. That could change things quickly. And it's another reason why I would sell rallies."

Robin Bhar, head of metals research at Societe Generale, told Kitco: "Gold has support from geopolitical issues, but any macroeconomic improvement [in the US] could cap rallies. So I see gold sideways again. I don't see the geopolitical news as a catalyst out of $1,250-$1,275."

Danske Bank said in a note to clients: "The [Federal Reserve's] FOMC is expected to continue on autopilot at the meeting on [17-18 June] and tapering will very likely continue - bringing the Fed's monthly asset purchases to $35bn."

Gold Ends Higher

US Gold futures for delivery in August finished 0.01% higher at $1274.10 on 13 June.

Prices gained 1.72% for the week as a whole.

Spot gold was up 0.02% at $1,276.80 on 13 June.

Gold rallied to a two-week high on 12 June, buoyed by risk aversion and physical demand.

Satao, World's Biggest Elephant, Killed by Poachers in Kenya

A file photo of the world's largest elephant, Satao.Released by Tsavo Trust

Satao, the world's biggest elephant, has been killed by poachers with a poison-tipped arrow in Kenya sending shockwaves among the wildlife community.

The elephant was killed for its long tusks as the poachers had chopped off its entire face after killing it.

Satao was one of the last few great elephants whose tusks reach up to the ground, and was seen as having the potential to breed bull elephants of its kind.

"With great sadness, we report the death of Satao, one of Tsavo's most iconic and well-loved tuskers. This magnificent elephant was widely known in Tsavo East National Park, where he was observed with awe by many thousands of Tsavo's visitors over the years. No longer will Tsavo and Kenya benefit from his mighty presence," the Tsavo Trust said in a release.

The carcass of the elephant was found in a swamp in the Tsavo East National Park on 2 June and it was last seen alive on 19 May.

Authorities were able to identify the tusker by its huge bulk and cut-free ears.

The elephants are known as "great tuskers" as their ivory reaches up to 45 kg on each side, making them much sought-after by poachers.

A blog post by wildlife filmmaker Mark Deeble read: "I am appalled at what that means – that the survival skills that the bull has painstakingly learnt over half a century have been rendered useless by the poachers' use of mass-produced Chinese goods; GPS smart-phones, cheap motorcycles and night vision goggles."

"I think the old bull knows that poachers want his tusks, and I hate that he knows. More than anything, I hate the thought that poachers are now closing in on one of the world's most iconic elephants."

According to the Kenya Wildlife Service, at least 100 elephants have been poached in the African country so far this year.

Honda Could Recall Over 1 Million Vehicles to Fix Faulty Airbags

Honda's Takata airbag recall could exceed a million vehicles.Reuters

Japanese carmaker Honda Motor could recall over a million vehicles to repair potentially faulty airbags.

The recall involves defective airbag inflators supplied by Takata and will follow a similar move by rival Toyota Motor.

The Honda recall should be announced by the end of June, an unnamed source told Reuters.

Pursued by the news agency, Honda spokeswoman Akemi Ando said: "We are conducting investigations quickly and if we decide that there are vehicles that should be called back, we will swiftly file for a recall."

US Probe

On 12 June, America's National Highway Traffic Safety Administration (NHTSA) said it was investigating whether an estimated 1.1 million vehicles made by Honda, Toyota, Nissan, Mazda and the Fiat-owned Chrysler Group have airbags that could injure people in the event of a crash.

The auto industry regulator has received six reports of airbags not deploying properly in the humid climates of Florida and Puerto Rico.

Toyota Recall

On 11 June, Toyota Motor said it would recall nearly 650,000 vehicles in Japan to deal with potentially flawed airbags after Takata warned that further repairs could be needed.

A Takata spokesman said that more vehicles could be recalled by other manufacturers because of potential airbag inflator defects.

The vehicles covered by the Toyota recall include the Corolla and Camry sedans and Tundra trucks.

Toyota said it was expanding its 2013 recall, which involved 2.14 million vehicles, because the serial numbers provided by Takata, for the potentially defective airbag inflators, had been incomplete.

The Japanese automaker also said it would instruct dealers in the US and other markets to start replacing suspect Takata inflators on all vehicles covered by the 2013 recall, reported Reuters.

Toyota has received one report of a seat-cover burn related to supposedly defective airbag inflators.

Israeli Defence Firm Comes up with Suicide Drones

A file picture shows an Israeli Harop droneGetty/AFP

The state-owned defence firm, Israel Aerospace Industries (IAI), has modified an advanced unmanned aerial vehicle (UAV) to a suicide drone capable of carrying out targeted attacks.

The Harop, which is capable of flying for hours, has been transformed into a potential missile as up to 10 kg of explosives can be put in the nose of the aircraft.

The drone, one of the most sophisticated and accurate in the world, has been modified in such a way that it explodes as soon as it hits the target.

It can receive instructions from as far as 1,000kms.

The modification of the UAV is done at IAI's facility in central Israel and it takes two weeks for shipment.

A report on Israel's Ynet News reads: "The IAI factory recently began production of an even more accurate version of Harop along with an accompanying launch vehicle which increases the operational flexibility of the missile masked as an airplane."

The drone has already undergone a trial run by hitting a mock target similar to that of an operational headquarters of Hezbollah, the Lebanon-based militant group.

Hundreds of units of the unmanned aircraft, which could be launched from any platform, are already believed to have been sold by IAI to several clients, according to a report.

Iraq Isis Uprising: Thousands Volunteer to Fight Islamic Militants

Armed men stand guard beside people shouting slogans in support for the call to arms by Grand Ayatollah Ali al-Sistani, who is the highest religious authority for Shi'ites in Iraq, in Najaf, south of BaghdadReuters

Tens of thousands of Iraqi civilians are volunteering to join the ongoing fight against the Isis [Islamic State in Iraq and the Levant] militants who are making rapid advances.

The Iraqis are enrolling themselves at the volunteer centres established in some of the country's cities in order to obtain weapons from the authorities.

"The citizens called for joining the Iraqi Army forces at the urging of a religious fatwa. They do not call for salaries and they only want weapons to join the fight against the Isis terrorists," a source told Iraqi News.

The Iraqi civilians comprise people of all ages including retired security personnel. Unconfirmed estimates suggest nearly 1.5 million people have volunteered to fight.

People are uniting in huge numbers following a call by senior political and religious figures in Iraq urging them to take up arms against the Isis militants.

The country's senior-most Shiite cleric, Grand Ayatollah Ali al-Sistani, is among those who have called on Iraqis to participate in the war against the Sunni extremists.

"Citizens who are able to bear arms and fight terrorists, defending their country and their people and their holy places, should volunteer and join the security forces to achieve this holy purpose," his representative said earlier.

Obama weighing options

Meanwhile, US President Barack Obama said he was reviewing the options regarding military action in Iraq. He, however, insisted there will be no American troops on Iraqi soil.

Obama admitted the latest conflict in Iraq could snowball into a bigger crisis affecting US interests.

Stressing that Iraqi forces need additional support to "break the momentum of extremist groups and bolster the capabilities of Iraqi security forces," Obama added that any US assistance "has to be joined by a serious and sincere effort by Iraq's leaders to set aside sectarian differences".