Iran Holds Air Defense Drills As IAEA Says Iran Blocks Access To Key Nuclear Site

Tyler Durden's picture

As if the market needed another bizarro catalyst to ramp even higher courtesy of an even more pronounced drop in corporate earnings courtesy of soaring energy costs, that is just what it is about to get following news of further deterioration in the Nash equilibrium in Iran, where on one hand we learn that IAEA just pronounced Iran nuclear talks a failure (this is bad), and on the other Press TV reports that the Iran army just started a 4 day air defense exercise in a 190,000 square kilometer area in southern Iran (this is just as bad). The escalation "ball" is now in the Western court. And if Iraq is any indication, after IAEA talks "failure" (no matter how grossly manipulated by the media), the aftermath is usually always one and the same...

From The Guardian:

The UN nuclear agency has declared its latest inspection visit to Iran a failure, with the regime blocking access to a key site suspected of hosting covert nuclear weapon research and no agreement reached on how to resolve other unanswered questions.


The statement from the International Atomic Energy Agency was issued shortly after an Iranian general warned of a pre-emptive strike against any nation that threatens Iran.


"We engaged in a constructive spirit but no agreement was reached," the statement quoted IAEA chief Yukiya Amano as saying.


The communique said that Iran did not grant requests by the IAEA mission to visit Parchin, a military site thought to be used for explosives testing related to triggering a nuclear weapon. Amano called this decision "disappointing". No agreement was reached on how to begin "clarification of unresolved issues in connection with Iran's nuclear programme, particularly those relating to possible military dimensions", the statement said.

Apparently it is Iran's fault for seeing right through the IAEA's track record of being nothing but the catalyst for all out aggression. Here is a reminder why, courtesy of Hans Blix. And with that out of the way, we continue:

The fact that the statement was issued early Wednesday, shortly after midnight and just after the IAEA experts left Tehran, reflected the urgency the agency attached to announcing the failed outcome. The language of the statement clearly if indirectly blamed Tehran for the lack of progress.

We can already see the statements from Clinton, who will do anything to make her transition to head of the World Bank as seamless and as "deserved" as pobssible.

In the meantime, Iran is not playing possum:

Iran’s Khatam al-Anbia Air Defense Base started the four-day exercises codenamed Tharallah on Monday within an area of 190,000 square kilometers in southern Iran, with the key objective of boosting the country’s air defense near the Persian Gulf and the nation’s Bushehr nuclear power plant.


During the military drills slated in four tactical phases, the Iranian army will test and assess the operation of its surface-to-air and radar equipment, and will collect new data on the procedures.


State-of -the-art radar, artillery and missile systems as well as interceptor fighter aircraft of the Air Force will be used in the military drills.


In the first phase of the drills, the fighter aircraft of the hypothetical enemy launched attacks against local air defense forces as part of an electronic warfare exercise.


Using passive and active sensors and multilevel data collection and communications systems, the air defense forces managed to thwart the mock enemy’s measures promptly and effectively, and safeguard the country’s radar network.


Meanwhile, Iran’s Islamic Revolution Guards Corps (IRGC) Ground Forces wrapped up another drill codenamed Val Fajr in the central province of Yazd on Monday, to further enhance the combat preparedness of Iranian armed forces.

Why is Iran doing this now?

Iran maintains that the military drills are defensive in nature and meant to convey a message of peace and friendship to regional countries.


Tehran has also sent a public invitation to regional states to conduct joint naval drills with Iranian forces.

Like Israel?

Rhetorical questions aside, we hope our readers stocked up on gasoline. Because things are about to get uglier. And by that we mean more expensive. But courtesy of hedonic adjustments, more expensive means cheaper, at least to the US government.

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chump666's picture

All safe havens . Oil will be super bid.  Actually if we do have a war, which will be a major war not a quagmire like Iraq.  But a stand up fight.  It will lead to something worst, see America has no oil.  So it will be a brutal war.  I think Iran will call the bluff though otherwise Europe (apart from Norway and Scandanvian countries - energy producers) will be beaten to nothing Mad Max style, no problems.  They (EU) paper over everything and have allowed a huge spec short trade pile up on the EUR. War breaks out the EUR will be shorted to hell. Oil hits 100 + Euro in Europe, if you live there. Get out.  Will be mayhem.

On trades.  UST's , USD, Gold, oil (huge spec trades), EUR ( massive spec short), short futures, short commodities (until the war industries ramp up), short net importers (China/Asia/japan etc).  Horde your cash.

HFTs will go nuts etc

Be total chaos in the markets.


ElvisDog's picture

see America has no oil

What the hell you talking about? The U.S. still produces something like 5-6 million barrels a day. More than enough to be diverted to the military.

CrashisOptimistic's picture

It doesn't work that way.

The US military is composed of humans.  If you "divert it all to the military", the military families starve or are attacked by the mobs in the towns near various US bases.  They email their husbands and ask for help.  The husbands will not fight under those conditions.

Thomas Jefferson's picture

Yeah, I'm sure the military thats already been deployed multiple times and been at war for over a decade is just peechy keen on fighting another one for the AIPAC lobby.

chump666's picture

And it gets sucked dry real quick.  Hence the oil price, hence the wars and Obama trying to tap gas/tar sands.  The US is running on empty.  War machine gobbles up excess...oil goes up to 130, mass panic.  That's it.



ChrisFromMorningside's picture

One question that mystifies me is: why is Obama giving the green light to this attack? If some of the nightmare scenarios postulated in this thread come true, his re-election chances are effectively zero. It's one thing to steal 401Ks and rip off the world through fraudulent securities (the plebes don't understand that stuff to begin with) but $6 a gallon oil is far, far more likely to roust the sheeple from their slumber.

acrabbe's picture

One question that mystifies me is: why is Obama giving the green light to this attack?


So he doesn't get his head blown off by a lone gunman? Or blown up by an "Iranian suicide bomber."


Thomas Jefferson's picture

Do we have any drones that can run off solar panels?

Race Car Driver's picture

No... but there are plenty who can run off their mouths.


mick_richfield's picture

Yes, experimental.

Goal is to be able to stay up for several years at a time.

unrulian's picture

yes, i think the one that landed in iran went through a cloud and ran out of juice's picture

Too bad Canada doesn't have any oil to pump into the US. If such a thing were humanly possible it could help out tremendously.

azusgm's picture

"see America has no oil."

That would be news to the people working in the Bakken and the Eagle Ford.

Ceteris paribus's picture

The Bakken oil fields are just up to 300,000 bpd, but it makes really bad fuel because it does not have the energy that middle east oil has . However 300,000 bpd last the US 2 hours a day.

AU5K's picture

A fine country with hard working citizens who are being subverted by a megalomaniac leader escalating wars on all fronts and reducing his own country to unemployed rubble despite what government statistics say.  And that's just the US....

pkea's picture

A fine country with hard working citizens who are being subverted by a megalomaniac leader ?

more like leaders with the spokesman in charge with very poor interpersonal skills

Whalley World's picture

Can we not admit that an education system that was subverted by monied interests starting in 1910 led to a populace that lacked the ability to see through the propaganda?  Lies perpetrated as truth (in the words of Kool Moe Dee)

matrix2012's picture

Fully agreed, a great, fine country and nation controlled by parasitic giant squids!!


Ezra Pound (the protégé of Eustace Mullins, in 1948 he commissioned Eustace Mullins to write “Secrets of the Federal Reserve”) already saw it coming long ago... 


    “The Nomadic Parasites will shift out of London and into Manhattan. And this will be presented under a camouflage of national slogans. It will be represented as an American victory. It will not be an American victory.

    Until you know who has lent what to whom, you know nothing whatever of politics, you know nothing whatever of history, you know nothing of international wrangles.”Ezra Pound (1885–1972)


And in 1971 Gary Allen published his book "None Dare Call It Conspiracy", a classic work on this subject.

"Gary Allen's book documents the inner workings of the New World Order and their quest for world control. I laughed when a person told me to read it in 1972 but I wasn't laughing anymore when I taken up his invitation, read it twice and then personally checked many, many key points in old New York Times editions and other sources. This is a "must read" book for anyone who loves America or anyone who hates tyranny and control by despots."

Just read thoroughly Allen's book et al! 

 (md5 hash: f19c67eab311398c7d53a5cca56bf278) 


Read also "Crossing the Rubicon: The Decline of the American Empire at the End of Age of Oil (2004)" by Michael C. Ruppert at above.


anonnn's picture

Until you know who has lent what to whom, you know nothing whatever of politics, you know nothing whatever of history, you know nothing of international wrangles.”Ezra Pound (1885–1972)

You speak soothe !

The great bulk of crude oil is sold in peer-to-peer deals, with sovereign input, for money [e.g. USD] plus secret side deals of any imaginable nature that the ablest professional negotiators can put togerther.

Any ZH reader ought to understand those are totally unknown [secret by definition] arrangements, but a little imagination can posit some examples you might include if ypu were a participant.

E.g.--giant refiner in coop with his government buys crude for $X amount plus deal that seller Y provide troops/support for coup-d'etat  in country Z. 

WTI and Brent and Forty, etc market quotes are only the shoes visible beneath the curtain.

Shigure's picture

Thank you for the reference to Gary Allen's book, an interesting read.


unrulian's picture

by hard working citizens are you referring to LA or Miami?

BGO's picture

This has to be bullish for gold.

ultimate warrior's picture

Bullish Halliburton and Academi aka (Xe Services LLC, Blackwater USA and Blackwater Worldwide).

goldencrumbs's picture

Barter that shit BITCH-EZ!

ChrisFromMorningside's picture

That's all you're going to be bartering, shit. Do you know how many wheelbarrows of shit it takes to buy a loaf of bread?

unrulian's picture

i'd take ten or so for my garden... i'll give you a loaf

Unprepared's picture

I have in my hands the irrefutable proof that Iran has succeeded in enriching Uranium for military purposes as can be seen from the high radiactivity of this tube containing Ahmadinejad's urine

mayhem_korner's picture



That's pretty much par for me with every meal.  :D

Banksters's picture

Ras tanura a major oil hub for Saudi Arabia is only 130 miles from Iran. 
Attacking that target would take oil over 150 bucks for a year. 

The export terminals at Ras Tanura on the Persian Gulf are among the largest in the world. Designed to export crude oil and LPG, the facilities include two piers and one sea island with a total of eighteen berths, which can accommodate ships of up to 550,000 deadweight tons (dwt). The facilities also included a tank farm with total storage capacity of 33 million barrels

CrashisOptimistic's picture

Why would Iran attack anything?

They aren't desperate.  They have customers for their oil.  Are they selling it at a discount?  Sure, but the price discounted from has risen sharply.  They are getting the same amount of money they were always getting.

They care nothing about the sanctions.  No reason to.  Even Japan is buying Iranian oil.  All those countries that are supposedly embargoing Iran are going to very soon see these other countries buying for 20% off spot and their embargos will start to leak.

People need to understand that in a world where you can't get oil anywhere else, you get it where you can get it.

Banksters's picture

In the event of war, Iran would attack US interests.   

Thomas Jefferson's picture

Is that you Rick Santorum?   I thought you were busy chasing Satan out of the US.

Banksters's picture

I'm not advocating shit, phucknuts.    I'm simply pointing out logistics and strategy issues.

unrulian's picture

Rick, pointing out logistics and strategy with your vast geopolitical experience and your rhetorical blanket statement about attacking US interests? US has no buisness being anywhere within a gernade lob of iran, go back to lobbying against condoms and dental dams, they are the work of satan 

Acet's picture

If Iran was under direct attack by US forces it would have all the reasons in the world to attack any targets that would directly or indirectly damage the US. If that means taking down a local US ally which is also a competitor in the oil market, so much the better.

In fact, being an ally of the US in that region would quickly turn into a bad thing if the US made a direct attack on Iran.

From a strategic point of view, the only way for a smaller nation to survive a US invasion is to resist as long as possible using assimetric war while doing anything they can to make the invasion highly unpopular in the US itself. In the specific case of Iran, the best way to make war unpopular in the US is if the price of oil goes stratospheric.

Interestingly enough, as the largest supplier of oil in the world, Russia would benefit a lot if oil price went up, so they might in fact have provided Iran with the necessary weaponry to attack installations in Saudi Arabia. It would be a masterfull move for Russia if they got Iran to take out the competition while they themselves (Russia) kept their hands clean and reaped the benefits of $200 oil.


pkea's picture

Ras tanura a major oil hub for Saudi Arabia is only 130 miles from Iran. 
Attacking that target would take oil over 150 bucks for a year


 now that's sounds more like a real thing to take oil higher...everything else is a fantasy, may not happen this year though there is a chance mid march in a few weeks to start something ugly

 but then again they can always take over venezuela if the things will get desperate

navy62802's picture

War. It's what's for dinner.

Yes_Questions's picture



and Breakfast, Lunch, Supper, midnight snack after shagging, midday snack also after shagging, post sermon brunch, second supper..

navy62802's picture

I'm really tired of eating it every fucking hour of every day.

Yes_Questions's picture



Getting tired of pulliing it out of my teeth!


mayhem_korner's picture



There's battle lines being drawn

Nobody's right if everybody's wrong

(Buffalo Springfield, circa 1967)

navy62802's picture

There's something happenin' here;

What it is ain't exactly clear.

Canaduh's picture

Want to blow your mind, read this series...

From the link-

There is, however, an even more curious aspect to the Stephen Stills story: Stephen will later tell anyone who will sit and listen that he had served time for Uncle Sam in the jungles of Vietnam. These tales will be universally dismissed by chroniclers of the era as nothing more than drug-induced delusions. Such a thing couldn’t possibly be true, it will be claimed, since Stills arrived on the Laurel Canyon scene at the very time that the first uniformed troops began shipping out and he remained in the public eye thereafter. And it will of course be quite true that Stephen Stills could not have served with uniformed ground troops in Vietnam, but what will be ignored is the undeniable fact that the U.S. had thousands of ‘advisers’ – which is to say, CIA/Special Forces operatives – operating in the country for a good many years before the arrival of the first official ground troops. What will also be ignored is that, given his background, his age, and the timeline of events, Stephen Stills not only could indeed have seen action in Vietnam, he would seem to have been a prime candidate for such an assignment. After which, of course, he could rather quickly become – stop me if you’ve heard this one before – an icon of the peace generation.


(PS that song was about the Sunset Strip riots, it's not an antiwar song)

Race Car Driver's picture


Sex, Drugs 'n Rock & Roll = multi-generational psyop