Nuclear Issues

Secretary of State Mike Pompeo’s most recent announcement on Iran policy has raised some eyebrows. He indicated on Monday morning that the Trump administration will not renew waivers to importers of Iranian crude and that other suppliers (meaning Saudi Arabia) have agreed to increase production in to ensure the global oil market remains well-supplied. Skeptics question whether — after last summer’s debacle — there is sufficient trust between Washington and Riyadh for this arrangement to work. What skeptics may not have digested is that, while timing remains a problem, this is a classic win-win situation. It is a near-perfect example of the very limited universe of occasions when transactional diplomacy could actually work.

Paul Behringer writes that Donald Trump seems unbound by establishment thinking in Washington and could strike a deal that runs counter even to John Bolton, his hawkish national security advisor.

Last May, Chinese solar panel manufacturer LONGi signed an agreement with Saudi trading company El Seif Group to establish large-scale solar manufacturing infrastructure in Saudi Arabia. The deal came several months after the Trump administration's imposition of global tariffs on imports of Chinese solar panels and cells.

The authors analyze the U.S.–North Korea nuclear standoff and the role of back channel negotiations and then develop a game theory framework for understanding why back channels can be beneficial.

After a tumultuous week of unpredictable twists and turns during President Donald Trump’s visit to Europe, anxiety levels have risen among experts and policy makers about the coming summit between Trump and President Vladimir Putin. As President Trump himself has noted, there is no shortage of issues demanding the attention of the two leaders: Syria, Iran, arms control and — who knows — maybe even Russia’s interference in America’s elections. But energy could snake its way onto the agenda, and Trump needs to be careful not to give Putin concessions in exchange for something the Russian president already plans on doing.

The world was in suspense a week ago wondering whether OPEC and non-OPEC producers would put more oil on tightening global markets. Turns out: Yes, they will. But, as the story does not end here, it is worth assessing where we are and how we got here. While the U.S. seems to have gotten what it wanted, it is not all good news.

Oil markets have so far reacted to President Donald Trump’s decision to withdraw from the 2015 Iran nuclear deal without either enthusiasm or panic — without even much apparent interest. There are many good reasons for this, but also many reasons to think oil markets’ complacency could change. Fortunately, the Obama-era sanctions that Trump has moved to reimpose have some lesser-known safety valves should oil markets later overheat as a result of the Iran decision.

The stunning revelation this week that CIA Director Mike Pompeo met with North Korea’s Kim Jong Un over Easter weekend is a stark reminder that the pieces of the puzzle posed by a nuclear North Korea are moving rapidly. According to President Trump’s Wednesday morning tweet, “Meeting went very smoothly and a good relationship was formed…Denuclearization will be a great thing for World, but also for North Korea!”

Most national security experts have criticized Trump’s decision to meet face-to-face with the North Korean leader at the beginning, rather than the end, of a long diplomatic process, and are predicting that the meeting will be a failure. In contrast, I see the potential for a significant win for the U.S. While forecasts about the unknown future are inherently uncertain, I sense the possibility of what I call a “six-win solution.”

Amid the exchange of threats between North Korea and the United States, ongoing North Korean nuclear and missile tests, and U.S. talk of “all options,” there is growing concern about the real possibility of war with North Korea. What many have not yet reckoned with is an even darker specter. Could events now cascading on the Korean Peninsula drag the U.S. and China into a great-power war?