Press review on Iran, Turkey and the Caucasus (December 30, 2011)

Iran remains in the focus of today's press. Both sides are beating war drums, whilst analysts believe that Iran is counteracting America's plans to impose penalties on international companies conducting business with Iran. If adopted, these regulations will target oil exports, the most vital source of revenue for Iran's economy. "For Iran, cost of closing strait may outweigh gain" is an article published by the San Francisco Chronicle. The newspaper cites words of military analysts saying that Iran is not capable of completely disrupting the Strait of Hormuz. "The question for Iran's leadership is whether it is worth the heavy price," the newspaper reasons.

"Are U.S., Iran headed for confrontation?" is an article published by USA Today. The newspaper believes it is not hard to foresee a confrontation between the United States and Iran in the upcoming year of presidential elections in the US.

The newspaper Sydney Morning Herald believes that the deal between the US government and Saudi Arabia on the sale of F-15 jets to the Royal Saudi Air Force is a message to Iran that America will continue arming Iran's neighbours. Saudi Arabia has long been a foe of Iran, with relations souring further last autumn after the US broke up what it said was an Iranian-backed plot to kill the Saudi ambassador to Washington, which was denied by Iran, the Sydney Morning Herald reports.
Amidst the conflict situation around Iran, oil inches higher toward $100 in Europe amid signs of the US economy improving, the Washington Post reports today. Prices for crude oil were near $100 since mid-November, after jumping from $75 in October as investors observed the growing evidence the US economy could avoid a recession next year.
Thousands have gathered in Turkey for funerals of 35 Kurdish civilians, who were allegedly mistakenly killed in an air force strike on Thursday, the Washington Post reports today. The Turkish military reported mistook the group for Kurdish rebels based in Iraq. Today, demonstrators protesting against the killings clashed with police in Diyarbakir and at least two other cities in the mostly Kurdish southeast. Trade unionists and other groups planned a protest in Istanbul later on Friday. About 500 Iraqi Kurds denounced the airstrikes at a rally in the city of Irbil in the Kurdish-controlled region of northern Iraq. The recent event was one of the deadliest episodes in the conflict between the Turkish state and Kurdish rebels.

Two days after Turkish warplanes killed 35 villagers on the Iraqi border, Turkish Prime Minister Recep Tayyip Erdogan broke his silence, promising an in-depth investigation, the Wall Street Journal reports. While the Prime Minister called the event "unfortunate and saddening," he also defended the Turkish military on the grounds of Kurdish rebels' camouflaging themselves as smugglers before.