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Iran's cancellation of $500 million funding to Pakistan for the Iran-Pakistan gas pipeline indicates Iran's clout in regional energy affairs. It is unclear why Iran took this sudden step. Is President Rouhani merely fine-tuning some of the policies of his predecessor? But there is certainly more to this than meets the eye.
Saudi Arabia recently extended an invitation to Iranian Foreign Minister, indicating towards a possible thaw in relations. Is this shift in Riyadh's stand because of a change in US-Iran relations and the positive reception of Iran's overtures by the other GCC States?
The TAPI pipeline is not merely about economics. Geo-political concerns have played a crucial role in pushing the project, especially the deteriorating US-Iran relationship, amongst others. Two US companies have evinced also keen interest.
The US today is on the horns of a dilemma in the Middle East.
The debate about Iran's quest for nuclear energy is wholly enmeshed in the politics of US-Iran relationship. Iran is a signatory to the NPT and its additional protocol. It has obligations; it has rights. The focus of the west is on obligations, of Iran on rights. The North-South divide is reflected in the board of governors of the IAEA, with Russia and China supportive of the non-aligned who apprehend, as Washington Post put it,
