Turkish Energy Minister Hilmi Gulerhas announced his government will invest $3.5 billion in Iran's South Pars gas field starting from 2008, a week after signing a deal to use Iran as a transit route for gas from Turkmenistan to European markets. Ankara also made clear that it sees Iran as a potential partner for the Nabucco gas pipeline project, conceived as a means of diversifying gas supplies to Europe. Washington has voiced its opposition to the memorandum of understanding between Turkey and Iran. In an interview with NTV news this week, Turkish Prime Minister Recep Tayyip Erdogan defended the deal, adding that "Turkey thinks of its own interests and the US will eventually understand this." (Press TV, July 19)

The Iranian government confirmed July 11 that a man was executed by stoning last week for adultery, and that 20 more men would be executed in the coming days on morality violations. The stoning of Jaffar Kiani, 47, was carried out near the city of Takestan, despite a stay of execution order by the chief of the judiciary, Ayatollah Mahmoud Shahroudi. "The verdict was final, and so it was carried out for the man but not for the woman," the ISNA news agency quoted a judiciary spokesman as saying. He said the 20 more executions were for "rape, insulting religious sanctities and laws, and homosexuality." Local newspaper Etemad Melli said: "Villagers said the sentence was carried out by the local judge and authorities." Most executions in Iran are hangings, often in public at the alleged crime scenes. Police arrested some 1,000 in May during a morality crackdown. Fifteen more men are being tried and could receive death sentences. (NYT, July 11)

From the Iranian Student News Agency (ISNA), July 5:

Alieh Eghdam Doost, who was arrested on June 12, 2006 for attending a women's rights rally in Tehran, is sentenced to three years and five months prison term and 20 lashes, her attorney, Nasim Ghanavi, said to ISNA today.

US and Iranian diplomats met in Baghdad for their first formal direct talks in more than a quarter of a century May 28, to discuss the security situation in Iraq. Washington's ambassador to Iraq Ryan Crocker called the proceedings "businesslike." (LAT, May 28) Meanwhile in Iran, authorities summoned the Swiss Ambassador Philippe Welti to complain that a US espionage network organizing sabotage and subversion campaigns has been discovered.

Veteran journalist Jim Lobe reports on his LobeLog blog that the Foundation for Defense of Democracies (FDD), a neo-conservative group created two days after 9-11, is holding what it calls "a policy workshop" during Congress' Memorial Day recess, at a luxury resort on Grand Bahama Island. Entitled "Confronting the Iranian Threat: the Way Forward," the confab is to include "30 or so leading experts who will analyze the implications of Iran’s activities, the diplomatic challenges, military and intelligence capabilities, the spread of its ideology within and beyond its borders, and other issues, including the prospects for democratization in the Islamic world, energy security and other related issues that face policymakers in the United States, Europe and the Middle East," according to the invitation letter from FDD's president, Clifford May. The purpose will be "exploring policy options...and [to] consider solutions to one of the most significant policy issues of our day." Writes Lobe:

When Adm. William Fallon was named to replace Gen. John Abizaid as chief of Central Command in January, we recognized it as part of a tilt to the "pragmatists" and away from the hubristic neocons in Washington. Now comes word (via InterPress Service, May 15) that Fallon essentially "vetoed" an administration plan to increase the number of carrier strike groups in the Persian Gulf from two to three in February, and vowed privately there would be no war against Iran as long as he was chief of CentCom. The story by Gareth Porter relies on anonymous sources, but seems plausible enough. An excerpt:

The People's Mujahedeen of Iran (Mujahedeen Khalq Organization) has appealed to be taken off the European Union's list of terrorist organizations, accusing the EU of stifling Iran's legitimate opposition. The organization has also launched suit against EU governments for 1 million euros ($1.35 million) in damages at the European Court of First Instance. The EU imposed an asset freeze on the group in 2002 and reaffirmed the ban in January. "The only Iranian terrorism that exists is that of the state," Jean-Pierre Spitzer, a lawyer for the group, told a Brussels press conference today.

The governments of Saudi Arabia and the US are working with other Middle East states to sponsor covert action against Iran, according to a report in the May edition of The Atlantic. The report also suggests that covert attacks are planned against Iran's oil sector. David Samuels, in a lengthy article on Secretary of State Condoleezza Rice's diplomatic initiatives in the Middle East, reports that the US is promoting the direct action campaign against Iran.