8
◼ AGENDA
● Safeguardingtheworld’smostimportantshippinglane
willrequireaninternationaleffort◼BLOOMBERGOPINION
WrittenbytheBloombergOpinioneditorialboard ILLUSTRATIONBYOLLIESILVESTEREuropeannations,alarmedbyIran’scaptureofa Britishoil
tankeronJuly19, are mounting a response to protect their
commercial shipping in the Strait of Hormuz and Persian Gulf.
The Royal navy has started to escort British ships, and a plan
for a European naval mission has been endorsed by Denmark,
France, and Italy. It’s a promising start. But effectively curb-
ing Iran’s misbehavior and safeguarding ships in the region
will require a more ambitious—and truly international—effort.
Most important, it needs to involve the U.S. Navy.
The Europeans are wary of combining their fleets with a
nearby American operation for fear of being identified with
President Trump’s “maximum pressure” campaign against
Iran. France’s foreign minister says a separate effort is needed
to reduce tensions and “create the conditions for inclusive
regional talks on maritime security.”
This is both naive and shortsighted. A disjointed effort
increases the likelihood of accidents and miscalculations. It
might leave open gaps that could be exploited by the speed-
boats of the Islamic Revolutionary Guard Corps. And it
creates unnecessary quandaries for ship captains: If, say, an
American tanker with British nationals aboard were attacked
while under U.S. Navy protection, would the HMS Duncan notCountering Iran at Sea
respond to a call for assistance, for fear its intentions might be
misconstrued by the Iranian regime?
Far better to present a united front. By fully joining their
resources, the Americans and Europeans would be better able
to police sea lanes and respond to provocations. In fact, they
should be working together to recruit other countries—India,
for instance—into a unified coalition, akin to the multina-
tional task force formed to counter Somali pirates a decade
ago. That effort, first headed by the U.S., drastically reduced
attacks, helped strengthen local navies and coast guards, and
safeguarded commercial traffic and humanitarian missions.
Mounting such a response in the Gulf may sound politi-
cally difficult. But Europe should remember that the capture
of the British ship, the Stena Impero, had essentially nothing
to do with the nuclear deal: It was retaliation for the British
navy’s seizure of a vessel carrying Iranian crude to Syria, in
contravention of European Union sanctions. Iran should have
contested the seizure through legal processes. Instead, it’s
holding the British ship hostage and demanding as ransom
the release of its own tanker—and the freedom to keep send-
ing oil to Syria in support of the dictator Bashar al-Assad.
It’s another reminder of how Iran’s misconduct threatens
the entire region. In recent weeks, the regime has attacked
ships and oil installations, shot down an American drone,
restarted its uranium enrichment program, and even test-
fired a ballistic missile, all while refusing good-faith efforts at
mediation. The U.S. and Europe shouldn’t give in to this kind
of aggression. They should instead be united in opposing it. <BW>TheIowaStateFairbeginsonAug.8 andwillattract
morethan 20 candidatesseekingtheDemocraticParty’s
presidentialnominationastheytrytopromotetheir
talkingpoints.Thestate’scaucusesin Februaryarethe
traditionalstartofthepresidentialelectionseason.▶WaltDisneyreports
itsearningsonAug.6.
Investorswilllookformore
detailsontheDisney+
streamingservicethat
launchesin November.▶TheReserveBankof
Australia’spolicymeeting
is scheduledforAug.6.
Economistsdon’texpect
thebanktocutits1%rate
beforethefourthquarter.▶Chinaprovidestrade
balancefiguresonAug.8,
ThedisputewiththeU.S.
hasweighedonexports.
Importsshrankmorethan
expectedin June.▶Lyftpostsearnings
onAug.7. It’sbeena
tumultuousrideforthe
car-hailingcompany,which
hasannouncedjobcuts
andexecutivedepartures.▶TheAfricanAGOA
Forum,a gatheringthat
seekstofostertrade
betweentheU.S.andsub-
SaharanAfrica,willbeheld
in AbidjanonAug.4-6.▶Whenit reportsearnings
onAug.7, commodities
trading giant Glencore
hopes to show it’s bounced
back from a disappointing
start to the year.▶ Warmup for the Caucuses
Bloomberg Businessweek August 5, 2019