US tensions with Iran could overshadow Washington's trade fight with China

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US tensions with Iran could overshadow Washington's trade fight with China
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The U.S.-Iran relationship is 'just going from bad to worse' and there have been no signs the two sides could turn to diplomacy to resolve their conflict, said Alastair Newton, director of Alavan Business Advisory.

"There should be no doubt ... that authorities will crack down if they feel that the regime is under serious threat," said Newton, who pointed out that the current regime has a track record of "ruthlessly putting down protests" and will do so again "if necessary."

He also said the downing of the Ukrainian plane could result in a changing of guards within Iran's Islamic Revolutionary Guard Corps, paving the way for a younger generation of officers trained by Soleimani to take over. Soleimani was "a particularly ruthless man" but "outstandingly good" in military affairs, said Newton. He added that the younger officers who have modeled themselves after Soleimani could rise quickly, allowing the elite Quds Force which he led to bounce back.

"I think that Iran's foreign legion ... still poses a significant threat in the region, pursuing Iran's long-standing objectives," he said.

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