eight pm here in moscow welcome if you just joined us you're watching r.t. international with me kevin now in our top story than oil prices have jumped in response to the latest heated exchange between iran and the u.s. over the persian gulf for the critical trade route in the strait of hormuz washington says it's ships will continue their missions in the region despite warnings that they should stay away around threaten to block all shipments through the strait of hormuz if new western sanctions hit its exports and that came at the same time as the ten day long naval exercise we saw which showcased new aircraft and medium range missiles the u.s. to ships are stationed in the area maintains that it won't tolerate any hindrance of passage iran's already suffering from four rounds of sanctions of the latest bill signed by president obama on monday so its national currency dropped by ten percent to a record low let's take

a look at the latest events try and gauge what's happening and go live to beirut their early risk is an expert on middle eastern affairs ali good evening thanks for being with us sanctions because we've seen so many times or a common enough tactic of the u.s. in the e.u. but in this particular case are there really the right way to continue to go about things dealing with one of the world's top oil producers this kind of counterproductive isn't it for all parties involved including iran and the u.s. and the. indeed as you said the oil prices now have increased this comes at a time we're both europe and the year we're witnessing a very very dire economic situation economic problems both in the u.s. and europe and this latest step taken against iran will only of course said the president for increasing economic problems for the west in general but i think what you have to remember is that barack obama now is in election season and he's trying to prove himself as worthy of containing what he might call the iranian threat you

know that the republican candidates say you know money is very much challenging the obama on his iranian policy and so i think is trying to prove himself by showing that he can take the steps of the same time you also have to remember that there are american fears that israel mark unilaterally at that look you actually had track iran that is also a story with which many people have predicted and america is very much against any kind of military attack against iran particularly unilaterally and so i think by the taking this step obama on the one hand is answering his republican challenges on the on the other hand he's trying to satisfy israel because israel has said time and again that no military solution is not viable so he's trying to show the israelis know i'm able to contain the situation my economic censures shanks who is are effective sanctions and so israel you have nothing to worry about i think that is the approach which obama is currently working on as we head into

a new year we cut of the top by earlier what happened in two thousand and eight a similar kind of thing happened then iran threatened to close the strait of hormuz washington responded by saying if that happened to be an act of war what are the similarities between what we're seeing now what happened then. well there are similarities of course but i very much doubt that this will turn out into all out into all out military warfare between the u.s. and iran you all have to remember as well that there are constraints on the u.s. dollar for example the defense secretary panetta said that this week you'll be presenting a strategy which decreases the budget of the pentagon which doesn't even allow for two ground wars similar tennesee of the u.s. to launch two ground wars of the same time so there are restrictions right now on the u.s. military and so all in all and i don't see a scenario in ending scenario of all out military warfare what i do see is that there will be continuous escalation of continued continued cold war between the

u.s. and iran however i have to point out here to something else which is the fact that the turkish foreign minister is visiting iran today and we don't know what the lawyers on that will be but i'm quite sure they might be the fact that the turkish foreign minister might be attempting to achieve some kind of big way solution we all know that the turkish prime minister to go on is in class has a close relationship with president obama and so it's quite interesting this visit by the turkish foreign minister right now at this time could hit could there be some kind of that be the asian efforts because as you said it's not even in america's interest to continue with this situation because it will affect the economic problems which america is already suffering from so why they aren't dissipate that there might be something interesting which comes out of the visit of the turkish foreign minister that would local to iran which way it will be today and tomorrow what you write iran has indicated that it would like to start talks it's written and said to the e.u. yet we haven't seen anything official coming about from the yet timetabling any

talks do you think we're going to see people getting around the negotiating table sometime soon this month. that remains to be seen but i think that there is no other choice but to go back to the negotiating table because as i said the escalation won't serve any side whatsoever we've seen the economic situation in europe they'll be somewhat i believe very soon between the french leader and the german chancellor angela merkel to discuss the economic situation and so it's in nobody's interest to continue with this and i have to head back to the negotiating table now unfortunately what has happened just before i came into the studio i heard use that the european union has agreed in principle i repeat it in principle for not for an embargo on iranian soil now will that happen in effect will they take this measure in practice june will will see a meeting on january the thirtieth for the european union regarding this matter i doubt that that will happen on a bill even a from now until the end of this month until the end of january we might see some

kind of a solution with players like turkey coming in as i said trying to you of course bring about the way a solution we're watching it closely thanks for your input your thoughts about it middle east expert there joining us from beirut on the line thank you thank you. the editor of the colbert report current affairs website told us that by trying to slap more sanctions on iran the u.s. knew you were only stirring up dangerous tension in the region. i think it's quite remarkable to think that france and the us and other countries would be willing to step up sanctions that have already had such a profound effect on the iranian people on the basis of their hunch that iran to run is developing nuclear weapons as as france has basically put it is quite remarkable because that really does is tantamount to an act of war the idea that iran would really close off the straits of hormuz or attempt to do so would only be an absolute last measure resort for a country that relies on the importation of refined gasoline and other things

through the very straits that they would be a sensibly sabotaging and planting mines in so it's it's quite remarkable to think that that iran would do that in any other situation other than they felt that the entire existence of their country was under threat so adding more sanctions to to the mix is is really just a recipe for military disaster i think. you can always share your take on this developing story on our website that is exactly the question though we're asking you what you think about these new section sanctions on iran r.t. dot com is the place to tell us what you think so far these are the votes putting out fifty five percent of you who responded say iran and you think will be pushed to desperation now seeing new sanctions as an act of war seventy percent of you think the world economy set to suffer a sanctions drive or prices sky would fifteen percent if you there believe in the u.s. measures simply won't work and thirteen percent in the green they're saying radio people not the government of the most about these sanctions because your thoughts about. the process of finding

a republican candidate to contest the twenty twelve american presidential election officially got underway in the state of iowa the results though are anything but decisive with career politician mitt romney beating these conservative counterpart rick santorum by just eight votes just a few points by two of them was libertarian ron paul the only antiwar candidate in this year's lineup even hours before the vote many people were still undecided after a republican election run up mobbed by sex scandals mudslinging and tit for tat but despite all of that former congressional aide and diplomatic joel rubin believes it's one paul who stands out from the rest. of his foreign policy is very distinct from the other candidates in that he has a more isolationist viewpoint he wants the united states to retreat from international conflicts in their national affairs and some areas that can be good he's opposed to military action with the ron who is opposed to the iraq war but the

other candidates are all extremely hard on foreign policy very neo conservative and ron paul does stand out amongst them he makes voters want to support him. leading the party and getting other republicans on board to really. know he hasn't done that someone who says i am a free american and i can make it on my own and that's what ron paul really embodies but republicans also understand that kind of positioning will not win the general election against president obama. as a republican campaign developed democrats are beginning to wonder just how much appeal president obama still has having come to power in a wave of hope four years ago his chances are beginning to look good now with complaints from voters of broken promises and corporate favors driving them away when important reports. three years ago one historic campaign turned us politics into a pop culture phenomenon. sorry for the democratic

candidate achieved unprecedented support international fame and a record breaking six hundred fifty million dollars in donations. thousands of new yorkers celebrated the victory clutching an enormous american flag hand sewn by obama supporters but the winds have changed and the very same democratic symbol waved in honor of the president elect in a way each strayed from a cherished right has been donated to the movement that became a phenomenon in two thousand and eleven or thereabouts when people holding out david moved organize the flag project after being inspired by obama rhetoric a dream shattered by the subsequent years of politics as usual curly what's inspiring me as a as a lot of us like that that's the thing that's inspiring you know like that's why i brought the fight so ws and the thing that inspired me about it is the fact that

it's a grassroots movement. that had a like a very clear and transparent process artist shepard fairey seems similarly just an chanted releasing an updated version of his iconic hope poster replacing obama with his now clear support for occupy wall street with an economy still in crisis wall street largely unregulated social programs slashed and over forty five million citizens on food stamps it all starts with you making a decision to get involved obama's familiar prose may not be enough to win back his familiar fan base he didn't produce what people wanted him to produce in two thousand and eight professor and author dr cornel west was one of obama's biggest supporters i think he's got the vision has got the newness he's. the freshness taking part in more than one hundred campaign events but last april the prominent intellectual told r.t. that obama has failed he's too friendly face of the american empire abroad he's in

the process actually of becoming very sadly a pawn of big finance and a puppet of big business and any politician here knows they're in trouble when the hollywood a listers start turning their backs are you happy with the way that obama has been running the country. you know. and i think i really think he misinterpreted his. his mandate yet the approval ratings show voters are even more turned off with the alternatives leaving obama seemingly the lesser of two evils and there this president clearly enters the twenty twelve race amid a growing band of disillusioned democrats most will still back barack obama over his republican rivals arguably with heavy hearts in two thousand and eight he was the unassailable candidate of choice this time mr obama is likely to stay in

my default. artsy new york. still ahead view this hour i think the daily bread we've got a story for you two wealthy and entrepreneurs who bakes their way to the top in russia's top pastry said. you are what was flare up again with athens now threatening to pull out of the euro zone unless the e.u. and i.m.f. more bailout cash into its collapsing economy got the story. egyptians are heading to polling stations once again as the country's first democratic election in more than half a century enters its last day final results are to be announced next week with the muslim brotherhood being the favorite so after clinching the lead in the first two stages of the vote last year earlier poll rounds that were overshadowed by clashes between protesters and the army egypt's ruling military generals have been accused of clinging to power and no face anger over their handling of the protests that

left fifty nine dead since mid november recent army raids on western sponsored n.g.o.s have added two to more concerns over the country's stability mideast experts told us that in order to ease tensions the military has to give its people what they want and step down. large majority of egyptians want the military to be a defense outfit defending the country against out so. eventually no clear political role at all because for the last thirty to forty. years egypt has essentially whether under mubarak or under some dark been mocked eat and get a ticket run by the miller crean people want an end to that so when the miller creek will serve more barak on trial again it's an attempt to divert attention from its own rule in that country that is what is really worrying people and that is or should be discussed and checking the g.o.p. and jim carrey is is i think to show that foreign buyers are manipulating our

concrete synchro which is again nonsense i think washington has a great deal of influence within the military oh after all it billions of dollars i mean big you know billion dollars a year that's a huge amount of money. the rise of his the best parties in egypt prompted western concern for the policies the country may adopt if the likes of the muslim brotherhood to step into power and we caught up with regional politics expert jeremy salt who got his outlook on the developments in the arab world coming up here less than twenty minutes from now in artie's latest interview. really look at what's been happening in the middle east and the policies the western governments of followed since the beginning of this year they have always had the the noble motive and we're doing this for this very very good reason but we don't have to be terribly skeptical or cynical to understand that actually behind the noble motive

is self-interest if we look at what happened in egypt the west backed mubarak right to the very last and there was no longer possible to back him when it was indefensible they dumped him. greece has announced that it could ditch the euro and exit the eurozone in as little as three months unless the e.u. and i.m.f. fund it with a second one hundred thirty billion euro bailout talks over the cash lifeline of stalled for months now over the poor performance of a sturdy measures and fears for the future and belgian business journalist and win over valves believes the numbers say it all but greece's exit is now unavoidable. the greek economy is going down like a stone. g.d.p. contracted by four percent in two thousand and ten by six percent in two thousand and eleven and there is probably worse to come in two thousand and twelve and i think we are now at a point where everybody in research realizes that we cannot go on like this and

that unrest and even an arche in the country is becoming so much of a threat that some drastic things need to be done and my reading of what the greek government is doing is that they are trying to they are looking for an alibi to offer to their public by which they can say well it's not our fault it's the international community that pushes us towards the exit of the euro zone and i think also here in europe at brussels that quarters of the european commission people start to realize they really are at the end of the road there is no other option left for them they're in a deadlock they cannot rewind the greek economy and so they are facing in a big black hole. next it's seen as one of the biggest blights in modern day britain but tackling gang violence there is proving difficult with the government saying a firm response is the only means of dealing with it and there's growing criticism about the saying these attempts to improve the situation are addressing the roots

of the problem that is laura smith reports. it is. the dark underbelly of life in britain's inner cities gang culture dramatized here for a television series for gavin it was real life he got into a gang to escape a feeling of powerlessness an abusive home life where money was a constant struggle. as a young. star. so. angry over the top. name for the crazy. people. at his lowest ebb gavin admits to having stabbed

a girl and his story isn't unusual in deprived areas nowhere is the question of how to solve the gang problem in london more relevant than here in new it lies in the shadow of london's two thousand and twelve olympic park but it's also got more gangs than almost anywhere else in london round here young people say you start just by hanging out with your friends on the streets and you end up in a spiral of gang violence and fear. in you're more than half of all kids are living below the poverty line and they don't feel the government's doing anything to help them how can you hold me if you don't understand. you have to have you. know in a bar. in london and the neighbor. and the neighbor. in london. if the government really knew and understood would be happening.

when gavin met sheldon thomas an x gangster himself he turned a corner and they're now working in a team to get young people out of gangs the government claims it wants the same thing and having laid the blame for august's riots firmly at the door of gangs their solution the carrot and stick method are if you found some excellent police work to identify and manage the highest risk going members through a combination of targeted surveillance enforcement and arrest for any offense however minor and positive offers of training employment and drugs treatment for those who want a different life but for those not prepared to break away from violence they will face harsher and tougher punishments but this isn't going to work according to sheldon thomas who feels the government is supporting him it every turn what they do. the manifestation of gangs gun violence. gang rape drugs to deter that's just

a manifestation that's what the causes of it because in stem from family breakdown moles on the window from society as a whole while the government rhetoric sounds encouraging other policies will undermine both carrot and stick economic austerity cuts will mean sixteen thousand fewer police officers on the streets and services that deal directly with gangs now will have their funding cut by between twenty and ninety percent in some areas that means young people like gavin in the future will have nowhere to go but the st lawrence smith party london. there's a more and more all the stories we've been covering on our website as well are to go home is look what we've got on line few facts. we focus on the turn of events that shaped twenty eleven and bring your correspondents firsthand the camps about reporting from the world's hot spots in our test series also online about to go common like the planet partied up picture galleries capture the high spirits around

the world it in twenty twelve it's about a dog. but no exact spot entrepreneurs based here in russia tell us their success stories describe their path to prosperity in the latest from our past four and a series. today we bring you the story of a and go our two coloring gurus who have baked their way to a fortune in russia's premium pastry sector for more than four years now the been running the most successful business of its kind they're starting from scratch up next and they give us a taste of what it takes. i have twice a week in the production sector and the rest of the time i'm in the restaurant genya. genya to hear that stuff but also just to make sure everything is ok definitely in the west when you're starting something new everything is more set up

the industry has existed here we had to do everything from scratch. when we started the business we realized that we had to. really difficult objectives one was that we had to create our own brand and we decided to license at least initially in the nation's national brand for years and the whole point of our project the whole point of the business was that these products high quality because hardly exist in russia today you don't have many customers here you can help you know or later this and that customer should be greeted every time every time you're developing a company culture you know one of the most difficult things in russia a few years ago was to make sure your line staff smile is just smile if it's not the interest or gods or at the beginning i would say if i come to the restaurant and if you're smiling i will give you a hundred. if you're not. really never mind is where your is away so

it could give me again be still but it's still a challenge the first step was that we spent in two thousand and six we spent about nine months developing a very small factory we basically had a thirty square meter room where we were trying to make something like fifty products fresh every day and then the biggest challenge was the local ingredients it would be insane to import lots of flour to. when russia is one of the biggest low exports in the world we were very very lucky that we did this because by the end of two thousand and eight when the recession started the first thing that happened in the recession in russia was a collapse of the ruble exchange rate compared to the euro so suddenly overnight imported prices were up thirty forty percent and that is deadly for any kind of business like ours but for us at least the cost of our products was relatively stable because for the main ingredients like sugar like flour we were using locally made products. it's still

a lot of things happens in russia mechanically in the service industry we have a hard time mingling the idea they followed the rules for did they have a problem so this is the difficulty in russia united states or in europe it's a little bit easier because they have a use to it. you need to empty the garbage cans you need to clean up that place what is that card from there however on the other hand if we see that you're rooting hard to take it to heart. in other cultures that may be a little bit more difficult the idea to build a bakery business in russia was exactly right and the idea that the competition wasn't so high in the sector i would do again but i think i would make sure that we raise a bit more capital upfront than we did i would also make sure i think that we invest at the beginning far more in training of production people than we did we should have outsourced much less than we did four years ago we should have made much many

more products ourselves and then we would be even more successful than we are today i think but yes i absolutely do. for more features about foreign entrepreneurs doing big business here in russia or in more of our pathfinder series here on r.t. throughout the week. a couple of world news headlines feel a series of three explosions in the second largest city the afghanistan have killed at least thirteen including a child the first blast happened as a suicide bomber attacked a police checkpoint and two other bombs then went off later the violence comes a day after the afghan taliban announced plans to open its national liaison office in qatar something that could be a step towards formal peace negotiations. thousands of people of taking to the streets in northern peru against protesting against the development of a gold mine the demonstrators say waste from the works will taint their water

supplies the protests come in one of the country's most heavily mined regions it's also a history of troubled relations with neighboring farmers and ranchers. closer to twenty eight minutes past eight our moscow time in the next half hour as promised we focus in on some more of the latest developments in egypt and elsewhere in the arab world and get an expert view about what's likely to involve unfold rather bit later on this year is twenty twelve progress is how to farm is it with the latest sport my name is kevin o. and thank you for watching r.t. this wednesday evening.

if they shoot something inappropriate for a public they can. ok. i wish he would have never happened but it has. a t.v. camera becomes an unnecessary what does their own safety all foreign nationals including journalists and inspectors should leave. and it's clear for thousands with such witnesses i got a sight. of one. person shooting.

with a. science technology innovation called the least of elements from around russia we've. covered. from moscow this wednesday evening watching on t.v. thanks for being with us all top stories the u.s. says it's warships will stick to their missions to a crucial role in the persian gulf spice moments in the red and the same way the standoff continues to drive up oil prices and tension. the republican presidential candidate rice gets underway in earnest indecisive over just who to put forward to capitalize on disillusionment with barack obama. the euro's woes flare up again off from.