Iran faces oil revenue problem

By John Defterios, CNN

January 8, 2013 -- Updated 1535 GMT (2335 HKT)

With elections in June, it remains unclear how energy policy will evolve after President Mahmoud Ahmadinejad's era

STORY HIGHLIGHTS

• The IEA has suggested Iraq surpassed Iran in output for the first time in over 20 years


• The Iranian people are faced with spiralling inflation and job layoffs within the state sector


• Iranian oil revenues in the country plummeted 40 percent, while gas export revenues fell by 45%

Editor's note: John Defterios is CNN's Emerging Markets Editor and anchor of Global Exchange, CNN's prime time business show focused on the emerging and BRIC markets. You can watch it on CNN International at 1600 GMT, Sunday to Thursday.

Abu Dhabi (CNN) -- All indications are that sanctions against Iran are really starting to bite and this time it is coming from the oil ministry in Tehran, which for months has denied that oil production was suffering due to international pressure.

In an interview with the Iranian Student News Agency (ISNA), Gholam Reza Kateb a member of the national planning and budget committee in Parliament referenced a report from Iran's oil minister Rostam Qasemi. In that report, the minister suggested that oil revenues in the country plummeted 40 percent, while gas and gas products' export revenues fell by 45% compared to the same period last year.

Read more: Official: Iran, nuclear watchdog group deal close

This is a hot button issue in Iran, where the currency due to sanctions has dropped 80 percent from its peak in 2011. The Iranian people are faced with spiralling inflation and job layoffs within the state sector.

I spoke with a source in Iran's representative office to OPEC who declined to comment and referred all matters to the Oil Ministry. A spokesman at the state oil company Iran Petroleum would only say "in this political climate it is difficult to confirm these statements."

Read more: Iran steps up uranium enrichment, U.N. report says

Hours later, a spokesman from the Ministry told another Iranian news agency, Mehr, that the numbers quoted about revenue and production drops are not true, although he offered no specific numbers.

Until this report to the Iranian Parliament, Minister Qasemi has maintained that Iran's production was hovering around four million barrels a day, where it was two years ago.

Read more: Opinion: Time to defuse Iranian nuclear issue

Back at the OPEC Seminar in June 2012, the minister told me that sanctions would not have any influence on plans to expand production and investment, shrugging off questions that suggested otherwise. This despite analysis to the contrary from the Paris based International Energy Agency and Vienna based OPEC of which Iran is a member.

The IEA back in July suggested that Iraq surpassed Iran in production for the first time in over two decades and production in Iran dipped to 2.9 million barrels a day. OPEC in its October 2012 survey said it slipped to 2.72 million at the time Minister Qasemi said output remained at 4 million barrels.

Minister Qasemi was recently quoted at a conference in Tehran that Iran needs to invest $400 billion over the next five years to maintain production targets and to play catch up after years of under investment.

Iran is a land full of potential. According to the annual BP Statistical Review, Iran sits on nearly 10 percent of the world's proven reserves at 137 billion barrels. The South Pars field which it shares with Qatar is one of the largest natural gas fields in the world -- but Iran, due to sanctions, cannot expand development.

This is a highly charged period. With elections in mid-June, it remains unclear how energy policy will evolve after the era of President Mahmoud Ahmadinejad passes. It has been eight years of his tough line against Washington, Brussels and other governments that put forth sanctions against Iran. It is not clear if a new President will usher in a new nuclear development policy to ease the pressure on Iran's energy sector and the country's people.

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Clinton to testify on Benghazi on January 22

WASHINGTON: Secretary of State Hillary Clinton will appear before US lawmakers on January 22 to be quizzed about a damning inquiry into a deadly militant attack on a US mission in Libya, a senator said Tuesday.

Clinton had initially been due to testify to US lawmakers in late December after the scathing probe blamed "grossly inadequate" security at the diplomatic outpost in Benghazi, eastern Libya, for failing to protect staff there.

But she was forced to cancel her testimony and send in her two deputy secretaries instead when she fell ill with a virulent stomach bug, and later suffered a concussion and blood clot.

Ambassador Chris Stevens and three other Americans were killed when hordes of heavily-armed militants overran the compound and a nearby annex on September 11, unleashing a bloody and terrifying eight-hour assault.

Senator Bob Corker, ranking Republican member of the Senate Foreign Relations committee, told MSNBC television he had been in discussions with Clinton's top aides about setting a new date for her to testify.

"My sense is her hearing probably will take place the morning of the 22nd," Corker said.

"She's anxious to want to come up and testify on Benghazi, and I think that's an important thing both for her and for our entire country."

Clinton returned to work on Monday after a month-long absence, and is busy drawing up her schedule for her final weeks in office.

State Department spokeswoman Victoria Nuland reiterated Tuesday that the plan was for Clinton to testify about the Benghazi attack while still in post, and before a confirmation hearing for veteran senator John Kerry.

President Barack Obama has tapped Kerry to replace Clinton, who will be stepping down after four years in office, but his nomination requires Senate confirmation.

- AFP/jc

Read More..

30 shots in 27 seconds

STORY HIGHLIGHTS

• NEW: ATF agent: Holmes bought 6,295 rounds of ammunition, four guns beginning in May


• Bomb technician testifies about materials designed to set fire inside suspect's apartment


• Police also play 911 calls from the July 20 shooting rampage


• The details come on the second day of suspect James Holmes' preliminary hearing

Centennial, Colorado (CNN) -- The recording is loud, chaotic and difficult to understand. There's too much sound to make out what the caller is saying.

Just one thing is unmistakable: the sound of gunshots.

At least 30 of them. In 27 seconds.

Prosecutors on Tuesday played the first 911 calls from the July 20 Aurora, Colorado, movie theater shooting as they continued building their case at a preliminary hearing for James Holmes, the 25-year-old former neuroscience graduate student accused of killing 12 people at a midnight showing of "The Dark Knight Rises."

Detective Randy Hansen testified that the first call to authorities came 18 minutes after the film started. More trickled in until the torrent was complete: 41 calls in all, he said.

Because the movie was still playing and, in at least one, the gunman was still stalking the theater, the calls are difficult to make out. In one, a 13-year-old girl called to say her cousins had been shot. A 911 operator tried to lead the sobbing girl through performing CPR on one who was still breathing.

Family members of victims attending the hearing held each other and choked back tears as the calls were played.

After detailing the calls, prosecutors turned to the intricate explosive web authorities say Holmes left in his apartment, including jars of homemade napalm with bullets suspended inside and topped with thermite, a material that burns so hot, it's nearly impossible to put out.

In photos displayed in court, the mixture looked like amber-colored gelatin.

Elsewhere in the sparsely decorated apartment, a container of glycerin hung connected to a tripwire, ready to tip into a frying pan that held a homemade substance that would have sent sparks flying onto carpets soaked in oil and gas -- setting them aflame, FBI bomb technician Garrett Gumbinner testified. A robot sent inside discovered the tripwire.

He said Holmes also told him that he had left a boombox by a trash container outside his apartment rigged to start playing loud music 40 minutes after he turned it on.

Next to it, Holmes said he left a remote-control toy car and a control device set to control the explosives inside his apartment, Gumbinner testified.

It was not immediately clear whether authorities found such a device. Gumbinner said he did not clear the outside of the building.

Also, Steve Beggs, a supervisory agent for the Bureau of Alcohol, Tobacco, Firearms and Explosives, testified that Holmes had purchased 6,295 rounds of ammunition and four firearms beginning in May. Ten weeks before the attack, on May 10, he bought two canisters of tear gas over the Internet, Beggs said.

He was still buying materials into July, Beggs said, testifying that authorities have video of Holmes buying an accessory at a Colorado gun store on July 1. In the video, he said, Holmes' hair is bright orange.

The details came on the second day of Holmes' preliminary hearing, which could last all week. It is meant to prove to Arapahoe County District Judge William Sylvester that prosecutors have enough evidence to proceed to trial.

Colorado massacre: Mourning the victims

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The public gets its first glimpse of James Holmes, 24, the suspect in the Colorado theater shooting during his initial court appearance Monday, July 23. With his hair dyed reddish-orange, Holmes, here with public defender Tamara Brady, showed little emotion. He is accused of opening fire in a movie theater Friday, July 20, in Aurora, Colorado, killing 12 people and wounding 58 others. More photos: Mourning the victims of the Colorado theater massacre

Colorado movie theater shooting

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Holmes' attorneys are expected to seek a "diminished capacity" defense that could prevent the case from getting that far.

In Monday's first day of testimony, police officers recounted arriving at the movie theater to find a detached, sweaty Holmes outside and a horrific scene inside the theater, where the floor had become slippery with blood and cell phones rang unanswered.

While none of the law enforcement witnesses who testified Monday offered insight into a possible motive for the shooting, some new details emerged.

Prosecutors aired surveillance camera video taken inside the theater complex that shows a man they say is Holmes dressed in dark trousers, a light-colored shirt with a T-shirt underneath and a ski cap. In the video, the man is shown using a cell phone at a ticket kiosk.

Aurora survivors: How they're doing

Holmes printed out a ticket that had been purchased on July 8, they said.

After going into the theater, Holmes apparently popped a small plastic piece commonly used to secure tablecloths onto an outside door, preventing it from closing, Police Sgt. Gerald Jonsgaard testified. Authorities believe Holmes then went outside, armed himself and returned to the theater to begin killing.

While no cameras captured the shooting inside the theater, cameras outside captured the aftermath as waves of people ran out. One employee leaped over a counter to escape.

Police Officer Jason Oviatt, the first officer to encounter Holmes after the rampage ended, testified Monday that Holmes seemed "very, very relaxed."

Holmes, sweating and smelly, his pupils dilated, didn't struggle or even tense his muscles as he was dragged away to be searched.

"He seemed very detached from it all," Oviatt testified, describing Holmes as unnaturally calm amid the chaos and carnage.

Aurora police Officer Justin Grizzle, a 13-year veteran, wiped away tears Monday while describing his efforts to rush badly wounded victims to a hospital in his police cruiser, including shooting victim Ashley Moser and her husband, who wanted Grizzle to turn around and head back to the theater.

"He was shot in the head somewhere. He kept asking where his ... daughter was," Grizzle said. "He opened the door and tried to jump out."

Grizzle said he had to drive and hold the man by his shoulder to keep him in the car.

The girl the man was seeking, 6-year-old Veronica Moser-Sullivan, was shot four times and was among those killed. Veronica's mother, Ashley, faces a long recovery after being paralyzed in her lower body and miscarrying after the shooting.

The scene was still gruesome when Detective Matthew Ingui arrived 12 hours later with other investigators.

"We saw the first victim laying on the ground," he said "There's shoes, blood, body tissue and popcorn on the floor."

Blood was everywhere, he said.

Holmes had no visible reaction during the testimony.

Investigators found 209 live rounds of .223-caliber ammunition and 15 cartridges of .40-caliber rounds inside the auditorium, Ingui said.

Holmes was a doctoral student in Aurora, in the neuroscience program at the Anschutz Medical Campus of the University of Colorado, Denver, until he withdrew a month before being arrested outside the bullet-riddled movie theater. He had been a patient of a University of Colorado psychiatrist, according to a court document filed by his lawyers.

His attorneys are expected to argue that their client has "diminished capacity," a term that, according to the Colorado Bar Association, relates to a person's ability or inability "to make adequately considered decisions" regarding his or her legal representation because of "mental impairment or for some other reason."

Several times, on cross-examination, the attorneys have asked witnesses about Holmes' demeanor and what he looked like when police found him.

Holmes did not speak during Monday's hearing. His bushy hair and long beard contrasted with the bright red hair and close-cropped facial hair he sported during previous appearances.

During portions of the hearing, family members of victims held one another, sobbing.

Security was tight. Spectators had to pass through a metal detector and then were searched again before entering the courtroom. At least nine armed officers stood guard inside, some of them scanning the audience packed with reporters and victims' family members.

University releases e-mails related to Holmes

CNN's Casey Wian and Jim Spellman reported from Colorado; Michael Pearson wrote from Atlanta. CNN's Michael Cary and Greg Botelho also contributed to this report.

Read More..

Father of slain Tulsa twins: "My life's gone"

TULSA, Okla. Four women were found shot dead inside an apartment in south Tulsa on Monday afternoon, with a three-year-old boy as the only survivor, CBS affiliate KOTV Tulsa reported.

Now a father is coming to grips with losing his twin daughters, whom police identified as Rebeika Powell, 23, and Kayetie Melchor, 23, as among the four victims.

"My life's gone. My kids are gone," said Larry Powell.

Tulsa police said the four women were discovered around noon, within an hour of being shot. Aside from Powell and Melchor, the other two victims identified by police were Misty Nunley, 33, and Julie Jackson, 55. The three-year-old boy may have witnessed his mother's death.

"The little baby, you know, he had to sit there all day and look at what they did. How could you do something like that?" asked Larry Powell.

Powell's son died from the flu in 2003 and now his remaining children are gone. "You've got nothing left," said Powell. "All I've got are my two little grand kids and what am I going to do? Their parents are gone. My granddaughter is going crazy over there right now."

Neighbor Gail Barton knew some of the women who were killed. "They were all so lively and fun and beautiful, really were beautiful girls," she said and added: "To take such beauty and life away from so many people and to harm so many family members in the process and for what? Money?"

Police are still seeking a suspect and a motive for the crime.

Read More..

James Holmes' Elaborate Booby Trap Plan Revealed

A gasoline-soaked carpet, loud music and a remote control car were part of an elaborate plan by accused Aurora gunman James Holmes' to trick someone into triggering a blast that would destroy his apartment and lure police to the explosion while he shot up a movie theater in Aurora, Colo., according to court testimony today.

FBI agent Garrett Gumbinner told a Colorado court about Holmes' complex plans to booby trap his apartment. Gumbinner said he interviewed Holmes on July 20, hours after he killed 12 and wounded 58 during the midnight showing of "The Dark Knight Rises."

"He said he rigged the apartment to explode to get law enforcement to send resources to his apartment instead of the theater," Gumbinner said.

Click here for full coverage of the Aurora movie theater shooting.

His plan failed to prompt someone into triggering the bombs.

Gumbinner said Holmes had created two traps that would have set off the blast.

The apartment was rigged with a tripwire at the front door connected to a mixture of chemicals that would create heat, sparks and flame. Holmes had soaked the carpet with a gasoline mixture that was designed to be ignited by the tripwire, Gumbinner said.

"It would have caused fire and sparks," the agent said, and "would have made the entire apartment explode or catch fire."

Holmes had set his computer to play 25 minutes of silence followed by loud music that he hoped would cause a disturbance loud enough that someone would call police, who would then respond and set off the explosion by entering the apartment.

Police Testify at Hearing for Accused Colorado Gunman Watch Video

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Gumbinner said Holmes also told him he rigged a fuse between three glass jars that would explode. He filled the jars with a deadly homemade chemical mixture that would burn so hot it could not be extinguished with water.

Holmes set a second detonation system outside the building, the agent said.

Holmes, Gumbinner said, rigged one of the triggering devices, called a "pyro trip box" with a remote control. He then took the remote control outside and placed it on top of a white trash bag near the apartment building.

Next to the remote, Holmes placed a remote control car. Inside the trash bag, he put a portable stereo set to play 40 minutes of silence, followed by loud music, the agent said.

The plan, Gumbinner explained, was for someone to hear the music and be drawn to the remote control car with what appeared to be the remote control lying next to it. When that person picked up the remote to activate the car, he or she would have unknowingly triggered the explosion in the apartment.

Holmes also left rows of white powder on the floor, which Gumbinner said was ammonium chloride. The powder, Gumbinner believes, was meant "to scare us" and would have created a large amount of smoke if it had ignited.

Prosecutors showed several photographs of the devices in court.

Earlier in the day, prosecutors played two 911 calls in court, including the very first call from movie goer Kevin Quinonez as the shooting was still underway.

At least 30 rapid-fire gunshots could be heard in the background of the 27-second call, along with screaming.

"Gunshots?" Quinonez can be heard saying.

The dispatcher pleads with Quinonez to give the theater address, but the sound of gunshots and chaos drowns him out.

"Say it loud," the dispatcher pleads before the call goes dead.

In a second call, Kaylan Bailey calls to say her two cousins, Ashley Moser and Veronica Moser Sullivan, have been shot. One is breathing and the other is not, she says.

"Are there officers near you?" the dispatcher asks.

Amid the noise and confusion, the dispatcher pleads with the Bailey to start CPR on 6-year-old Veronica Moser Sullivan, who has stopped breathing. Veronica later died.

Victims and families listening to the calls in the courtroom were weeping openly and holding hands. One woman buried her face in her hands. Holmes showed no emotion.

Read More..

Many French aghast at Depardieu exit

STORY HIGHLIGHTS

• Russian President Vladimir Putin has bestowed Russian citizenship on actor Gérard Depardieu


• For Depardieu, a public war of words erupted, with many in France disgusted by his move


• Depardieu more than anyone, represents the Gallic spirit, says Agnes Poirier


• Majority of French people disapprove of his action but can't help loving him, she adds

Agnes Poirier is a French journalist and political analyst who contributes regularly to newspapers, magazines and TV in the UK, U.S., France, Italy. Follow her on Twitter.

Paris (CNN) -- Since the revelation on the front page of daily newspaper Libération, on December 11, with a particularly vicious editorial talking about France's national treasure as a "former genius actor," Gérard Depardieu's departure to Belgium, where he bought a property just a mile from the French border, has deeply divided and saddened France. Even more so since, as we have learnt this week, Russian President Vladimir Putin has bestowed the actor Russian citizenship.

Read more: Depardieu's puzzling love for Russia

Back in mid-December, the French media operated along political lines: the left-wing press such as Libération couldn't find strong enough words to describe Depardieu's "desertion" while right-wing publications such as Le Figaro, slightly uneasy at the news, preferred to focus on President François Hollande's punishing taxes which allegedly drove throngs of millionaires to seek tax asylum in more fiscally lenient countries such as Belgium or Britain. Le Figaro stopped short of passing moral judgement though. Others like satirical weekly Charlie hebdo, preferred irony. Its cover featured a cartoon of the rather rotund-looking Depardieu in front of a Belgian flag with the headline: "Can Belgium take the world's entire load of cholesterol?" Ouch.

Quickly though, it became quite clear that Depardieu was not treated in the same way as other famous French tax exiles. French actor Alain Delon is a Swiss resident as is crooner-rocker Johnny Halliday, and many other French stars and sportsmen ensure they reside for under six months in France in order to escape being taxed here on their income and capital. Their move has hardly ever been commented on. And they certainly never had to suffer the same infamy.

Read more: Actor Depardieu makes Russia trip after accepting citizenship

Agnes Poirier

For Depardieu, a public war of words erupted. It started with the French Prime Minister Jean-Marc Ayrault, and many members of his government, showing their disdain, and talking of Depardieu's "pathetic move." In response the outraged actor penned an open letter to the French PM in which he threatened to give back his French passport.

The backlash was not over. Fellow thespian Phillipe Torreton fired the first salvo against Depardieu in an open letter published in Libération, insulting both Depardieu's protruding physique and lack of patriotism: "So you're leaving the ship France in the middle of a storm? What did you expect, Gérard? You thought we would approve? You expected a medal, an academy award from the economy ministry? (...)We'll get by without you." French actress Catherine Deneuve felt she had to step in to defend Depardieu. In another open letter published by Libération, she evoked the darkest hours of the French revolution. Before flying to Rome to celebrate the New Year, Depardieu gave an interview to Le Monde in which he seemed to be joking about having asked Putin for Russian citizenship. Except, it wasn't a joke.

Read more: French star Depardieu ditches France for Putin's Russia

In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit. He has been Cyrano, he has been Danton; he, better than most, on screen and off, stands for what it means to be French: passionate, sensitive, theatrical, and grandiose. Ambiguous too, and weak in front of temptations and pleasures.

In truth, French people have felt touched to their core by Depardieu's gesture. He, more than anyone, represents the Gallic spirit
Hugh Miles

For more than two weeks now, #Depardieu has been trending on French Twitter. Surveys have showed France's dilemma: half the French people understand him but there are as many who think that paying one's taxes is a national duty. In other words, a majority of French people disapprove of his action but can't help loving the man.

Read more: Paris promises flurry of economic reforms

Putin's move in granting the actor Russian citizenship has exacerbated things. And first of all, it is a blow to Hollande who, it was revealed, had a phone conversation with Depardieu on New Year's Day. The Elysées Palace refused to communicate on the men's exchange. A friend of the actor declared that Depardieu complained about being so reviled by the press and that he was leaving, no matter what.

If, in their hearts, the French don't quite believe Depardieu might one day settle in Moscow and abandon them, they feel deeply saddened by the whole saga. However, with France's former sex symbol Brigitte Bardot declaring that she too might ask Putin for Russian citizenship to protest against the fate of zoo elephants in Lyon, it looks as if the French may prefer to laugh the whole thing off. Proof of this: the last trend on French Twitter is #IWantRussianCitizenship.

Read more: Brigitte Bardot threatens to spurn France, embrace Russia if 2 elephants killed

The opinions expressed in this commentary are solely those of Agnes Poirier.

Read More..

Israel commentators unfazed by Hagel nomination

JERUSALEM: Israeli commentators played down the impact on relations with the United States of Monday's nomination as Pentagon chief of Republican former senator Chuck Hagel, criticised by heavyweights in his own party for being anti-Israel.

"Barack Obama did not choose Chuck Hagel because of his views on Israel and the president will not base his Israel policy on the views of Chuck Hagel", said the commentator of Israel's Channel Two television.

"On the contrary, as the president underlined, he will remain the commander in chief of foreign policy," the commentator said, adding that he did not expect US military aid to Israel of more than US$3 billion a year to be affected if Hagel's appointment was confirmed by the Senate.

The commentator of Channel 10, also privately owned, said Obama had nominated the Republican primarily to help push through major spending cuts within the US military.

He said the one person who might struggle with Hagel as defence secretary was Israeli Prime Minister Benjamin Netanyahu, who had bad personal relations with him. Hagel "is not an enemy of Israel but an enemy of Netanyahu," he said.

Rightwing pro-Netanyahu freesheet Israel Hayom said in an editorial before the nomination that his appointment would be "problematic".

"Hagel believes that Israeli-Palestinian conflict destabilises the Middle East. Let's hope there are people in the Pentagon who remind him from time to time of the existence of Iran," it said.

Pro-opposition daily Haaretz countered that Hagel's positions on the peace process were "shared by a large number of Israelis on the centre and left of the political spectrum."

Despite the fact that he is a fellow Republican, heavyweights in his party have accused him of hostility toward Israel and naivety on Iran.

Republican Senator Lindsey Graham, pointing to Hagel's calls for direct US negotiations with Iran and for Israel to negotiate with Hamas, said he would be "the most antagonistic defence secretary towards the state of Israel in our nation's history."

Another Republican senator, John Cornyn of Texas, said he would oppose the nomination, charging it would be the "worst possible message we could send to our friend Israel and the rest of our allies in the Middle East."

Hagel himself pledged on Monday to give his "total support" for Israel.

There is "not one shred of evidence that I'm anti-Israeli, not one vote (of mine) that matters that hurt Israel," he told The Lincoln Journal Star newspaper in his home state of Nebraska.

- AFP/jc

Read More..

Obama: Hagel is the leader our troops deserve

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military and government career

Chuck Hagel's military, government career

Chuck Hagel's military and government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military and government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

Chuck Hagel's military, government career

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STORY HIGHLIGHTS

• NEW: Hagel vows to fight "falsehoods and distortions" about his record


• NEW: Colin Powell supports Hagel; Iraq vet Rep. Tom Cotton opposes him


• Obama says Hagel is "the leader that our troops deserve"


• Hagel has taken controversial positions on several issues that could be on his plate

(CNN) -- He forged his views of war and the military as a young man in mine-plagued fields of Vietnam. Now Chuck Hagel may become the first Vietnam veteran and first enlisted soldier to serve as U.S. defense secretary.

He would also be one of the few Pentagon chiefs ever to have been wounded in war, President Barack Obama said in announcing his selection on Monday to take over for outgoing Defense Secretary Leon Panetta.

Obama said Senate confirmation of the former Nebraska senator would be "historic."

But for Hagel, a Republican, the road from nomination to confirmation is packed with obstacles -- political landmines that could derail the effort.

Until Obama's announcement confirming weeks of speculation over his nomination, Hagel told the Lincoln Journal Star newspaper in his home state of Nebraska that he had been "hanging out there in no-man's land unable to respond to charges, falsehoods and distortions" about his record.

Now, he said, he has "an opportunity to set the record straight."

'The leader our troops deserve'

"Chuck Hagel is the leader that our troops deserve," the president said, calling him a "patriot" who fought alongside his brother in Vietnam -- and each saved the other. Hagel still "bears the scars" from the battles "he fought in our name," Obama said.

"He understands that sending young Americans to fight and bleed in the dirt and mud is something that we only do when it's absolutely necessary."

Hagel, 66, said in return that he was "honored by your trust and confidence in me and not unmindful of the immense responsibilities that go with it."

Praising troops who serve with "such dignity and selflessness," Hagel expressed support for military families as well, specifically those "who have sacrificed so much over more than a decade of war" in Afghanistan.

He vowed to work to "strengthen our country's alliances and advance global freedom, decency and humanity" in the effort to "build a better world for all mankind."

The next defense chief will oversee the winding down of the war in Afghanistan and proposals to cut the military budget as well as manage other changes to address national security challenges. Along with Hagel on Monday, Obama nominated John Brennan to head the CIA.

Noting that Hagel is a Republican, Obama, a Democrat, said the selection "represents the bipartisan tradition that we need more of in Washington."

But much of the GOP establishment begged to differ.

"He has long severed his ties with the Republican Party," Sen. Lindsey Graham, R-South Carolina, said Sunday. Graham called the selection "an in-your-face nomination by the president to all of us who are supportive of Israel."

Questions over Hagel's support of Israel are just one of the controversies swirling around him. Numerous concerns could lay the groundwork for sparks at Senate confirmation hearings.

Read more: Choice in Hagel sparks mixed reactions

"Let's just say if Chuck Hagel is nominated," CNN Chief Political Correspondent Candy Crowley said Sunday, "set your TiVo for the hearings."

Sen. Carl Levin, who will chair those hearings as head of the Armed Services Committee, praised Hagel's qualifications and said the panel would give "prompt and careful" consideration to his nomination.

Some flashpoints that his critics point to are the same ones that his vocal supporters like.

Hagel has said he favored U.S. negotiations with Iran and opposed increased sanctions. He has supported Israel entering negotiations with Hamas, though also insisted Hamas end terrorism and accept Israel's right to exist.

And he has criticized U.S. policy on Afghanistan, including a 2009 "surge" of 30,000 additional troops. If he becomes defense secretary, Hagel will face the challenge of ending that U.S.-led war and overseeing a smaller training force in the country.

But the controversies surrounding Hagel aren't just about his policy positions. They're also about his views.

Some are bothered by a comment he made in 1998 about an ambassadorial candidate being "aggressively gay" -- which he recently apologized for. And in a 2007 interview, he said a "Jewish lobby intimidated lawmakers" -- sparking heated criticism. A rabbi in Hagel's home state insists he is "a friend of Israel."

Read more: White House officials reach out to Jewish community to answer Hagel concerns

Graham told CNN he believes that if confirmed, Hagel "would be the most antagonistic secretary of defense towards the state of Israel in our nation's history."

Sen. Chris Murphy, a freshman Democrat from Connecticut, said that he believes "Republicans are spoiling for a fight."

The rhetoric over Hagel on both sides is ratcheting up.

Past controversies have led presidents to pull some nominations. But the bumpy road ahead is unlikely to faze Hagel.

"Chuck Hagel is not afraid of challenge -- or risk," his biographer, Charlyne Berens, wrote in 2006.

In an exclusive interview Monday with the Journal Star, Hagel said critics have "completely distorted" his record.

He emphasized his "unequivocal, total support for Israel" and support for tough international economic sanctions against Iran, the paper reported.

There is "not one shred of evidence that I'm anti-Israeli, not one (Senate) vote that matters that hurt Israel," he insisted.

"All I ask is a fair hearing, and I will get that. I am very much looking forward to having a full, open, transparent hearing about my qualifications and my record."

Praise from Powell, criticism from Iraq vet

Gen. Colin Powell, a fellow Vietnam veteran who served as secretary of state under the Republican administration of President George W. Bush, announced his "wholehearted" endorsement.

"Chuck displays his courage in many ways. You can always count on him to analyze a difficult situation and take a position that reflects his best judgment. I believe that more than ever we need that kind of independent and bold leader who thinks in and out of the box," Powell said in a statement.

"He is the kind of leader needed by the Department of Defense to deal with the strategic and resource challenges it will be facing over the next several years," Powell said in reference to a budget crunch as economic measures include cutbacks in defense spending.

Powell has been an outspoken supporter of Obama.

Gen. Wesley Clark, former NATO supreme allied commander, said Hagel has earned the president's trust.

Hagel's experience in Vietnam, which earned him two Purple Hearts, gave him "the proper appreciation for what it's like on the ground, at the bottom," Hagel said. That's especially true of Vietnam experience because the country "didn't appreciate the men and women" who served, Clark said.

But Rep. Tom Cotton, R-Arkansas, a veteran of the wars in Iraq and Afghanistan, was not supportive.

"Our troops deserve much better than a man who voted to send them to war when it was popular and then abandoned those very troops when it was unpopular," he said, referring to Hagel's 2002 vote authorizing the war in Iraq and his ultimate opposition to it. "I was one of those troops."

Cotton said he still believes going to war in Iraq was the right call for the United States.

He also argued that the surge in Iraq succeeded, despite Hagel's opposition.

And Cotton took aim at a remark Hagel reportedly made in a 2007 speech at Catholic University: "People say we're not fighting for oil. Of course we are. They talk about America's national interest. What the hell do you think they're talking about? We're not there for figs."

The remark was reported by Foreign Policy in Focus, which says it is aimed at making the United States "a more responsible global partner."

'All I can to prevent war'

If he becomes defense secretary, Hagel will be tasked with carrying out the orders of a president who vowed to end two wars -- Iraq and Afghanistan.

Ending and avoiding war are part of what he committed his life to while in his 20s in Vietnam, Berens writes.

"After a year of Vietnam's miserable heat, nearly constant danger, and violent campaigns like the Tet Offensive, Chuck Hagel came back to the United States ready to get on with things -- and with both a loyalty to the U.S. military and a belief he should do all he could to prevent his nation's being involved in another war."

Read more: Chuck Hagel's views on war forged by Vietnam experience

His fierce opposition to the Iraq War went far toward creating the schism that now exists between him and the Republican establishment.

"The damage this war has done to our country will play out for years to come," he wrote in his 2008 book, "America: Our Next Chapter."

"While it is easy for nations to blunder into war, they never blunder into peace," he added.

His opposition to the 2009 surge in Afghanistan put him at odds with the president who nominated him. The surge showed a rare moment of support for Obama among many Republicans, with Hagel as a standout exception.

But his willingness to be an independent voice has won him cheers as well.

"He's a guy with really serious foreign policy chops and someone, frankly, who hasn't been afraid to depart from his party when he thought they were wrong," Murphy said in an interview with CNN.

Apology for 'insensitive' remark

As defense secretary, Hagel would oversee a military that recently dropped its "Don't Ask, Don't Tell" policy for gay and lesbian personnel -- a policy he supported. Battles continue over whether same-sex marriages can take place at some U.S. bases.

So his perspective on gays and lesbians carries particular weight.

In 1998, he opposed James Hormel, an openly gay man, for an ambassadorship. Hagel questioned whether Hormel was suitable, describing him as "openly, aggressively gay."

In December, 14 years later, he apologized, calling those comments "insensitive."

"They do not reflect my views. I apologize to Ambassador Hormel and any LGBT (Lesbian, Gay, Bisexual, and Transgender) Americans who may question my commitment to their civil rights."

The Log Cabin Republicans, a group that supports gay rights, argues the apology was "too little, too late."

But gay rights activist Rick Jacob, head of the Courage Campaign, said he supports the president making his choice for defense chief, and noted that "no one trying to derail (Hagel's) nomination attacks his qualifications."

Hagel's support for Israel questioned

Despite his protests, concerns about Hagel's support for Israel could play a big role in confirmation hearings.

In addition to calling for talks with Iran, which openly antagonizes Israel, Hagel has spoken out against some sanctions -- a cornerstone of Obama's foreign policy aimed at pressuring Tehran over its nuclear program.

The New York Times notes that Hagel was "one of only two senators to vote against the Iran-Libya sanctions act in 2001, arguing that it would undercut efforts to engage with Tehran."

Graham noted that Hagel has wanted Israel to talk with Hamas, a "terrorist group that lobs thousands of rockets into Israel. He also was one of 12 senators who refused to sign a letter to the European Union trying to designate Hezbollah as a terrorist organization."

There was no reference to Hamas in the Journal Star story Monday.

His remark about a "Jewish lobby" has drawn criticism from across the political spectrum and from some Jewish organizations.

"Senator Hagel would not have been my first choice, but I respect the president's prerogative," Abraham Foxman, head of the Anti-Defamation League, said in a statement.

"I trust that the confirmation process will provide an opportunity for Senator Hagel to address concerns about his positions. ... I particularly hope Senator Hagel will clarify and explain his comments about the 'Jewish lobby' that were hurtful to many in the Jewish community."

Hagel joined two other senators in introducing a resolution in June 2007, pushing for a two-state solution to the Israeli-Palestinian conflict. The resolution called on Hamas "to recognize the State of Israel's right to exist, to renounce and end all terror and incitement, and to accept past agreements and obligations with the State of Israel."

Rabbi Aryeh Azriel of Temple Israel in Omaha, Nebraska, a longtime friend of Hagel's, told CNN that Hagel is "definitely a friend of Israel. He is independent, has wonderful, fresh ideas to try to reengage the discussion about the Middle East."

Azriel grew up in Israel, and said he personally supports the idea of doors being "opened for negotiation even with Hamas and Hezbollah."

'Thorough vetting' ahead

Sen. Mitch McConnell, the Republican leader in the Democratic-controlled Senate, vowed Hagel would receive a "thorough vetting" just like any other presidential nominee.

Hagel, in his remarks Monday, emphasized his willingness to speak his mind. "Mr. president, I will always give you my honest and most informed council," he vowed.

While he did not discuss his views on any of the flashpoint issues during his brief comments, a line from Hagel's 2006 biography offers insight into how he would lead.

"I'm a hard-edged realist. I understand the world as it is," he said. "But war is a terrible thing. There's no glory, only suffering."

CNN's Mike Mount, Kevin Liptak, Jill Dougherty, and Catherine Shoichet contributed to this report.

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Newtown seen as factor in Ala. teen's bomb plot

PHENIX CITY, Ala. An Alabama teenager teen who described himself as a white supremacist made journal entries about a plot to bomb classmates three days after the Newtown school massacre and began building small homemade explosives, a sheriff said Monday.

Russell County Sheriff Heath Taylor told The Associated Press that he believed the shooting at Sandy Hook Elementary was a factor because the first date in the boy's journal describing the plan was Dec. 17 — three days after the Connecticut killings.

Seventeen-year-old Derek Shrout is charged with attempted assault after authorities say he planned to use homemade explosives to attack fellow students at Russell County High School.

Taylor said the boy told investigators that he's a white supremacist and five of the six students he named in his journal are black. The journal was found by a teacher, who turned it over to authorities.

A search of Shrout's home found about 25 small tobacco cans and two larger tins, all with holes drilled in them and containing pellets similar to BB's, reported CBS affiliate WRBL. Taylor said all they needed were black powder and fuses to become explosives. The journal also allegedly mentioned using firearms. The sheriff said Shrout's father owned a few household weapons, like a hunting rifle, a shotgun and a handgun.

"He just talks about some students, he specifically named six students and one faculty member and he talked about weapons and the amounts of ammunition for each weapon that he would use if he attacked the school," Taylor said.

The sheriff said he didn't believe the teen's initial claim that the journal was a work of fiction.

"When you go to his house and you start finding the actual devices that he talked about being made, no, it's not fiction anymore," Taylor said. "Those devices were — all they needed was the black powder and the fuse — he had put a lot of time and thought into that."

The teen, who is thin and wears glasses, said little during an initial court appearance Monday. District Judge David Johnson set bond at $75,000 and the teen's attorney said the family expected to post it by the end of the day for his release.

The judge ordered the teen not to contact anyone at his school, students or teachers, and not to use the Internet without parental supervision.

His attorney, Jeremy Armstrong, declined to discuss specifics of the case, but he did say that the talk of the case he has heard so far was "blown a little out of proportion."

"Our position is that our client had no intention to harm anybody," he said.

Seale is about 80 miles east of Montgomery.

More from CBS affiliate WRBL:

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Accused Shooter Was 'Relaxed' After Massacre

Two veteran police officers broke down on the stand today during a preliminary hearing for accused movie theater gunman James Holmes, with one officer choking up when he described finding the body of a 6-year-old girl inside the theater.

Sgt. Gerald Jonsgaard needed a moment to compose himself as he described finding the little girl, Veronica Moser Sullivan, in the blood splattered theater in Aurora, Colo.

An officer felt for a pulse and thought Veronica was still alive, Jonsgaard said, but the officer then realized he was feeling his own pulse.

A preliminary hearing for Holmes began today in Colorado, with victims and families present. He is accused of killing 12 people and wounded dozens more in the movie theater massacre. One of Veronica's relatives likened attending the hearing to having to "face the devil."

The officers wiped away tears as they described the horror they found inside of theater nine.

Officer Justin Grizzle recounted seeing bodies lying motionless on the floor, surrounded by so much blood he nearly slipped and fell.

Grizzle, a former paramedic, says ambulances had not yet made it to the theater, so he began loading victims into his patrol car and driving to the hospital.

"I knew I needed to get them to the hospital now, " Grizzle said, tearing up. "I didn't want anyone else to die."

Arapahoe County Sheriff/AP Photo

Aurora, Colorado Gunman: Neuroscience PhD Student Watch Video

Grizzle drove six victims in four trips, saying that by the end there was so much blood in his patrol car he could hear it "sloshing around."

Click here for full coverage of the Aurora movie theater shooting.

An officer who took the stand earlier today described Holmes as "relaxed" and "detached" when police confronted him just moments after the shooting stopped.

The first two officers to testify today described responding to the theater and spotting Holmes standing by his car at the rear of the theater on July 20, 2012. He allegedly opened fire in the crowded theater during the midnight showing of "The Dark Knight Rises."

Officer Jason Oviatt said he first thought Holmes was a cop because he was wearing a gas mask and helmet, but as he got closer realized he was not an officer and held Holmes at gunpoint.

Throughout the search and arrest, Holes was extremely compliant, the officer said.

"He was very, very relaxed," Oviatt said. "These were not normal reactions to anything. He seemed very detached from it all."

Oviatt said Holmes had extremely dilated pupils and smelled badly when he was arrested.

Officer Aaron Blue testified that Holmes volunteered that he had four guns and that there were "improvised explosive devices" in his apartment and that they would go off if the police triggered them.

Holmes was dressed for the court hearing in a red jumpsuit and has brown hair and a full beard. He did not show any reaction when the officers pointed him out in the courtroom.

This is the most important court hearing in the case so far, essentially a mini-trial as prosecutors present witness testimony and evidence—some never before heard—to outline their case against the former neuroscience student.

The hearing at the Arapahoe County District Court in Centennial, Colo., could last all week. At the end, Judge William Sylvester will decide whether the case will go to trial.

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