Author Archives: persiangulf

Pressure mounts on Iranian regime as traders go on strike and sanctions begin to bite

by: Samer al-Atrush

The Iranian government has come under further strain in the wake of the axed nuclear deal, as economic sanctions begin to bite and protests begin to surge once again.

Showing that they still have the clout to unsettle the government, as they did in 1978 when they backed the Islamic Revolution that dethroned the Shah, merchants beneath the vaulted domes of Tehran’s Grand Bazaar last week began shutting their stalls in a protest that lasted for three days.

Though no longer the economic centre of Tehran, the sprawling bazaar still resonates with symbolism.

The question now is how long Hassan Rouhani, the Iranian president, will last while he’s being pressed by hardliners at home and facing renewed US sanctions abroad.

The hardliners, who have attacked Mr Rouhani since the pragmatist first won elections in 2013, have been blamed for instigating the strike, and have sought to exploit it.

They oppose engagement with the West or rolling back Iran’s interventions in the Middle East.

Merchants say unidentified men had coursed through the pathways of the bazaar, demanding shops be shut, who are thought to be hardliners.

Shots have been fired across the bow, with conservatives close to Ayatollah Ali Khamenei, the Supreme Leader of Iran, even suggesting the country would be better off without a government.

The merchants have their own grievances. The rial has lost almost half its value against the US dollar since Donald Trump, the US President, withdrew from the nuclear deal with Iran in May and reimposed sanctions.

Hitting out against Mr Trump, Ali Khamenei yesterday (SAT) was reported to have said: “They bring to bear economic pressure to separate the nation from the system… but six US presidents before him tried this and had to give up.”

“The strikes may have been triggered by political groups opposing Rouhani, but store owners were also looking for a way to express their protest,” said Maysam, who sells soap and skin care products at the bazaar.

“What we and other store owners at the bazaar want is stability,” he said.

Over the last week footage has been shared on social media showing protesters marching through the bazaar chanting against Iran’s costly intervention to prop up Bashar al-Assad, the Syrian president.

“Leave Syria, think of us.” Protesters marched to parliament, where they were met with police who fired tear gas.

The merchants, however, are prudent. A jeweller at the bazaar, who declined to be named, said some merchants felt compelled to go along with the strike by protesters.

“We have a problem with recession, but closing the stores will damage us more,” she said.

Mr Rouhani has been defiant, telling Iranians to unite and “bring America to its knees” in a speech on Wednesday, while Ali Khamenei has also called for unity, and for protesters to be punished.

But the future remains grim for Mr Rouhani, whose country has yet to feel the full force of US sanctions on Iranian oil exports which come into effect in November.

“The Rouhani administration is now in deep trouble,” said Ali Fathollah-Nejad, an Iran expert with the German Council on Foreign Relations.

The 2015 nuclear deal led by then US President Barack Obama waived an oil embargo against Iran by the EU, and foreign companies began setting up shop in Iran. The EU wants to continue the waiver but Trump’s administration says it expects the Europeans, as well as China and India, to respect the sanctions.

Protests are likely to continue. In December and January, demonstrations initially encouraged by hardliners had spread to dozens of towns and cities and soon spun out of control, with protesters chanting slogans targetting both Mr Rouhani and the hardliners.

“Expectations were high after the nuclear deal that the government would turn the corner and the difficult sanctions era would end,” said Naysan Rafati, the International Crises Group’s Iran analyst.

“But structural issues continue, such as corruption, and mismanagement.”

Iran expert Suzanne Maloney, Brooking’s foreign policy deputy director and former State Department official, says that there is a perception Iran is on the brink of collapse, adding, however that “for the past 40 years Iran has experienced essentially every calamity short of the plague. The leadership has perfected the art of survival.”

Why Ayatollah Khamenei will not negotiate with Trump

by Saeid Golkar

Ayatollah Khamenei wants to leave a lasting legacy behind and submitting to the US cannot be part of it.

In a June 13 Washington Post article, former US ambassador to the UN Zalmay Khalilzad argued that the Trump administration’s approach towards Iran – withdrawing from the nuclear deal and imposing crippling sanctions – has a reasonable chance of bringing its leadership to the negotiating table. Read More »

Trump tightens the screws on Iran’s oil


Is the U.S. aiming for regime collapse?

By: Suzanne Malony, June 29th 2018 Brookings Institute

The Trump administration is pushing its “maximum pressure” campaign against Iran into overdrive, with Tuesday’s announcement that the State Department is aiming to cut off all Iranian oil exports by November. As this move underscores, Washington has abandoned the fig leaf of diplomacy proffered by Secretary of State Mike Pompeo last month on the heels of President Trump’s decision to jettison U.S. adherence to the 2015 nuclear deal with Iran. Instead, the White House is embarking on an economic offensive intended to collapse the Iranian government, which is already contending with a steady tempo of internal unrest driven by economic and political frustrations. Read More »

What Trump doesn’t get about ideology in Iran. It’s about nationalism, not theocracy.

By Shervin Malekzadeh

Iranian fans at a stadium before a World Cup 2018 match. (Jorge Silva/Reuters)
The Trump administration has made clear that it wants regime change in Iran, but its actions have made such an outcome far less likely, short of war. The U.S. decision to exit the Joint Comprehensive Plan of Action not only undermines the domestic forces in Iran best positioned to produce actual, if incremental, change but also empowers local actors whose interests lie in provoking violent conflict with the United States and its regional allies. Read More »

Powerful finance monitoring group gives Iran until October to adopt reforms

#IranNuclear
Financial Action Task Force gives Iran October deadline to adopt reforms for financial blacklist removal
An international group that monitors money laundering worldwide said on Friday Iran had until October to complete reforms that would bring it into line with global norms or face consequences that could further deter investors from the country. Read More »

Giuliani, Gingrich to address controversial Iranian group


By NAHAL TOOSI

The Mujahedeen-e-Khalq, formerly considered a terrorist group, has several friends close to Trump and is seeing some of its longtime goals advanced.

Two close confidants of President Donald Trump are scheduled to speak Saturday before a controversial Iranian opposition group previously designated as a terrorist outfit, raising fresh questions about the group’s Washington influence as Trump pursues a pressure campaign against Tehran. Read More »

Today’s protests in Iran suggest revolution is brewing

Tehran is on fire right now.

Anyone who supports the struggle for freedom should find the sounds and images coming from Tehran thrilling.
Kelly Jane Torrance

No, I’m not talking about the World Cup match between Iran and Portugal. (They drew 1-1.) The protests that began in Mashhad, Iran’s second-largest city, on December 28 and quickly spread throughout the country have picked up steam in the capital in the last few days. Today saw the biggest protest in Tehran in six years, as the Grand Bazaar closed and demonstrators made their way from there to the parliament building to express their discontent with their government. As the protest began, Iranians called out to shopkeepers who wouldn’t close, “Coward!” Thousands of people marched and chanted in the streets of the capital, and the regime sent riot police to beat and tear-gas them into submission. It didn’t work; large groups of protesters rushed at the police, forcing them to flee, and torched many of the motorcycles they left behind. The government set aside four stadiums and six parks as places of legal protest; demonstrators are not interested in following the rules of a repressive regime.

Like the Mashhad uprising, this one in Tehran—and my sources tell me similar ones are taking place today in Shiraz, Qeshm, Kermanshah, and Mashhad—began over economic concerns and almost immediately turned political, as Iranians recognise a corrupt theocracy has no concern for the citizens who keep it fed. Iran’s currency, the rial, has lost half its value against the U.S. dollar in less than a year; the government has set an exchange rate of 42,000 rials to $1, but dollars are going for 90,000 rials on the black market. In his sermon celebrating the end of Ramadan, Supreme Leader Ali Khamenei urged his countrymen to stop going abroad and taking foreign currency out of Iran.

Footage coming out of the country indicates just how deep the discontent is. One huge group of young people chanted “Marg bar diktator!” (“Death to the dictator!”) on the streets of Iran’s capital. Another shouted, “Marg bar zed-e velayat-e faqih!”, velayat-e faqih being the principle of absolute clerical rule that places an ayatollah at the head of Iran’s dictatorial government. The chants heard in Iran today suggest revolution is brewing: “Leave Syria alone. Think of us instead!” “Our enemy is right here, they lie when they say it’s America!” “Beware of the day we pick up arms!” “We will fight, we will die, we will take back Iran!” “We will fight, we will die, we will not accept humiliation!” “Death to Khamenei!” (Two other good ones aimed at the supreme leader: “We need no trashy leader!” and “Cannon, tank, firecrackers—mullah must be killed!”)

Anyone who supports the struggle for freedom should find these sounds and images thrilling. And they just might mark a turning point in Iran. It’s not simply the fact that today’s protest, as I mentioned, is the biggest in the country’s capital since 2012. A crucial class is now all in. It’s possible that without the support of the bazaari, as the influential traders and merchants are called, the Islamic Revolution that toppled the shah in 1979 might never have succeeded.

This increased unrest comes just days before the annual Free Iran Gathering held near Paris by dissidents working toward a democratic Iran. One of the promotional posters, produced by the Organization of Iranian American Communities, has a slogan that’s short and sweet. “Our Mission: Regime Change by Iranians.”