Anger in Iran as sanctions return

Iranians voiced anger, fear and defiance on Tuesday as the US reimposed sanctions and their leaders dismissed President Donald Trump’s offer of talks as an act of “psychological warfare”.

Trump’s withdrawal from a landmark 2015 nuclear agreement in May had already spooked investors and triggered a run on the Iranian rial long before nuclear-related sanctions went back into force.

“I feel as if my life is being destroyed. Sanctions are already badly affecting people’s lives. I can’t afford to buy food, pay the rent,” a construction worker said in the capital.

The sanctions reimposed on Tuesday – targeting access to US banknotes and key industries such as cars and carpets – were unlikely to cause immediate economic turmoil.

Iran’s markets were actually relatively buoyant, with the rial strengthening by 20% since Sunday after the government relaxed foreign exchange rules and allowed unlimited, tax-free gold and currency imports.

But a second tranche to return to effect on November 5 covering Iran’s vital oil sector, could be far more damaging – even if several key customers such as China, India and Turkey have refused to cut their purchases significantly.

On Monday, just hours before the sanctions went back into effect, Trump said: “The Iranian regime faces a choice.

“Either change its threatening, destabilising behaviour and reintegrate with the global economy, or continue down a path of economic isolation.

“I remain open to reaching a more comprehensive deal.”

But his Iranian counterpart, Hassan Rouhani, dismissed the idea of talks while crippling sanctions were in effect. –