Iranians brace for return of US sanctions
People rush to change cash for gold coins
TEHRAN: Iranians were bracing for the return of US sanctions yesterday against the backdrop of angry protests and a corruption crackdown that are roiling the embattled government of President Hassan Rouhani.
The country has seen days of sporadic protests and strikes in multiple towns and cities driven by concerns over water shortages, the economy and wider anger at the political system.
Journalists reported a heavy build-up of riot police on Sunday night, including at least one armoured personnel carrier, in the town of Karaj, just west of Tehran, that has been a focal point of unrest.
Internet was cut off in the area — part of a concerted efforts to block reporting on the unrest which include severe restrictions for foreign journalists.
The United States is set to reimpose sanctions today following President Donald Trump’s decision to withdraw from the 2015 nuclear deal in May.
US Secretary of State Mike Pompeo vowed on Sunday that the US would “enforce the sanctions” and that pressure on Tehran was meant to “push back against Iranian malign activity”.
The tensions have already fuelled a run on Iran’s currency, which has lost more than half its value since April, and exacerbated widespread concerns over high unemployment, inflation and the lack of reform.
Mr Rouhani was due to give a televised address to the nation at 9.40pm yesterday Monday to outline plans for tackling the currency decline and impact of sanctions.
His government unveiled new foreign exchange policies late on Sunday, allowing unlimited, tax-free currency and gold imports, and reopening exchange bureaus after a disastrous attempt to fix the value of the rial in April led to widespread blackmarket corruption.
With senior religious authorities calling for a crackdown on graft, the judiciary said on Sunday it had arrested the vice-governor of the central bank, Ahmad Araghchi, along with a government clerk and four currency brokers.
Sanctions are due to return in two phases on Aug 7 and Nov 5 — with the first targeting Iran’s access to US banknotes and key industries including cars and carpets.
The second phase — blocking Iran’s oil sales — is due to cause more damage, although several countries including China, India and Turkey have said they will not entirely cut Iranian energy purchases.
“This is just about Iranians’ dissatisfaction with their own government, and the President is pretty clear, we want the Iranian people to have a strong voice in who their leadership will be,” Mr Pompeo said.
After months of fierce rhetoric, Mr Trump surprised observers last week when he offered to meet with Mr Rouhani without preconditions.
That came only a few days after a bellicose exchange between the two presidents, with Mr Rouhani warning of the “mother of all wars” and Mr Trump responding with a Twitter tirade against Iran’s “DEMENTED WORDS OF VIOLENCE”.
Mr Trump’s administration figures, including national security advisor John Bolton, have called for regime change in the past, although the official line is that Washington only wants a change in its “behaviour”.
“For Mr Bolton and others, pressure is an end in and of itself,” Suzanne Maloney, deputy director of the foreign policy program at the Brookings Institution, said.
“If it leads to a wholesale capitulation fine, if it leads to regime change, even better.”
There have been ongoing rumours that Mr Trump and Mr Rouhani could meet in New York later this month, where they are both attending the UN General Assembly — though Mr Rouhani reportedly rejected US overtures for a meeting at last year’s event.
Over the weekend, Mr Trump once again floated the idea of meeting, tweeting “I will meet, or not meet, it doesn’t matter — it is up to them!”
“Iran, and its economy, is going very bad, and fast!” he added.
Iran hawks believe the pressure is showing results, pointing to a lack of harassment by Iranian naval forces against American warships in the Gulf this year.