Ayatollah puts blame on Iran’s leaders, not US, for economy

THE supreme leader of Iran has said the government’s economic mismanagement was in large part responsible for its current crisis and not just US sanctions, in an uncharacteristically temperate response to Washington.

But he ruled out accepting talks with the US offered by Donald Trump to discuss a new deal over the country’s nuclear capabilities.

“More than the sanctions, internal economic mismanagement is putting pressure on ordinary Iranians … I do not call it betrayal but a huge mistake in management,” Ayatollah Ali Khamenei said, in his first reaction to the reimposition of US sanctions.

“Not that sanctions don’t have an impact, but the main factor is how we handle them,” he added.

The ayatollah is reported to have ordered the arrest of 67 banking and finance officials on charges relating to market manipulation, as part of a corruption crackdown. Earlier this month, the head of the central bank was sacked and his deputy in charge of foreign exchange arrested.

The supreme leader and the conservative establishment in Iran appears determined to show it is responding firmly to public anger over corruption. He has been critical of Hassan Rouhani, the reformist president, for his handling of the economy as well as his failure to get a “good deal” with the US.

Mr Trump reimposed the sanctions after pulling the US out of an international accord that aims to curb Iran’s nuclear programme. He has offered “unconditional” talks with Mr Rouhani to come to a new deal, which would require Iran to offer greater concessions than under the 2015 agreement.