Iran’s currency has sharply decreased again as the world’s powers push for resumption of UN sanctions against Iran amid stalled diplomacy and fears of war with Israel and the US.
In Tehran’s open currency market on Monday, the US dollar hit a price of more than 1.06 million rials, slightly higher than it had before Tehran and Washington mediated negotiations began in April.
The Iranian government and central bank have once more stated that the sharp decline in the country’s embattled currency is more a result of a psychological response to the country’s deteriorating political environment than a drop in economic activity.
The remaining European parties to Iran’s 2015 nuclear agreement, which includes France, Germany, and the United Kingdom, have triggered the “snapback” mechanism of the agreement, which would allow for the UN to immediately reimpose sanctions in exchange for restrictions on Iran’s nuclear program.
Iran has now been given a one-month deadline to reach an agreement that could defer snapback by at least a year by the European allies.
The UN inspectors have access to the US’s nuclear sites, resume negotiations with the US, and be responsible for the country’s 408.6 kg (900.8 pounds) of highly enriched uranium, according to the IAEA.
Iran has claimed that the Western allies have demanded that the negotiations’ outcomes, not the starting point, be changed so they cannot be met. It has long maintained that its nuclear program is peaceful.
Iranian parliamentarians are also working on legislation to force Iran to renounce its nuclear weapons (NPT) and halt all cooperation with the IAEA if sanctions are reinstated.
IAEA inspectors were given this week’s authorization to inspect the Bushehr Nuclear Power Plant’s replacement fuel, but they were not given further information because Tehran denounces the world’s nuclear organization for allegedly allowing Israeli and US airstrikes against Iran in June.
Tehran has also claimed that the European powers lack the legal authority to initiate the snapback process as a result of the US’s unilateral withdrawal from the landmark nuclear agreement in 2018 and the harsh sanctions it imposes on Iran.
Iran’s nuclear activities increased as a result of the sanctions, which were imposed by US President Donald Trump during his first term in office, by President Joe Biden, and then by Trump himself during his second term, increasing those efforts.
Other signatories of the 2015 nuclear deal that are opposed to snapback have also made an effort to coordinate their positions with Iran’s authorities.
The three countries’ foreign ministers released a joint statement on Monday, claiming that the move by the Europeans is “by default legally and procedurally flawed” and violates the UN Security Council (UNSC) resolution that underpins the nuclear agreement. They also called on the parties to “abandon sanctions and threats of force” in order to address the root cause of the situation.
Abbas Araghchi, Iran’s foreign minister, claimed on Monday that the European powers are abusing the UNSC’s role as a “instrument of coercion rather than a guardian of global security.”
In a post on X, he wrote, “The urgent task is to restore international law and build upon it to give diplomacy the foundation it needs to succeed.”
At the Shanghai Cooperation Organization summit on Monday in Tianjin, north of China, the leaders of Iran, China, and Russia met. Apparently, Russian President Vladimir Putin and Iranian President Masoud Pezeshkian met for a two-hour meeting.
home crises
Despite the Western deadline, no breakthrough has been made, and Israel and the US have been making threats of additional strikes on Iran ever since the 12-day conflict ended in June.
Tehran’s currency market’s negative reaction reflects concern about the potential effects of reinstated UN sanctions on a nation that has endured years of severe sanctions from Washington.
UN sanctions would only worsen Iran’s isolation from international markets and make it harder to sell oil or other exports given that Iran’s inflation rate is still above 35 percent, one of the highest in the world.
Iran is also grappling with numerous domestic issues as external pressure mounts, in addition to decades of mismanagement and sanctions.
As a result of years of ageing and ineffective infrastructure, Tehran, as well as other cities, towns, and villages across the nation, have been experiencing daily power outages for months. Citizens have been frustrated by the interruptions, which also add insult to injury to industries that have been harmed by the sanctions.
The bustling capital city and other large areas of Iran are also dealing with a water crisis as a result of ongoing mismanagement and excessive use of water resources, as well as the growing droughts that have become more and more severe in recent years.
Internet speeds have been significantly slower and patchier than usual since Israel’s 12-day war ended, and the state has continued to block the majority of its websites and apps internationally.
