Iran Imposes Travel Restrictions as Virus Deaths Hit Record

Iran on Sunday said it will restrict travel to the cities hit hardest by the novel coronavirus, state TV said, amid a record high of daily COVID-19 deaths.

The measure takes effect at Monday midday and will last until Friday, the broadcaster reported, citing an order by the interior ministry.

The restrictions prevent residents from leaving and non-residents from entering based on vehicle plate numbers, but do not apply to public transportation, it added.

It applies to the capitals of 25 provinces considered "red"—the highest level on Iran's colour-coded risk scale—and includes the capital Tehran with more than 8 million residents.

Violators will be fined, the order added.

Limited restrictive measures were imposed on Saturday in those cities, forcing the closure of some public spaces and businesses.

Daily deaths reached a record 434 on Sunday, health ministry spokeswoman Sima Sadat Lari said, adding that 7,719 more people tested positive for the virus in the past 24 hours.

In total, 35,298 people have died from coronavirus, according to official figures.

The rising toll has prompted several health experts and officials to call for a full lockdown in the capital.

Photo: IRNA

Iran Reports Highest Virus Cases for Nearly a Month

Iran on Sunday reported its highest single-day novel coronavirus infection count in nearly a month, warning that most of its provinces have been hit by a resurgence of the disease.

Iran has been battling the Middle East's deadliest outbreak of COVID-19 since late February.

After a lull in deaths and infections from April to May, it now appears that the provinces first hit, including the holy city of Qom, are back in the same place as figures have been on the rise.

Health ministry spokeswoman Sima Sadat Lari said that 2,685 more people had tested positive for COVID-19 in the past 24 hours, the country's highest single-day count since July 8.

This raises total cases identified since late February to 309,437, she added.

Another 208 people also died during the same period, bringing the overall toll to 17,190.

According to Lari, the situation is "concerning" in 25 out of Iran's 31 provinces.

"Sadly, since late June, daily infections have been on a rising trajectory" in Qom in central Iran, she said.

"We are concerned that trivializing the situation and lax observance of health protocols may lead to a worsening of the outbreak in the province."

Lari warned against travel to Mazandaran, a popular northern tourist resort at the vanguard of the outbreak where daily infections had more than quadrupled in the past six weeks.

Official figures show a marked increase in deaths and infections since the end of June.

As a result, mask-wearing was made compulsory in covered areas and provinces were given powers to reimpose restrictive measures.

Iranian media said that renowned Iranian filmmaker Khosro Sinai, 79, had died from the virus on Saturday.

Celebrated and awarded in numerous Iranian and international festivals, Sinai was the latest high-profile figure to succumb to COVID-19 in Iran following several government officials and politicians.

Photo: IRNA

Iran Says Cannot Shut Down Economy Despite Worsening Virus Outbreak

Iran said on Saturday that it cannot afford to shut down its sanctions-hit economy, even as the country's novel coronavirus outbreak worsens with record-high death tolls and rising infections.

Iran must continue "economic, social and cultural activities while observing health protocols", President Hassan Rouhani said during a televised virus taskforce meeting. 

"The simplest solution is to close down all activities, (but) the next day, people would come out to protest the (resulting) chaos, hunger, hardship and pressure," he added.

The Islamic republic has been struggling since late February to contain the country's COVID-19 outbreak, the deadliest in the Middle East.

Health ministry spokeswoman Sima Sadat Lari reported Saturday that 188 people had died from the respiratory disease in the past 24 hours, raising the overall toll to 12,635.

Iran's daily COVID-19 death toll has topped 100 since around mid-June, with a record single-day tally of 221 reported on Thursday. 

Lari also raised the country's caseload to 255,117, with 2,397 new infections recorded.

The outbreak's rising toll has prompted authorities to make wearing masks mandatory in enclosed public spaces and to allow the hardest hit provinces to reimpose restrictive measures.

Iran closed schools, cancelled public events and banned movement between its 31 provinces in March, but Rouhani's government progressively lifted restrictions from April to reopen its sanctions-hit economy.

Iran has suffered a sharp economic downturn after US President Donald Trump withdrew from a landmark nuclear agreement in 2018 and reimposed crippling sanctions.

The International Monetary Fund predicts Iran's economy will shrink by six percent this year.

"It is not possible to keep businesses and economic activities shut down in the long-term," Rouhani said, emphasizing that "the people will not accept this.”

Health Minister Said Namaki warned on Wednesday of a potential "revolt over poverty" and blamed US sanctions for the government's "empty coffers.”

The reopening of the economy "was not over our ignorance (of the virus' dangers), but it was due to us being on our knees against an economy that could take no more", Namaki said on state television.

US sanctions targeted vital oil sales and banking relations, among other sectors, forcing Iran to rely on non-oil exports, which have dropped as borders were closed to stem the spread of the virus.

Photo: IRNA

Tehran Mayor Sees 'Threat' in Iranians' Dissatisfaction

By Amir Havasi

Iran's low voter turnout reflects a wider malaise in a country long buckling under sanctions and more recently also hit hard by the coronavirus, spelling "a threat for everyone," Tehran's mayor Pirouz Hanachi told AFP.

"The turnout at the ballot box is a sign of people's satisfaction level," said Hanachi, mayor of Iran's political and business centre and largest city, with more than eight million people.

"When there is dissatisfaction with the government or the state, it then reaches everyone and that includes the municipality too," he said in an interview on Tuesday.

Iran has suffered the double blow of a sharp economic downturn caused by US economic sanctions over its contested nuclear program, and the region's most deadly COVID-19 outbreak.

Reformists allied with moderate President Hassan Rouhani lost their parliamentary majority in a landslide conservative victory in February, in a major setback ahead of presidential elections next year.

Voter turnout hit a historic low of less than 43 percent in the February polls after thousands of reformist candidates were barred from running by the Islamic republic's powerful Guardian Council.

Such voter fatigue "can be a threat for everyone, not just reformists or conservatives," warned the mayor, a veteran public servant with a background in urban development who is tied to the reformist camp.

The conservative resurgence reflects dissatisfaction with the Rouhani camp that had sought reengagement with the west and the reward of economic benefits—hopes that were dashed when US President Donald Trump in 2018 pulled out of a landmark nuclear deal and reimposed crippling sanctions.

The International Monetary Fund predicts Iran's economy will shrink by six percent this year.

"We're doing our best, but our situation is not a normal one," Hanachi said. "We are under sanctions and in a tough economic situation."

As he spoke in his town hall office, the shouts of angry garbage truck drivers echoed from the street outside, complaining they had not received pay or pensions for months.

The mayor downplayed the small rally as the kind of event that could happen in "a municipality in any other country", adding that the men were employed not by the city itself but by contractors.

Shrinking Economy

Iran's fragile economy, increasingly cut off from international trade and deprived of crucial oil revenues, took another major blow when the novel coronavirus pandemic hit in late February.

Since then the outbreak has killed more than 12,000 people and infected over 248,000, with daily fatalities reaching a record of 200 early this week, according to official figures.

A temporary shutdown of the economy in recent months and closed borders sharply reduced non-oil exports, Iran's increasingly important lifeline.

This accelerated the plunge of the Iranian rial against the US dollar, threatening to further stoke an already high inflation rate.

In just one impact, said Hanachi, the Teheran municipality lost two trillion rial ($9 million) because of sharply reduced demand for public transport in recent months.

As many Tehran residents got back into their cars to avoid tightly-packed subways and buses, this has done nothing to help solve Tehran's long standing air pollution issue.

Tehran has had only 15 "clean" air quality days since the March 20 Persian New Year, according to the municipality.

One of Hanachi's tasks is to fight both the virus and air pollution—a tough juggling act as car travel is safer for individuals but also worsens the smog that often cloaks the capital.

The mayor said he worried that, after restrictions on car travel were reimposed in May to reduce air pollution, subways are once again packed during peak hours, as is the bustling city centre.

Tehran's Grand Bazaar, which is now crowded with shoppers, warned Hanachi, "can become a focal point for the epidemic." 

Photo: IRNA

Iranians Fearful as Virus Infections Rebound Amid Eased Lockdown

By Ahmad Parhizi

While many people in Iran's capital are taking advantage of loosened COVID-19 controls, some worry about a new spike in infections in what remains the Middle East's deadliest virus epicenter.

"The line of fools," muttered shopkeeper Manouchehr, peering disdainfully at a queue of customers outside a foreign currency dealer in the Sadeghieh district of western Tehran.

Many in the long line stood close to one another and did not wear masks.

A traffic policeman told AFP such queues have appeared regularly ever since the money changers re-opened. People rarely observe basic anti-contagion protocols, he complained.

The government began paring back coronavirus controls outside Tehran a month ago, arguing that the economy—already sagging under punitive US sanctions—needed to get back to bare bones operations.

It allowed small businesses to reopen in the capital a week later, before permitting malls to welcome customers on April 21 and barbers on Wednesday.

At 802, declared daily infections in Iran on May 2 had reached their lowest level since early March.

But this critical daily number has since begun resurging, breaching 1,500 on Saturday and, the following day, taking the total number of confirmed infections beyond 107,000.

"The situation should in no way be considered normal," said health ministry spokesman Kianoush Jahanpour, who warned of "a critical situation" in parts of the country.

In the capital, a member of the virus taskforce warned that current health protocols could not contain the spread of the illness in Tehran.

"With businesses reopening, people have forgotten about the protocols," Ali Maher told ISNA news agency, adding that "maybe it was too soon" to return to normal life.

‘Endangering Our Lives'

The capital's streets, bazaars and malls are now bustling after being nearly deserted for weeks.

Milad, a shopkeeper in a mall, was conflicted about the easing of movement restrictions.

"All these customers coming in will endanger our lives—us who are forced to come" to work, he said.

The mall gets very busy in the evenings, noted the 22-year-old, who did not wear any protective equipment.

The COVID-19 respiratory disease has killed 6,640 people in Iran since the first two fatalities were reported in the city of Qom on February 19, according to authorities.

Deputy Health Minister Iraj Harirchi has called Tehran the country's "Achilles heel" in the fight against the virus.

Its eight million residents are densely packed together and the capital is a magnet for hundreds of thousands of workers from other provinces.

The government moved to ease restrictions even as Tehran remained at red, the top level of its colour coded risk scale.

Schools, universities, cinemas and stadiums remain closed for now.

‘Life Costs Money'

"People being careful made infections drop, but as soon as the disease was deemed less of a concern, we saw cases grow," said Masoud Mardani, an infectious disease expert at the health ministry.

The rise is "partly due to the reopening and people going out shopping," he told the semi-official ISNA news agency, while also citing an increase in travel in Tehran province.

Health officials have vowed to re-impose stringent measures if cases continue to climb, and have already done so in the southwestern Khuzestan province.

But many Iranians remain adamant that they have to work to avoid financial ruin.

"Life costs money," said Hamed. "People have to go to work since this virus has been with us for about three months now."

The 22-year-old was among those out on the streets without a mask, deeming such protection "largely ineffective".

He had travelled over 150 kilometres (90 miles) from Qom to Tehran for banking business for the private firm that employs him.

It is a trip he has to undertake every few days and says he cannot refuse for fear of losing his job.

A few streets away, pedestrians were shopping for fresh vegetables and dried fruit—mostly women or older men, but this time, mainly in masks.

"I think maybe only half the people follow health protocols" across the capital, said Zahra, a 30-year-old accountant.

"Either people don't care or don't have the patience" to wear a mask, she said.

Mohammad, a former building contractor, complained that masks were expensive and in short supply.

A disposable surgical mask can cost from 49,000 rials (30 US cents, using the unofficial rate) to 10 or 15 times that amount for the better quality durable coverings.

"They should have given them to people for free," said the mask-less 58-year-old.

But Mohammad's biggest gripe was overcrowding on buses, where red crosses marked on half of the seats to ensure social distancing are routinely ignored.

Photo: IRNA

Iran Says Virus Deaths Rise by 87 to 5,118

Iran on Sunday announced 87 new deaths from the novel coronavirus in the past 24 hours, raising the official toll to 5,118, as it takes steps to reopen the economy.

It is the sixth consecutive day that Iran has announced a death toll under 100, though Sunday's toll was 14 higher than the day before.

Health ministry spokesman Kianoush Jahanpour said 1,343 new infections had been confirmed, taking the total to 82,211.

Of those admitted to hospital, 57,023 have recovered and been discharged, while 3,456 remain in critical condition.

Iran has struggled to contain what is the Middle East's deadliest COVID-19 outbreak since reporting its first cases on February 19.

Some officials and health experts in Iran and abroad have said the country's casualty figures may be higher than those declared. 

On Saturday, Iran allowed some "low-risk" businesses in the capital Tehran to reopen, after approving similar measures in other provinces last week.

"Medium-risk" businesses could reopen Monday, President Hassan Rouhani said on Sunday after a meeting of the national coronavirus taskforce. 

He did not elaborate on the types of businesses considered "medium risk" or whether the measure covered the whole country, but said those businesses would have to close by 6 pm. 

In a bid to halt the spread of the coronavirus, Iran had ordered the closure of non-essential businesses and imposed inter-city travel bans, but refrained from imposing an official lockdown.

The reopening of the economy has drawn criticism from health experts and even some government officials.

Photo: IRNA

Iran Vows to Protect People From Virus Economic Impact

By Ahmad Parhizi

Iran vowed Monday to protect its people from the economic impact of the novel coronavirus as the official death toll in the Middle East's worst-hit country passed 4,500.

The government of President Hassan Rouhani has struggled to contain the outbreak since it announced the country's first COVID-19 cases nearly two months ago.

It shut schools and universities, postponed major events and imposed a range of other restrictions, but it has stopped short of ordering lockdowns.

The government stressed the importance of striking a balance between the measures aimed at curbing the spread of the virus and getting the economy back on track.

The objective was to protect "the health and lives of the population from the coronavirus and its economic and social consequences", said government spokesman Ali Rabiei.

"Intelligent (social) distancing has the same objective... we must ensure the health of society while preserving the social and economic life" of the country, said Rabiei.

"The priority will always be given to health policies," he told a televised news conference.

Rouhani announced last week that "low-risk" businesses would be allowed to reopen in order to protect Iran's sanctions-hit economy.

The move took effect on Saturday outside Tehran and it is set to be implemented in the capital a week later.

Uptick in Traffic

And while the restrictions remain in place in Tehran, there has been a noticable uptick in the flow of traffic in the city this working week.

On Monday, motorists drove past newly erected billboards paying tribute to doctors and nurses who have been on the front line of Iran's COVID-19 battle.

The president on Monday cautioned against neglecting the containment measures, however.

"The implementation of health protocols should continue in a strong and forceful manner," Rouhani said.

The health ministry on Monday announced another 111 coronavirus deaths and 1,617 new infections, bringing the official totals to 4,585 and 73,303, respectively.

But ministry spokesman Kianoush Jahanpour said the number of coronavirus infections was stabilising and that 45,983 patients had recovered.

"The trend of relatively stable and decreasing new cases of contamination, which has been observed in recent days, has also continued over the past 24 hours," said Jahanpour.

"People must always continue to avoid unnecessary travel," he said, in order to stop the spread of the virus that causes the COVID-19 disease.

Iran announced its first COVID-19 cases on February 19—the deaths of two people in the Shiite holy city of Qom.

But there has been speculation abroad that the real toll from the disease in the Islamic republic could be higher.

Photo: IRNA

Iran to Restart 'Low-Risk' Economic Activities Soon

Iran said Sunday it will allow "low-risk" economic activities to resume from April 11 as its daily coronavirus infection rates slowed for a fifth straight day.

"Restarting these activities does not mean we have abandoned the principle of staying at home," President Hassan Rouhani said at a meeting of Iran's anti-coronavirus task force.

The president, whose country has been battered by US economic sanctions, did not specify what qualified as "low risk" activities, but said bans would remain on schools and large gatherings.

A "gradual" return of "low-risk" economic activity will be permitted from next Saturday in the provinces and from April 18 in Tehran, Rouhani said.

The novel coronavirus pandemic claimed another 151 lives over the past 24 hours in Iran, raising the Islamic republic's declared death toll to 3,603, health ministry spokesman Kianoush Jahanpour said Sunday at his daily press briefing.

He also reported 2,483 new cases of COVID-19 infection, the fifth straight day of declining numbers, compared to a record number of 3,111 infections on March 31.

Iran, the Middle East country worst affected by the pandemic, which originated in China, has reported 58,226 infections, a figure which some foreign experts suspect is an underestimate.

After resisting a lockdown or quarantine measures, Iran imposed an intercity travel ban late last month.

Saturday should have marked a return to regular activity in Iran after a two-week holiday for the Persian New Year.

Jahanpour at his briefing criticised "those who think that the situation is normal now that the holidays are over, because it is not normal".

While some people in Tehran told AFP they were reassured by the government's response, others remained fearful.

"There have been a lot of people out on the streets the last two days. It's terrifying," a housewife, Zohreh, told AFP.

But Zahra Zanjani, another housewife, said she believed the situation was under control.

"People are very respectful" of instructions from authorities, "and are taking great care," she said.

A retiree named Amir worried about the economic impact of the pandemic.

"People still have expenses to pay," he said.

"They can't stay at home. The government needs to support them financially."

In Isfahan, Iran's third largest city and tourism capital, 35-year-old teacher Samira said large numbers of people were ignoring advice to stay home.

"I passed by two parks and saw 25 to 30 people in each," she said.

"Public gardens are supposed to remain closed."

Photo: IRNA

Iran Asks IMF for First Loan in Decades to Combat Virus

Iran said on Thursday that it has sought immediate financial assistance from the International Monetary Fund to help it combat one of the world's deadliest coronavirus outbreaks.

According to a tweet by Iran's top diplomat, IMF chief Kristina Georgieva had "stated that countries affected by #COVID19 will be supported via Rapid Financial Instrument (RFI)".

"Our central bank requested access to this facility immediately," Foreign Minister Mohammad Javad Zarif added on his Twitter account.

Iran has not received assistance from the IMF since a "standby credit" issued between 1960 and 1962, according to the fund's data.

Zarif said the IMF and its board "should adhere to fund's mandate, stand on right side of history and act responsibly".

The various loans that can be granted by the IMF must be approved by the institution's executive board, where the United States practically has a veto on decisions.

The United States is currently pursuing a policy of "maximum pressure" aimed at crippling the finances of Iran's government.

In an Instagram post picked up by state news agency IRNA, central bank governor Abdolnasser Hemmati claimed to have formally requested access to RFI by letter on March 6.

"Given the widespread prevalence of coronavirus in our country and the need to continue to take strong measures to prevent and cure (the disease), and to address its economic impact," Iran was asking for "about $5 billion" in assistance, Hemmati wrote on his Instagram account.

Iran on Thursday reported 75 new deaths from COVID-19, the highest single-day toll since the Islamic republic announced the first deaths from the outbreak on February 19.

It took the overall death toll to 429 out of a total of more than 10,000 confirmed cases of infection.

The World Health Organization called for Iran to be given more support in its fight to bring the outbreak under control.

"Iran is doing its best... We are trying to mobilise more support for Iran," WHO chief Tedros Adhanom Ghebreyesus told reporters in Geneva, adding that the country needed more supplies.

According to the IMF's website, the RFI "provides rapid financial assistance, which is available to all member countries facing an urgent balance of payments need."

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Iranians Feel Strain of Turmoil and Sanctions

By Lucie Peytermann

On a crisp winter's day the snow glistens on the mountains above Tehran, but the mood is as heavy as the pall of pollution that often shrouds Iran's capital.

In a country weighed down by sanctions, shaken by protests and stressed by military tensions with the United States, many Tehranis struggle to hide their pessimism.

"Life is really hard right now. The situation here is unpredictable," said Rana, a 20-year-old biology student walking in the upmarket district of Tajrish.

It is a part of the city where young women subtly thwart the Islamic republic's conservative dress codes, opting for short coats, stylish make-up and scarves revealing ever more hair.

But, despite such relative liberties, Rana said she feels trapped.

"The quality of life isn't good at all—we have pollution, angry people, high prices," she said, pointing also to a "huge class gap" and Iran's deepening "isolation".

Iran's economy has been battered since US President Donald Trump in 2018 abandoned an international nuclear deal and reimposed sanctions and a "maximum pressure" campaign.

When Iran hiked petrol prices in November, nationwide protests erupted and turned violent before security forces put them down amid a near-total internet blackout.

Tensions with Washington escalated in early January when a US drone strike killed powerful Iranian general Qassem Soleimani in Baghdad.

Iran retaliated by targeting US forces but then accidentally shot down a Ukrainian airliner, killing all 176 people on board, in a tragedy that sparked anger at home and abroad.

Rana said she still feels "sad" about the disaster that claimed the lives of many young people who had left Iran to study abroad.

‘Angry with Trump'

One young Iranian who has chosen to stay in her country is Pegah Golami, a 25-year-old engineer who was shopping three days ahead of her wedding.

"The country's economic condition is now really difficult, especially for youths," she said, dressed in a chic coat and suede boots.

"I feel very bad... my friends have decided to leave. But I, as an Iranian, decided to stay and build my country."

The strains of a violin filled the air as a busker tried to make himself heard above the noise of the heavy traffic.

It is increasingly difficult to make a living, said Bahram Sobhani, a 47-year-old electrician who was unshaven, nervous and almost completely toothless.

"It's a little difficult to find work these days, but it is out there," he said.

"The sanctions have of course affected us, but we have to tolerate it because we can't do anything else. We live in Iran, not somewhere else."

The economic situation is also hurting Mohammadreza Khademi, vice-president of the Delham Tabesh company that sells smart technology devices from Italy for luxury homes.

His company took a hit after the renewed sanctions trippled costs, forcing it to lay off 20 of its 30 employees.

"The end of 2018 was awful and all of 2019 was not good at all," said Mohammadreza.

"I will continue to run my business. I will try to have that line of production in Iran locally, but it is super difficult to change," he said, adding that "I am angry with Mr Trump".

'We Feel Hopeless'

If the mood is glum in Tehran's middle and upper class districts, it's even worse in the poorer areas of the sprawling city of eight million people.

In the southern district of Molavi, a melange of architectural styles gives way to a maze of alleyways and shops where craftsmen practice time-honoured trades.

Only a few women are seen on the streets, most of them dressed in chadors and many carrying freshly baked flatbread.

Mehdi Golzadeh, a businessman who imports goods from Asia, looked exhausted as he walked out of a grocery store.

"Living in Iran has become very hard. With this economic situation, one can't import anything, and Iran doesn't have the materials" needed to make such products, he said.

"I am single... One can't start a family on this meagre income. We feel hopeless."

Akbar Gharibvand, a 50-year-old shop-owner and father of five, said his income is "just enough to eat and survive".

"These sanctions of course do affect things... It's the lower class that has come under pressure."

But, despite the hardships, he said Iran "is not a bad country" and that he considers himself lucky compared with people living in strife-torn neighboring nations.

"We aren't like Iraq, Afghanistan or Pakistan, or other countries where there are killings every day," he said.

"We are better off because we have security."

Photo: IRNA

Iran Unveils Budget of 'Resistance' Against US Sanctions

Iran's President Hassan Rouhani announced Sunday what he called a "budget of resistance" to counter crippling US sanctions, weeks after a fuel price hike sparked nationwide protests that turned deadly.

Rouhani said the aim was to reduce "hardships" as the Islamic republic has suffered a sharp economic downturn, with a plummeting currency sending inflation skyrocketing and hiking import prices.

The US sanctions imposed in May last year in a bitter dispute center on Iran's nuclear program include an embargo on the crucial oil sector whose sales Washington aims to reduce to zero in a campaign of "maximum pressure.”

Rouhani told parliament that the budget, which includes a 15 percent public sector wage hike, "is a budget of resistance and perseverance against sanctions".

It would "announce to the world that despite sanctions we will manage the country, especially in terms of oil," he added.

Rouhani said the 4,845 trillion rial ($36 billion at the current street rate) budget was devised to help Iran's people overcome difficulty.

It would benefit from a $5 billion "investment" from Russia which was still being finalised, he said, without giving further details.

"We know that under the situation of sanctions and pressure, people are in hardship. We know people's purchasing power has declined," said Rouhani.

"Our exports, our imports, the transfer of money, our foreign exchange encounter a lot of problems.

"We all know that we encounter problems in exporting oil. Yet at the same time, we endeavour to reduce the difficulty of people's livelihood."

Rouhani said that despite the US sanctions his government estimated that Iran's non-oil economy would "be positive" this year.

"Contrary to what the Americans thought, that with the pressure of sanctions our country's economy would encounter problems, thank God we have chosen the correct path... and we are moving forward," he said.

The budget announcement comes after fuel price hikes Iran announced in mid-November triggered deadly demonstrations across the country.

Officials in Iran have yet to give an overall death toll for the unrest in which petrol pumps and police stations were torched and shops looted.

London-based human rights group Amnesty International said at least 208 people were killed in the crackdown, but Iran has dismissed such figures as "utter lies".

'Reducing Hardships'

US President Donald Trump began imposing punitive measures in May 2018, after unilaterally withdrawing from an accord that gave Iran relief from sanctions in return for limits on its nuclear program.

The United States has continued to ramp up its sanctions this year as part of a stated campaign of "maximum pressure" against the Islamic republic.

Iran's economy has been battered, with the International Monetary Fund forecasting it will contract by 9.5 percent this year.

The sharp downturn has seen the rial plummet and inflation running at more than 40 percent.

In his speech, Rouhani only touched on a few areas of the draft budget for the financial year starting late March 2020, which must be scrutinised and voted on by parliament.

"All our efforts are geared towards reducing these hardships to some extent so it can be more tolerable," he told deputies.

"I deem it necessary here to tell the honourable representatives that the criteria of our budget is still based on maximum pressure and continuation of America's sanctions," he said.

"This does not mean that the government will not take other steps, but at the same time this is our criteria and based on this criteria we have devised and executed the budget."

The budget comes ahead of parliamentary elections in February.

Photo: IRNA

Iran for First Time Acknowledges Protesters Were Shot Dead

By Yasna Haghdoost

Iran for the first time acknowledged that its security forces shot and killed protesters last month during one of the most violent crackdowns on dissent since the 1979 Islamic revolution.

State television on Tuesday reported that “rioters” had been shot dead in several areas as they joined anti-government protests, including in Tehran, the capital, and Mahshahr in the country’s southwest. The latter has a sizable Arab population, and the report claimed security forces clashed with a separatist group there.

The Islamic Revolutionary Guard Corps said on Saturday that it was investigating reports that its forces had targeted and shot protesters, the semi-official Iranian Labour News Agency reported, citing Brigadier General Mohammadreza Yazdi.

Separately, official figures showed 300 protesters remain in custody in Tehran. Judiciary spokesman Gholam Hossein Esmaeili said most of those arrested during the unrest had been freed, and that the demonstrations have died down.

Iran was rocked by protests in November after the government increased gasoline prices by as much as 300% and introduced rationing as the economy struggles under crippling U.S. sanctions meant to curtail Iranian influence in the Middle East and weaken its leadership.

The International Monetary Fund expects Iran’s recession to deepen this year, with gross domestic product contracting 9.5%.

The unrest soon took a broader anti-establishment turn and authorities responded with a swift crackdown, severing access to most of the internet in a move that made it difficult to track the demonstrations and the government response.

On Tuesday, President Donald Trump, who reimposed the sweeping penalties on Iran’s crucial oil exports, urged the world to take a closer look at the security operation. “The word is that thousands of people are being killed that are protesting. Not just small numbers,” he said in London, where he’s attending a NATO summit.

According to the London-based Amnesty International rights group at least 208 people have died. New York-based Human Rights Watch estimated that up to 7,000 people were arrested.

Iranian officials have put the death toll much lower.

Photo: IRNA

Six European Countries Join INSTEX Mechanism for Iran Trade

Paris, London and Berlin on Saturday welcomed six new European countries to the INSTEX mechanism, which is designed to mitigate the effects of US sanctions on European trade with Iran.

"As founding shareholders of the Instrument in Support of Trade Exchanges (INSTEX), France, Germany and the United Kingdom warmly welcome the decision taken by the governments of Belgium, Denmark, Finland, the Netherlands, Norway and Sweden, to join INSTEX as shareholders," the three said in a joint statement.

The Paris-based INSTEX offers a netting service enabling companies to avoid cross-border financial transactions between the European and Iranian financial systems.

The system has not yet enabled any transactions.

Washington in 2018 unilaterally withdrew from the international agreement governing Iran's nuclear programme and reinstated heavy sanctions against Tehran.

The accession of the six new members "further strengthens INSTEX and demonstrates European efforts to facilitate legitimate trade between Europe and Iran", France, Germany and Britain said.

It represents "a clear expression of our continuing commitment to the Joint Comprehensive Plan of Action"—the 2015 Iranian nuclear deal—the trio added.

They insisted Iran must return to full compliance with its commitments under the deal "without delay.”

"We remain fully committed to pursuing our efforts towards a diplomatic resolution within the framework of the JCPOA."

The 2015 deal set out the terms under which Iran would restrict its nuclear program to civilian use in exchange for the lifting of Western sanctions.

Since the US pullout, Iran has taken four steps back from the accord.

The latest was on November 4 when its engineers began feeding uranium hexafluoride gas into mothballed enrichment centrifuges at the underground Fordow plant south of Tehran.

Photo: IRNA

Iran Official Points to More Open Elections

By Marc Jourdier

A senior Iranian official has suggested in an interview with AFP that authorities may be more open than in the past in approving candidates for a looming parliamentary election.

"We don't consider ourselves immune from criticism. We may also accept that mistakes have been made in the past," said Guardian Council spokesman Abbas Ali Kadkhodaee.

"But for the next legislative elections we are trying to reduce our mistakes and respect the rights of candidates."

Kadkhodaee was speaking to AFP on the eve of the opening on Sunday of the registration of candidates for the parliamentary election to be held on February 21.

The Guardian Council, which is under the control of ultra-conservatives, is responsible for organising and monitoring elections in Iran, including vetting candidates.

"If we insist on enforcing the law, we'll be able to satisfy as many candidates as possible," said Kadkhodaee.

In past elections, the council has faced accusations in Iran, particularly by reformists, of barring candidates more on political than constitutional grounds.

In November, President Hassan Rouhani, a moderate conservative, called on the council to stick to the letter of the law in view of the forthcoming election.

At Iran's last parliamentary election in February 2016, the council authorized 6,229 candidates for the 290 seats at stake—just over 51 percent of those who sought to stand.

In the interview, Kadkhodaee said a higher number of successful candidates should also lead to a "higher participation rate".

The opening of the registration period, which runs until Saturday, comes two weeks after around 100 cities and towns in sanctions-hit Iran saw protests against a shock fuel price hike that turned violent.

Authorities say they have restored calm after "rioting" backed by enemies of the Islamic republic, including the United States, Israel and Saudi Arabia.

London-based human rights group Amnesty International said 161 demonstrators were killed in a crackdown.

'Unjust Economic Sanctions'

But Iran's deputy interior minister, Jamal Orf, said such figures were "exaggerated", in remarks published on Saturday by state news agency IRNA.

For Kadkhodaee, the unrest was not a sign of the rejection of the political system of the Islamic republic.

The people would "continue to support the country despite the difficulties, as they have patiently endured the unjust economic sanctions imposed by Western countries," he said.

They would "continue to support the Iranian political system", he added.

Iran's economy has been battered since last year when the United States withdrew from a landmark 2015 nuclear deal and began reimposing crippling sanctions.

The International Monetary Fund expects the country's economy to shrink by 9.5 percent this year.

"Sometimes the participation rate can be low when the people are not happy with the country's economic situation," said Kadkhodaee.

"But we are sure that we will have a good participation rate, even if it is lower than it may have been in the past," said the Guardian Council spokesman.

"Generally in Iran, the participation rate is between 50 and 70 percent, depending on the economic and social situation in the country," he told AFP.

"Even if the turnout is low, it does not endanger the Iranian political system. We know that there are ups and downs depending on elections.

"Personally I expect and hope that the rate will be higher than 50 percent."

Photo IRNA

Rouhani Warns Protest-Hit Iran Cannot Allow 'Insecurity'

By Amir Havasi

IPresident Hassan Rouhani warned Sunday that riot-hit Iran could not allow "insecurity" after two days of unrest killed two people and saw authorities arrest dozens and restrict internet access.

"Protesting is the people's right, but protesting is different from rioting. We should not allow insecurity in the society," he said.

Rouhani defended the controversial petrol price hike that triggered the protests -- a project which the government says will finance social welfare spending amid a sharp economic downturn.

The unrest erupted on Friday, hours after it was announced the price of petrol would rise to 15,000 rials per litre (12 US cents) from 10,000 for the first 60 litres, and to 30,000 rials for any extra fuel bought after that each month.

It is a rise many consumers can ill afford, given that Iran's economy has been battered since May last year when President Donald Trump unilaterally withdrew the US from a 2015 nuclear agreement and reimposed crippling sanctions.

The rial has plummeted, inflation is running at more than 40 percent and the International Monetary Fund expects Iran's economy to contract by 9.5 percent this year and stagnate in 2020.

The petrol plan is expected to generate 300 trillion rials ($2.55 billion) per annum, from which the government says about 60 million needy would receive payments.

"For this... we should either increase taxes on the people, export more oil... or reduce subsidies and return the revenues to the people in need," said Rouhani.

‘Centers of Wickedness’

Iran's supreme leader Ayatollah Ali Khamenei said "some lost their lives" in the violence and blamed "hooligans".

"All the centres of the world's wickedness against us have cheered" the street protests, he said.

The latest death was a policeman shot in a clash with "rioters" in the western city of Kermanhshah.

Several people were also wounded and dozens arrested in the demonstrations that saw motorists block highways and others torch public property.

A 24-hour internet blackout appeared to have stemmed the flow of images shared on social media, with only officials' accounts and local news agencies still active.

Semi-official news agency ISNA said the protests had "mostly subsided" by Sunday evening, a report that could not be verified due to the online outage and limited news from agencies.

The petrol pricing plan was agreed by the High Council of Economic Coordination made up of the president, parliament speaker and judiciary chief.

Khamenei said that "I am not an expert and there are different opinions but I had said that if the heads of the three branches make a decision I will support it.

"Some people would definitely get upset over this decision... but damaging and setting fire (to property) is not something (normal) people would do. It is hooligans."

Following his speech, parliament cancelled a motion to reverse the price hike, semi-official news agency ISNA reported.

A lawmaker resigned Sunday to protest the decision which circumvented parliament, saying the presence of MPs was now "meaningless".

Internet Blocked

Access to the internet was restricted a day after the demonstrations broke out.

Netblocks, an internet monitoring website, tweeted Saturday that "Iran is now in the midst of a near-total national internet shutdown".

It came after a decision by the Supreme National Security Council, according to ISNA.

"Upon the decision of the Security Council of Iran and communicated to internet operators, access to internet has been limited as of last night and for 24 hours," it said, quoting an informed source at the information and communications technology ministry.

Some of the worst violence seen so far was in the central city of Sirjan, where acting governor Mohammad Mahmoudabadi said a civilian was killed and fuel stations were among the public property attacked and damaged.

In Kermanshah, a policeman died Sunday, a day after a "confrontation with a number of rioters and thugs," the provincial police chief told IRNA.

In Tehran on Saturday, protesters were seen burning tyres on a street and shouting slogans.

Similar scenes were witnessed in the cities of Shiraz, Isfahan and Bushehr, where security forces fired tear gas and water cannon at demonstrators.

Forty "disruptors" were arrested in the central city of Yazd after clashing with police, the province's public prosecutor told ISNA on Sunday. Most were not locals, he added.

Police said security forces would "not hesitate to confront those disrupting peace and security and will identify the ringleaders and field forces and confront them".

The intelligence ministry said those behind the unrest "have been identified" and that measures would be taken against them, according to ISNA.

Photo: IRNA

IMF Sharply Cuts Iran, Saudi Growth Forecasts

By Omar Hassan

The International Monetary Fund on Tuesday sharply downgraded growth projections for Saudi Arabia and Iran, the two largest Mideast economies, citing the impact of US sanctions, geopolitical tensions and low oil prices.

In its World Economic Outlook, the global lender cut forecasts for almost all countries in the Middle East and North Africa (MENA) as the region is buffeted by biting sanctions on Iran and nail-biting anxiety over last month's attacks on Saudi oil facilities.

The IMF said Iran's economy will contract by a massive 9.5 percent this year, its worst performance since 1984 when the Islamic republic was at war with neighboring Iraq.

The figure is 3.5 percentage points lower than the IMF's April projections, reflecting a rapid deterioration in Tehran's economy after the US implemented tighter sanctions on its oil exports, the nation's main source of income.

This is the second year in a row that Iran's economy is mired in recession, after it shrank by 4.8 percent in 2018.

Iran has "been or continues to be experiencing very severe macroeconomic distress," the IMF said, adding that growth in 2020 will be flat.

The forecast for Saudi Arabia, the region's largest economy, was also cut to just 0.2 percent for 2019, a substantial 1.6 percentage points lower than April's projections.

The outlook is the worst since 2017 when the kingdom's economy contracted by 0.7 percent.

But the IMF raised its Saudi growth forecast for next year to 2.2 percent, slightly above April's projections, on expectations that the non-oil sectors will strengthen following subsidy reforms.

The oil giant has substantially cut power and fuel subsidies as well as imposed fees on expatriate visas and a five-percent value added tax as part of a reform programme to decrease its dependence on oil.

Fitch Ratings in September downgraded Saudi Arabia's credit rating by one notch following the devastating attacks on key oil facilities that knocked out half its production -- a strike that has been blamed on Iran.

Gloomy Regional Outlook

The IMF also cut its forecast for MENA growth to a meagre 0.1 percent this year, 1.2 percentage points lower than April projections, reflecting weakening economies in a region rattled by conflict.

The cut to MENA growth is "largely due to the downward forecast revision for Iran and Saudi Arabia," it said.

"Civil strife in some other economies, including Libya, Syria, and Yemen, weigh on the region's outlook."

The global lender said that the price of oil and gas, the main source of income for the region, dropped 13 percent between April and October and that oil prices will continue to decline until 2023.

It said the September 14 attacks on Saudi oil facilities have stoked tension and uncertainty in the region, especially following tanker attacks in the strategic Strait of Hormuz through which 20 percent of oil trade passes.

Growth projections for the United Arab Emirates, the most diversified economy in the region, was cut sharply to 1.6 percent from 2.8 percent in April, due to weak oil growth in Abu Dhabi and a general slowdown in Dubai.

The IMF also cut forecasts for other hydrocarbon exporters Qatar, Kuwait and Oman but raised the outlook for Iraq, the region's second largest crude exporter, following a 0.6 percent contraction last year.

Photo: IRNA

IMF Sees Risk of 50% Iran Inflation on More U.S. Sanctions

Tighter U.S. sanctions against Iran could fuel inflation to the highest level since 1980, according to the International Monetary Fund, as the Islamic Republic’s economy grapples with a weakening currency and tighter U.S. sanctions on oil exports.

Consumer prices could average 50 percent higher this year after the U.S. moved last week to end sanctions waivers granted to a handful of countries buying Iranian oil, said Jihad Azour, head of the IMF Middle East and Central Asia department. Before the announcement, the Washington-based lender had expected inflation to average 37 percent.

The U.S. decision aims to slash Iranian oil exports to zero, starving the government of essential revenue as Trump seeks to curb the Islamic Republic’s political influence in the Middle East. The grim outlook would put Iran’s inflation on par with crisis-hit Sudan and only behind Venezuela and Zimbabwe, two countries caught up in political turmoil, IMF data show.

Even before the removal of the waivers, the exchange rate had lost two-thirds of its value and “the economy was expected to go into a second year of recession,” Azour said in an interview on Sunday in Dubai. While it’s hard to tell how high prices could surge, “it’s clear that the situation is expected to deteriorate,” he said.

Forecasts released before the U.S. decision show Iran’s gross domestic product set to contract 6 percent this year from 4 percent in 2018 before a marginal recovery in 2020. The oil price needed to help the country balance its budget was forecast to rise to $125.6 a barrel from $113.8 in 2018 and $64.8 the previous year. Brent crude prices closed at $72.15 a barrel on Friday.

European powers that signed the 2015 nuclear accord with the Islamic Republic have criticized the U.S. actions. Officials in Tehran said reducing oil exports to zero was impossible.

Azour said Iranian authorities should take steps to alleviate the economic pain in the short term, including bringing the official exchange rate in line with market forces and address weaknesses in the financial system by complying with anti-money laundering and terrorism financing laws.

Authorities also need to “fix or expand their social protection mechanisms to address the additional vulnerabilities” for the poor, he said.

Photo: Bloomberg

IMF Sees Deeper Iran Recession Hitting Regional Growth

The International Monetary Fund on Tuesday worsened its forecast for Iran's recession as US sanctions bite, with Tehran's slump denting overall growth in the Middle East and North Africa. 

The global lender's World Economic Outlook projected Iran's economy will shrink by a massive 6.0 percent this year, its worst performance since it contracted by 7.7 percent in 2012.

The latest figure represented a sharp deterioration from October's prediction of a 3.6 percent contraction, as US sanctions batter the Islamic Republic's crucial oil sector. 

The report also estimated that Iran's economy, the second largest in the region behind Saudi Arabia, shrunk by 3.9 percent in 2018, as opposed to 1.5 percent projected earlier.

The prediction of deeper pain for Iran, lower oil growth and civil strife saw the IMF cut its overall forecast for the Middle East and North Africa to 1.3 percent, down 0.9 percent from January.

"The outlook for the region is weighed down by multiple factors, including slower oil GDP growth in Saudi Arabia... US sanctions in Iran and civil tensions and conflict across several other economies, including Iraq, Syria, and Yemen," the IMF said.

It maintained its projections for Saudi Arabia, saying the region's leading economy is expected to grow by a muted 1.8 percent this year and 2.1 percent in 2020.

The IMF said it expected the kingdom's growth, which reached 2.2 percent last year, to stabilize at a modest rate in the medium term due to the subdued outlook for oil prices and output. 

Overall the wider regional economy is projected to improve in 2020 to a healthy growth rate of 3.2 percent, the IMF said.

The international lender expects oil prices to average around $59 a barrel this year and next, down from its October projections of above $65 a barrel.

Photo Credit: Wikicommons

Iran FM Says Europe Incapable of Bypassing US Sanctions

Iranian Foreign Minister Javad Zarif said on Wednesday European powers were incapable of bypassing sanctions imposed on Tehran by the US after it withdrew from the Iran nuclear deal.

Iran and six world powers agreed on a deal in 2015 that severely restricted Tehran's nuclear activities in return for sanctions relief and economic incentives.

However President Donald Trump withdrew Washington from the deal—technically called the Joint Comprehensive Plan of Action (JCPOA)—last May, reimposing punishing sanctions on the Islamic republic.

The other parties to the nuclear deal—Britain, China, France, Germany and Russia along with the European Union—however insist they remain committed to making the deal work.  

"The Europeans at first viewed the JCPOA (nuclear deal) as an achievement, but maybe they were not prepared to, and certainly they were not capable of standing up against U.S sanctions," Zarif said in an interview with Khamenei.ir, the official website of Iran's Supreme Leader Ayatollah Ali Khamenei.

“We will continue pressing the Europeans to implement their commitments. Europe must know that they cannot shy away from their responsibilities with a few statements and some unaccomplished plans," he added.

Zarif, who was his country's chief negotiator in the negotiations leading to the deal, said that Iran would continue to pressure the Europeans to act on their obligations within the deal but added that "we never had any hopes" in them.

Instead of the western powers the Islamic republic has turned to its traditional partners such as Russia and China, Zarif said, adding "the future of our foreign policy lies in that way."

Photo Credit: IRNA

Iran Leader Calls Economy 'Urgent Problem'

Iran's supreme Leader Ayatollah Ali Khamenei called the economic difficulties of Iranians the main and most urgent problem of the country in a message aired Thursday on state TV.

Iran has faced increased economic hardship in the last 12 months which was aggravated after US President Donald Trump withdrew from the 2015 nuclear deal between Iran and world powers last May.

The renewal of American sanctions, which had been eased in exchange for curbs on Tehran's nuclear program, sent shockwaves through Iran's economy.

"Specially in recent months the difficulties for people's livelihoods has increased," Khamenei said in a prerecorded message aired to mark the beginning of the new Iranian year (21 March 2019 till 20 March 2010).

"The economy is the country's urgent problem, it's the country's (most) serious and primary problem," he added, mentioning the devaluation of the national currency, the drop in purchasing power and the fall in production as symptoms of the issue.

Khamenei said increasing production was the key to saving the economy and declared "national production" the motto of the new year.

The IMF reported that the Iranian economy slumped into recession in 2018 and has forecast a 3.6 percent decline in GDP for 2019.

Iran's President Hassan Rouhani also focused on the US sanctions in his new year message broadcast on state TV immediately after Khamenei's.

"Some might ask till when will these sanctions and problems go on... these problems began with the oath-breakers and those who have recently reached power in Washington, but the (key to the) end is in our hands," he said sitting in front of a row of Iranian flags.

“The more we are united, and the more the enemy realizes that with these sanctions our nation becomes more cohesive, the sooner they will despair and regret (sanctioning Iran)," Rouhani said calling on all branches of government, as well as the armed forces and Iranians from all walks of life, to put aside differences and share the burden of economic "problems and disorder.”

Rouhani had heavily counted on the 2015 nuclear deal to help save the floundering economy. 

But ever since the US withdrawal he has been under increasing criticism from his political opponents both for mismanagement of the economy as well as his perceived gullibility in trusting the US in the nuclear deal.

Photo Credit :IRNA