Iran's Zarif In Hot Water After Admitting He Misspoke Over Nuclear Text

More pundits and economists warn that the country cannot continue in this manner a few more months, with some openly saying that talks with the United States are an urgent matter, while others implicitly convey the same message.

Ali Bigdeli, a respected professor of politics in Tehran told Fararu website on Wednesday that Iran should avoid making new demands in talks with the West over its nuclear program. He was commenting about remarks by Foreign Minister Hossein Amir-Abdollahian who on October 2 told the state television that while in New York last month he had refused to meet with US officials demanding that Washington unfreeze $10 billion of Iran’s assets.

Bigdeli said the important issue is a return to the talks in Vienna, which Iran hass suspended since June. He added that $10 billion is a small issue compared with the much larger gain awaiting Tehran if it reaches a deal with the West.

Since 2018, US banking and oil export sanctions have left Iran with very little income in foreign currency, forcing the government to print money which has led to almost 50 percent annual inflation, and impoverished millions of people.

Bigdeli said that the United States and Europe appear to be ready for a deal and overall, Iran also seems to have moderated its demands. Otherwise, he said, the West will not make any new concessions. Even in current circumstances, he said, any deal would be based on a step-by-step approach of reducing sanctions in return for Iran to giving up its uranium enrichment and returning to the requirements of the Joint Comprehensive Plan of Action (JCPOA).

A financial analyst, Maysam Radpur told Khabar Online website said Iran’s Central Bank is no longer able to control the national currency. The US dollar has hit 280,000 rials, rising 20 percent since May and unlike in the past when the central bank had foreign currency reserves to have an impact on the market, now it can no longer play a role. She added that the Iranian rial will further lose its value.

In answer to whether a nuclear deal would help strengthen the Iranian currency, Radpur expressed doubt. She argued that when the 2015 nuclear agreement was reached, the rial gained just 10-15 percent, while there were much higher hopes about the effects of the deal at that time than there is now.

The financial analyst said she believes that in case of an agreement over the nuclear issue Iran would increase its crude oil exports and the central bank would be able to stabilize the rial, however, there is no expectation in the local market that the currency could recoup its losses.

The rial has fallen from around 35,000 to the dollar in 2017 to 280,000 now.

“A nuclear agreement can postpone the impact of long-term economic pressures, and even if the rial gains, it would only be a 10-20 percent uptick,” Radpur said.

Hossein Amir-Abdollahian is visiting Lebanon where he promised help to the economically ravaged country.

Iran and Saudi Arabia, the leading Shi'ite and Sunni Muslim powers in the Middle East, have been rivals for years, backing allies fighting proxy wars in Yemen, Syria and elsewhere. They cut diplomatic ties in 2016. Saudi Foreign Minister Prince Faisal bin Farhan confirmed on Sunday that his government had held its first round of direct talks with Iran's new government last month, part of a process begun earlier this year to reduce tensions.

Three rounds of Saudi-Iranian talks were held in Iraq in the months before Iran's new hardline president, Ebrahim Raisi, took office in August.

Prince Faisal said the latest round had taken place on September 21 but did not say where.

The United States and its European and Middle Eastern allies have called on Iran to change its policy of interference in regional countries as part of ongoing nuclear talks with Tehran.

News agencies of the two countries have so far reported few details of the meeting between Iran’s foreign minister and the president, who leads the mainly-Christian Free Patriotic Movement allied to Hezbollah.

On arrival at Beirut airport Thursday after wrapping up a two-day visit to Moscow, Amir-Abollahian told Iranian state television (IRIB) that Tehran Iran had "better and newer propositions for breaking Lebanon's economic siege."

He said his trip was “indicative of deep and friendly ties between the two countries, and we support Lebanon’s army, people, and resistance with a strong voice.”

The Iranian foreign minister also met with parliament speaker Nabih Berri, leader of the mainly Shia Amal party, and is scheduled to meet Prime Minister Najib Mikati, Foreign Minister Abdullah Bou Habib, and representatives of Palestinian groups.

On Monday Hezbollah Secretary-General Hassan Nasrallah said third and fourth consignments of fuel were on their way to Lebanon.

“Paperwork has been done for the dispatch of the third gasoline-laden ship from Iran,” he said in a speech. “The fourth ship will bear diesel and will be sent over subsequently.”

Lebanon faces chronic shortages of petrol and diesel – the latter used for electricity generation by hospitals, apartments and other buildings – as the Lebanese pound has collapsed against the dollar, plunging around 80 percent of the population into poverty.

The United States has been enforcing sanctions against Lebanon for more than a year to pressure the country to curb political and military influence of Hezbollah, which is well represented in the Lebanese parliament and allied to Tehran. These sanctions have compounded the country’s economic problems.

Iranian officials say fuel bound for Lebanon was purchased by Lebanese Shiite merchants but have not explained how payment – which would contravene US sanctions against Iran – might be made. Vessels from Iran deliver the fuel to Syria from where it is delivered to Lebanon by trucks.

A third tanker carrying fuel arrived in the Syrian port city of Baniyas Wednesday. The first convoy of fuel trucks entered Lebanon on September 16. It is not clear how much of the fuel has been transported to Lebanon by land so far for which thousands of trips are required.

On Tuesday Shabab Hezbollah, a pro-Hezbollah social media Twitter account, reported that a convoy of around 60 trucks, the tenth such convoy, had entered Lebanon from Syria.

The initiative, which Hezbollah said had broken an "American siege" irritated some factions in Lebanon that said the party had not sought the government's approval for importing fuel from Iran. Hezbollah's opponents accused the group of undermining state authority and exposing Lebanon to the risk of further US sanctions.

In recent weeks tensions have increased between the Islamic Republic and its northern neighbor Azerbaijan, with Iran accusing Baku of harboring Israeli and jihadist elements on its territory and attempting to change borders at the expense of Armenia.

General Rasul Sanaeirad, who is a deputy commander of the Islamic Revolution Guard Corps (IRGC) in charge of ideology said that Iran has been careful not to instigate conflicts and tensions over the years, but it had to conduct military drills last week to send a message.

Iran massed large number of troops and weapons near the Azerbaijani borders and held drills, citing exercises by Azerbaijan, Turkey and Pakistan near its borders.

Sanaeirad added that the military drills also send a message to “powers behind the scenes” who were instigating tensions. He did not name those countries.

He added, “Iran opposes any kind of geopolitical changes in the region and regards as important the security, territorial integrity and the rights of its neighbors.”

The South Korean news agency Yonhap issued a brief report on Robert Malley’s discussion with First Vice Foreign Minister Choi Jong-Kun but provided no details about how South Korea can help in the process of talks with Tehran.

Two South Korean banks hold $7 billion of Iran’s funds from the time when Seoul was purchasing oil from Tehran before full US sanctions on Iran’s crude exports were imposed in May 2019.

Iran has been hinting that the United States should release frozen Iranian funds before it returns to the talks. Iran’s Foreign Minister Hossein Amir-Abdollahian told Iranian state television on October 2 that he refused overtures to meet with US officials while he was attending the UN General Assembly in New York in September, asking that Washington should first unfreeze $10 billion.

It is not clear if Malley’s conversation with the South Korean diplomat was related to the issue of the frozen funds, or whether the US intends to release them to convince Iran to return to the Vienna negotiations. Malley asked for South Korea to play a “constructive” role in efforts to resume the negotiations.

However, Choi reiterated South Korea’s willingness to provide support necessary for the resumption of the nuclear talks "in consideration of the importance of Seoul-Tehran relations,” Yonhap quoted the foreign ministry as saying.

Iran left the Vienna multilateral nuclear talks aimed at restoring the 2015 nuclear deal, JCPOA, in June, saying its new president needed time to form a government, but has so far not set a date for its return.

The United States, the United Kingdom, France and Germany that have been negotiating with Iran since April have warned that time is running out for fruitful talks as Iran continues to enrich uranium and advances its nuclear program that would make the revival of the agreement impossible.

Washington and its European allies have said they will make no new concession to Tehran until it returns to the talks based on what has so far been offered by the West.