During his visit to Iraq, the Iranian president advocated for the formation of a European style borderless Islamic union while the very borders he suggests opening are hotbeds of smuggling and extremist infiltration.
Masoud Pezeshkian’s vision to remove borders between Islamic countries comes across as an unrealistic proposition in spite of framing it as a solution to strengthen ties among Islamic nations and counteract Western sanctions, mainly affecting Iran.
The Islamic president failed to acknowledge the intricate web of illegal activities that thrive at the borders. For years, Iran has been at the center of illicit smuggling networks, ranging from narcotics to weapons, that have destabilized not only its own economy but those of its neighbors.
Observers say Pezeshkian’s rhetoric dismisses the truth that removing the borders would not create the utopian unity he envisions but would instead exacerbate the already rampant flow of narcotics and illegal goods.
Iran has long been a hub for drug trafficking, particularly with its proximity to Afghanistan, one of the world’s largest producers of opium. The smuggling routes that traverse Iran’s eastern and western borders bring vast quantities of heroin and other narcotics into the region, causing immense harm to public health and economic stability in Iran and the region.
Beyond narcotics, smuggling of goods, especially dollars, has been an issue for Iran. Pezeshkian’s government, facing international sanctions, has increasingly relied on its proxy forces in countries like Iraq to funnel dollars back into Iran. This has led to severe economic instability in Iraq, with the US imposing restrictions on Iraqi banks to curb the illegal dollar trade.
The result has been a dual exchange rate system and skyrocketing inflation in Iraq, which has spurred public protests and deepened the country’s economic crisis.
The president’s speech also neglected the security threats, and terrorism that exist due to Iran’s own destabilizing actions in the region. For years, Iran has created and supported proxy militias in countries like Iraq, Syria, and Yemen, contributing to civil conflicts and power struggles. In Iraq, these groups have political power and control over key institutions, making it difficult for any genuine economic or political unity to be achieved.
Middle Eastern nations are generally very protective of their borders, mainly concerned about their security potentially threatened by state and non-state actors.
Meanwhile, informed sources have told Iran International that in a meeting Iraq’s foreign minister strongly opposed Masoud Pezeshkian’s proposal for settling Baghdad’s debt to Tehran using a joint currency during a lengthy meeting. Iraq insists that Iran can only receive its payments by purchasing non-sanctioned goods from the country.
Sources said that during Pezeshkian’s meeting with Iraqi Foreign Minister Fuad Hussein, Pezeshkian requested that Iraq settle its debt to Iran using "a joint currency similar to the Russia-Iraq project."
The meeting, which lasted about 40 minutes longer than scheduled, saw Iraq’s foreign minister firmly reject Pezeshkian’s proposal. The Iraqi side argued that settling the debt based on Pezeshkian’s suggestion could weaken the value of the Iraqi dinar.
On Thursday, Pezeshkian arrived in Erbil for his first official visit to the Kurdistan Region since taking office in July. Upon his arrival at Erbil International Airport, Pezeshkian was welcomed by Kurdistan Region President Nechirvan Barzani, as part of his wider tour of Iraq and the Kurdistan Region.
During his visit, Pezeshkian is set to hold separate meetings with key Kurdish leaders, including Kurdistan Democratic Party (KDP) President Masoud Barzani, Kurdistan Region President Nechirvan Barzani, and Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani.
While households are already struggling to provide for basic needs like food and clothing, Tehran has already seen new bread prices announced, showing a sharp rise in costs. The price of lavash, a common flatbread, has climbed by roughly 40 percent, while the popular Sangak has seen a 66 percent jump.
The prices have been approved by the Ministry of Interior, according to Fatemeh Nazari, the head of the Tehran Traditional Bakers Union.
The price hikes have been seen across the board for Iranians, one in three now living below the poverty line, affecting the likes of school supplies and transportation. As children return to school after summer break, parents are already reeling from a 35 percent rise in stationery prices and a 45 percent increase in school bus fees.
While the minimum wage in Iran hovers around $120 per month, this is simply not enough to meet the rising costs of daily living, especially for families with children, most incomes being drained by rental costs.
Meanwhile, Iran’s leadership, disconnected from the realities faced by its citizens, continues to push for higher birth rates despite the fact that most cannot afford to sustain even their current number of dependents.
Iran’s leadership, disconnected from the realities faced by its citizens, continues to push for more children in families, despite the fact that most cannot afford to sustain even their current number of dependents.
Fuel price hike looms amid confusion and contradiction
Iranians may soon face a further rise in gasoline prices while the government is currently rationing fuel. There have been mixed messages from government officials, with some calling for an increase to bring domestic fuel prices in line with global standards, while others warn that such a move could spark unrest.
President Masoud Pezeshkian has criticized Iran’s low fuel prices, but officials like Abdolnasser Hemmati, Minister of Economy, have cautioned against the shock such a price hike would inflict on a society already on edge. Despite the warnings, Iran’s ruling elites, who remain insulated from the economic crisis engulfing the nation, seem to be inching closer to a decision that could push more people to the breaking point.
As rations remain in place, most gas stations across the country are refusing to sell gasoline to the public, stating that only those with remaining rations can fill their vehicles, while there is no gasoline available for those who have exhausted their 60-liter quota.
Economist Ahmad Alavi told Iran International that the government’s lack of a transparent economic policy only deepens the crisis.
"If the decisions related to increasing gasoline prices are implemented inefficiently or delayed due to execution issues, this could lead to greater contradictions within the government and public dissatisfaction," he said.
On Wednesday, Iran's Foreign Minister Abbas Araghchi claimed that Tehran has not sent any missiles to Russia. Araghchi wrote in a post on X: "Once again, US and E3 act on faulty intelligence and flawed logic - Iran has NOT delivered ballistic missiles to Russia. Period - Sanction addicts should ask themselves: how is Iran able to make & supposedly sell sophisticated arms? Sanctions are NOT a solution, but part of problem."
These controlled responses suggest a careful approach by Tehran, seeking to manage the diplomatic fallout without escalating tensions further.
Meanwhile, IRGC-linked Fars News Agency also denied the news quoting "an informed military source" as saying that Iran has not sent ballistic missiles to Russia. Fars wrote that the news was part of psychological warfare against Tehran.
On Thursday, Tehran-based analyst Ali Bigdeli appeared to align with the official narrative, telling a local website that the accusations regarding missile sales are part of a conspiracy aimed at pressuring the Islamic Republic. He suggested this pressure is timed to coincide with President Masoud Pezeshkian's planned meetings with European leaders during the upcoming UN General Assembly in New York later this month.
All media outlets in Iran strictly adhere to government directives on sensitive national security issues. As a result, those reporting on the missile transfers stuck to basic coverage, echoing official statements. Many repeated lines such as labeling Western accusations as “a new wave of psychological warfare,” avoiding any independent analysis or criticism.
However, there were a couple of exceptions. In a commentary entitled "New sanctions for the sake of Russia," conservative Nameh News website wrote: "Iran is paying a high cost for Russia's war against Ukraine. Iran has not been gaining anything from Russia's war against Ukraine."
Nameh News went on to say that the recent missile sales to Russia have triggered new sanctions, including those on Iran Air, which had previously been lifted following the 2015 nuclear deal. The website also emphasized that these sanctions have a direct impact on the Iranian people, underscoring the broader consequences of the missile sales for the nation.
The website stated that if Iran has not sent missiles to Russia, it should pursue international legal action against the US and EU. It also quoted US Secretary of State Antony Blinken, who warned that sending ballistic missiles to Russia would dangerously escalate the conflict in Ukraine. Iranian missiles, Blinken noted, could significantly enhance Russian forces' capabilities and flexibility, further intensifying the war. These comments reflected concerns over Iran’s involvement and the potential consequences of its missile sales.
The website suggested that Russia should clarify the situation, as Iranian officials have repeatedly claimed neutrality in the Ukraine war. Despite this, Tehran has faced sanctions twice due to its alleged support for Russia. The article also criticized Russia for its silence on the issue and for backing the United Arab Emirates' claim over three Iranian islands in the Persian Gulf, highlighting tensions in Iran's relationship with Russia despite their cooperation.
The Kremlin's Spokesperson Dimitry Peskov finally denied the news Wednesday afternoon and saying reports about Iranian missile supplies were not accurate. Peskov, however, called Iran one of Moscow's important trade partners.
The ultraconservative Kayhan newspaper, funded by Khamenei's office and known for its support of Russia and close ties with Moscow, has remained silent on the missile issue, leaving many in Tehran disappointed as they awaited its reaction. Currently, Kayhan finds itself more isolated than ever, as other outlets criticize its controversial stances on both domestic and international issues.