Fresh UK sanctions target Iran's defense industry

His comments come as Israeli Prime Minister Benjamin Netanyahu vowed retaliation, accusing the Houthis of escalating their attacks beyond Yemen’s borders. Western countries have also strongly condemned Iran's reported delivery of ballistic missiles to Russia to be used against Ukraine.

Pezeshkian rejected allegations that Tehran had provided hypersonic missiles to Yemen’s Houthi rebels. A day earlier, the Houthis claimed responsibility for firing a missile at Israel, which they described as hypersonic. Netanyahu responded by warning that Israel would impose a "heavy price" on the Houthis, who have controlled northern Yemen for years but are now expanding their operations far beyond the country's borders.

"It takes a person a week to travel to Yemen from Iran. How could this missile have gotten there? We don't have such missiles to provide to Yemen," Pezeshkian told reporters.

Despite Pezeshkian's denial, Iran last year showcased what it said was its first domestically made hypersonic missile, the Fattah. The growing influence of the Houthis, fueled by Iranian backing, has been a cornerstone of Tehran's regional strategy, as the group has continued to disrupt global trade routes in the Red Sea and Bab al-Mandeb Strait under the pretext of blockading Israel.

Iran’s support for the Houthis, alongside other proxy groups across the region, aligns with its long-standing foreign policy goals of opposing Israel and destabilizing Western-aligned governments. Yemen’s strategic location has given Iran a foothold in a region critical to international shipping, amplifying its leverage in the conflict.

Pezeshkian, in response to a question from a Japanese media outlet regarding the Islamic Republic's missile deliveries to Russia, stated, "As for the relationship between the Islamic Republic and Russia, I can say with certainty that since we took office, we have not provided them with anything."

He claimed ignorance about missile deliveries to Russia during Ebrahim Raisi's administration and prior governments. However he said, "We have and will continue to have relations with Russia."

Pezeshkian added, "However, our stance in all wars is that no country should invade another country’s territory."

Regarding his visit to Moscow, attendance at the BRICS summit, and relations with Russia, he said that the Islamic Republic’s ties with Russia and China have been "very good" and that this trajectory would continue.

He remarked, "It’s not the case that if we negotiate, trade, and make peace with the world, we will forget our friends."

He added, "Russia is our neighbor, and we have strong economic relations, which these meetings can help implement the vision that Ebrahim Raisi had."

Ties with China

In response to a question from a Chinese reporter about relations between Beijing and Tehran, he said, "Our strongest ties are with China and Russia." He also praised China’s efforts to mediate between the Islamic Republic and Saudi Arabia.

The president promised, "We will have a fully aligned and strategic partnership with China, and we will work to implement the agreements and increase cooperation in future relations."

Responding to a question from an Associated Press reporter about the Islamic Republic's production of 60% enriched uranium and his government’s plan to address the International Atomic Energy Agency’s concerns, Pezeshkian stated, "We are addressing our technical and scientific needs and are not pursuing nuclear weapons."

He continued, "We adhered to the framework of the JCPOA; they [the US] tore it apart. If they don't resume compliance, neither will we."

"We will continue within the framework of nuclear energy laws and agreements. If they uphold their commitments, we will do the same."

In response to another question, Pezeshkian said, "We don't seek conflict; we are not pursuing nuclear weapons, but we won't allow anyone to bully us."

Regarding recent efforts to resume and expand relations with Arab countries, particularly in the Persian Gulf region, such as Saudi Arabia, Pezeshkian stated: “I believe we are brothers, so why shouldn’t we visit each other? There should be no disagreements between us. I personally welcome any initiative that brings us closer together.”

He added, “We aim to strengthen our relations with Saudi Arabia, Egypt, Jordan, and all Islamic countries. We have invited the Saudi Crown Prince to visit us, and we are eager to meet.”

Foreign policy remains largely out of Pezeshkian's hands, with Supreme Leader Ali Khamenei and the Islamic Revolutionary Guard Corps (IRGC) maintaining firm control. Though Abbas Araghchi, a former diplomat, has been appointed as foreign minister, Tehran’s reliance on military proxies signals a continuation of its hardline stance.

In his remarks, Pezeshkian also discussed potential solutions for the country’s economic crisis. He suggested that resolving the nuclear issue and adhering to standards set by the international financial watchdog, FATF, could yield significant results. He also announced plans to send a letter to the Islamic Republic’s Expediency Council addressing nuclear sanctions and FATF compliance.

“The government’s policy is to provide unlimited support to the resistance. We will support the resistance front, which has established itself as a reality in the region. The regime [Israel] has so far failed to achieve its main goal of destroying Hamas,” Araghchi stated.

However, the foreign minister signaled that Tehran is reluctant to get directly involved in a wider conflict. According to Tasnim website affiliated with Iran’s Revolutionary Guard, he maintained that Iran would continue its support for the Resistance Front but “remains vigilant against traps that might be set to draw us into the conflict. We are monitoring regional developments with intelligence and awareness.”

Speaking about foreign policy, Araghchi highlighted relations with neighbors, in the absence of a real chance to resolve issues with West at this juncture. “We seek comprehensive and balanced diplomacy and aim to expand our communications. My colleagues are currently planning. When a head of state makes their first visit to a country, it signifies importance to us. The message of the President’s visit to Iraq was that our priority is first and foremost our neighbors.”

The foreign minister did not indicate any current discussions with the United States, noting that the Americans are in the midst of an election season. However, he announced that Iran is ready to engage in discussions with Europe "on the basis of equality."

“Europeans need to understand Iran’s concerns. If they have concerns, so do we. We have issues with Europe regarding sanctions and economic matters. Using failed tools is not the solution. Various sanctions were imposed on the nuclear program before, but they had to come to the negotiating table. It is clear that sanctions have failed,” Araghchi argued.

Despite the occasional denials by Iranian officials about the impact of sanctions, Iran’s economic crisis continues to deepen. Bread prices were more than doubled recently and politicians and experts warn of a much larger budget deficit in the coming fiscal year starting in March 2025.

Araghchi talked about the latest contentious issue of ballistic missile deliveries to Russia that have seriously alarmed the United States and its European allies, who have issued more targeted sanctions.

Araghchi appeared to be using the issue as a quid-pro-quo with Europe, not outright denying the accusation. “They are concerned about Iran exporting advanced weapons to Ukraine. If Europe is genuinely concerned, the solution is dignified dialogue. It is not reasonable to expect that their concerns will be addressed unilaterally. We are ready to engage in dialogue with Europe. Currently, establishing relations with Europe is not a priority for us,” the Iranian foreign minister stated.

Earlier this month, Western government began warning that Iran was delivering 200 short-range Fath-360 ballistic missiles to Russia for use in its war against Ukraine. Tehran earlier issued vague denials, but some lawmakers confirmed the news. Also, Iran's delivery of thousands of kamikaze drones to Russia since mid-2022 make the Western accusation more credible. The use of these drones against non-military targets are well documented and even Tehran, after some denials, has claimed that the weapons were delivered before Russia’s invasion of Ukraine.

Nasser Amani has estimated the value of just one of the paintings at around 300 billion rials (approximately $500,000).

The announcement came during a session of Tehran's City Council, where Amani emphasized the council’s legal duty to oversee municipal assets. He revealed that the artworks were lent to an unidentified entity outside the municipality with official documentation, allegedly for an exhibition that never took place. Despite repeated inquiries, there has been no clear explanation or response from the authorities responsible.

“We’ve tried to follow up on this, but not only have we not received a report, but no one has provided a clear answer about where the valuable artworks are,” Amani said during the session. His comments reflect the frustration within Iran over the negligence and corruption that seems to plague the management of the country's cultural heritage.

This latest incident is part of a pattern involving the misappropriation of Iran’s historical and artistic treasures under the Islamic Republic. Earlier scandals include the theft of 48 handwoven carpets from the Sa’dabad Palace between 2013 and 2016. The carpets, considered national treasures, were reportedly moved to a private residence in a pickup truck, according to eyewitness accounts.

As more instances of missing or mishandled cultural assets emerge, critics argue that the Iranian government’s incompetence, corruption, and indifference are allowing the nation’s heritage to disappear.

Some have accused the government of deliberately neglecting cultural property, with suspicions that officials might be profiting from the "disappearances" through illicit sales on the black market.

The lack of transparency in the handling of the assets further complicates matters. As in the case of the Imam Ali Religious Arts Museum, government officials remain tight-lipped, providing little to no explanation for the missing artworks.

The latest scandal comes at a time when Iran’s cultural institutions are already under immense strain. Years of economic sanctions, political instability, and internal mismanagement have left many of the country’s museums and historical sites in disrepair.

Earlier this year, Iran International published a leaked letter obtained by the hacking group Black Reward, revealing that gold coins confiscated by the government following the 1979 Revolution from Imam Sadiq University are still unaccounted for.

While the Iranian government continues to tout its economic and military initiatives, many argue that it has neglected its responsibility to safeguard the nation’s cultural and historical heritage.

Cultural activists are now demanding an investigation into the missing paintings and a full accounting of Iran’s lost cultural treasures.

Turki al-Faisal, a former Saudi intelligence chief, said the West must also do more to deter the Iran-backed Houthi terror group in Yemen amidst the Red Sea blockade as the group holds the world "hostage".

Houthis began attacking international shipping in the Red Sea region last fall after Iran's Supreme Leader Ali Khamenei called for blockading Israel. They have expanded their reach far beyond Yemen disrupting a key global trade route.

Speaking at Chatham House in London, al-Faisal said on Friday: “The Houthis now hold the world as hostage in the Bab al-Mandab entrance to the Red Sea, and yet Iran is not showing that it can do something there if it wanted to, and the kingdom would have expected Iran to be more forthcoming in showing not just to us but to others that it can be a positive factor in securing stability and removing differences not just with Saudi Arabia but the rest of us.”

Dozens of projectiles have been fired at commercial vessels and dozens of hostages taken amid the blockade initially aimed at forcing an Israeli ceasefire in Gaza.

Iran also continues to destabilize countries including Syria, Lebanon and Iraq, which al-Faisal said had broken the terms of the 2023 agreement.

However, according to the UK's The Guardian, al-Faisal has said that the West's "pinprick bombings" carried out by the UK and US on Houthi infrastructure, is not enough to quash the group, armed, funded and trained by Iran.

In a frank admission, al-Faisal said the kingdom is disappointed in Iran's having broken its promise to limit the influence of its terror groups in the region, agreed upon last year when the two countries resumed diplomatic relations after several years' hiatus.

During the session at Chatham House, he said more must be done by the global community to combat the Red Sea blockade which began in November.

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  PODCAST: Iran-backed Houthis ‘winning’ against US in the Red Sea

“We have seen the deployment of European and US fleets along the Red Sea coast and more can be done there to interdict the supply of weaponry that comes to the Houthis from Iran,” he said.

“Putting pressure on Iran by the world community can have a positive impact on what the Houthis can do in launching these missiles and drones to hit international commerce.”

On Sunday, a missile penetrated Israel's air defence systems, threatening once again, to inflame tensions amidst the war in Gaza which has seen Iran's proxies in the region surround Israel since the Hamas invasion of the Jewish state on October 7.

A former Royal Navy Commander told Iran International’s podcast Eye for Iran that Iran is winning against the Americans in the Red Sea, through their proxy the Houthis.

Tom Sharpe, who worked alongside the Americans in the Red Sea for two decades, witnessed their might as the most powerful navy in the world but in spite of that, under the tutelage of Iran, the Houthis have not been deterred by the limited US defensive and allied retaliatory actions.

“They're achieving their ends, all of them, and we're achieving none of ours. We're spending millions and millions of dollars on not winning. It's a real problem," he warned.

Critics say the US's risk aversion has meant that just like its kid gloves approach to Iran, the deterrence to its terror groups such as the Houthis is failing.

Rear Adm. Marc Miguez, a US Navy commander from the Dwight D Eisenhower Carrier Strike Group, told Ward Carroll's YouTube episode that more aggressive strikes on the Houthis were necessary.

"There are definite strategies that were put forward, but our National Command Authority decided that those - I would call more aggressive postures and more aggressive strikes - was not something we wanted to challenge," Miguez said last month.

Jason Brodsky, the policy director for United Against Nuclear Iran (UANI), agreed that the Biden administration's inability to deter Iran has led to an emboldened stance not only from the Islamic Republic but also, its proxies.

“We have a deterrence deficit with Iran. They have been attacking our forces. They have been attacking commercial vessels, with impunity since October 2023,” he said.

Masoud Pezeshkian’s visit to Baghdad was steeped in high expectations, underscored by the announcement that over a dozen agreements were signed with Iraq. Yet, behind the fanfare, sources close to the negotiations revealed to Iran International that the economic objectives of the visit largely fell short.

Despite signing 14 memoranda of understanding, which signal some consensus on several fronts, the absence of concrete cooperation agreements and joint statements suggested a lack of substantive progress.

A critical point of contention emerged during Pezeshkian's meeting with Iraqi Foreign Minister Fuad Hussein. Informed sources disclosed that Pezeshkian proposed settling Iraq's substantial debt to Tehran through a joint currency mechanism, modeled after the Russia-Iraq financial arrangement.

However, the proposal was met with firm resistance from the Iraqi side, with Hussein arguing that such an approach could destabilize the value of the Iraqi dinar. The meeting, which extended 40 minutes beyond its scheduled time, reflected the broader challenges Pezeshkian faces in navigating Iraq's cautious stance toward Iran's economic overtures.

Iran’s economic relationship with Iraq has long been fraught with challenges, primarily stemming from the complex interplay of sanctions and regional politics. Iran exports critical resources such as natural gas and electricity to Iraq, making it a significant energy supplier to its neighbor. According to Iranian domestic media, Iraq ranks as the second-largest destination for Iranian exports after China, with bilateral trade currently valued at approximately $12 billion.

Since 2018, US banking sanctions have complicated Iraq's ability to settle debts with Iran, despite routine waivers under both the Trump and Biden administrations permitting energy imports. The exact amount owed by Iraq remains unclear, with conflicting reports on its settlement status.

Unfulfilled promises and divergent visions

Pezeshkian's broader vision of fostering regional unity through the removal of borders between Islamic countries, analogous to the European Union's Schengen Agreement, found little traction among Iraqi leaders.

His call for a borderless Islamic bloc, first proposed in a meeting with the Iraqi President and later reiterated in public speeches, was met with a lukewarm response at best. The Iraqi leadership, probably wary of Iran's expansive regional ambitions, showed little enthusiasm for a concept that would likely diminish their sovereignty and complicate Iraq's delicate balancing act between competing regional powers.

The lack of a joint statement at the conclusion of Pezeshkian’s visit further underscored the disconnect between the two nations. Typically a symbolic gesture of diplomatic alignment, the absence of such a communiqué hinted at underlying tensions.

Security concerns and engagement with Kurdish leaders

While economic objectives dominated the official narrative of Pezeshkian's visit, security considerations were equally pivotal, particularly in relation to Iraq's autonomous Kurdistan region.

Pezeshkian’s personal touch, including his ability to converse in Kurdish and shared cultural ties, played a notable role in easing some of the tension that had been inflamed by recent IRGC military actions against Kurdish groups.

Pezeshkian's engagements with Kurdistan’s Prime Minister Masrour Barzani and veteran Kurdish leader Masoud Barzani underscored a strategic attempt to mitigate long-standing political misunderstandings and foster a more cooperative relationship. However, this softening of ties appeared to rely heavily on Pezeshkian’s personal rapport rather than a concrete shift in policy or security strategy.

While Pezeshkian’s personal diplomacy may have momentarily eased tensions with Kurdish leaders, the broader objectives of his visit, to secure economic gains and bolster regional influence, remain unfulfilled, casting a reflective light on the nuanced and often challenging path ahead for Iran's new administration on the international stage.