Iran says ready to deploy forces to Syria
Iran’s foreign minister announced Tehran’s willingness to consider deploying forces to Syria if requested by President Bashar al-Assad’s government, marking a potential major escalation to the conflict.
Iran’s foreign minister announced Tehran’s willingness to consider deploying forces to Syria if requested by President Bashar al-Assad’s government, marking a potential major escalation to the conflict.
“The Islamic Republic neither commands resistance groups in Arab countries nor maintains organizational ties with them but supports their cause and, if needed, provides assistance.” Abbas Araghchi was quoted as saying by the Al-Araby Al-Jadeed website on Tuesday.
The remarks come as Syria's stalemated civil war was suddenly jolted last week as rebels led by hardline Islamists launched an offensive which captured Aleppo, the second biggest city, in a setback to a key regional ally of the Islamic Republic.
Araghchi revealed his intention to visit Russia for discussions on Syria, emphasizing the need to calm the conflict and present initiatives for a long-term resolution.
“We have made extensive preparations to calm the situation in Syria and create opportunities for presenting initiatives and establishing a permanent solution,” he added.
Araghchi also addressed Syria’s demands for a Turkish withdrawal as a prerequisite for renewed ties between Damascus and Ankara, calling it a logical condition.
He further criticized Turkey’s support for armed groups opposing Assad, warning that the expansion of activities by terrorist groups—a term Araghchi attributed to certain opposition factions—poses a greater threat to regional neighbors than to Iran.
“We are always seeking consultation and dialogue with Turkey regarding our differences,” he said.
Esmaeil Baghaei, spokesperson for Iran’s Ministry of Foreign Affairs, said Tuesday that the foreign minister conveyed the country's policy opposing what he described as terrorism during recent visits to Syria and Turkey.
“Terrorism is a contagious disease that does not stop in one place. If countries do not cooperate in combating this problem, all nations will undoubtedly be affected,” he said at an economic conference in Mashhad.
Fighting intensifies in Syria
Meanwhile, northeast Syria has seen renewed combat as US-backed Kurdish forces clashed with Assad’s troops.
Airstrikes targeted Iranian-backed militias in the Deir al-Zor region, with Syrian and security sources attributing the attacks to the US-led coalition.
The coalition has not commented, and there was no independent confirmation of the strikes.
The conflict poses a significant challenge for Assad, whose forces are grappling with rebel advances near Aleppo and Hama.
Syrian state media reported intensified Russian and Syrian airstrikes in response, while rescue workers reported civilian casualties from hospital bombings in Aleppo and Idlib.
These developments complicate an already volatile regional landscape, with conflicts in Gaza and Lebanon still rumbling despite a fresh ceasefire aimed at ending the war between Hezbollah and Israel.
Analysts warn that escalation in Syria could spill over into neighboring countries, deepening instability across the Middle East.
As Iran positions itself as a key player in Syria’s future, Araghchi’s remarks highlight Tehran’s dual strategy: supporting Assad militarily while pursuing diplomatic engagement with Turkey and Russia.
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In a televised address, Masoud Pezeshkian admitted that in spite of promises that prices would not rise and that there would be no foreign exchange allocated for gasoline imports, it was a necessary means to manage in the worst recession since the founding of the Islamic Republic in 1979.
"When the allocation of foreign exchange is not compensated, gasoline prices will inevitably rise," he said.
He highlighted the financial strain posed by gasoline imports, citing a potential budget deficit that would harm low-income groups through inflation, referring to a shortage of foreign currency earnings that limit the government's ability to finance imports.
In the past six years, since the United States re-introduced oil export sanctions, the government has been forced to print more money that has pushed annual inflation to above 40%.
“When we allocate dollars to import gasoline, it leads to a budget deficit, resulting in inflation that harms low-income groups. By doing this, we exert pressure on them,” he added.
On Tuesday, Mohammad Bagher Ghalibaf, Speaker of the Parliament, countered by asserting that pricing petroleum products is the government’s responsibility.
“Let the government do its job, and we will not interfere,” he added.
The debate occurs while there are broader concerns over Iran's "energy imbalance," a term Pezeshkian used to describe the country's shortages in gas, electricity, and water.
During the interview on Monday, he stressed that unsustainable energy consumption, coupled with heavy subsidies amounting to $130-$150 billion annually, burdens the economy.
“This equates to 900 million rials [$1,300] per capita,” he said, emphasizing the incompatibility of current energy needs with production capacity.
Economy Minister Abdolnaser Hemmati also echoed concerns about shortages on Tuesday, pointing to rampant gasoline smuggling and the financial toll of imports.
Speaking at an insurance conference, Hemmati said: "Whenever we discuss this, people say we intend to increase gasoline prices. No logic accepts this massive gasoline smuggling while we are forced to import gasoline ourselves.
"As long as I am the Minister of Economy..., I will do my utmost to combat these rent-seeking practices. It is time for reforms. We must address the imbalances once and for all."
The potential for a gasoline price hike has sparked discussions ahead of next year’s budget approval, with parliament members divided. Some warned that such a move could provoke political unrest, reminiscent of the November 2019 protests following steep price increases during Hassan Rouhani's presidency.
Pezeshkian has consistently highlighted energy shortages, particularly around gasoline. His remarks that $5 billion is spent annually on imports contrast with figures from Tasnim News Agency, affiliated with the IRGC, which said last year’s total was $2 billion.
The exports fell from over 1.8 million barrels per day (mb/d) in September to 1.5 mb/d in October, and further to 1.3 mb/d in November.
It comes amid a gradual shutdown of small independent Chinese refineries, known as "teapots," which are Iran's main oil buyers in China, and have been critical for Iranian oil sales amid US sanctions that target third parties for buying Iranian oil.
China accounts for 95% of Iran's oil exports, but it does not purchase the oil directly. Instead, small independent refineries buy Iranian oil after it is blended with crude from other countries, ensuring it is not labeled as Iranian by Chinese customs, in order to comply with sanctions against Iran.
China has opted to gradually phase out teapot refineries due to their low efficiency and significant environmental impact. They convert a large portion of crude oil into pollutants like fuel oil, which contributes heavily to air pollution.
In September, a Chinese court declared two refineries, Zhenghe and Huaxing, bankrupt. Reuters also reported in early November that teapots are now operating at half capacity.
For years, these refineries relied on 15-30% discounts from Iran, Russia and Venezuela to stay afloat. However, Iran reduced these discounts to $5-7 per barrel in October and $3-5 per barrel last month, according to industry sources who spoke with Iran International.
These refineries typically delay payments for Iranian oil by at least three months, raising concerns about their ability to settle debts amid looming bankruptcies. Meanwhile, Russia has also scaled back discounts to Chinese buyers as it secures a stable customer base, possibly prompting Iran to reevaluate its competitive pricing strategy.
Shrinking market opportunities in China
Homayoun Falakshahi, a senior analyst at Kpler, told Iran International that China’s oil market is saturated, and demand is unlikely to grow further. He emphasized that even if the teapots avoid bankruptcy, China will gradually phase them out due to their environmental impact.
He said Iran has delivered only 1.33 mb/d of crude oil to China in November, 500,000 b/d less than the September level.
China, as the world’s largest emitter of greenhouse gases, is simultaneously one of the most vulnerable countries to climate change. It faces severe air pollution in major cities and is heavily investing in renewable energy. According to the International Energy Agency, China is expected to account for 60% of global renewable energy capacity additions by 2030.
Moreover, half of the cars sold in China in October were electric. State-run PetroChina predicts that China’s diesel demand peaked in 2023 and will decline by 5% annually in 2024 as LNG-fueled trucks replace diesel trucks. Gasoline demand is also declining.
The impact of Trump’s return
Before the Trump administration imposed sanctions in 2018, Iran exported 2.5 million barrels per day (mb/d) of oil. However, this figure plummeted to 350,000 barrels per day by the end of Trump's term in 2020. Under Joe Biden's more relaxed enforcement of sanctions, exports steadily increased year-over-year, reaching 1.6 mb/d by 2024.
The prospect of Trump reinstating his “maximum pressure” sanctions presents significant challenges for both Iran and China. New orders placed by Chinese refineries will take time to reach their ports, with less than two months remaining before Trump assumes office.
Circumventing sanctions—such as rebranding Iranian oil as Iraqi, Omani, or Malaysian—requires over a month of complex logistical operations. Additionally, Iran allows Chinese refineries up to three months to settle payments in yuan or through barter trade, further complicating deals going forward.
Although an immediate drop to 2020 export levels is unlikely, the $750 billion trade relationship between China and the US make further declines in exports highly probable during Trump’s presidency.
According to Vortexa tanker tracking data, about 60% of very large crude carriers involved in smuggling Iranian oil to China remain unsanctioned. Imposing US sanctions on these vessels could significantly increase the cost and complexity of bypassing restrictions.