The Dollar and Gold Become More Expensive in Iran Following Ali Khamenei’s Belligerent Remarks
One day after Ali Khamenei’s belligerent remarks regarding negotiations with the United States, the price of one US dollar in the Iranian market exceeded 950,000 rials on Sunday, March 9, and the price of one gold coin approached 790 million rials (approximately $831).
On Saturday, March 8, in a meeting with several officials,Khamenei, the leader of the Iranian regime, referred to the possible negotiations with the United States, saying that their goal is to “raise new demands,” and these expectations “will definitely not be met by Iran.”
According to the Nosan website, which tracks the fluctuations of foreign currency and gold coin rates in the Iranian market, the price of one US dollar remittance reached 952,400 rials on Sunday.
The continuous fall in the national currency’s value against foreign currencies, along with the intensification of economic crises and the further emptiness of people’s pockets, has caused alarming stagnation in markets on the eve of Nowruz (the Iranian New Year, starting on March 21) and during Ramadan, two occasions typically considered to boost markets in Iran.
The turmoil in Iran’s financial markets comes as Brian Hughes, spokesperson for the US National Security Council, expressed hope that the Iranian regime would prioritize its people and national interests over terrorism.
However, alongside reports of market stagnation and the spread of poverty in Iran, senior officials of the Iranian regime have described poverty as a “divine test” and have considered “paving the way for the departure of the weak.”
The economic stagnation has led to the closure of markets, with most shops widely shut down, but the Iranian regime continues its confrontation with the international community, support for terrorist groups, and pursuit of nuclear bomb development.
The Prevalence of Smuggled Goods in Iran’s Market
Mostafa Pourdehghan , a member of the Iranian regime’s Majlis (parliament) Industry and Mining Commission, stated on Sunday, March 9, that the unrestricted availability of smuggled goods in the market proves this policy to be unsuccessful and in need of revision.
According to the state-run ILNA news agency, Pourdehghan criticized the current market situation, stating: “Smuggled household appliances are freely sold while official imports are banned. This situation has led to capital outflow and has made monitoring the quality and pricing of goods more difficult.”
Pourdehghan warned that support for domestic production should not be permanent, and if this trend is not corrected, the Majlis will reconsider the import ban policy.
He also mentioned the possibility of revising the import ban on household appliances, saying: “The Majlis’s Industry Commission has emphasized in its meetings with domestic manufacturers that this support cannot last indefinitely. If this policy (the import ban policy) is not adjusted, changes will definitely be made.”
12 million Liters of Fuel Smuggled Out of Iran Every DayReferring to closed-door parliamentary sessions with regime president Masoud Pezeshkian, he stated: “Majlis members have explicitly declared that the smuggling issue must be resolved once and for all, as its consequences on the country’s economy, as well as public health and security, are extensive and damaging.” Pourdehghan criticized the household appliance import ban, emphasizing that such prohibitions are uncommon worldwide and should, at most, be temporary. Restrictions and bans on the import and sale of foreign brands in the Iranian market, imposed under the pretext of “supporting domestic production,” have not strengthened local manufacturing due to the impact of other policies, including monetary and financial regulations. Instead, they have led to a decline in the quality of domestic products while increasing the smuggling of foreign goods into the country. In September 2021, Ali Khamenei, the Iranian regime’s supreme leader, ordered a ban on household appliance imports, further enforcing individual decisions that have collectively burdened the economy and pushed the people into financial distress. This directive, which was issued at Khamenei’s request, was enforced after foreign currency restrictions led the Supreme Economic Coordination Council to ban household appliance imports from 2018 until early 2022. When the possibility of unfreezing Iran’s blocked funds in South Korea arose, “a group of home appliance manufacturers” urged the supreme leader of the Iranian regime to support them against the potential “resumption of imports” of certain South Korean appliance brands.
U.S. Doesn’t Renew Iraq’s Waiver for Purchasing Electricity from Iran
On Saturday, March 8, the Trump administration did not renew a waiver that allowed Iraq to pay Iran for electricity. According to a U.S. State Department spokesperson, this move is part of President Donald Trump’s “maximum pressure” campaign against Tehran.
According to Reuters, the State Department spokesperson added that the decision not to renew the waiver after its expiration ensures that “we do not provide any economic or financial relief to [the Iranian regime].”
He emphasized that Trump’s campaign against the Iranian regime aims to end its nuclear threat, limit its ballistic missile program, and stop its support for terrorist groups.
One of Trump’s first actions upon returning to the presidency in January was reinstating the maximum pressure policy against the Iranian regime.
Aging and Low-EfficiencyPower Plants Worsen Iran’s Electricity ShortageThe U.S. government has stated that its goal is to isolate the Iranian regime from the global economy and eliminate its oil export revenues to slow Tehran’s progress in developing nuclear weapons. Washington has imposed numerous sanctions on Tehran due to its nuclear program and support for militant organizations, effectively preventing countries that trade with the Iranian regime from conducting business with the United States.
Increased Pressure on Baghdad
After reimposing energy sanctions on the Iranian regime in 2018, Trump granted waivers to several countries, including Iraq, to ensure energy supply for consumers. However, both his administration and Joe Biden’s administration repeatedly extended these waivers while urging Baghdad to reduce its dependence on electricity from the Iranian regime. Sources familiar with the matter told Reuters that the U.S. has used the waiver review process as a tool to increase pressure on Baghdad to facilitate crude oil exports from Iraq’s Kurdistan region via Turkey. Washington’s objective in this move is to boost global supply and control prices, allowing the U.S. to continue its efforts to curb Iran’s oil exports. Meanwhile, the U.S. State Department spokesperson emphasized that Iraq’s dependence on Iranian electricity is not significant, stating that in 2023, electricity imports from Iran accounted for only four percent of Iraq’s total consumption.Iranian Regime Officials Purchase Commercial and Residential Properties in Dubai and Spain with Stolen Money
While the Iranian people are grappling with severe economic hardships, soaring inflation, and livelihood challenges, cases such as the “Debsh Tea” scandal once again expose the widespread and systemic corruption within the Iranian regime.
Between 2019 and 2022, Debsh Agro-Industrial Group received a total of $3.37 billion in foreign currency for the import of tea and machinery, of which $1.472 billion was allocated as government-subsidized foreign exchange.
Iran: $3.37 Billion Stolen in Latest Government-Linked Embezzlement CaseOn Sunday, March 9, the Iranian regime’s judiciary news agency reviewed the details of this case, whose final verdict was issued on March 3. According to this report, the court ruling on the Debsh Tea case reveals that the foreign currency obtained in this case was used to purchase commercial and residential properties in Dubai and Spain. One of the main charges against the primary defendant in this case is widespread disruption of the national economy due to failure to fulfill foreign exchange commitments and illegal currency sales without adhering to the prescribed regulations. In recent years, the Debsh company used its extensive connections within Iran’s banking system to receive rial-denominated loans. The company placed multiple import orders for tea, declaring exorbitant prices for low-quality goods, and after receiving these loans, it acquired foreign currency through international exchange offices. According to the report, a significant portion of the obtained foreign currency was invested in the UAE, including the purchase of a commercial tower and the establishment of a currency exchange. Additionally, the company purchased properties in Spain and, through these transactions, secured a visa for that country. According to the investigative authority’s report, one of the defendant’s methods for delaying payment obligations was altering and manipulating the registration dates of import orders and customs declarations. According to Mizan news agency, from the outset of the investigation into this case, affiliated companies linked to the Debsh Group also came under scrutiny. Some reports indicate that this group had over 47 domestic subsidiaries and more than 10 foreign companies.
Iran: Former Minister of Agriculture Involved in $18.7 Million FraudA noteworthy point is that despite being aware of the company’s violations and the existence of a judicial case against it for failing to pay the foreign exchange differential, the Ministry of Agriculture again allocated foreign currency to this company. On Monday, March 3, the Iranian regime’s judiciary announced the issuance of sentences in the case known as the Debsh Tea scandal. It stated that Reza Fatemi Amin, the former Minister of Industry and Mining, and Javad Sadati Nejad, the Minister of Agriculture in Ebrahim Raisi’s cabinet, had been sentenced to one and two years in prison, respectively, for “complicity in disrupting the national economy.” However, in images released yesterday of Ali Khamenei’s meeting with Iranian regime officials, Sadati Nejad was seen among the attendees. Many examples of such “staged anti-corruption efforts” have been observed in recent years, where most key defendants have either fled the country or been released after a short period, while the economic situation of the people continues to deteriorate day by day.
Khamenei Rejects Negotiation with U.S.; Maximum Pressure Will Continue
Ali Khamenei, the leader of the Iranian regime, addressed the possibility of negotiations with the United States during a meeting with regime officials on Saturday, March 8. He stated that the goal of such talks would be to “raise new demands” and asserted that these expectations “will certainly not be met by Iran.”
Khamenei stated that negotiations are not intended to “resolve issues” but rather to “impose dominance.” He claimed that the scope of discussions would not be limited to the “nuclear issue” but would also extend to matters such as “defense capabilities,” the country’s “international influence,” and restrictions on “missile range.”
Since his return to the White House, Donald Trump has reinstated the “maximum pressure” policy and has called for a comprehensive agreement with the Iranian regime. However, Khamenei has strictly prohibited any negotiations with the U.S. Meanwhile, Iran’s economic situation continues to deteriorate due to the regime’s ongoing tensions with the world and the West.
U.S.: Under ‘Maximum Pressure,’ Iran’s Oil Exports Will Again Be Reduced to 100,000 Barrels Per DayWith nuclear deal revival talks at a standstill, reports from the International Atomic Energy Agency (IAEA) indicate growing concerns over the future of Iran’s nuclear program. A few days ago, Trump stated that he had sent a letter to Iranian regime leaders, expressing hope for negotiations. His remarks quickly became headline news. The U.S. president also warned that the only options for dealing with the Iranian regime are “reaching an agreement” or “military action.” On Friday, March 7, Trump stated at the White House that a significant event regarding Iran would happen soon. He described the moment as a turning point in U.S.-Iran relations and predicted “interesting days ahead.” He emphasized that he hopes for a peaceful outcome but added that “the other way” would also resolve the issue. In his meeting with Iranian officials today, Ali Khamenei also addressed the European parties, responding to their claims that Iran has not fulfilled its commitments under the Joint Comprehensive Plan of Action (JCPOA). He stated, “They did not fulfill their commitments from day one. After the U.S. withdrawal, they promised to compensate for it, but they broke their promise twice.” Khamenei’s claims come as Rafael Grossi, Director-General of the International Atomic Energy Agency (IAEA), reported to the IAEA Board of Governors on March 3 that the Iranian regime has increased its stockpile of 60% enriched uranium to 275 kilograms.
European Union: The Iranian Regime Must Not Attain Nuclear WeaponsThe IAEA chief described Iran’s regime as the only non-nuclear-armed country to have enriched uranium to such a high level and called it a matter of “serious concern.” The European Union’s representative at the IAEA also stated that the Iranian government has halted the implementation of its nuclear commitments under the JCPOA. It further noted that for the past four years, the IAEA has been unable to carry out verification and monitoring activities related to the nuclear agreement. During his meeting with officials, Khamenei also expressed hope that regime president Masoud Pezeshkian would soon be able to announce the implementation of “major aspirations” to the people. Previously, Pezeshkian had stated during the impeachment session of the Minister of Economy and Finance that he supported negotiations with the U.S., but the Supreme Leader of the regime opposed them.
Debate Over Minimum Wage for Workers in Iran
Several labor unions and women’s rights activists have issued a joint statement regarding next year’s wages, declaring that the minimum wage set for workers and wage earners “should not be less than 600 million rials (approximately 666 USD).”
They criticized the fact that wages lower than the real cost of living constitute a “crime” and warned that “this year, the situation is more critical than ever.” They wrote: “The ruthless monster of inflation has turned our lives into a nightmare.”
Low Wages Fail to Attract Workers; Labor Shortage Crisis in IranIn one part of the statement, they emphasized: “Given the soaring costs in dollars and the tsunami of price hikes, the continuous devaluation of wages, the prevention of wage increases in line with inflation throughout the year, and postponing it to a single adjustment at year-end, any percentage increase is rendered ineffective and meaningless.” Hossein Habibi, a member of the Supreme Council of Islamic Labor Councils of Iran’s regime, previously stated: “The total cost of living, considering rent and basic necessities, is 700 million rials (approximately 777 USD).” Currently, the minimum wage for workers covered by labor law, including benefits for married workers with children, is 110 million rials (approximately 122 USD). The authors of the statement pointed out the various expenses that workers and wage earners face, stating that in addition to the costs of food, clothing, housing, and education, they also “struggle with a crisis in medicine and healthcare, clean air, electricity, gas, and even the most basic human needs.” The unions that signed the statement stressed that their insistence on determining and raising real wages is an effort for welfare, equality, and a better life, both for today and for the future, in defense of their children. They added: “Every day, we witness the growing number of child laborers, the rising statistics of prostitution and suicides, all for a piece of bread.” On Friday, March 7, Keyvan Mehtadi, a teacher, trade union activist, and former political prisoner, released a video on social media discussing the process of setting the minimum wage. He said: “Most wage earners have no knowledge of how wages are determined. Given the multiple pressures we face, wage determination is a matter of life and death for a segment of society’s workers. It is directly tied to widespread malnutrition or children dropping out of school. This issue can even be a national concern, similar to environmental problems—just as urgent and important for society.” They continued their statement by comparing the budgets allocated to security, military, and governmental institutions with that of wage earners, writing: “The budget allocated to the Islamic Republic of Iran Broadcasting (IRIB) for the year 2025 exceeds the budget of 10 ministries and is set at around 350 trillion rials (approximately 389 million USD). It is against this oppressive system that we cry out: ‘When it’s our turn, suddenly the treasury is empty!'”
Sharp Price Increases Ahead of Nowruz; Iran’s Economic Crisis Worsens
With the approach of the final days of the Iranian year (March 21), a new wave of price hikes has emerged in the food and essential goods market, while the Iranian regime has prioritized “punitive actions against businesses” instead of addressing the root causes of inflation.
Some experts believe that the regime’s security-driven and punitive approach to market regulation stems from its inability to control inflation.
In this regard, the website Eghtesaad24 wrote that it is unclear whether the government’s plans for market regulation ahead of Nowruz only involve “stronger enforcement of price control measures and fines for shopkeepers” or if they also include broader plans such as increasing the supply of quality goods in all sectors to bring down prices.
Severe Inflation and Economic Instability Overshadow Iran’s Nowruz MarketAnalysts argue that, unlike previous years when increased demand led to price hikes, this year, demand for most goods has declined, yet prices continue to rise. The regime-affiliated ISNA news agency also claimed: Ahead of Nowruz, the Ministry of Agriculture has announced the sufficient supply of essential goods and is implementing new policies, including price regulation for imported rice, changing the source of meat imports, and planning to control potato exports to maintain market stability. According to officials of the Iranian regime, the country’s reserves of essential goods exceed its needs, and people can do their Nowruz shopping without concern. However, official reports indicate a sharp rise in prices. According to data from the Statistical Center of Iran, in the past six months, the point-to-point inflation rates have been: 58% for split peas, 45% for chickpeas, 33% for lentils, 32% for red beans, 15% for almond kernels, 13% for walnut kernels, and 7% for pistachio kernels. Meanwhile, reports show that the prices of some goods have surged with the start of Ramadan. Contrary to officials’ claims about market regulation during Ramadan and Nowruz, prices continue to rise due to turbulence in the foreign exchange market. The instability in the currency market and rising food prices have become one of Iran’s economic crises. Many experts believe that if this trend continues, a large portion of society will be forced below the poverty line. In this regard, Moslem Salehi, a member of the Social Commission of the Iranian regime’s Majlis (parliament) has stated that the government must take serious control and management of the essential goods market in the final days of the year. Salehi emphasized that the latest inflation data shows that inflation remains high and that the government has not succeeded in curbing it.
Low Wages Fail to Attract Workers; Labor Shortage Crisis in Iran
As the gap between income and the cost of living widens in Iran, experts point to the lack of appeal in job offers for job seekers and workers. They report that many companies are currently in need of labor, but workers are unwilling to accept jobs with current wages.
According to the state-run ILNA news agency, Hamidreza Ghaznavi, Secretary-General of the Iranian Entrepreneurs Association, stated on Thursday, March 6: “Today, we face a labor shortage in our industry. At one time, we ranked second or third globally in terms of labor cost competitiveness, but we have completely lost this advantage.”
Iran: Government Managers Enjoy Stellar Salaries While Workers’ Wages Still UndecidedAccording to him, it is not economically viable for workers to accept these jobs at such low wages. From the perspective of the Secretary-General of the Iranian Entrepreneurs Association, economic progress and development require a system where workers share in company profits, leading to increased productivity. When wages fail to meet basic living needs, workers prefer not to work. Many workers are seeking to migrate to neighboring countries, especially skilled workers who are in high demand. Statistics show that job seekers are not interested in employment at current wages because it is not economically viable. Additionally, “blank signature contracts” have undermined both the financial and legal rights of workers. With such low wages, workers seek alternative sources of income to cover their daily expenses.
Farmers, Workers, and Truck Drivers Hold Protest Rallies in IranMeanwhile, economic hardships and low wages have made migration increasingly attractive for workers. Mohsen Bagheri, a member of the Iranian regime’s Supreme Labor Council, has stated that “even unskilled workers in the country are now migrating.” Bagheri emphasized that it is unclear why the government should have four representatives in the Supreme Labor Council, stating that a single representative from the Ministry of Labor should suffice. He attributed declining wages to reduced productivity in the workplace and stated that even neighboring countries now offer wages high enough to attract unskilled Iranian workers to migrate. According to reports, the gap between wages and the cost of living has widened in recent years, prompting workers to demand wage increases to match the minimum cost of living. Some have called for raises as high as 70%. The state-run IRNA news agency reported that surveys indicate several key reasons why individuals are reluctant to work in industrial and service sectors. These include heavy and exhausting labor, physical and psychological harm from demanding jobs, lack of job security, insufficient skills and expertise among workers, preference for informal but lucrative jobs, failure to receive legally mandated wages and benefits, rising inflation, declining purchasing power, and the imbalance between job difficulty and wages. Previously, the state-run Quds newspaper had reported that “jobs exist, but workers do not.” According to the newspaper, while manufacturing units in industrial towns complain about an unsuitable business environment due to frequent power outages, water shortages, and numerous other obstacles to production, some producers are also struggling with labor shortages. The situation has become so dire that many of these units have turned to employment agencies for help. The report stressed: “The situation has reached a point where even legally mandated wages, holiday bonuses, severance pay, productivity incentives, paid leave, transportation services, job classification benefits, and even a minimal meal allowance are no longer enough to attract job seekers to work in factories. As a result, job advertisements for industrial positions now flood social media platforms, channels, and websites related to manufacturing units daily.” The state-run Nournews, linked to the Iranian regime’s Supreme National Security Council, described the current labor market situation, stating that rising living costs and the low wages set by the Supreme Labor Council have led both educated and uneducated young people to avoid productive and manufacturing jobs, according to labor activists. According to Nournews, one of the main concerns for young job seekers is low wages, as salaries set by the Ministry of Labor fail to cover living expenses, forcing many to turn to informal or unregulated jobs to make ends meet.
Tehran to Become a “Semi-Arid Region” in the Next Decade
Mehdi Zare, a professor at the International Institute of Seismology and Earthquake Engineering, warned that Tehran is on the “brink of drought.” He stated that the drilling of more than 32,000 illegal wells in Tehran province is a major factor contributing to this situation, and that Tehran will become a “semi-arid region” within the next decade.
In an interview with the state-run Khabar Online news agency, published on Friday, March 7, Zare emphasized: “The Alborz region and Tehran are currently experiencing the depletion of surface and groundwater resources, turning the water crisis into a socio-economic challenge in some areas, with signs of hydrological and socio-economic drought.”
Zare pointed out that water levels in Tehran’s dams have fallen below 40% of their capacity. He added, “30% of the city’s water is lost due to leaks in the deteriorating pipeline network.”
Serious Water Pressure Drops and Outages in TehranAccording to the professor, the critical drought in the Alborz Mountain range is a complex issue driven by long-term climate trends and water management challenges. He warned that if the current trend continues, southern Alborz and the surrounding areas of Tehran could turn into a “semi-arid region” within the next decade, and reversing this process would require decades of effort and investment. In this regard, Iranian media have reported that as Tehran experiences its fifth consecutive year of drought, a 45% decrease in rainfall has sounded the alarm for water shortages in the capital. The CEO of Tehran’s Water and Wastewater Company stated that there are no plans for water rationing. However, he urged citizens to reduce their consumption by 20% “to avoid a difficult summer ahead.” The state-run Jomhouri-e Eslami newspaper criticized the country’s energy resource management, writing: “With complete mismanagement and under the pretext of balancing electricity supply and avoiding power outages in residential areas, water from dams was released in an unplanned manner solely for electricity production. They claimed the release was entirely calculated and that no issues would arise for the next water year.” The newspaper added: “They were hoping for sufficient autumn and winter rainfall to replenish reservoirs, but that did not happen. Climate forecasts turned out to be accurate, and now we are left with empty dams and officials who, after forgetting their summer promises, have quietly resumed water consumption control while blaming the situation on nature.”
The United States Reviews All Sanctions Waivers on Iran
The Trump administration is reviewing all existing sanctions waivers that provide any level of economic relief to the Iranian regime.
Tammy Bruce, spokesperson for the U.S. State Department, stated that the United States is reviewing all current sanctions waivers that provide any degree of economic opportunity to the Iranian regime.
On Thursday, March 6, during a press conference in Washington, Bruce made this announcement and urged the Iraqi government to end its dependence on Iranian energy sources as soon as possible.
She made this statement in response to a question about whether the United States would extend the sanctions waiver that allows Iraq to pay for imported electricity from Iran.
“We have nothing to announce with regard to the current electricity waiver that expires on the (March) eighth…We are reviewing all existing sanctions waivers that provide Iran any degree of economic or financial relief,” she said.
U.S. Sanctions International Network Facilitating Iran’s Oil Shipments to China“We are urging the Iraqi government to eliminate its dependence on Iranian sources of energy as soon as possible and welcome the Iraqi Prime Minister’s commitment to achieve energy independence.” According to Reuters, citing two informed sources, the United States, while reviewing these waivers that permit the Iraqi government to import electricity from Iran, also intends to increase pressure on Baghdad to allow the export of crude oil from Iraq’s Kurdistan region through Turkey. Washington seeks to increase Iraq’s oil production to strengthen global oil supply and control prices. This move would give the U.S. more leverage in its efforts to cut off Iran’s oil exports. The United States aims to curb Iran’s oil exports as part of its efforts to restrain the regime’s nuclear program. Ali Khamenei, the leader of the Iranian regime, has previously stated that he will not negotiate with the U.S. Negotiations between the Iraqi federal government and the Kurdistan Regional Government (KRG) over resuming oil exports have so far been challenging. The U.S. government has stated that it intends to isolate the Iranian regime from the global economy and eliminate its oil revenues to slow down the development of nuclear weapons. One of Donald Trump’s first actions after returning to the White House in late January was to reinstate the “maximum pressure” campaign against the Iranian regime. The United States has imposed a series of sanctions on the Iranian regime due to its nuclear program and support for militant groups, effectively barring countries that trade with Iran from doing business with the U.S.
