Iran Digest Week of July 14- July 21
/AIC’s Iran digest project covers the latest developments and news stories published in Iranian and international media outlets. This weekly digest is compiled by associate Samuel Howell. Please note that the news and views expressed in the articles below do not necessarily reflect those of AIC.
US- Iran Relations
The US military's most advanced fighter jets and a warship are going to work in the Middle East to stop Iran from seizing commercial ships
The US military is sending an assortment of fighter jets and a warship on a new mission to the Middle East, bringing a firepower boost to the region after Iranian forces recently tried to seize several commercial ships in the area's strategic waterways.
A Pentagon official said this week that Secretary of Defense Lloyd Austin has authorized the deployment of F-35 and F-16 fighter jets, as well as the destroyer USS Thomas Hudner, to the US Central Command's (CENTCOM) area of responsibility "to defend US interests and safeguard freedom of navigation in the region." The F-35, a fifth-generation stealth aircraft, is the US military's most advanced fighter jet.
Citing two recent incidents of Iranian harassment in the Strait of Hormuz and Gulf of Oman, Deputy Pentagon Spokesperson Sabrina Singh told reporters at a Monday briefing that "in light of this continued threat and in coordination with our partners and allies, the department is increasing our presence and ability to monitor the strait and surrounding waters."
Women of Iran
Return Of 'Morality Police' To Iranian Streets Leaves Women Fearful But Defiant
The return of the so-called morality police to the streets of major Iranian cities has brought back fear and stress for women who choose to ignore the requirement that they wear the hair-covering hijab. But it has also been met with resistance by men and women alike, while lawmakers have questioned the effectiveness of the hard-line approach to enforcing compliance.
Iranians who spoke to RFE/RL's Radio Farda said the presence of the morality police -- officially known as "guidance patrols" that usually include male officers and women wearing black chadors -- is not as visible as it was before the patrols were scaled back after nationwide protests first broke out against the hijab law last autumn.
"Before, when we went on the street, they had a stationary vehicle, or a vehicle that was moving on the street," Leila Mirghaffari, a women's rights activist who lives in Tehran, told Radio Farda on July 17, a day after the return of the morality police was announced. "They haven't yet dared to encroach like before. But they are present, mostly in main squares."
(Radio Free Europe)
Economy
US bans 14 Iraqi banks in crackdown on Iran dollar trade, Wall Street Journal reports
The United States has barred 14 Iraqi banks from conducting dollar transactions, the Wall Street Journal reported on Wednesday, citing U.S. officials.
The ban, which was imposed by the Treasury Department and the Federal Reserve Bank of New York, is part of a crackdown on the siphoning of U.S. currency to Iran, the report said.
The United States uncovered information that the Iraqi banks engaged in money laundering and fraudulent transactions, some of which may have involved sanctioned individuals and raised concerns that Iran could benefit, the newspaper said.
(Reuters)
Iran Loses Bid to Host Shipping Event After Vote at UN Agency Meeting
Iran's offer to host a maritime event in October has been rejected after a proposal led by the U.S. to rescind the bid was approved in a vote at the U.N. shipping agency's council, an agency spokesperson said Thursday.
The move is likely to further raise tensions between Washington and Iran after Tehran tried to seize the Richmond Voyager tanker, which was managed by U.S. oil company Chevron, earlier in July in international waters.
Iran had proposed to host a shipping event in Tehran in late October this year in conjunction with an annual maritime day hosted by the U.N.'s International Maritime Organization (IMO), which was accepted in 2015 by the IMO's executive council.
(VOA)
US Says Iraq's Payments To Iran Via Foreign Banks Will Be Restricted
US State Department Wednesday confirmed earlier reports about a change in Iraq’s payment method to Iran for imports of energy, allowing funds to go to non-Iraqi banks.
Reuters reported Monday that Secretary of State Antony Blinken had signed a 120-day waiver under current US sanctions on Iran to allow Baghdad to pay for Iranian energy imports and deposit such payments into non-Iraqi banks in third countries.
State Department spokesman Matthew Miller confirmed the news during his daily press briefing on Wednesday adding that “The one thing that is different about this renewal is that this latest package also expands the waiver to authorize the transfer of funds from those restricted accounts in Iraq to restricted accounts in select third-party banks.”
Environment
Environmental issues hold unique promise for fostering negotiation in Persian Gulf: analysis
Dust storms are an issue that all Middle Eastern states have an interest in tackling. The storms that travel across the region ground planes, hospitalize thousands, and cost an estimated $13 billion in GDP each year. After a series of diplomatic normalization agreements with Arab Persian Gulf states, Iran is hoping its neighbors will attend the conference. Iranian vice president, Ali Salajegheh, recently said before the Friday prayer, “Environmental diplomacy is the precursor to political diplomacy.”
Yet, a Tehran-based political scientist observed, “Middle Eastern political elites have historically achieved their interests in the region by fighting, not negotiating or cooperating.” Deeply entrenched zero-sum thinking has undermined efforts to address most hard security issues through regional dialogue or collaboration.
Environmental issues hold unique promise for fostering negotiation and cooperation in the Persian Gulf, the Center for Strategic and International Studies (CSIS) said in a commentary.
Inside Iran
Iran's ancient 'wind catchers' beat the heat naturally
The wind catchers, called badgirs in Persian, are just one of the engineering marvels inhabitants have developed in this ancient city in central Iran -- where temperatures reach well over 40 degrees celsius (104 Fahrenheit) in the summer.
And, unlike energy-guzzling air-conditioners, they're cost and carbon-free.
"For centuries, before we had electricity, they made it possible to cool dwellings," said Abdolmajid Shakeri, the provincial deputy of Iran's cultural heritage and tourism ministry.
How well-connected Iranians import their goodies
Hassan is an unlikely smuggler. Affable and a bit nerdy, he looks better suited to his old job as an international public-relations adviser. Now he is one of the many shadowy operators who send contraband to Iran. Some reckon goods worth $20bn-25bn evade Iranian border guards each year. His particular speciality is pianos.
Since Iran’s customs authorities banned the import of musical instruments in 2021, the upright pianos that Hassan (not his real name) buys for less than $900 in East Asia go for $6,000 apiece in Tehran, Iran’s capital. Musical instruments are outlawed, possibly for religious reasons; a member of the parliamentary economic committee said that those who want to tickle the ivories “must leave Iran”.
The ban is also part of a strategy to deter imports of items officially deemed unnecessary, so as to tackle a balance-of-payments crisis that has been fuelled by Western sanctions on Iran. Foreign-made sunglasses, fancy smartphones and various fashionable items of clothing are prohibited, too. This has created a lively illicit market for traders who already benefit from the authorities’ willingness to overlook their activities in order to help them to circumvent the American embargo.
Global Relations
Iran, Bolivia Agree To Forge Bilateral Cooperation
The defense ministers of Iran and Bolivia signed an agreement to strengthen bilateral cooperation in the areas of defense and security.
Speaking at the ceremony on Thursday, Iranian Defense Minister Mohammad Reza Ashtiani emphasized the significance of Latin American nations in Iran's foreign and defense policy. He claimed that these countries occupy a special place in Iran's strategic outlook, prompting the desire to forge closer ties with Bolivia in particular.
“In light of Bolivia's critical requirements in border defense and the fight against drug trafficking, we actively sought to establish collaborations in equipment and expertise with the country. This cooperative endeavor has the potential to serve as a pioneering model for other nations in South America,” Ashtiani said.
Analysis
Sanctions on Iran also limit its access to international dispute resolution mechanisms
By: Ameneh Dehshiri
As time passes without a concrete agreement de-escalating the long-running nuclear crisis between Iran and the international community, Iranian companies face continued uncertainty about lingering claims for damages due to contracts broken by Western firms.
The 2015 Joint Comprehensive Plan of Action (JCPOA) presented significant opportunities for economic growth and reconciliation by lifting UN Security Council sanctions, as well as multilateral and national sanctions pertaining to Iran’s nuclear program. International companies were quick to recognize Iran’s potential and signed a multitude of agreements with Iranian firms across an array of industries, from energy to automobile manufacturing.
In the wake of the U.S. unilateral withdrawal from JCPOA in May 2018, however, international companies were forced to wind down their activities in Iran, resulting in the termination or suspension of contracts. The repercussions were severe, as international partners did not fulfill their contractual obligations, causing substantial financial and operational damage to Iranian parties.
