Iran After Trump’s Win: Calls for New Approach, Challenge to Soleimani’s ‘Killer’

An Iranian holds a copy of the Hamshahri newspaper in a street in downtown Tehran (EPA)
An Iranian holds a copy of the Hamshahri newspaper in a street in downtown Tehran (EPA)
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Iran After Trump’s Win: Calls for New Approach, Challenge to Soleimani’s ‘Killer’

An Iranian holds a copy of the Hamshahri newspaper in a street in downtown Tehran (EPA)
An Iranian holds a copy of the Hamshahri newspaper in a street in downtown Tehran (EPA)

The Iranian Foreign Ministry spokesperson has said that Donald Trump’s victory in the US presidential election offers an opportunity for the US to reassess its “misguided policies.”

“What matters for Iran is the performance of the US administration,” said Ismail Baghai on Thursday, noting that Tehran had “bitter experiences” with past US policies.

He added that Trump’s win is a “chance to reconsider the previous wrong directions” of the US, according to the official IRNA news agency.

Iranian newspapers were divided, with some calling for Tehran to adopt a new approach, while others opposed the policies of the “architect of maximum pressure” and the “killer” of Gen. Qasem Soleimani.

On Wednesday, Iranian President Masoud Pezeshkian said the US election result was of no concern to Iran.

“It doesn't matter to us who won the US election, as our strength lies in our internal power and a great nation,” Pezeshkian said.

“We are not narrow-minded in developing relations with other countries, prioritizing ties with Islamic and neighboring nations,” he added, according to Iranian media. It was unclear if he was referring to the US, with which Iran has no diplomatic ties.

Supreme Leader Ali Khamenei has banned direct talks with the US.

On Wednesday, government spokesperson Fatemeh Mahdiani downplayed the importance of the election.

“The US presidential election won’t affect us. Iran’s policies remain unchanged,” she said.

“It doesn't matter who the US president is. We’ve already planned for various scenarios, given the sanctions on Iran for over 40 years,” she added.

Last Monday, Iranian Foreign Minister Abbas Araghchi said: “We don’t place much importance on the US election or who is elected.”

Baghai, speaking at his weekly press conference on Monday, said Iran’s stance on Trump is “clear” when asked how Tehran would respond if Trump offered to negotiate.

Trump’s victory comes amid rising tensions between Israel and Iran, with direct strikes exchanged after years of indirect conflict.

Reuters speculated that Trump’s return to office would mean stricter enforcement of US oil sanctions on Iran, which were imposed in 2018 after the US left the nuclear deal.

Trump criticized President Joe Biden’s policy of not enforcing strict sanctions on Iran’s oil exports, claiming it weakened the US and emboldened Tehran to expand its nuclear program and support armed groups.

In his first term, Trump reimposed sanctions after withdrawing from the 2015 nuclear deal, which had limited Iran’s nuclear program in exchange for economic benefits.

These sanctions hurt Iran’s oil exports, reduced government revenue, and led to unpopular measures like tax hikes, while inflation remained near 40%.

In September, Pezeshkian said Tehran was ready to resolve the nuclear issue with the West, which accuses Iran of seeking nuclear weapons.

Iran insists its nuclear program is for peaceful purposes, but officials have hinted at possibly changing its direction.

Biden tried to revive the nuclear deal but failed to reach a new agreement. It’s unclear if Trump would pursue a similar approach.

Trump’s victory in the US presidential election dominated Iranian newspapers on Thursday morning, with the reformist Sazandegi newspaper, under the headline “Trump’s Return,” saying that no decision-makers in Iran are comfortable with Trump’s win, as it could harm the country in several ways.

The paper, aligned with former President Ali Akbar Hashemi Rafsanjani’s faction, predicted that Trump might increase uncertainty, tighten sanctions, block Iran’s oil exports, and destabilize the economy, which would hurt ordinary Iranians.

The paper also suggested that the situation could change if the Iranian government adjusts its approach in response to Trump’s win but criticized Iran’s decision-makers for being slow to adapt.

It acknowledged that while Iran’s actions over the past 50 years have led all US administrations to view it as an enemy, the impact of the US president can vary.

The newspaper warned that Trump’s policies could lead to a bigger budget deficit, rising inflation, and a higher exchange rate, all of which would harm various sectors of Iran’s economy.

It noted that the country’s currency stability relies on oil revenues and foreign political relations.

With ongoing regional tensions and sanctions, any drop in oil revenues and difficulty accessing global markets could worsen Iran’s economic challenges, making it harder for the government to manage its budget and financial crises.

Analysts quoted by Sazandegi said Trump’s reelection might not lead to war but could result in harsher sanctions targeting Iran’s nuclear and missile programs without military action.

They also predicted that Russia might increase its pressure on Iran, potentially pushing the country toward a “Look East” strategy.

Reformist politician Mohammad Hashemi Rafsanjani wrote in Arman Emruz that Trump, as a businessman, would likely prefer economic cooperation with Iran over military conflict.

He suggested Trump might push for trade talks with Iran, opening the market to US companies, similar to European firms before the nuclear deal.

Hashemi noted that any conflict could drive up oil and gas prices, and as a businessman, Trump would likely avoid this. Instead, he would seek to strengthen economic ties between Iran and the US.

Hashemi also pointed out that the nuclear deal brought Iran significant economic benefits, including the return of $100 billion in frozen assets.

Arman Emruz warned that Trump’s return could escalate Middle East tensions and complicate relations with China and Russia over issues like Ukraine and Taiwan.

Etemad newspaper said that during his first term, Trump tried to turn Iran from a legitimate player into a pariah state, aiming to restrict and isolate it. It added that Trump’s return now is not in Iran’s interest.

The paper called for a “different policy” toward Trump. Reformist activist and former MP Mahmoud Sadeghi said it’s too early to assess Trump’s performance, especially since he won unexpectedly.

Sadeghi pointed out that for Iranians, the key concern is how Trump’s election will affect domestic issues, recalling his role in the strike that killed Gen. Soleimani five years ago.

He warned against falling into “self-sanctions” and urged Iran to address the Financial Action Task Force (FATF) rules to fight money laundering.

On regional policy, Sadeghi stressed the need for the government to act wisely to avoid being caught in the Netanyahu-Trump rivalry. He emphasized the importance of seizing every opportunity, no matter how small.

Former MP Heshmatollah Falahatpisheh compared Trump’s return to the Taliban’s return to power in Afghanistan and dismissed the idea that Democrats and Republicans are the same, especially on the nuclear deal.



Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
TT

Some European Firms Retreat from Israel-Linked Finance amid War Pressure

 An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)
An Israeli national flag flies over a city highway during rush hour, amid the ongoing conflict in Gaza between Israel and Hamas, in Tel Aviv, Israel, November 4, 2024. (Reuters)

Several of Europe's biggest financial firms have cut back their links to Israeli companies or those with ties to the country, a Reuters analysis of filings shows, as pressure mounts from activists and governments to end the war in Gaza.

While banks and insurers are often vocal about their environmental and governance aims, they are less forthcoming about disclosing their potential exposure to war.

UniCredit put Israel on a "forbidden" list as the conflict escalated in October last year, said a source familiar with the matter, confirming a study by Dutch NGO PAX.

While in line with the Italian bank's defense-sector policy of not directly financing arms exports to any country involved in conflict, it goes beyond Italy's guidelines on arms exports to Israel.

UniCredit declined to comment on its move and the Israeli finance ministry also declined to comment.

Meanwhile, Norwegian asset manager Storebrand and French insurer AXA have sold shares of some Israeli firms, including banks.

Although corporate filings offer only a glimpse into such exposures, they show companies have been readjusting.

"We don't know whether this represents the beginning of a shift in the industry, one that recognizes the power banks have in choosing where to allocate capital, and where not," said Martin Rohner, executive director at the Global Alliance for Banking on Values, which focuses on sustainable financing.

"Investing in the production and trade of weapons is fundamentally opposed to the principles of sustainable development," Rohner added.

Israeli Finance Minister Bezalel Smotrich told a press briefing last week that although there are challenges to Israel's economy, firms are still raising money. "I sit with foreign investors and they believe in our economy," he said.

Reuters has reported that Israel's investor base has narrowed since it entered Gaza last year in response to attacks by Hamas, and it is feeling the effects of rising borrowing costs.

The potential wider effects can be seen in the approach taken by Storebrand, which a filing showed divested a holding worth about $24 million in Palantir, citing the risk of violations of international humanitarian law and human rights.

US group Palantir, which provides technology to Israel's military, did not respond to a request for comment.

Storebrand's annual investment review said that, as of the end of 2023, it had excluded 24 firms, including Israeli companies, across its portfolios in relation to the occupation of Palestinian territories.

The International Court of Justice, the United Nations' highest court, ruled in January of plausible risk of irreparable harm to Palestinian rights to be protected from genocide.

The same court said in July that Israel's occupation of Palestinian territories including the settlements is illegal.

Israel has rejected the rulings, which combined with growing pressure from activists and governments, are nevertheless having an impact on investment decisions.

AXA, one of Europe's largest insurers, British bank Barclays and German insurer Allianz have increasingly been targeted by campaigners.

"Increasing demand for greater transparency and scrutiny can only mean that financial institutions will intensify and broaden their self-assessment of their commercial associations with arms-related businesses or states," said David Kinley, professor and chair of human rights law at the Sydney law school.

The Ireland Strategic Investment Fund (ISIF) has exited six Israeli companies, selling holdings which amounted to about 3 million euros ($3.26 million), including some of Israel's largest banks, a spokesperson told Reuters.

Earlier this year, the 15-billion-euro Irish fund said that the risk profile of such investments were no longer within its investment parameters.

And Norway's $1.8 trillion wealth fund, the world's biggest, may divest shares of companies that aid Israel's operations in the occupied Palestinian territories which violate its ethics standards for businesses.

WAR EXPOSURE

Investments in Israeli banks are also under scrutiny.

The UN included them in 2020 in a list of companies with ties to settlements in the occupied Palestinian territories as part of its mission to review the implications on Palestinian rights.

A study by research firm Profundo, commissioned by corporate watchdog Ekō, shows that AXA sold almost all of its holdings in Israeli banks stocks earlier this year, retaining only a marginal stake in Bank Leumi.

Reuters verified the data with LSEG. A representative for Bank Leumi did not respond to a request for comment.

A spokesperson for AXA declined to comment on whether AXA had cut its holdings, adding that it is not invested in the banks targeted by activists. The UN list is among the criteria AXA takes into account for investment decisions, they added.

'A CLEAR LINE'

Foreign direct investment into Israel fell by 29% in 2023 to its lowest since 2016, UN Trade and Development data shows.

While UNCTAD 2024 figures are not available, credit ratings agencies have flagged the war's unpredictable impact on investment in Israel as a concern.

Although the US remains Israel's biggest military and financial backer, Spain, Ireland and Norway have recognized a Palestinian state, French President Emmanuel Macron has called for an arms export halt and Britain has suspended some licenses.

When it comes to international politics, "it should be down to the governments to take a clear line," said Richard Portes, professor of economics at London Business School, adding: "To put the burden on the private firms, where does this end?"

In an example of how activists are targeting companies directly, Barclays came under pressure from a campaign in Britain, prompting it to withdraw sponsorship from summer music festivals, while the Financial Times reported in August that it considered pulling out of an Israeli government bond sale.

Barclays said in a statement that it remained "fully committed" to its role as a primary dealer and that such activities fluctuated each quarter. The bank fell out of the top five dealers of Israeli bonds in the second and third quarters, after ranking third in 2023.