Dealing With Iran, Trump Has Many Options

US President Donald Trump. (AFP)
US President Donald Trump. (AFP)
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Dealing With Iran, Trump Has Many Options

US President Donald Trump. (AFP)
US President Donald Trump. (AFP)

A year ago, the annual General Assembly of the United Nations in New York was the setting for what looked like an Irano-American love-fest as the two erstwhile foes multiplied gestures of sweetness towards each other.

The key symbol of their affection was what they called Comprehensive Joint Plan of Action (CJPOA), a 176-page list of desiderata linked to the Islamic Republic’s controversial nuclear program.

This year, however, the old demons were back as the United States’ new President Donald Trump described the Islamic Republic in Tehran as “a criminal regime” bent on exporting terrorism. His Iranian counterpart Hassan Rouhani returned the compliment by labeling Trump a “rogue politician.” Once again, the CJPOA, or Plan, in short, was the point of reference for both. Trump vowed to scrap it while Rouhani almost upgraded it to the status of a sacred untouchable text.

“We shall not accept any change in the text of the Plan,” Rouhani told whoever cared to listen in New York.
Despite the Mch-2 rhetoric on both sides, one thing is certain: as far as the Plan is concerned the status quo is so destabilized that trying to maintain it might prove futile if not dangerous.

Trump cannot swallow his incendiary words and tell his people that he has decided to stick to the Plan after all. For their part, Tehran’s mullahs cannot denounce the Plan, the fig leaf that covers the nakedness of their foreign policy or to force the US to continue the charade started by former President Barack Obama.

For both sides, the key problem is that the Plan is not a legally binding document. Neither a treaty nor an agreement, the Plan was negotiated by an ad-hoc group called 5+1 with no legal existence and a team of Islamic Republic diplomats with no clear legal mandate.

It has not been ratified by any national parliament or international authority. A resolution passed by the Islamic Majlis in Tehran refers to it obliquely only to reject its key features. The UN Security Council Resolution 2231 “endorses” the Plan and stipulates a suspension of sanctions decided in six previous resolutions.

However, the resolution does not make it clear which of the many versions of the Plan it endorses. The Islamic Foreign Ministry has provided at least three versions in Persian and the US State Department two in English.

Because the Plan isn’t a treaty or a classical international agreement it has no mechanism for amendment let alone abrogation. This means that no one, including President Trump, can abrogate a non-existent treaty.
So, what can Trump do?

Under a deal made between Obama and the US Congress, the US President is authorized to suspend some sanctions against the Islamic Republic for periods of 90 to 180 days, each time certifying to the Congress that Iran has fulfilled its obligations under the Plan.

So far, Trump has issued the certifications on a regular basis. He could, of course, decide not to issue further certifications. In that case, he would have to provide justification for his decision within 10 days, providing evidence that Iran has reneged on its obligations under the Plan.

If the Congress accepts the evidence provided the whole issue will revert to Congressional authority. That may seem attractive from Trump’s point of view because he would wash his hands off a thorny issue, but entails the risk of fudging the whole matter in a quagmire of Congressional partisan politics.

With relations between the White House and the Republican Party strained, to say the least, there is no guarantee that the Trump administration would master enough support in the Congress to promote an entirely new approach to the “Iran problem.”

The best option for Trump, therefore, would be to continue signing regular certifications while keeping the suspense about the future of the Plan. Such suspense has already prevented major international banks and corporations from normalizing relations with Iran let alone providing it with the massive injection of capital and technology it needs to avoid economic meltdown.

Uncertainty about what the US might do about Iran has been the most effective weapon Washington has in its efforts to curb the mullah’s ambitions.

At some point, that uncertainty may prove too hard to bear for mullahs, now under fire inside Iran for the failure of the Plan to provide any of its promised fruits. In such circumstances, the mullahs may be forced to denounce the Plan, if only to save face. And that would save Washington the trouble of picking a quarrel with European allies and Russia over a Plan rejected by Iran itself.

Another option that Trump has is to ratchet up measures taken against the Islamic Republic in relation to other problems, including violations of human rights, exporting terrorism, seizure of foreign hostages, notably US citizens, Tehran development of ballistic missiles, and direct or indirect military intervention in Syria, Iraq, Lebanon, and Yemen.

Measures based on such concerns may well even attract support not only from the European allies but on a broader international scale. Almost all the sanctions suspended under the Plan could be refigured and re-launched through new legislation related to other areas of conflict with the mullahs.

Such action could be complemented with a more energetic application of measures already envisaged under seven UN resolutions, including stop and search operations aimed to prevent the import by Iran of dual-use material and technology.

A brochette of measures known in diplomatic parlance as “proximity pressure” could further complement such actions, making life more difficult for the Islamic Republic.

Finally, there is the option suggested by French Foreign Minister Jean-Yves Le Drian: launching a new process of negotiations to amend and extend the Plan and, maybe, even morph it into a proper legal agreement.
Such a process could have three aims.

First, it would remove the so-called “sunset” clauses under which some of the measures against the Islamic Republic will automatically expire in 2025. Under the existing Plan, the mullahs have ceded large chunks of Iranian sovereignty, especially with reference to the nation’s industrial and trade policies, to the 5+1 group until 2025.

Secondly, the French idea is to extend that ceding of sovereignty beyond that limit, in fact making it permanent by putting Iran under 5+1 tutelage.

The French scheme also envisages the extension of the existing Plan to other areas of interest by committing Tehran to specific measures regarding its regional policies and, in time, even its domestic politics.
In other words, why not a CJPOA number 2 on human rights and another CJPA number 3 on the Islamic Republic’s economic system?

Finally, at some point one could envisage a CJPOA on military matters, bringing Iran into the international fold through semi-official dialogue with the North Atlantic Treaty Organization (NATO). The first such contact, established earlier this month by Iran at the highest level of its military with Turkey is seen as a promising development.

There is, however, a fundamental difference between the American analysis under Trump and the European one promoted by the new French President Emmanuel Macron.

Key members of the Trump administration believe that the Islamic Republic, lacking mechanism for reform, change within the regime is not possible.

That leaves the choice between accepting the Islamic Republic warts and all and trying to bring about regime change.

According to the European analysis, however, the “Supreme Guide” Ali Khamenei’s rule has entered its final “natural phase” providing a potential for “evolution” led by “moderate elements” anxious to adopt the “Chinese model” or repression at home and accommodation with the Western powers.

A coalition of moderate mullahs and modernizing military figures could discard the North Korean model, favored by Khamenei, and nudge Iran toward reconciliation with the outside world.

President Trump has promised to let us know soon what he has decided. His unorthodox UN speech, however, has already ignited a new phase in the debate inside Iran between “Islamic North Koreans” and “Islamic Chinese” ideologues. Not a bad picking for a single speech.



To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
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To Get Their Own Cash, People in Gaza Must Pay Middlemen a 40% Cut

A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)
A destroyed branch of the Bank of Palestine in the Tal al-Hawa neighborhood of Gaza City is seen Wednesday, July 9, 2025. (AP)

Cash is the lifeblood of the Gaza Strip’s shattered economy, and like all other necessities in this war-torn territory — food, fuel, medicine — it is in extremely short supply.

With nearly every bank branch and ATM inoperable, people have become reliant on an unrestrained network of powerful cash brokers to get money for daily expenses and commissions on those transactions have soared to about 40%.

"The people are crying blood because of this," said Ayman al-Dahdouh, a school director living in Gaza City. "It’s suffocating us, starving us."

At a time of surging inflation, high unemployment and dwindling savings, the scarcity of cash has magnified the financial squeeze on families — some of whom have begun to sell their possessions to buy essential goods.

The cash that is available has even lost some of its luster. Palestinians use the Israeli currency, the shekel, for most transactions. Yet with Israel no longer resupplying the territory with newly printed bank notes, merchants are increasingly reluctant to accept frayed bills.

Gaza’s punishing cash crunch has several root causes, experts say.

To curtail Hamas’ ability to purchase weapons and pay its fighters, Israel stopped allowing cash to enter Gaza at the start of the war. Around the same time, many wealthy families in Gaza withdrew their money from banks and then fled the territory. And rising fears about Gaza’s financial system prompted foreign businesses selling goods into the territory to demand cash payments.

As Gaza’s money supply dwindled and civilians’ desperation mounted, cash brokers' commissions — around 5% at the start of the war — skyrocketed.

Someone needing cash transfers money electronically to a broker and moments later is handed a fraction of that amount in bills. Many brokers openly advertise their services, while others are more secretive. Some grocers and retailers have also begun exchanging cash for their customers.

"If I need $60, I need to transfer $100," said Mohammed Basheer al-Farra, who lives in southern Gaza after being displaced from Khan Younis. "This is the only way we can buy essentials, like flour and sugar. We lose nearly half of our money just to be able to spend it."

In 2024, inflation in Gaza surged by 230%, according to the World Bank. It dropped slightly during the ceasefire that began in January, only to shoot up again after Israel backed out of the truce in March.

Cash touches every aspect of life in Gaza

About 80% of people in Gaza were unemployed at the end of 2024, according to the World Bank, and the figure is likely higher now. Those with jobs are mostly paid by direct deposits into their bank accounts.

But "when you want to buy vegetables, food, water, medication -- if you want to take transportation, or you need a blanket, or anything — you must use cash," al-Dahdouh said.

Shahid Ajjour’s family has been living off of savings for two years after the pharmacy and another business they owned were ruined by the war.

"We had to sell everything just to get cash," said Ajjour, who sold her gold to buy flour and canned beans. The family of eight spends the equivalent of $12 every two days on flour; before the war, that cost less than $4.

Sugar is very expensive, costing the equivalent of $80-$100 per kilogram (2.2 pounds), multiple people said; before the war, that cost less than $2.

Gasoline is about $25 a liter, or roughly $95 a gallon, when paying the lower, cash price.

Bills are worn and unusable

The bills in Gaza are tattered after 21 months of war.

Money is so fragile, it feels as if it is going to melt in your hands, said Mohammed al-Awini, who lives in a tent camp in southern Gaza.

Small business owners said they were under pressure to ask customers for undamaged cash because their suppliers demand pristine bills from them.

Thaeir Suhwayl, a flour merchant in Deir al-Balah, said his suppliers recently demanded he pay them only with brand new 200-shekel ($60) bank notes, which he said are rare. Most civilians pay him with 20-shekel ($6) notes that are often in poor condition.

On a recent visit to the market, Ajjour transferred the shekel equivalent of around $100 to a cash broker and received around $50 in return. But when she tried to buy some household supplies from a merchant, she was turned away because the bills weren’t in good condition.

"So the worth of your $50 is zero in the end," she said.

This problem has given rise to a new business in Gaza: money repair. It costs between 3 and 10 shekels ($1-$3) to mend old bank notes. But even cash repaired with tape or other means is sometimes rejected.

People are at the mercy of cash brokers

After most of the banks closed in the early days of the war, those with large reserves of cash suddenly had immense power.

"People are at their mercy," said Mahmoud Aqel, who has been displaced from his home in southern Gaza. "No one can stop them."

The war makes it impossible to regulate market prices and exchange rates, said Dalia Alazzeh, an expert in finance and accounting at the University of the West of Scotland. "Nobody can physically monitor what’s happening," Alazzeh said.

A year ago, the Palestine Monetary Authority, the equivalent of a central bank for Gaza and the West Bank, sought to ease the crisis by introducing a digital payment system known as Iburaq. It attracted half a million users, or a quarter of the population, according to the World Bank, but was ultimately undermined by merchants insisting on cash.

Israel sought to ramp up financial pressure on Hamas earlier this year by tightening the distribution of humanitarian aid, which it said was routinely siphoned off by militants and then resold.

Experts said it is unclear if the cash brokers’ activities benefit Hamas, as some Israeli analysts claim.

The war has made it more difficult to determine who is behind all sorts of economic activity in the territory, said Omar Shabaan, director of Palthink for Strategic Studies, a Gaza-based think tank.

"It's a dark place now. You don't know who is bringing cigarettes into Gaza," he said, giving just one example. "It's like a mafia."

These same deep-pocketed traders are likely the ones running cash brokerages, and selling basic foodstuffs, he said. "They benefit by imposing these commissions," he said.

Once families run out of cash, they are forced to turn to humanitarian aid.

Al-Farra said that is what prompted him to begin seeking food at an aid distribution center, where it is common for Palestinians to jostle over one other for sacks of flour and boxes of pasta.

"This is the only way I can feed my family," he said.