A Year on, Iran’s Raisi Faces Economy in Trouble

Iranians walk at Valiasr square in the capital Tehran, on July 31 2022. (AFP)
Iranians walk at Valiasr square in the capital Tehran, on July 31 2022. (AFP)
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A Year on, Iran’s Raisi Faces Economy in Trouble

Iranians walk at Valiasr square in the capital Tehran, on July 31 2022. (AFP)
Iranians walk at Valiasr square in the capital Tehran, on July 31 2022. (AFP)

A year after Iran's President Ebrahim Raisi took power, his government has curbed the Covid pandemic but faces a sharp downturn of the sanctions-hit economy as nuclear talks remain stalled.

Having pledged to help especially the poor, the ultraconservative cleric now faces runaway consumer prices that have sparked protests.

Raisi was elected in June last year in a ballot for which less than half of voters turned up, after his major rivals had been disqualified by electoral bodies.

He was inaugurated on August 3 by the supreme leader, Ali Khamenei, and sworn in two days later as head of government.

When he formed his cabinet, Raisi named his two top priorities: controlling the region's worst Covid outbreak, and turning around the battered economy.

Iran's vaccination campaign, long hampered by US sanctions, was massively stepped up using Chinese and Russian drugs.

For Hamidreza Taraqi, a top official in the Islamic Coalition Party, part of the conservative alliance backing the Raisi, the government has "succeeded in curbing the coronavirus and in eliminating its effects".

The UN World Health Organization says more than 58 million Iranians, or some 70 percent of the population, have now been fully vaccinated.

"Raisi's government did oversee widespread coronavirus vaccinations after the state reversed course and approved foreign vaccine imports," said Henry Rome of the US-based consultancy Eurasia Group.

But on the economic front, Raisi's record is more mixed as Iran remains hit by biting sanctions that keep it isolated from global financial systems.

Nuclear talks
Iran had hoped for greater prosperity after its 2015 nuclear deal with major powers gave it sanctions relief in exchange for curbs on its atomic program.

But former US president Donald Trump in 2018 unilaterally withdrew Washington from the agreement and reimposed a punishing sanctions regime.

The economic pain has deepened popular distrust in Iran toward the government, both under the previous president, the moderate Hassan Rouhani, and under Raisi.

The darker mood, say analysts, was reflected in the record abstention rate at last year's election, which came after the repression of protest movements, especially from December 2017 and again in November 2019.

Iran had returned to economic growth under Rouhani after the 2018-2019 recession.

But, hit by Trump's sanctions which dramatically curbed crucial oil exports, Iran's GDP per capita is now not expected to recover to its pre-crisis level until next year, according to the International Monetary Fund.

'Social turmoil'

In April 2021, with President Joe Biden in the White House, talks on rescuing the nuclear accord began in Vienna.

The negotiations resumed in November 2021 after a pause around Iran's presidential polls but have yet to produce a breakthrough, while the Raisi government faces a budget deficit that economists consider abysmal.

Inflation, which has been eroding household purchasing power for years, in June reached 54 percent from a year earlier, according to the latest official data.

And the rial currency, which had recovered somewhat early this year on hopes of a deal in the nuclear talks, has since resumed its rapid descent, and reached a new low in June against the dollar.

Then in May, the government started to lift state subsidies on flour and to raise prices on food staples such as oil and dairy products -- measures that especially penalized the poor whom Raisi had championed.

"The country's economic horizon is far from clear... and economists predict we will face more rising prices," Mehdi Rahmanian, editor of the reformist newspaper Shargh, told AFP.

The rising cost of living has driven protests in several Iranian cities in recent months.

Much now depends on how the nuclear talks go, said Rome.

"If the nuclear negotiations collapse, as appears likely," he said, "Iran will likely face more significant economic and social turmoil."



Russia Pledges ‘Full Support’ for Venezuela Against US ‘Hostilities’

The US Navy replenishment oiler USNS Kanawha (T-AO-196) arrives at port in Ponce, Puerto Rico, amid ongoing military movements, December 21, 2025. (Reuters)
The US Navy replenishment oiler USNS Kanawha (T-AO-196) arrives at port in Ponce, Puerto Rico, amid ongoing military movements, December 21, 2025. (Reuters)
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Russia Pledges ‘Full Support’ for Venezuela Against US ‘Hostilities’

The US Navy replenishment oiler USNS Kanawha (T-AO-196) arrives at port in Ponce, Puerto Rico, amid ongoing military movements, December 21, 2025. (Reuters)
The US Navy replenishment oiler USNS Kanawha (T-AO-196) arrives at port in Ponce, Puerto Rico, amid ongoing military movements, December 21, 2025. (Reuters)

Russia on Monday expressed "full support" for Venezuela as the South American country confronts a blockade of sanctioned oil tankers by US forces deployed in the Caribbean, the two governments said.

In a phone call, the foreign ministers of the two allied countries blasted the US actions, which have included bombing alleged drug-trafficking boats and more recently the seizure of two tankers.

A third ship was being pursued, a US official told AFP Sunday.

"The ministers expressed their deep concern over the escalation of Washington's actions in the Caribbean Sea, which could have serious consequences for the region and threaten international shipping," the Russian foreign ministry said of the call between ministers Sergei Lavrov and Yvan Gil.

"The Russian side reaffirmed its full support for and solidarity with the Venezuelan leadership and people in the current context," it added.

"The ministers agreed to continue their close bilateral cooperation and to coordinate their actions on the international stage, particularly at the UN, in order to ensure respect for state sovereignty and non-interference in internal affairs."

The UN Security Council is to meet Tuesday to discuss the mounting crisis between Venezuela and the United States after a request from Caracas, backed by China and Russia.

On Telegram, Venezuela's Gil said he and Lavrov had discussed "the aggressions and flagrant violations of international law being perpetrated in the Caribbean: attacks on vessels, extrajudicial executions, and illicit acts of piracy carried out by the United States government."

US forces have since September launched strikes on boats Washington said, without providing evidence, were trafficking drugs in the Caribbean Sea and eastern Pacific Ocean.

More than 100 people have been killed, some of them fishermen, according to their families and governments.

US President Donald Trump on December 16 announced a blockade of "sanctioned oil vessels" sailing to and from Venezuela.

Trump has claimed Caracas under Maduro is using oil money to finance "drug terrorism, human trafficking, murder and kidnapping.

Gil said Lavrov had affirmed Moscow's "full support in the face of hostilities against our country."


Turkish Agents Capture an ISIS Member on the Afghan-Pakistan Border

A Turkish soldier stands guard outside the Silivri Prison and Courthouse complex near Istanbul, Turkey. (File/Reuters)
A Turkish soldier stands guard outside the Silivri Prison and Courthouse complex near Istanbul, Turkey. (File/Reuters)
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Turkish Agents Capture an ISIS Member on the Afghan-Pakistan Border

A Turkish soldier stands guard outside the Silivri Prison and Courthouse complex near Istanbul, Turkey. (File/Reuters)
A Turkish soldier stands guard outside the Silivri Prison and Courthouse complex near Istanbul, Turkey. (File/Reuters)

Turkish intelligence agents have captured a senior member of the ISIS terror group in an area along the Afghanistan-Pakistan border, allegedly thwarting planned suicide attacks in Türkiye and elsewhere, Türkiye's state-run news agency reported Monday.

Anadolu Agency said the suspect was identified as Mehmet Goren and a member of the group's Afghanistan-based ISIS-Khorasan branch. He was caught in a covert operation and transferred to Türkiye.

It was not clear when the operation took place or whether Afghan and Pakistani authorities were involved.

The report said the Turkish citizen allegedly rose within the organization’s ranks and was given the task of carrying out suicide bombings in Türkiye, Pakistan, Afghanistan and Europe.

ISIS has carried out deadly attacks in Türkiye, including a shooting at an Istanbul night club on Jan. 1, 2017, which killed 39 people.

Monday's report said Goren’s capture allegedly also exposed the group's recruitment methods and provided intelligence on its planned activities.


Iran Arrests Norwegian-Iranian Dual Citizen

Iran's Evin Prison (File photo: Reuters)
Iran's Evin Prison (File photo: Reuters)
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Iran Arrests Norwegian-Iranian Dual Citizen

Iran's Evin Prison (File photo: Reuters)
Iran's Evin Prison (File photo: Reuters)

A Norwegian-Iranian dual citizen has been arrested in Iran, Norway's foreign ministry told AFP on Monday.

"The Ministry of Foreign Affairs is aware that a Norwegian citizen has been arrested in Iran, but due to our obligation to respect confidentiality we cannot provide further details," ministry spokesman Mathias Rongved said in an email.

He confirmed the individual was a dual Norwegian-Iranian national and noted the government advises against travel to Iran.

On its website, the Norwegian government states that Iran does not recognise dual citizenship, and it is "therefore very difficult -- virtually impossible -- for the embassy to assist Norwegian-Iranian citizens if they are imprisoned in Iran".

The US-based Human Rights Activists News Agency (HRANA) identified the dual national as Shahin Mahmoudi, born in 1979.

It said she was arrested on December 14 after being ordered to report to authorities in Saqqez, in Iran's western Kurdistan province.

She is being held at a detention center in Sanandaj, it added.

HRANA said her family had not been informed of the reason for her arrest nor had they received any news of her health and well-being.