Bread Prices Jump In Iran As Government Subsidies Stay Flat

Iranian government spokesperson Ali Bahadori Jahromi alleged that the protests, in the wake of the death in morality police custody of Mahsa Amini, led to an increase in the exchange rate and capital flight, ignoring the likes of global sanctions for its nuclear program, which have only worsened since it was revealed the regime has been supplying drones to Russia in its invasion of Ukraine.

Jahromi simply blamed the uprising on international influence, which he called a “conspiracy” by the United States, one of the country's arch-enemies. Jahromi's remarks come as the rial has experienced a tenfold drop in value over the past five years, with the economic situation further deteriorating before the protests occurred.

The rial has proven to be highly sensitive to news surrounding the nuclear talks which recently saw a closed-door revival with the Biden administration's attempts to bring Iran back to the table. The currency began to steeply fall in early 2018, prompted by former US president Donald Trump's indications of withdrawing from the Obama-era nuclear accord, known as the JCPOA.

The impasse in the talks has further strained Iran's economic situation, with its crude oil exports remaining sanctioned by the US, and its banking system isolated from the international financial system.

In a bid to disguise the dire situation where a huge portion of Iranians are now living below the poverty line while money is still funnelled across the region to the regime's military proxies, Jahromi made the unsubstantiated claim that "all indicators show we are moving towards reducing the inflation rate".

He meanwhile mockingly urged people "not to get the wrong information from Ayatollah Google", suggesting the government spokespeople are the only reliable sources to trust.

Gen. Hossein Salami claimed the countries of the region are capable of establishing the security of the Persian Gulf.

Tensions in the Persian Gulf heightened on Wednesday as the Islamic Revolutionary Guard Corps (IRGC) initiated unexpected military exercises on three Persian Gulf Islands disputed by the United Arab Emirates.

Salami speaking about security in the region stated, "The regional states are capable of establishing the security of the Persian Gulf based on Islamic brotherhood and loyalty, without the need for the presence of US or its allies."

The military exercise, conducted by the IRGC Navy, saw the participation of operational combat units, boats, missiles, drones, electronic warfare, and rapid response forces.

During the exercise, the IRGC unveiled two "advanced weapons systems" - the Qadir cruise missile and the Fath 360 ballistic missile, both claimed to be equipped with artificial intelligence capabilities. Unmanned aerial vehicles (UAVs) allegedly with AI capacity were also deployed, successfully destroying predetermined targets.

The operationalization and equipping of new IRGC boats with missiles, with a range of 600 km, was another part of the exercise.

The IRGC's military maneuvers were primarily centered around Abu Musa Island, with additional troop landings on the Greater Tunb Island, the islands disputed by the UAE.

The United States has boosted its military presence in the region following Iran's attempts to interfere with maritime traffic in the Strait of Hormuz and its surrounding waters.

In response to the US deployment, Salami issued a warning, stating, "Our nation is vigilant, and it gives harsh responses to all threats, complicated seditions, secret scenarios, and hostilities."

The visit is seen as an opportune moment for both nations to focus on regional connectivity, energy cooperation, and enhancing economic and investment partnerships.

Afghanistan holds a vital place in the agenda. Experts have underscored the importance for Iran and Pakistan to establish a common viewpoint concerning the war torn nation, ensuring the preservation of Tehran and Islamabad's interests.

Since the Taliban's ascent to power in Afghanistan, the activities of the terrorist group Tehrik-e Taliban Pakistan have escalated, leading to security concerns in Pakistan. As such, resolving the Afghanistan issue remains a top priority for Islamabad.

Iran's concerns regarding Afghanistan are equally significant due to the shared border and water resources. Experts believe that reaching a unified approach on Afghanistan's issues will be instrumental in addressing the challenges that both Iran and Pakistan have faced in recent years, including hosting Afghan immigrants.

In an official statement, Iran's Ministry of Foreign Affairs revealed that Amir-Abdollahian will meet with the Prime Minister of Pakistan. He is also scheduled to address the speaker of the National Assembly and the chairman of the senate.

Advocacy group Haalvsh, which reports on issues affecting the Baluch minority, said the executions were carried out in several prisons in the southwestern Sistan-Baluchestan province and the northeastern city of Birjand.

The report added that none of the prisoners – who had been sentenced to death over drug-related charges --had their final meeting with their families, “and the families have only been called to receive the bodies of their loved ones."

According to the Norway-based Iran Human Rights (IHRNGO),423 people – including 10 women -- were executed since the beginning of 2023.

In July, the US-based Human Rights Activists in Iran (HRANA) released a report saying that approximately 5,000 executions have taken place in Iran in the last 10 years.

With many cases of executions not officially reported, the actual number is undoubtedly higher.

According to a HRANA report, the number of executions increased by over 88 percent in 2022 compared with a year earlier. There was a sharp rise in reported human rights violations since mid-September when the 22-year-old Kurdish woman Mahsa (Jina) Amini died in the custody of the so-called 'morality police' following which protests swept across the country.

As the execution wave shows no signs of slowing, protests continue across the country, only fueled by the relentless crackdowns.

Amid a spike in executions since late April, on May 19, authorities arbitrarily executed three tortured protesters, Majid Kazemi, Saeed Yaghoubi and Saleh Mirhashemi who were convicted and sentenced to death in Esfahan without due process of law.

The deaths brought to at least seven the number of protesters hanged since nationwide protests broke out in September 2022 following the death in custody of 22-year-old Mahsa Amini.

Israel’s Alma, an institute focused on threats to northern Israel, has revealed in a detailed report that “Iran’s major focus is to develop and manufacture precision missiles and rockets, cruise missiles, and unmanned aerial vehicles (UAVs) on Syrian soil”.

Operations are centered around the CERS Center, which is the heart of Syria's military industry. Established in 1971, the institute has transformed into a collaborative platform involving Syria, Iran, and Hezbollah since the beginning of the civil war, according to Alma's statement.

Security monitoring has been intensified by the Quds Force and Hezbollah’s security unit in Syria, Unit 9000. Iran’s control has become almost absolute, with a full-time presence of senior IRGC Quds Force Officers at the site.

In 2020, it was revealed by a prominent lawmaker that Iran had spent between $20 billion and $30 billion in Syria to prop up President Bashar al-Assad and fight Islamic State but as revelations of Iran’s growing industrial capabilities continue, the true number is believed to be far higher. 

“We have probably paid $20-30 billion to Syria, and we have to take that money back,” Heshmatollah Falahatpisheh, a member of the Iranian parliament's national security committee, said in an interview with Etemad Online at the time. Little has changed since, regime activities in Syria seeming to only step up, not down. 

In May, Iran International reported that based on leaked documents from the Iranian foreign ministry, that Syria owes Iran $50 billion.

Iranians often express strong disapproval of the regime’s regional policy of establishing and supporting militant groups and its involvement in Syria, while inflation has surpassed 50 percent in Iran. The national currency has fallen 12-fold in the past five years and nearly half of the population lives below the poverty line. Slogans during nationwide anti-regime protests since 2017 have called for stopping aid to Hezbollah and Palestinian militants.

Over the years, Syria’s CERS Center has been shown to be accountable for the research, development, and military production of advanced weapons such as surface-to-surface missiles such as the M-600 / Fateh-110 missile, which is “at the heart of the joint Iranian-Syrian and Hezbollah precision project", Alma reported. More alarmingly, it states that “the CERS Center is responsible for developing and manufacturing chemical, biological, and potentially nuclear weapons”. 

Alma believes Syria now “possesses extensive chemical capabilities,” which it believes to be “a guarantee of its survival”. More alarmingly, the researchers warn that it could be these very chemical weapons which pose the next greatest threat to Israel. 

“At will, this capability may benefit the radical Shiite axis led by Iran in general and Hezbollah in particular. Hezbollah’s use of chemical weapons in the next confrontation with Israel cannot be ruled out. 

“It is conceivable that missiles/rockets armed with chemical weapons (such as Sarin nerve gas) are being stockpiled for use by Hezbollah in one of the CERS center’s sites in the Masyaf area and will be transferred to Lebanon if so directed,” claimed Alma’s assessment. “We estimate with a high probability that in a situation of war, Israel will attack the chemical weapons stockpiles wherever they are, in Syria and/or Lebanon.”

Just last year, Syrian Prime Minister Hussein Arnous announced that he would welcome Iranian companies seeking to partner with economic institutions in Syria, under the pretext of serving the reconstruction process and carrying out investment projects.

Also last year, the Iranian minister of roads and urban construction visited Damascus where contracts were signed in the fields of transport, investment, petroleum products and infrastructure, all the while in Iran, thousands of citizens are still dying on the treacherous roads and suffering the consequences of its dire infrastructure. 

Iranian economic expansion in Syria means giving Tehran the leverage to exercise control after the war, which means long-term influence in Syria, even without the need for a military presence. 

This influence means that the regime can also be within shorter striking distance of its archenemy Israel, as was seen earlier this year when a multi-front attack saw Israel bombarded with rockets from Gaza, Lebanon and Syria as Iran’s wrath surrounded the Jewish state via its collection of proxy militias.