Accession to anti-money laundering group divides Iran elite

In response to Michael D. Higgins' allegations, the Israeli embassy in Dublin denied the claim, calling the Irish president's comments “highly inflammatory and potentially slanderous.”

Higgins made the comments in New York, where he is attending a UN summit, while responding to questions from journalists about the criticism he faced for sending the letter to Pezeshkian.

When pressed by the Irish Independent about the source of the criticism, Higgins suggested the letter had been leaked by the Israeli embassy, asking: "Why don’t you ask where it came from? … Where the criticism came from and how the letter was circulated and by whom and for what purpose?"

He later added, "It was circulated from the Israeli embassy." Higgins also noted that he was unsure how Israeli authorities had obtained the letter and pointed out that Israel’s ambassador to Ireland, Dana Erlich, had been recalled and was unavailable for consultation.

Erlich, who was recalled in May following Ireland’s recognition of a Palestinian state, has not returned to her post. Earlier this month, the embassy expressed hope that Erlich would resume her duties in Dublin "under more friendly conditions."

In its statement the Israeli embassy said, “Since the October 7 invasion by Hamas and the massacre in Israel, we have faced a surge in malicious statements and accusations, often amounting to incitement to hatred."

The Israeli embassy had also previously condemned the Higgins' letter, stating that sending the congratulatory letter to Masoud Pezeshkian could have “served as an opportunity” to challenge what it described as a “theocratic dictatorship that oppresses its own people, especially women," and to raise concerns about their policies and actions.

Responding to the criticism, Higgins described the letter as a "standard" diplomatic protocol for welcoming a newly elected head of state.

He emphasized that the letter also highlighted the importance of peace and diplomacy in the Middle East. The correspondence had been leaked online in August, drawing attention.

The embassy also labeled Higgins' claim as "baseless" and "potentially slanderous," arguing that the letter did not address key concerns, such as Iran's regional threats, its calls for Israel's destruction, its support for terrorist groups like Hamas and Hezbollah, or its human rights violations against its own citizens.

Iran has maintained a long-standing enmity with Israel, characterized by decades of political hostility, military tension, and proxy conflicts. The Islamic Republic does not recognize Israel’s right to exist, with Iranian leadership, particularly Supreme Leader Ayatollah Ali Khamenei, frequently calling for Israel's destruction. Iran has been a major supporter of anti-Israeli groups like Hezbollah in Lebanon and Hamas in Gaza, providing them with funding, weapons, and military training.

Iran's new President has not deviated from the country’s established anti-Israel stance. A longtime figure within the Iranian political establishment, Pezeshkian is seen as aligned with the broader policies of the Islamic Republic.

A video clip posted on social media after Pezeshkian’s first press conference last week has gone viral on social media that shows some media figures confronting Pezeshkian as he was preparing to leave and questioning him about Mousavi, his wife Zahra Rahnavard, and the former Parliament Speaker Mehdi Karroubi.

The three whom hardliners invariably refer to as the “2009 sedition leaders” have been under house arrest since 2011. Speaking about their case, Pezeshkian referred to Mousavi simply as "the other one," failing to utter his name.

“As for the house arrest, Mr. Karroubi’s problem has been solved. We are working on the other one, but the view is, my view is, we need to follow up on this, but the system should not be challenged,” Pezeshkian told them.

Critics say referring to Mousavi as “the other one” was blatant disrespect.

“Someone should remind Mr. Pezeshkian that his name is not “the other one”. His name is Mir-Hossein Mousavi. [He is] the symbol of standing on the people’s side…,” Milad Alavi, a journalist with the reformist Shargh daily tweeted.

Journalist and women’s rights activist Jila Baniyaghoob also took to X to protest. “He is the only Iranian political figure who people [affectionately] called by his first name, Mir-Hossein … He is really one of a kind, a person who has not been matched by anyone, whether amongst the opposition at home or abroad,” she wrote.

Tara, a 48-year-old teacher, voted for Pezeshkian in the runoffs after boycotting the first round and has since been keeping a close eye on his actions. Like everyone else who watched the press conference on TV, she only became aware of Pezeshkian’s remarks after the broadcast through social media and was infuriated.

“More importantly, it is not just ‘the other one’. There is also Rahnavard. It’s very disappointing that Mr. Pezeshkian failed to acknowledge the brave woman who has been enduring house arrest alongside Mousavi all these years,” she told Iran International.

“It was a bad blunder. Pezeshkian should have named Mousavi too or no one at all so he wouldn’t look disrespectful or afraid of getting into trouble with Khamenei over defending Mousavi’s rights,” Hamid, 56, who also voted half-heartedly for Pezeshkian after long discussions with friends and family told Iran International, adding that in his view Pezeshkian’s press conference was very disappointing overall.

Some reformists including prominent journalist Ahmad Zeidabadi have defended Pezeshkian arguing that not referring to Mousavi by name was not meant as disrespect. “He wouldn’t have thrown himself in the minefield if he was so cowardly,” he argued.

Some others like Iranian-Canadian journalist Hossein Derakhshan have argued that Pezeshkian often refers to people by pronouns like “this” or “that”. This, Derakhshan and others say, is normal in Turki, Pezeshkian’s mother tongue, and an indication that he translates from Turki when speaking Persian.

Karroubi’s son Mohammad-Hossein on Tuesday said his father, now 86, was still under house arrest. He had said earlier his father insists that Mousavi and his wife should be simultaneously freed if authorities want to lift his own house arrest.

Karroubi supported Pezeshkian’s bid to presidency in the recent presidential elections, but Mousavi and Rahnavard rejected the ballot box taken to them at their residence although all three had voted in several elections before, including the presidential elections of 2017.

Unlike former President Hassan Rouhani, Pezeshkian has never publicly pledged to convince Supreme Leader Ali Khamenei to end the house arrest of the three leaders of the Green Movement. Nevertheless, he did not object when thousands of his supporters chanted Mousavi’s name during one of his campaign meetings.

“Referring to Mousavi as ‘the other one’, even if it was a linguistic and unconscious mistake, is an indication of how sensitive and compelling the ‘Mir-Hossein issue’ and his positions remain, after so many years of house arrest, that Pezeshkian is forced to avoid even mentioning his name,” pro-Mousavi political activist Hosein Naghashi tweeted.

Mousavi who had refrained from openly challenging Khamenei’s authority in 2009 released a short statement entitled “To Save Iran” in February 2023, after the ‘Woman, Life, Freedom’ protests spread across Iran, to pay homage to the movement and express his vision about the future.

The former premier, now 82, called for a fair and free referendum to determine whether the current constitution, which grants extraordinary powers to the Supreme Leader, should be amended or completely rewritten. He suggested that if necessary, a new constitution should be drafted, and a constitutional assembly formed to decide the future structure of the government, ultimately putting the new constitution to a public vote.

Some reformists who had likewise adhered to the belief that the Islamic Republic was reformable welcomed the more radical positions he outlined in his statement.

Many Iranians have always held Mousavi responsible for much of the wrongdoings and atrocities of the Islamic Republic during his premiership (1981-1989) including the prison purges of 1988 that were ordered by the Islamic Republic’s founder, Ruhollah Khomeini.

Mousavi has never denounced Khomeini who took his side when his differences with Khamenei, then president, developed into constant conflict. There was no mention of Khomeini and his ‘golden era’ in Mousavi’s "To Save Iran" statement .

Most Iranians, battered by years of 40% annual inflation, now spend half or more of their income on rent alone. This means that an ordinary worker earning $200 a month has less than $100 for food and all the other essentials.

This week, Mohammad Saleh Shokoohi Bidehendi, a faculty member at the Iran University of Science and Technology's School of Architecture and Urban Planning, said: "In global rankings, Iran is among countries where housing prices are disproportionately high compared to average incomes."

Speaking at a meeting titled 'Programmatic Solutions for Housing Provision in Iran', organized by the Center for Iran’s Development and Foresight Studies, he added: "This makes it extremely difficult for many families to afford a home."

He noted that housing costs consume 37% of household expenses in urban areas, about 50% in Tehran Province, and over 55% in the city of Tehran. "This situation has placed Iran seventh worldwide in terms of housing affordability relative to household income," he added.

While he did not specify the source of the figures, they match closely with global data. According to Numbeo's mid-2024 reports, Tehran was ranked as the fourth most expensive city globally based on the House Price to Income (HPI) ratio, while Iran stands as the twelfth most expensive country. The HPI compares the median house price to the median household income, highlighting the significant gap between property costs and average earnings.

In July, Iranian media reported that ordinary citizens are now confronting the grim reality of a century-long wait to achieve homeownership as housing prices continue to soar. By June, the average price per square meter in the capital had surged to approximately 860 million rials (around $1,475).

For working-class Iranians earning an average of $200 per month, local estimates suggest that it would take over a century — if not longer — for a wage earner to afford even the smallest residential unit.

Economic sanctions, high inflation rates, and a surge in real estate investment as a hedge against currency devaluation have driven property prices upward. The economic crisis has also forced at least one third of Iranians below the poverty line.

Moreover, data from the Central Bank of Iran indicates that the average price per square meter of residential units in Tehran has skyrocketed in recent years, far outpacing wage growth. The disparity has led to declining home ownership rates, forcing many households to allocate a substantial portion of their income to rent.

Fardin Yazdani, an expert in urban and housing economics and director of the comprehensive housing plan review studies, noted during the meeting that after 2018, the economic landscape in Iran shifted dramatically.

Due to sanctions and a surge in demand for investment in land and housing - driven by the need to safeguard the value of financial assets - Investment shifted away from the production sector. This exacerbated negative economic growth, culminating in stagflation within the housing market. Iran's currency has lost its value almost 15-fold since early 2018.

It's a peculiar paradox in the housing market: while genuine demand shrinks because families can't afford to buy homes, prices continue their upward march, because people consider their real estate as the only guarantee against inflation. Wealthy investors, eager to preserve the value of their assets amid economic uncertainty, are snapping up properties to hedge against inflation.

It has made real estate — much like gold and foreign currencies — a favored capital investment in Iran. Many are attempting to safeguard their assets from rapid currency depreciation by purchasing houses and apartments. As a result, real estate prices continue to climb in tandem with the escalating value of the dollar.

Experts say it is critical for the government to implement effective tax regulations to prevent land from becoming a speculative asset. A comprehensive national land and housing plan is also needed, along with restructuring the national budgeting system.

The ongoing economic crisis has eroded public confidence, reflected recently by historically low voter turnout in elections. Experts warn that economic turmoil is likely to worsen, with no end in sight to Iran's confrontational nuclear and regional policies.

The announcement came during his online lecture on Sunday, marking the end of his 13-year tenure as a religious lecturer that could help make him an Ayatollah one day..

In a video statement, Khamenei said that the decision was personal, adding, “This has nothing to do with political matters and is an issue between me and God.” He further noted that he had only informed two individuals about the decision and that even his father, Ali Khamenei, was unaware of his decision.

Iranian media reported that approximately 700 students were enrolled in Mojtaba Khamenei's class, which focused on Islamic jurisprudence.

Speculation about the suspension has circulated widely, with some attributing the move to concerns over his security, given his status as a potential successor to his father. For years, the younger Khamenei has been seen as a potential successor to his father, sparking widespread debate among Iranians and online, despite limited acknowledgment or discussion from Iranian officials.

In April 2023, a leaked document reportedly from a confidential meeting between senior IRGC commanders and the Supreme Leader suggested that Mojtaba Khamenei was actively pursuing the succession project. The document also implied that Mojtaba had begun influencing high-level appointments, bypassing figures such as Ebrahim Raisi, a former frontrunner for leadership.

The theory of Mojtaba Khamenei’s succession gained further attention following the death of Ebrahim Raisi in a helicopter crash earlier this year.

Sadegh Mohammadi, Vice President of the General Assembly of the Society of Seminary Teachers of Qom, described Mojtaba Khamenei as a “jurisprudent and Muslim scholar” in March. He also suggested that Mojtaba could be “one of the future leadership candidates.”

Concerns over a hereditary transfer of power have been voiced by critics within Iran, including Mir-Hossein Mousavi, a leader of the dissident Green Movement of 2010s. In a letter from August 2022, Mousavi warned of the “hereditary leadership in Iran,” citing ongoing rumors that Mojtaba Khamenei was being groomed to succeed his father. He questioned why Iranian authorities had never publicly denied these claims, "if they are not thinking of Mojtaba’s rise to the throne?””

Mojtaba Khamenei, now 55 years old, is the son-in-law of Gholam-Ali Haddad-Adel, a former Speaker of the Iranian Parliament. His name became more prominent in discussions of succession after Mehdi Karroubi, another leader of the Green Movement, directly accused him of playing a critical role in securing Mahmoud Ahmadinejad’s victory in the 2005 presidential election.

In 2009, following the disputed presidential election, Mojtaba Khamenei faced accusations of orchestrating electoral fraud. Protests erupted across the country, marking the birth of the Green Movement, with demonstrators chanting slogans against him.

The Shabnameh X account, which claims to bypass the censorship of the Islamic Republic and reflect the voice of the Iranian people, speculated that the suspension of Mojtaba’s lectures might signal that he is no longer being groomed as the next leader. An Iranian political analyst, speaking anonymously, told Iran International that if Mojtaba Khamenei is halting his lectures, it could indicate disagreements with his father.

The account stated, "After orchestrating the election by installing Masoud Pezeshkian, a so-called reformist, as president, Khamenei is now signaling that his second son, Mojtaba, is no longer in the running for leadership by suspending Mojtaba’s 13-year-long jurisprudence class."

Among the entourage are Masoud Pezeshkian’s two sons, daughter, and son-in-law.

Reports from outlets such as Modara and Tejarat News in Tehran indicate that in addition to close family members, several individuals linked to Elias Hazrati, the head of the government’s information council, also joined Pezeshkian on the trip.

Pezeshkian had previously faced public backlash after it was revealed that his son-in-law, Hassan Majidi, accompanied him on a government trip to Iraq. It was later revealed that Pezeshkian’s son and daughter had also been part of that delegation.

Iranian media reported last week that Majidi had since been appointed as the executive assistant to the head of the president’s office, raising additional concerns about nepotism within the government.

Modara’s report further highlighted the ongoing secrecy surrounding Pezeshkian's New York delegation, noting: “In Iran, the number of travelers to New York and the president's companions has always been controversial, but no head of state has been willing to transparently disclose the names of their companions on this trip.”

Among the officials confirmed to be traveling with Pezeshkian are Abbas Araghchi, the foreign minister; Mohammad Javad Zarif, deputy for strategic affairs; Zahra Behrouz Azar, deputy for women's affairs; Mehdi Sanaei, political deputy of the president’s office; and Mohammad Jafar Ghaempanah, the executive deputy.

The Trump administration banned Zarif from visiting the United States in 2019, when Washington was pursuing 'maximum pressure' on Tehran.

The presence of government officials' children and family members at state events has long been a point of contention in Iranian politics. On August 28, at the ceremony introducing Mohammad Atabak as the new Minister of Industry, Mine, and Trade, Hamid Reza Aref, the eldest son of First Vice President Mohammad Reza Aref, was seen attending, provoking widespread criticism.

As far back as 2012, during then-President Mahmoud Ahmadinejad’s trip to New York, approximately 140 people accompanied him. Mohammad Ali Pourmokhtar, a member of Iran’s parliament, revealed that many of the travelers were "family members and relatives of government officials."

Iran's latest president, Pezeshkian, stated that his goal for the visit to UNGA is to "neutralize the atmosphere" surrounding the Islamic Republic abroad. Iran has in the last two years been sanctioned for terror activities abroad, support for Russia's war on Ukraine, human rights abuses at home and its ongoing nuclear program.

Speaking on Sunday before his departure, he suggested a desire to win over the Iranian diaspora of whom there are over half a million originally born in Iran. "We can exchange views with Iranians there and neutralize the atmosphere they have created outside the country.

"The reality is not what they present through television, tribunes, or in gatherings," he said. Iran has seen massive activism and protests from its community around the US in a bid to garner international support to overthrow the government, gaining pace since the 2022 uprising.

In a bid to overturn the massively negative perceptions, Pezeshkian said: "Our Iran is much safer and freer than they [foreign media] have depicted."

In an interview with the Entekhab website, Fadahossein Maleki, a member of Iranian parliament's National Security and Foreign Policy Committee, said on Sunday that "the interviews that Pezeshkian will conduct with Western media during his trip to New York will impact the US elections."

Pezeshkian also said that he intends to speak with other heads of state to "create peace and security in the world". It comes one year after the US designated Iran the world's number one state sponsor of terrorism.

Abbas Araghchi, Iran's Foreign Minister, who had already departed for New York ahead of Pezeshkian, said his meetings on the sidelines of the General Assembly on Sunday would center around the conflict in Gaza between Israel and Iran-backed Hamas.

Araghchi said that on the first day, he held "serious discussions" with the foreign ministers of Kuwait and Bahrain, and the Secretary-General of the Gulf Cooperation Council regarding "regional stability and security, the Palestinian issue, Israel's crimes in Gaza and southern Lebanon, the dangers Israeli policies pose to all countries, and the need to counter these policies."

On September 19, Reuters, citing three Iranian officials, reported that Pezeshkian, on his first trip to the West since his election, would carry a message signaling that "Tehran is open to diplomacy", while emphasizing that Tehran will not bow to pressure.

The report predicted that Iranian and European officials at the UN would explore ways to return to diplomacy regarding the Islamic Republic's nuclear program while seeking to reduce tensions with Israel. However, there has been no sign indicating European or US interest in reopening negotiations.

In their initial statements about the trip, neither Araghchi nor Pezeshkian mentioned the nuclear issue in spite of Iran having accelerated its nuclear program and obstructed UN inspectors.

According to the latest confidential reports from the International Atomic Energy Agency, the Islamic Republic continues its high-enrichment uranium production, which could be used for building nuclear weapons.

France, the UK, and Germany, known as the European Troika, have increased pressure on Tehran to return to negotiations.

On September 10, these countries, along with the US, imposed new sanctions on the Islamic Republic due to its supply of ballistic missiles to Russia, an issue which has led to the deterioration of relations between Iran and the West, in addition to Iran's support for its regional proxies.

Since the war in Gaza, Iran's proxies have launched attacks on Israel from countries including Yemen, Syria and Iraq, in addition to Yemen's Houthis imposing a maritime blockade on the Red Sea region which has massively disrupted global shipping.