US blames Tehran for deepening Iran water crisis

Vahid Yaghoubi, a member of Iran’s Steel Producers Association, said steelmakers have faced a 90% power cut since late April, leaving many factories with just 2–3% of their required electricity -- “not even enough to light facility walkways,” he told state media.

While some industrial zones have retained limited access to electricity, steel producers have borne the brunt of the nationwide power crisis, he said.

The energy restrictions, originally presented as a temporary two-week measure by the Energy Ministry, have stretched over two months now, Yaghoubi added.

“Almost all steel plants are now shut,” he added, saying that even companies that invested in their own power plants -- known as Article 4 facilities -- have been unable to use their electricity due to government intervention.

The Energy Ministry has requested control of these privately funded power stations to manage the national grid. Industry officials argue that the move contradicts existing contracts that prioritize use of this energy for the companies that invested in such power stations.

Iran’s steel industry, which produces over 30 million tons annually and is among the world’s top ten producers, plays a key role in the country’s non-oil exports.

Some firms have turned to Iran’s energy exchange to buy “green electricity” at premium prices in an attempt to keep minimal operations running. However, Yaghoubi said even these paid deliveries were disrupted, with some companies experiencing arbitrary outages.

18,000 workers unpaid at Esfahan Steel Company

The crisis has rippled beyond production, with some companies now unable to pay workers due to frozen accounts and mounting financial strain.

The head of Esfahan Steel Company, Iran's largest, said on Tuesday that the wages of 18,000 workers have been delayed after Iran’s tax authority froze the firm’s bank accounts over unpaid taxes, according to local media.

Ardeshir Afzali told ILNA news agency that the Tax Organization has withdrawn substantial funds from the company’s accounts but has yet to lift the freeze.

He criticized the move, saying authorities “do not understand the fragile post-war economic conditions or the difficulties facing producers.”

“The nuclear issue, uranium enrichment, and human rights are just excuses,” Khamenei said during a ceremony marking the 40th day after the deaths of Iranian military commanders and scientists killed during a recent 12-day conflict with Israel.

“Their real problem is Iran’s religion, knowledge, and national unity under the banner of Islam and the Quran.”

US President Donald Trump on Sunday expressed surprise at Tehran’s continued insistence on uranium enrichment despite last month’s American airstrikes on its nuclear facilities, vowing renewed strikes if Iran restarts nuclear work.

Speaking at the Imam Khomeini Hosseiniyeh at his residence in Tehran on Tuesday, Khamenei addressed families of the deceased and government officials.

“The world has now seen the full capability of the Islamic Republic up close,” he said. “These events are not new for us. For 46 years, we have resisted coups, wars, political unrest, and all types of plots.”

Khamenei added that Iran would not abandon its twin foundations of “religion and knowledge” despite mounting international pressure.

“With God’s help, we will continue to take great strides in strengthening our faith and deepening our scientific achievements,” he said. “To the dismay of our enemies, we will elevate Iran to the height of progress and pride.”

Iran’s nuclear program has long been a flashpoint in its relations with the West, with the US and European powers accusing Tehran of seeking to develop nuclear weapons. Iran denies the accusation, saying its nuclear activities are for peaceful purposes.

“I drafted a proposal and requested it be reviewed as a double-urgency item,” Tehran lawmaker Hamid Rasaei said in parliament. “According to this proposal, any negotiations with the US must be tied to the end of the Gaza siege. I keep following up, but this proposal is not being raised.”

Rasaei said the proposal also covers negotiations with France, Germany and the UK, and cooperation with the International Atomic Energy Agency. “This is not just about the US,” he said. “The crimes in Gaza are happening with the full backing of Europe, and the agency cannot be treated as neutral while silence continues.”

He called the proposal a direct response to Western support for Israel’s war in Gaza. “Even the German chancellor says the Zionist regime is doing their dirty work,” Rasaei said. “So long as Gaza is under siege, Iran cannot continue talks as if nothing is happening.”

Trump blames Iran, warns of military action

Trump on Monday accused Iran of playing a role in blocking ceasefire efforts. “I think they got involved in this negotiation, telling Hamas, giving them signals and orders,” Trump said while visiting the UK. “And that’s not good.”

He also threatened military action if Iran resumes its nuclear program. “If they do, we’ll wipe it out faster than you can wave your finger at it,” he said.

Iran rejected the accusations and accused Washington of shifting blame. The foreign ministry said the US is directly responsible for enabling Israel’s actions in Gaza and called Trump’s remarks a form of deflection.

Speaker defends delay in parliament

Rasaei also criticized parliament’s leadership for delaying the bill, despite a rule that requires committee review of proposals within ten days when backed by ten members. “It has not even been sent to the commission,” he said.

Deputy Speaker Hamidreza Hajibabaei acknowledged the delay but said some bills carry broader consequences. “I agree proposals should be reviewed, but in some cases, they affect the whole system,” he said. “That doesn't mean your proposal won’t be examined.”

Rasaei insisted the urgency of the matter cannot be ignored. “This is the least we can do while Gaza is being bombed and starved. Let the people see where each lawmaker stands.”

According to Mohammad Allahdad, deputy director of power generation, transmission and distribution of Iran’s power company, Tavanir, crypto mining operations are responsible for consuming nearly 2,000 megawatts (MW) of electricity — roughly the output of two Bushehr nuclear reactors.

“While this represents around 5% of total electricity consumption, it accounts for up to 20% of the current power deficit,” Allahdad said on Monday, calling the figure significant and alarming.

During a recent internet outage linked to the conflict with Israel, power consumption nationwide dropped by 2,400 MW, which Tavanir attributes to the shutdown of over 900,000 crypto mining devices operating illegally -- further validating the scale of their impact.

Allahdad’s remarks come amid growing concerns over blackouts, infrastructure strain, and public discontent during the country’s sweltering summer months when electricity demand peaks. Amid blistering summer temperatures, electricity demand from air conditioners, agriculture, and industrial production surges.

Allahdad stressed that using power for crypto mining during high demand days is “not only illegal and unethical, but also harmful,” adding that it risks voltage drops, fuse failures, damage to household appliances, and even fire hazards.

“Crypto mining devices produce intense heat,” he said. “We’ve had multiple reports from fire departments about fires linked to mining rigs, some of which spread to neighboring homes.”

Illegal farms hidden in plain sight

Authorities say abandoned homes, empty shops, warehouses, and industrial buildings are often repurposed for clandestine mining operations. These facilities frequently feature high electricity usage and surveillance cameras, which serve as red flags for investigators.

“Identifying these operations is challenging,” Allahdad said, “especially in large industrial areas. That’s why public cooperation has been crucial.”

To support enforcement efforts, Tavanir launched a public reporting line. Citizens who report illegal operations can receive rewards of up to 200 million tomans (about $2,300).

One bitcoin equals 440 homes

According to Hadi Sefidmou, head of Iran’s Crypto Mining Oversight and Regulation Initiative, producing a single Bitcoin with older mining devices can consume up to 1 million kilowatt-hours (kWh) — equivalent to the annual power use of 440 Iranian households. Even newer miners with better efficiency still consume significant amounts, with average power usage per unit ranging between 2 to 3.5 kW.

Given that each device operates 24/7, each illegal miner consumes as much power as 12 households, Sefidmou said.

Crackdowns accelerate

As enforcement intensifies, seizures of mining equipment have surged since last year. Over 250,000 illegal devices have been seized across Tehran, Khorasan Razavi, Isfahan, Fars, Kerman, and East Azarbaijan, with most units hidden in abandoned homes, rural farms, industrial ruins, and suburban villas.

Just this week, 108 mining rigs were confiscated in the southern city of Ahvaz, discovered in an abandoned factory in the village of Khabineh, according to Mohammad Forati, CEO of Ahvaz Power Distribution Company. Forati said the operation had caused voltage drops across the area, prompting citizen complaints.

Mahmoud Mahmoudi, managing director of the Markazi Province Power Distribution Company, said on Tuesday that 445 cryptocurrency mining devices have been identified and confiscated in the province since the beginning of the current year (March 21).

Another recent case in Alborz province saw 26 crypto farms shut down from March to June alone, with 168 unauthorized devices confiscated. In another incident last week, power company staff in Alborz intercepted a vehicle transporting 26 miners.

Iran’s subsidized electricity remains among the cheapest in the world.

“With electricity consumption hitting new records — above 70,000 MW — we cannot afford to ignore this,” said Mostafa Rajabi Mashhadi, CEO of Tavanir. “Every illegal miner we unplug helps preserve power for citizens.”

Amini had spent four days in intensive care before succumbing to his injuries. Another activist, Chiako Yousefinejad, died a day earlier in the same hospital.

The first to die from the group was Hamid Moradi, a lawyer and environmental activist from Sanandaj in Iran's Kurdistan province, according to the Kurdistan Human Rights Network (KHRN).

A blaze on Mount Abidar broke out on July 24, prompting a rapid response from local environmentalists and volunteers determined to stop its spread.

But their efforts were hampered by a lack of firefighting resources and proper protective equipment — a chronic issue in the Islamic Republic's handling of environmental disasters.

Their deaths have sparked an outpouring of grief and condemnation from civil society and environmental advocates, many of whom accused authorities of systemic neglect and mismanagement of natural disasters.

Among those voicing outrage was Nobel Peace Prize laureate Narges Mohammadi, who posted a tribute on Instagram calling the men the “brave defenders of Kurdistan’s environment.”

“Hamid, Chiako, and Khabat were consumed by flames so that Mount Abidar would not burn — so that life could remain green,” she wrote.

“We are a people who step in when competence, accountability, and the fulfillment of government duties are absent — a government that not only fails to protect the environment, nature, and the lives of those who care for it, but has turned nature into a battleground for exploitation and the pursuit of power, even at the cost of destruction," Mohammedi added.

Twenty-five environmental defenders have died in forest and grassland fires across Iran over the past decade, according to activists.