Iranian mobile operator warns of daily internet blackouts without tariff hike
Iran could soon face internet blackouts of up to three hours a day unless tariffs are raised by 70 percent to cover soaring costs to the struggling network, the CEO of Irancell, the country’s second-largest mobile network operator warned.
“If tariffs are not adjusted, operators will not be able to invest, and improving internet quality will be impossible,” Alireza Rafiei said on Monday.
In the near future, he said, Iranians should expect scheduled internet outages just like the country's routine power cuts.
Iran’s internet crisis, marked by declining quality, frequent disruptions, and GPS interference, has persisted for two months since the 12-day war with Israel when blackouts rocked the country, affecting everything from tracing the whereabouts of loved ones to online banking and GPS services for businesses dependent on them.
Consumption has steadily increased while tariffs have remained frozen for years, even as electricity, equipment, and operational costs have multiplied, Rafiei added. Without higher rates, he argued, operators cannot invest in upgrades.
Iran ranks among the worst for connectivity
A report by the Internet and Infrastructure Commission of Tehran’s E-Commerce Association last week ranked Iran 97th out of 100 countries in terms of quality, describing the network as “unreliable, restricted and slow.”
Citizens across Iran have told Iran International of widespread issues, saying outages and slow speeds add to the pressure of power cuts, water shortages, inflation, and unemployment.
Government officials have blamed the June war with Israel for worsening connectivity. On July 15, government spokeswoman Fatemeh Mohajerani linked new restrictions to security decisions taken during the conflict, while Communications Minister Sattar Hashemi acknowledged poor quality service earlier in August.
Interference was partly introduced after reports that GPS signals were being used to guide drones, he said.
However, the E-Commerce Association report said that disruptions had been recorded long before the conflict and remain unresolved even two months since its end.
Power cuts and GPS disruptions
Constant electricity blackouts make matters worse as operators cannot recharge backup systems in time, Rafiei said.
“The batteries we use, even in the best case, only work 45 minutes to one hour,” he explained. “With repeated outages, sometimes we don’t even get the chance to recharge them.”
If two hours of daily power cuts accumulate, it means “two percent of sites are permanently off, creating extraordinary dissatisfaction,” added Rafiei.
Since the war, users continue to report erratic location shifts of hundreds of kilometers, disrupting services such as ride-hailing apps and logistics businesses.
The Iranian government continues to promote its long-term national internet project, designed to tighten control over information flows.
Iran’s Revolutionary Guard got a leaked British Ministry of Defense database from the Taliban, hoping to use it to detain suspects as bargaining chips in nuclear talks while the Taliban seeks recognition as Afghanistan’s rulers, the Telegraph reported.
A group of Iran’s Revolutionary Guard officials travelled to Kabul last week, where the Taliban handed them a leaked list containing personal details of Afghans who had applied for asylum in Britain — including soldiers, intelligence assets and special forces members — in exchange for Iran’s potential recognition of their rule, senior Iranian and Afghan officials told the paper.
The Telegraph said the officials travelled without the knowledge of Iran’s civilian government.
A senior Iranian official told the paper that four Guards members promised the Taliban they would push Tehran to speed up recognition of the Islamist group.
“The Taliban gave them the list. They want to find British spies before the ‘snapback’ to have something to pressure London behind closed doors,” the official was quoted as saying.
Iranian border forces have already detained several people whose names appeared on the leaked list, the report said.
“Many were released because they were only former Afghan soldiers, while others are being held for further checks. The focus is just on British spies,” the source added.
The database, dubbed a “kill list” by British media, was accidentally leaked in 2022 when a Royal Marine emailed the full file to Afghan contacts. It included names, phone numbers and email addresses of around 25,000 Afghans and more than 100 British special forces personnel and MI6 operatives who endorsed Afghan relocation applications.
The Taliban’s decision to share the file followed internal debate, the paper said, with some officials objecting due to Iran’s treatment of Afghan refugees.
“Some argued that we should not do any favors for the Iranians … but if they were willing to recognize the Islamic Emirate in return, that would not be a bad deal,” a Taliban official was quoted as saying.
Earlier on Monday, Iran’s Foreign Ministry spokesperson Esmail Baghaei said that recognizing the Taliban was a “sovereign decision,” adding that Tehran maintains extensive interactions with Afghanistan due to shared ties, a long border and common challenges, and would make a decision on recognition “whenever its national interests require.”
The reported development comes as Britain, France and Germany warned they would trigger the 'snapback' mechanism to restore UN sanctions unless Iran resumes nuclear talks before the end of August.
Iran will continue talks with the International Atomic Energy Agency (IAEA) and another round of negotiations is likely in the coming days, Foreign Ministry spokesperson Esmaeil Baghaei said on Monday.
Baghaei told reporters that Tehran remained ready to take steps to reassure the world about the peaceful nature of its nuclear program, but only if sanctions were lifted.
“We are prepared to adopt a series of measures to provide assurances about the peaceful nature of our nuclear program, conditional upon the removal of oppressive sanctions,” he said at his weekly press briefing.
Baghaei dismissed speculation about third-party mediation in its relations with the UN nuclear watchdog, saying, “Our relationship with the Agency is direct. Last week, one of its deputies visited Tehran. We also had discussions on drafting a cooperation framework,” he said. “Our representative in Vienna is in constant contact with the Agency.”
‘European have no right for snapback’
The spokesperson also criticized Britain, France, and Germany over threats to use the so-called snapback mechanism that could restore UN sanctions.
“The very act of Europe using this tool as a means of pressure against Iran is an illegal move,” Baghaei said.
“The three European countries failed to fulfill their obligations under the 2015 nuclear deal, and after the US and Israel attacked Iran’s nuclear facilities, they neither condemned it nor even tried to provide a logical explanation of their positions. We believe the three European countries have no right to use this mechanism.”
He added: “We never cut off negotiations with these three countries. They must decide whether they want to play a constructive role or a negative role aligned with the interests of the Zionist regime.”
Responding to a question on whether Iran might consider extending the deadline set by Britain, France and Germany in their recent letter to the United Nations, Baghaei said Tehran had no such plans. “The Islamic Republic has no program to extend the snapback mechanism,” he said.
His comments followed a letter sent last week by the foreign ministers of the three European powers — known as the E3 — to UN Secretary-General António Guterres and the Security Council, warning that they were prepared to reimpose international sanctions unless Tehran resumed nuclear negotiations with Washington and restored cooperation with the IAEA before the end of August, or accepted an extension.
Caucasus concerns
On regional issues, Baghaei said Iran closely monitored developments in the South Caucasus.
“We have been very clear that we are sensitive to the presence of extra-regional actors,” he said.
“We conveyed this explicitly to our friends in Armenia and listened to their explanations. For us, the unblocking of routes must not harm internationally recognized borders or contradict Armenia’s national sovereignty. We are monitoring the situation carefully and will raise concerns whenever necessary.”
Last week, US President Donald Trump brokered a peace deal between Armenia and Azerbaijan, which gives Washington leasing rights to develop the Zangezur transit route connecting Azerbaijan with its exclave, Nakhchivan. It will be renamed the Trump Route for International Peace and Prosperity (TRIPP).
Epstein case not linked to talks
Asked about reports linking the Jeffrey Epstein case to negotiations with Washington, Baghaei said Iran would not speculate.
“The so-called Epstein case is an issue that is not limited to the United States; many officials from different countries were implicated. We do not engage in speculation about the motives of US officials. What matters to us are their actions and Iran’s interests,” he said.
Records compiled by Iran International show that since the ceasefire with Israel in late June, at least 50 explosions and fires have struck 19 provinces, raising questions over their cause.
Since June 24, officials and state media in Iran have repeatedly described the incidents as ordinary accidents, often blaming gas leaks, electrical faults or waste fires.
While pledging that investigations would reveal the causes, they have consistently denied any link to Israel.
The blasts came in the middle of summer, a season when gas use is at its lowest. Some fires broke out near military facilities.
The sudden death of Ali Taeb — a former representative of Supreme Leader Ali Khamenei at the Sarallah Headquarters, a key Revolutionary Guard security command — deepened doubts.
Of the sites affected, about 30 percent were commercial, 24 percent residential, 16 percent industrial, 14 percent military, 10 percent public facilities, and 6 percent of unknown use.
The peak came on July 14 with four incidents. Tehran province had the most overall with 15, followed by Hormozgan with five, Khorasan Razavi with four, East Azarbaijan and Alborz with three each, five provinces with two, and nine provinces with at least one.
Explosions and fires from June 24 to June 30
The first case after the ceasefire was on June 24, when a residential unit in Kermanshah’s Karnachi district exploded. Officials blamed a gas leak.
On June 25, another residential unit in Tehran’s Jannatabad district was destroyed, also officially described as a gas explosion in an unfinished building.
The same day, another explosion occurred on Hedayat Boulevard in Mashhad, likewise blamed on gas. That evening in Dezful, residents reported powerful blasts. Military officials said they were caused by the destruction of old munitions.
On June 26, flames poured from a unit in the Aseman Tower in Tehran’s Farmanieh district. Given the recent targeting of military and security officials during the 12-day war, doubts grew. No clear cause was ever announced.
The same day, an explosion and fire were reported at Tabriz refinery, northwest of Iran. In an unusual move, the IRGC’s Ashura unit issued a statement blaming a nitrogen tank replacement.
In Urmia, another explosion was reported near the airport and again it was attributed to the disposal of munitions.
Around the same time, residents in Tehran’s northeast, near Shahrak-e Mahallati, and in Hamedan, reported powerful blasts. Both were officially described as air defense tests.
On July 4, a huge fire engulfed the Noor shopping center in Qeshm Island, destroying at least 200 stores. Its scale required 130 firefighters from several towns.
On July 5, an explosion was reported near the Istak factory in Sanandaj, attributed to a battery warehouse.
On July 7, repeated blasts were heard in western Tehran, with no official explanation. On July 9, a fire struck workshops in Khalazir, west of Tehran.
That night, Bandar Abbas’s main bazaar, the Hormozgan Mega Mall, burned.
On July 10, an explosion destroyed a unit in Pamchal-9 Tower in western Tehran. Witnesses reported seeing a projectile, and security forces quickly sealed the site.
Officials called it a gas blast, but the tower had no gas piping.
On July 15, a fire broke out at Mashhad’s Qaem shopping center, which officials linked to the building’s age, while Tabriz’s Zomorrod Tower also caught fire with no cause given.
In Tehran’s Esfahanak district, a five-story apartment block with 60 units burned, blamed on a car fire in the garage.
On July 16, a blaze hit Baghlarbaghi park in Tabriz, said to be caused by an amusement ride engine.
On July 17, smoke rose near Barekat Hospital in Tehran’s Chitgar area, blamed on a garbage depot fire.
On July 19, an explosion at Abadan refinery was blamed on a pump leak. That night, a 30-story residential tower in Tehran’s Kharrazi district caught fire, blamed on a faulty air conditioner.
The same day, smoke was seen on Neauphle-le-Château Street in Tehran, near the Italian Embassy, which officials said was caused by burning waste.
On July 20, Yazd’s Mehriz industrial park was engulfed by flames, while a residential-commercial building in Rasht burned, leaving 18 injured.
Explosions and fires from July 21 to July 26
On July 21, a major fire struck Kharazmi industrial park in Alborz province. The same day, a petrochemical plant near Ziar in Isfahan exploded, burning 1,500 square meters.
On July 22, Anzali Free Zone’s Venus shopping mall caught fire, injuring 16. The same day, Qeshm’s Dolphin Mall also burned. In Qom’s Fatemieh district, an explosion destroyed a home, which officials said was caused by a water heater.
On July 23, fire swept through workshops at Isfahan’s science park.
On July 25, Bandar Abbas’s old bazaar burned.
On July 26, a large fire hit Mahdis Hypermarket in Mazandaran’s Qaemshahr.
Explosions and fires from July 28 to August 11
On July 28, another blaze swept Qeshm’s Persian Gulf-2 mall.
On July 31, a fire broke out at a furniture workshop in Nasirabad industrial park near Robat Karim, which officials attributed to an electrical fault. The same day, flames were reported in Kermanshah, officially blamed on a water company depot, while in Mashhad a fire near Qaem hospital was said to have been caused by burning trees.
On August 4, a dormitory on Tehran’s Enghelab Street caught fire, which officials attributed to a neighboring carpentry shop. The same day, flames spread across Shiraz’s Derak mountains, blamed on careless hikers.
On August 6, a blaze swept through the Aliabad industrial zone in Tehran. Two days later, on August 8, an explosion struck a scrapyard in Gachsaran.
On August 9, a fire broke out at Anzali’s Caspian shopping mall and at warehouses in Saveh’s industrial zone, destroying motorcycles and storage for paper and wood. In Mehran, near Iran’s western border with Iraq, an explosion destroyed a tent for Arbaeen pilgrims, which officials blamed on a gas cylinder.
On August 11, residents of Savojbolagh district in Alborz province reported blasts and a fire in the Hiv mountains, which officials blamed on careless hikers.
Although officials have attributed the incidents to causes such as gas leaks and accidents, their number, timing after the 12-day war, and proximity to sensitive sites have prompted continued public questioning.
Iran’s missiles are capable of striking into the heart of Europe and could eventually target US cities from the sea, an Iranian lawmaker said on Sunday.
“Perhaps our next missile will hit Washington directly. We can target America from the sea. The Aerospace Force of the IRGC has been working for 20 years on making it possible to strike America from Iranian ships. Even if we have not yet reached this technology, it remains within our grasp,” Amir Hayat-Moqaddam, a member of parliament’s National Security and Foreign Policy Committee, told Didban Iran.
While the United States is 10,000 kilometers away, Iranian ships could approach within 2,000 kilometers and launch missiles at Washington, New York and other cities, he added.
In early 2023, two Iranian naval vessels, the IRIS Makran and the IRIS Dena, were reported to be heading toward the Panama Canal after crossing the Atlantic, but they ultimately did not transit the waterway. In 2021, Iranian naval vessels Makran and Sahand completed a mission to the Atlantic Ocean, reaching Venezuela.
“Even now, all European countries are in our range. With our existing missiles we can strike France, Germany, the UK, and all of Western and Eastern Europe.”
However, Hayat-Moqaddam downplayed the impact, saying that Iran has already endured seven years of sanctions since US President Donald Trump withdrew from the JCPOA nuclear deal in 2018.
“All possible sanctions have already been imposed on our country. The unilateral and multilateral sanctions by the US and Europe are already at their peak. So activating the snapback mechanism will bring no new negative consequences for Iran’s economy and is merely a political move,” he said.
European officials have warned Tehran that unless it fully cooperates with the International Atomic Energy Agency (IAEA), the mechanism could be activated, restoring UN sanctions this fall.
Negotiations under the Trump administration began with a 60-day ultimatum to Iran. On the 61st day, June 13, Israel launched a surprise military campaign against Iran, striking key nuclear and military sites and personnel, including Iran's chief of staff and senior nuclear scientists.
The Israeli strikes began on the eve of the sixth round of negotiations with the United States.
Iran has introduced a new law making inflation partly taxable, a move that critics say effectively charges citizens twice amid the country’s economic crisis.
President Masoud Pezeshkian formally signed the tax bill on Friday, passed by parliament in late June.
“For properties held between two and five years, 50 percent of inflation is considered,” said Mehdi Movahedi Beknazar, spokesperson for Iran’s Tax Administration in July. “If the property is held for more than five years, full inflation adjustment is applied.”
In effect, tax will be levied on the profit plus 50 percent of the increase in asset prices due to inflation.
For example, if a citizen buys an apartment in 2024 for 50 billion rials (about $55,500) and, due to 40 percent inflation, its value rises to 80 billion rials (about $88,800) in 2025, the 30 billion rial increase (about $33,300) is treated as profit, and therefore is taxable.
Iran’s year-on-year inflation rate rose to 41.2% last month, marking the highest level in two years, according to Iran's Statistical Center.
The Ministry of Economy has been tasked with creating a smart system that links to registries of deeds, the stock exchange, customs and the Central Bank to identify transactions subject to the law.
A first-of-its-kind approach
State media have praised the law for “taking inflation into account,” framing it as a tool against hoarding in a country where inflation often exceeds 40 percent.
Under the 28-article law, assets sold within a year will be taxed at 20–40 percent, with lower rates applying to longer holding periods. Exemptions include primary homes, one family car, and production-related properties such as farms and factories.
Penalties for evasion include blocked property transfers, bans on commercial activity, and fines of up to twice the tax owed.
Global benchmarks
Most nations impose capital gains taxes, but none explicitly tax inflation in the same way.
The United States taxes nominal gains without inflation adjustment. Britain used to allow inflation indexation until 1998 but abolished it. Chile and Brazil adjust long-term gains for inflation, while Australia offers a 50-percent discount for assets held over a year.
Authorities argue the law will curb speculative activity in housing, cars, and gold sectors, where prices have soared and wealthier Iranians often shelter assets.