UN inspectors back in Iran as IAEA chief gets protection over Tehran threat

Iranian media reported Tuesday that Babak Zanjani has been allocated oil cargoes for export, using a cryptocurrency as collateral, even though the Central Bank of Iran has already declared the cryptocurrency to have no legal validity, economic value or financial backing.

The transaction was carried out through Naftiran Intertrade Company (NICO), a subsidiary of Iran’s Ministry of Petroleum, Eghtesad Online reported.

“NICO has transferred millions of barrels of oil to Babak Zanjani, while Zanjani not only has a huge debt to the government, but has also not repaid a large part of his past debts,” the report added.

Iran’s Ministry of Petroleum and NICO accepted Zanjani’s “invalid cryptocurrency” worth an estimated $300 million as collateral, ILNA news agency reported.

Iran's resort to Zanjani comes as the heavily-sanctioned country's crude oil exports dropped to about 1.2 million barrels per day in the first half of August, according to a report by Vortexa Energy Analysis Company.

Zanjani’s rise and fall remain among the most contentious episodes in Iran’s economic history. His net worth was once valued at $13.5 billion and he was considered a central figure in circumventing sanctions under President Mahmoud Ahmadinejad (2005–2013).

His networks laundered billions through complex schemes spanning Turkey, Indonesia and Central Asia.

Arrested in 2013, Zanjani was convicted of embezzling $1.9 billion in oil revenues. He was initially sentenced to death, later commuted to 20 years in prison.

Sanctions coming

“With the snapback mechanism looming, the Islamic Republic has brought back the very person with expertise and a complex network in this field,” Atta Hosseinian, a Berlin-based economic journalist specializing in energy, told Iran International.

Britain, France and Germany have threatened to trigger the so-called snapback mechanism of a 2015 Iran nuclear deal triggering UN sanctions if Iran doesn't make diplomatic concession's by month's end.

Reports in Iranian media have raised concerns about Zanjani’s return to business, questioning how someone with his history can be rehabilitated.

“It can be said Zanjani has returned by order from the top. This does not mean that supervisory and responsible institutions were unaware or uninformed. He has received and will receive a large volume of oil,” Hosseinian added.

On August 11, Iran’s Ministry of Intelligence issued confidential guidance warning ministries and major companies to prepare for the likely return of punitive UN sanctions.

The snapback mechanism, part of UN Security Council Resolution 2231 — which endorsed the 2015 Joint Comprehensive Plan of Action (JCPOA) — allows any party to the accord to accuse Iran of non-compliance.

If no resolution is reached within 30 days, all previous UN sanctions would automatically resume, including arms embargoes, cargo inspections, and missile restrictions.

“We are prepared to engage in indirect negotiations with the United States, provided the Americans assure us that they will not launch any military aggression during the negotiations,” Abbas Araghchi said in an interview with Asharq Al-Awsat published on Tuesday.

“We never left the negotiating table at any time. We were at the heart of the negotiations when Israel launched an attack against us and the United States joined in,” Araghchi added.

The Trump administration had set a 60-day deadline to secure a nuclear agreement with Iran. On day 61, with four rounds of negotiations completed and a fifth looming, Israel launched a surprise military attack on Iran on June 13.

The United States joined the campaign on June 22, striking three major nuclear sites in Isfahan, Natanz and Fordow.

The military campaign, dubbed Operation Midnight Hammer, involved B-2 stealth bombers armed with 30,000-pound Massive Ordnance Penetrators (MOPs) so-called bunker buster bombs designed to destroy fortified underground facilities.

Trump praised the precision strikes, saying Iran’s nuclear facilities targeted in the attacks were “totally obliterated.”

Araghchi warned: “If they believe that what they have been unable to achieve through military attacks can be accomplished through negotiations, then these negotiations will not take place.”

The United States has demanded that Iran halt all uranium enrichment activities. Tehran insists that, under the Non-Proliferation Treaty (NPT), it retains the right to pursue enrichment.

In July, Trump said the United States was in no hurry to enter talks with Iran due to the effectiveness of the strikes.

France, Germany and the United Kingdom are pressuring Iran to resume talks with the US and resolve disputes over Tehran's nuclear program, including full cooperation with the International Atomic Energy Agency (IAEA).

The most recent round of negotiations between Iran and the three European countries concluded in Geneva on Tuesday, with no concrete outcome announced.

Iran’s Supreme Leader Ali Khamenei on Sunday rejected calls by Tehran moderates for direct negotiations with the United States, insisting that Washington’s hostility cannot be resolved through talks.

Deputy foreign ministers from the four countries took part in the meetings which follow a previous round held in Istanbul in July.

The talks held in Geneva produced no tangible results, The Wall Street Journal's correspondent Laurence Norman reported citing sources. "Iran did put some promises on the table but they lacked detail/substance."

In the talks, "the Iranians gave E3 representatives very little to work with in order to get an extension of the snapback," Axios reported citing an unnamed source.

At the Istanbul talks in July, the three European powers reportedly floated a proposal to avoid imminent confrontation by agreeing to a six-month extension on the sanctions move in exchange for various diplomatic concessions.

In Geneva, the Iranians did not "put tangible detailed deliverables on the table," the report added.

It "was not a disaster," but did not lead to any progress, Axios reported citing an informed source.

The E3 envoys "will report to their countries' foreign ministers so that they can decide in the coming days whether to activate the snapback mechanism or not," the report added.

France, Germany and the United Kingdom have warned they are prepared to trigger the so-called “snapback” mechanism by the end of August if Tehran fails to reach a diplomatic solution over its disputed nuclear program.

Iran warns of consequences

"In Geneva, we explained to the Europeans that, for legal reasons, they have no right to use the snapback mechanism, and that if such a thing happens, it will have consequences for them," Iran's foreign ministry spokesman said without elaborating.

"It was agreed that contacts between Iran and the European side would continue in the coming days," Esmail Baghaei said.

The snapback mechanism, part of UN Security Council Resolution 2231 — which endorsed the 2015 nuclear deal called the Joint Comprehensive Plan of Action (JCPOA) — allows any party to the accord to file a complaint accusing Iran of non-compliance.

If no resolution is reached within 30 days, all previous UN sanctions would automatically resume and would include arms embargoes, cargo inspections and missile restrictions.

Australian Prime Minister Anthony Albanese accused Iran of two antisemitic arson attacks and ordered its ambassador to leave the country. He also said Iran’s Revolutionary Guards would be listed as a terrorist group.

Iran's top diplomat Abbas Araghchi posted on X that Tehran "is paying the price for the Australian people's support for Palestine."

"Iran is home to among the world's oldest Jewish communities including dozens of synagogues. Accusing Iran of attacking such sites in Australia while we do our utmost to protect them in our own country makes zero sense," Araghchi said.

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  Iran slams Australia envoy's ouster, warns of response

Albanese said intelligence gathered by the Australian Security Intelligence Organization showed Iran had directed attacks on a kosher restaurant in Sydney and a synagogue in Melbourne last year.

“These were extraordinary and dangerous acts of aggression orchestrated by a foreign nation on Australian soil,” Albanese told reporters.

Araghchi called Albanese a weak politician, citing remarks by Israeli prime minister Benjamin Netanyahu.

"I am not in the habit of joining causes with wanted War Criminals, but Netanyahu is right about one thing: Australia's PM is indeed a 'weak politician,'" he added, referring to Netanyahu's remarks last week in which he accused Australia of betraying Israel and abandoning Australia's Jewish communities.

"Canberra should know better than to attempt to appease a regime led by War Criminals. Doing so will only embolden Netanyahu and his ilk," Araghchi said.

Australia's move marked the first time it had expelled an envoy since World War II when the country declared war on Japan and expelled its ambassador.

The Australian government had previously warned Ambassador Ahmad Sadeghi over inflammatory social media posts, including a June message where he described Israel as “the most venomous snake on the planet” and a “genocidal regime.”

Albanese said the government’s actions sent a message that foreign-directed aggression on Australian soil would not be tolerated.

In a strongly worded statement, the National Security and Foreign Policy Committee of Iran’s parliament described IAEA chief Rafael Grossi as “a servant of the US and the Zionist regime,” accusing him of siding with hostile powers and remaining silent over attacks on Iranian nuclear sites, according to remarks published by state media.

The committee said the agency’s failure to condemn the June strikes on Iranian nuclear facilities showed its bias and warned that continued cooperation without security guarantees could risk more attacks. “We do not trust the agency. Do not allow them to pave the way again,” the statement said.

Law passed after June attacks shifts oversight

The legislation referenced by parliament was passed after the June 22 military strikes by the US and Israel on Fordow, Natanz, and Isfahan. The law stipulates that any future inspection by the International Atomic Energy Agency must receive approval from the Supreme National Security Council.

Foreign Minister Abbas Araghchi said following the law’s passage that Iran remains committed to the Nuclear Non-Proliferation Treaty. He said reports of a total suspension were “fake news” and that Iran’s core obligations would be upheld, but on a new, more limited basis.

“The Parliament of Iran has voted for a halt to collaboration with the IAEA until the safety and security of our nuclear activities can be guaranteed,” Araghchi said on X in July.

Talks resume as UN sanctions deadline approaches

The parliamentary message comes as Iranian diplomats prepare for talks with the E3 — Britain, France, and Germany — in Geneva. The negotiations aim to prevent the possible reimposition of United Nations sanctions under the snapback mechanism, which European powers have warned they may activate if Iran is found to be in non-compliance with the 2015 deal.

On Tuesday, Foreign Ministry spokesperson Esmail Baghaei said Iran is concerned about the consequences of snapback but emphasized the issue should not cause public anxiety. He confirmed that Tehran is reviewing a Russian-drafted UN resolution that would delay the expiration of Resolution 2231 by six months.

Iran says the European parties no longer have legal authority to activate the mechanism. “When we say they have no legal standing, it means we not only reject their authority but are also deeply concerned about the implications,” Baghaei said.

Khamenei rejects direct talks with US

The renewed tensions follow public comments by Supreme Leader Ali Khamenei, who on Sunday rejected proposals for direct negotiations with the United States. He said US hostility was structural and could not be resolved through talks.

“Those who say, ‘Why don’t you negotiate directly with the United States and solve the issues,’ are superficial,” Khamenei said in Tehran. “Given America’s true objective, these issues are unsolvable.”

He also accused the US of preparing for regime change following the June attacks, saying American agents met in Europe a day later to discuss a future Iranian government. “They even appointed a king,” he said.

Khamenei’s remarks came after reformist leaders urged engagement with Washington and full IAEA cooperation in exchange for sanctions relief. He rejected the call as naive and dangerous.