Wednesday, October 3, 2012

Eye on Iran: Iranian Police Clash with Protesters over Currency Plunge








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Reuters:
"Riot police clashed with demonstrators and foreign exchange dealers in Tehran on Wednesday over the collapse of the Iranian currency, which has lost 40 percent of its value against the dollar in a week, witnesses said. Police fired tear gas to disperse the demonstrators, angered by the plunge in the value of the rial. Protesters shouted slogans against President Mahmoud Ahmadinejad, saying his economic policies had fuelled the economic crisis... 'Everyone wants to buy dollars and it's clear there's a bit of a bank run,' said a Western diplomat based in Tehran. 'Ahmadinejad's announcement of using police against exchangers and speculators didn't help at all. Now people are even more worried.' ... Protesters shouted slogans like 'Mahmoud the traitor - you've ruined the country' and 'Don't fear, don't fear - we are all together,' the website said." http://t.uani.com/QFi4Zr

AFP: "A protest and scuffles with police occurred in central Tehran on Wednesday in the first sign of public unrest over Iran's plunging currency, which has lost more than half of its value since last week. Hundreds of police in anti-riot gear stormed the capital's currency exchange district of Ferdowsi, arresting illegal money changers and ordering licensed exchange bureaux and other shops closed, witnesses told AFP. Several arrests were seen, carried out by uniformed police or plain-clothes security officers. Smoke was seen in two places in the area. Some appeared to come from at least two dumpsters set on fire, one of which was near the British embassy -- evacuated last year after pro-government demonstrators stormed it. The source of the other smoke could not be determined, with police directing pedestrians and vehicles away. Individuals threw stones at police officers and a police car before running away, witnesses said. A protest in Tehran's historic Grand Bazaar -- a maze-like complex of shops vital to the city -- also took place but was quickly put down by police." http://t.uani.com/T0XVgp

Reuters: "A Chinese shipyard has delivered the first of 12 supertankers to Iran, giving Tehran extra capacity to transport its oil to Asia as it struggles against Western sanctions, but it is unclear if the ship has the permits necessary to call at global ports. Asian countries including China, India and South Korea are among Iran's biggest oil customers, but, to get around a European Union ban on shipping insurance imposed since July 1, they must use the fleet of the National Iranian Tanker Co. (NITC) to bring the crude home. Shipments, however, have become unpredictable as NITC's limited shipping capacity is overstretched, and industry sources said the arrival of the 318,000 deadweight tonne 'Panda' in the Gulf in early October may help ease the strain. The very large crude carrier (VLCC) left Waigaoqiao Shipbuilding on Sept. 18... Under a $1.2 billion contract, Waigaoqiao Shipbuilding Co Ltd, a unit of China CSSC Holdings Ltd, and Dalian Shipbuilding Industry Co. Ltd plan to deliver 12 supertankers by the end of 2013 to NITC, which would boost the capacity of its fleet by nearly 40 percent to around 86 million barrels... In addition to banning insurance, the EU sanctions are likely to complicate efforts to certify the new NITC tankers at any shipping classification society. Without certification vessels have difficulty securing insurance cover and cannot call at most international ports." http://t.uani.com/SwLooG
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Nuclear Program

Reuters: "Iran would enrich uranium up to 60 percent purity if negotiations with major powers over its nuclear program fail, an Iranian lawmaker said on Tuesday, in comments that may add to Western alarm about Iranian intentions. Mansour Haqiqatpour, deputy head of parliament's Foreign Policy and National Security Committee, said 60 percent enrichment would be to yield fuel for nuclear submarines, which often require uranium refined to high levels. But it would also take Iran another significant step closer to the 90 percent enrichment level needed to make atomic bombs, which the West suspects is the Islamic state's ultimate aim. Iran says its nuclear program is for peaceful energy only." http://t.uani.com/SCzepY

NYT: "The Iranian military was so apprehensive about the threat of an Israeli airstrike on its nuclear installations in 2007 and 2008 that it mistakenly fired on civilian airliners and, in one instance, on one of its own military aircraft, according to classified American intelligence reports. The civilian planes were fired on by surface-to-air missiles and antiaircraft batteries and intercepted by Iranian fighter jets. 'Iranian air defense units have taken inappropriate actions dozens of times, including firing antiaircraft artillery and scrambling aircraft against unidentified or misidentified targets,' noted a heavily classified Pentagon intelligence report, which added that the Iranian military's communications were so inadequate and its training deficiencies so significant that  'misidentification of aircraft will continue.'" http://t.uani.com/PP0YIW

Reuters: "Cyber attackers have targeted Iranian infrastructure and communications companies, disrupting the Internet across the country, a state official was quoted as saying on Wednesday. Iran, the world's No. 5 oil exporter, has tightened cyber security since its uranium enrichment centrifuges were hit in 2010 by the Stuxnet computer worm, which Tehran believes was planted by arch-adversaries Israel or the United States. 'Yesterday we had a heavy attack against the country's infrastructure and communications companies which has forced us to limit the Internet,' Mehdi Akhavan Behabadi, secretary of the High Council of Cyberspace, told the Iranian Labour News Agency." http://t.uani.com/QFfAKA

Sanctions

NYT:
"Iran's president admitted Tuesday that the American-led economic sanctions on the country were partly to blame for a breathtaking 40 percent fall in value of the Iranian currency, the rial, over the past week. He pleaded with Iranians not to exchange their money for dollars and other foreign currencies. Speaking during a news conference broadcast live by several domestic and international Iranian news channels, the president, Mahmoud Ahmadinejad, said Iran was facing a 'psychological war' waged by the United States and aided by what he described as internal enemies. He said the currency's fall was caused in part by the sanctions imposed by the West over Iran's disputed nuclear program, which have prevented it from selling oil and transferring money. He also blamed a domestic band of '22 people in three separate circles' who with 'one phone call' could manipulate foreign exchange trades in Iran. One Web site, Mashregh News, reported Tuesday that Mr. Ahmadinejad had ordered the arrests of those 'disturbing the currency market.'" http://t.uani.com/UFmaSw

WSJ: "Iranian officials lashed out Tuesday over the free fall of the rial, which lost nearly 25% against the dollar in just a week, by blaming illegal trading rings and fiscal mismanagement, and conceding that international sanctions have hurt its economy. The rial fluctuated between 35,500 to 40,000 to the dollar on Tuesday, according to money exchangers in Tehran. It was down from 34,200 to a dollar just a day earlier on Monday and 23,000 on Sept. 24. The currency crisis highlights Iran's economic challenges as international sanctions are starting to have a visible impact. Inflation-estimated at about 55% compared with last year for basic food, rent and transportation-would likely rise further as prices come in line with new currency rates... Because sanctions have slashed the government's oil income by nearly half-to about $42 billion annually from $85 billion-it has lower reserves with which to conduct its traditional operations to support the rial. For years, Iran's Central Bank has stabilized the currency by injecting cash into the market and keeping the black-market price closer to the official 12,260 rial to a dollar." http://t.uani.com/SxQOQa

AFP: "The White House said Tuesday that Iranians blame their leaders for rising deprivation caused by US and international sanctions stemming from Tehran's nuclear program. Recent days have seen an accelerated slide in Iran's currency, the rial, which has now lost more than 80 percent of its value compared with a year ago -- with 17 percent of its value shed on Monday alone. White House spokesman Jay Carney said the fast deteriorating economic situation in Iran, which has sparked price hikes in basic foods, was a sign that the government in Tehran was under 'enormous pressure.' 'The Iranian people are aware of who is responsible for the circumstances that have befallen the Iranian economy as a result of the regime's intransigence in its refusal to abide by its obligations.' Earlier, Iranian President Mahmoud Ahmadinejad vowed that Iran would not back down on its nuclear program, despite the pain being caused by the sanctions. 'We are not a people to retreat on the nuclear issue,' he told a news conference in Tehran. 'If somebody thinks they can pressure Iran, they are certainly wrong and they must correct their behavior,' he said." http://t.uani.com/QHL9GS

NYT: "Benjamin Netanyahu, the prime minister of Israel, plans to travel to Europe before the end of the year, among other things to press for a toughening of sanctions against Tehran, Israeli officials said Tuesday. The plans appeared to be another indication of a shifting Israeli emphasis, at least for now, toward efforts to stop the Iranian nuclear program by means other than military action... The growing Israeli focus on a new round of sanctions comes amid reports of the deep impact that current sanctions are having on the Iranian economy.  A recent internal report prepared by the Israeli Foreign Ministry stated that the sanctions might, according to some assessments, also be affecting the stability of the Iranian government, which insists that its nuclear program is for purely peaceful purposes. But because the sanctions have not yet persuaded the government in Tehran to suspend its nuclear drive, the Israeli report concluded, another round of sanctions is needed." http://t.uani.com/UFmkt6

Reuters: "Iran is working to shrink and eventually eliminate the free market in its tumbling rial currency, the economy minister was quoted as saying amid signs that foreign exchange trade outside a government-sanctioned centre was drying up. 'The unofficial currency market will be gathered up,' Shamseddin Hosseini was quoted as saying by the Mehr news agency on Wednesday. 'The foreign exchange centre is being completed step by step, and its development will eventually lead to the elimination of the tricksters' market.'" http://t.uani.com/PvB2AJ

BBC: "Iran's currency has plummeted to record lows against the dollar, sparking protests by traders in Tehran. The BBC's James Reynolds briefly crossed over the Turkish side of the border into Iran, where he was invited into a free trade zone... The currency collapse in Iran means that Iranian business can't afford to place their normal orders from Turkey. One Turkish customs official says that Turkish trucks stopped coming to the border several days ago." http://t.uani.com/QP2Vby

Reuters: "Danish oil and shipping group A.P. Moller Maersk says it will talk to Vitol to determine whether one of its tankers was used by the trading house to ship Iranian fuel oil. The Maersk Producer, a tanker chartered by Vitol from Maersk, received a fuel oil cargo of Iranian origin on Sept. 8, according to a document seen by Reuters. The cargo was transferred aboard the Danish tanker from Vitol's floating storage off Malaysia, the document shows, and shipped to storage in Singapore. Vitol admitted last week its Bahrain office had bought the Iranian fuel oil but said it had now ordered a stop to all trade with Iran, which is under European and U.S. oil and financial sanctions. Based in Switzerland and trading the oil from Bahrain, Vitol did not contravene sanctions. Maersk said it was surprised to hear that its ship had been hired to transport Iranian oil." http://t.uani.com/T17XmM

Terrorism

NYT:
"A soft-spoken, gray-haired operative who carries himself with the confidence that comes from having the backing of Ayatollah Ali Khamenei, Iran's supreme leader, General Suleimani is the antithesis of the bombastic Iranian president. Now a major general - the highest rank in the Islamic Revolutionary Guards Corps - after a promotion last year, he has been the mastermind behind two central Iranian foreign policy initiatives, exerting and expanding Tehran's influence in the internal politics of Iraq and providing military support for the rule of President Bashar al-Assad of Syria. That role has put him in direct conflict with American policy makers hoping to ensure Iraq's future as an ally of the United States, to bring about the fall of Mr. Assad and to curb Iran's attempt to gain influence in the region. Last year, the United States Treasury Department put General Suleimani on its sanctions list because American officials said he had been involved in a plot to kill the Saudi ambassador to Washington... Gen. David H. Petraeus, who came to know the Quds Force commander's influence when he served in Iraq, once described General Suleimani as 'a truly evil figure' in a letter to Robert M. Gates, then the defense secretary." http://t.uani.com/OD5Kxe

Syrian Uprising


Reuters:
"Iran's President Mahmoud Ahmadinejad on Tuesday warned that hostilities in Syria could engulf the region and accused some Syrians of trying to use their country's conflict to settle scores with Tehran. In comments to Al Jazeera television, Ahmadinejad said that a national dialogue and new elections - rather than war - were the only way to solve the Syrian crisis, saying the Syrian people should choose their own path. 'There is another way to find a solution, it is national, mutual understanding in order for there to be elections in the future,' he said." http://t.uani.com/QFeezp

Foreign Affairs

AFP:
"A small group of protesters, most of them women, on Tuesday destroyed a Iranian police post protecting the French embassy in Tehran and threw stones at visitors to the mission before being arrested, a diplomat inside told AFP. The unannounced, violent demonstration lasted 90 minutes and involved around 15 people, the French diplomat said... Just before the French embassy attack, a bigger demonstration was held at the nearby Tehran University in which the crowd shouted 'Death to America,' 'Death to Israel' and 'Those who insult the prophet should be executed,' according to the Fars news agency. Demonstrations have taken place in several Muslim countries in the past two weeks over a film made in the United States and cartoons in a French magazine, both of which made fun of Islam's Prophet Mohammed." http://t.uani.com/WjjIEf

Opinion & Analysis

David Makovsky in FP:
"Speaking at the United Nations on Sept. 27, Israeli Prime Minister Benjamin Netanyahu used a red marker to graphically sharpen the focus on the need for a "red line" in halting the Iranian nuclear program. The issue of red lines is being conflated by some with the idea of delivering a public ultimatum to Iran. But that's not quite right: Setting red lines is not about what is said publicly, but rather about what Tehran views as credible -- however it is conveyed. There are signs that Netanyahu and U.S. President Barack Obama, since their recent hour-long phone call, are renewing their efforts to reach a quiet understanding on this critical issue. In their speeches at the United Nations this past week, both leaders kept the focus on Iran -- even while stepping back from a U.S.-Israeli confrontation. This was particularly evident in Netanyahu's speech, where the Israeli premier no longer made it sound like an Israeli strike was imminent before the U.S. presidential election in November, and subtly shifted the parameters of the debate from Israel's closing window of action (what Israeli officials describe as the 'zone of immunity') to the point where can Iran make an easy dash to weapons-grade nuclear fuel. Netanyahu also said the United States and Israel are currently 'in talks' on the Iran issue, suggesting the two countries are focused on how to best ensure and measure the shared objective of preventing the Islamic Republic from going nuclear. However, there is no denying that tensions still exist between the two allies. Their war of words reached a high pitch recently when Netanyahu, responding to what he interpreted as a personal rebuke by the chairman of the U.S. Joint Chiefs of Staff, declared that if the United States does not put down red lines in halting the Iranian nuclear program, it has no moral right to put a red light in front of an Israeli strike. In a 60 Minutes interview, Obama appeared to dismiss such public statements as 'noise.' It's time to dial down the rhetoric. In truth, both sides could use a dose of humility before sounding off in public." http://t.uani.com/QrocWI

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.

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