Can Iran’s New Cryptocurrency Aid The "Resistance Economy" In Looming Sanctions Storm?

The Grand Bazaar in Tehran Iran

The Grand Bazaar in Tehran Iran

Iran's oil exports could fall by as much as two-thirds by the end of the year because of the USA sanctions, putting oil markets under huge strain amid supply outages elsewhere in the world.

Iran's political class places huge emphasis on opposing the U.S. and its influence in the Middle East. Other signatories to the 2015 deal - including European countries, China and Russian Federation - have said they will try to keep it afloat. Yet the potential for major shocks to the economy from the phasing-out of the greenback and switch to a new currency has stalled such moves to decouple their economies from US -dollar hegemony.

The return of sanctions will make things only slightly harder for them, as major global banks were already too scared of USA penalties to work with Iran even before Trump tore up the agreement.

The US has set a deadline of 4 November for major buyers of Iranian oil to stop their purchases.

"This is just about Iranians' dissatisfaction with their own government, and the President is pretty clear, we want the Iranian people to have a strong voice in who their leadership will be", Pompeo said.

"I'm ready to meet anytime they want to", Trump said of Iran during a joint press conference with Italian Prime Minister Giuseppe Conte on Monday.

But Trump's withdrawal from the Iran deal has tanked its economy badly. Since the U.S. withdrawal from the Iran deal, Iran's currency has taken a nosedive, soaring up to around 120,000 rials to a dollar.

Sanctions and diplomatic pressure could pile enough pressure on the regime that it comes to the negotiating table - something Trump has advocated for. The first round of U.S. sanctions on Iran goes into effect in August, followed by ones targeting Iran's oil exports in November.

Yesterday, Iranian lawmakers have given President Hassan Rouhani one month to appear before parliament to answer questions on his government's handling of Iran's economic struggles. Iran watchers consider Rouhani a moderate who spent considerable political capital in negotiating with the U.S. and the West to cast the Iran deal.

Motahari, renowned for not mincing his words, has dismissed Jafari's remarks as unwarranted, reiterating, "You [Gen.] and our other good "mujahid" brothers in IRGC are aware of the fact that in issues concerning talks with the United States, or refrain from any negotiations with it, IRGC should obey the decision made by top authorities of the regime and avoid making personal comments". They are asking why the national wealth has been squandered overseas on Hezbollah, and in Syria and Gaza, and they want the government to think of their own people first. Asked if he had any preconditions for such a meeting, Trump replied, "No preconditions".

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