Tehran readies for economic war with United States

10-07-2018
Rudaw
Tags: Iran US sanctions Iran nuclear deal economy
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ERBIL, Kurdistan Region – Tehran is readying for economic war with the United States. 

“Today, we are in special conditions and we are confronting the US,” First Vice-President Eshaq Jahangiri said on Tuesday, Fars News reported. 

He said that Iran needs careful planning to counter the US, adding that it would be a mistake to think that the country’s economy will not be harmed by US sanctions. 

But despite Washington’s efforts to block Iran’s oil sales, “We will sell as much oil as we can,” he said. 

Iran’s Supreme Leader Khamenei has ordered the establishment of an economic war room to deal with investment, inflation, employment, and improving banking.

“On April 28 in a secret meeting with the heads of executive, judiciary and legislative body, Iran’s Supreme Leader has emphasized on the establishment of an economic war room,” Mohammad Reza Pourebrahimi, the head of the economic committee of the parliament, wrote in “Hezbollah Path” – an electronic magazine on Khamenei’s website.  

The magazine published the piece by Pourebrahimi on Saturday. Iranian President Hassan Rouhani will be responsible for the war room, which will have members from all three executive, judiciary, and legislation bodies. 

Iran had an economic war room during the Iran-Iraq war in the 1980s.   

“Investment, inflation, employment, and improving banking are among the main tasks of the economic war room… So far the room has decided to ban a list of 1,339 importing items,” Pourebrahimi explained.

On June 23, Mohammad Shariatmadari, Iran’s minister of industry, mines and business, announced Iran has prepared a list of 1,339 items it will soon cease to import in order to protect domestic producers and manage the outflow of currency.

US President Donald Trump’s withdrawal from the 2015 Iran nuclear deal on May 9 sent shockwave through Iran’s economy.  

“More than 50 firms have announced their intention to leave the Iranian market particularly in energy and financial sectors,” according to Brain Hook, a senior policy adviser at the US State Department.   

In the last six months, the Iranian currency has lost more than 50 percent of its value. The demand for gold and dollars has increased as Iranians look for stable places to store their wealth.

The US has established a joint committee of senior officials from the US departments of Treasury and State to put maximum economic and diplomatic pressure on Iran.  

Iran still hopes European signatories of the nuclear deal may provide some practical protections against US sanctions. It is nevertheless preparing for difficult days ahead. 

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