Rouhani says Iran will not give in to pressure from Trump

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Iranian President Hassan Rouhani promised his people the government would be able to handle the economic pressure of new US sanctions, a day after traders massed outside parliament to protest against a sharp fall in the value of the national currency.

Washington is to start re-imposing economic penalties on Tehran in coming months after US President Donald Trump quit an agreement between major world powers and Iran in which sanctions were lifted in return for curbs on its nuclear program.

This may cut Iran's hard currency earnings from oil exports, and the prospect is triggering a panicked flight of Iranians' savings from the rial into dollars.

A close up shot shows Iranians trading money at a currency exchange office in a shopping centre in the capital Tehran, April 10, 2018. /VCG Photo

On Monday, police patrolled Tehran’s Grand Bazaar as security forces struggled to restore normality after clashes with protesters angered by the rial's collapse, which is disrupting business by driving up the cost of imports.

'Psychological operation'

Defending his economic record, Rouhani said the government’s income had not been affected in recent months, and the fall in the rial was the result of "foreign media propaganda".

Rouhani said the fresh US sanctions were part of a "psychological, economic and political war", adding that Washington would pay a high price for its actions.

Iranian shops are closed at the ancient Grand Bazaar in Tehran, June 25, 2018. /VCG Photo

"Withdrawal was the worst decision he (Trump) could make. It was appalling. It hurt America's global reputation," he said.

Iran's judiciary chief warned on Tuesday that the "economic saboteurs", who he said were behind the fall of rial, would face severe punishment, including execution or 20 years in jail.

"The enemy is now trying to disrupt our economy through a psychological operation. In recent days some tried to shut down the Bazaar, but their plot was thwarted by the police," Ayatollah Sadeq Larijani was quoted as saying by Fars news agency.

Iran could be resilient, facing new sanctions

"Even in the worst case, I promise that the basic needs of Iranians will be provided. We have enough sugar, wheat, and cooking oil. We have enough foreign currency to inject into the market," Rouhani said in a speech broadcast live on state television.

France's PSA said on June 4, 2018 that it would pull out of two joint ventures to sell its cars in Iran to avoid the risk of US sanctions after Washington decided to withdraw from a key nuclear deal with Tehran. /VCG Photo

The International Monetary Fund estimated in March that the government held 112 billion US dollars of foreign assets and reserves, and that Iran was running a current account surplus. These figures suggested Iran might withstand the sanctions without an external payments crisis.

The Iranian government is implementing new plans to control rising prices, including banning imports of over 1,300 products, preparing its economy to resist threatened US sanctions.

(Cover: Iranian President Hassan Rouhani gives a speech during a rally in the northwestern city of Sabzevar, Iran, May 6, 2018. /VCG Photo)

Source(s): Reuters