Iran says it can handle fresh US sanctions

World
Europe

Iranian President Hassan Rouhani promised Iranians on Tuesday the government would be able to handle the economic pressure of new US sanctions amid a second day of demonstrations in protest at financial hardship and a weakening rial.

Parts of Tehran's Grand Bazaar were on strike for the second day running, state media reported, after traders massed outside parliament on Monday to complain about a sharp fall in the value of the national currency.

On Monday, police patrolled the bazaar clashes with protesters angered by the rial’s collapse, which is disrupting business by driving up the cost of imports.

Rouhani addresses the parliament in Tehran warning that Iran could abandon its 2015 nuclear deal with world powers within hours if the US keeps on imposing new sanctions, August 15, 2017. /VCG Photo

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".

"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.

Washington is to start reimposing 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.

File photo of Rouhani. /VCG Photo

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 senior US official said on Tuesday that countries buying oil from Iran should prepare to halt all imports of it starting in November or face punishment.

New plans

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.

Rouhani, who is under pressure to change his economic team, 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.

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

(Cover: Iran's President Hassan Rouhani speaks during an meeting of the Organization of Islamic Cooperation (OIC) in Istanbul, Turkey, May 18, 2018. /Reuters Photo)

Source(s): Reuters