Pro-Iran Hackers Target Water Facility For Using Israeli Equipment
Iran-linked hackers targeted a water facility in the rural area of County Mayo in Ireland, leaving the residents without water for two days earlier this month, Recorded Future News reported.
“The attack saw outages for approximately 160 households over two days, and was as a result of the exploitation of a vulnerability in a particular type of programmable logic controller,” said a spokesperson for Ireland’s Department of the Environment, Climate and Communications (DECC).
The attack was carried out by pro-Iran Cyber Av3ngers group which wrote a message on the infected computer system and claimed that the facility was targeted because it used Unitronics Vision Series programmable logic controllers (PLCs), an Israeli-made piece of equipment.
According to the report, the Irish government has notified other Unitronics owners all over the country in an attempt to avert possible future attacks.
“This exploitation was carried out on a global basis, and there is no suggestion that services in Ireland were specifically targeted,” DECC spokesperson went on to say.
Earlier in December, US and Israeli cybersecurity officials warned that IRGC-affiliated Cyber Av3ngers has launched a malicious campaign to target Israeli-made PLCs.
Earlier in November, Microsoft’s Threat Analysis Center reported that the Islamic Republic has intensified its cyberattacks and influence operations since 2020, targeting Israel and Bahrain, for instance.
In July, Claudia Plattner, the head of the German Federal Office for Information Security (BSI), warned of a growing threat from Iranian, Russian and Chinese cyber-attacks. “The goals are espionage, destabilization and influence,” Plattner said.
Iran has lifted visa requirements for visitors from 33 countries, including Russia, in an attempt to boost tourism.
Minister of Cultural Heritage, Tourism, and Handicrafts, Ezzatollah Zarghami, said the cancellation of the visa requirements was approved in a government meeting on Wednesday.
The countries benefiting from the measures include Russia, whose citizens have experienced increasing difficulties travelling abroad since the invasion of Ukraine last year.
In total the states concerned comprise 17 Asian countries, 6 African countries, 5 European, and 5 Latin American states, according to Iranian news agencies.
The Asian countries on the list encompass India, the United Arab Emirates, Bahrain, Saudi Arabia, Qatar, Kuwait, Lebanon, Uzbekistan, Kyrgyzstan, Tajikistan, Indonesia, Japan, Singapore, Cambodia, Malaysia, Brunei, and Vietnam. European countries include Russia, Bosnia and Herzegovina, Serbia, Croatia, and Belarus. The Latin American countries in the list are Brazil, Peru, Cuba, Mexico, and Venezuela.
African countries mentioned are Tunisia, Mauritania, Tanzania, Zimbabwe, Mauritius, and the Seychelles.
According to statistics from the Ministry of Cultural Heritage of Iran, during the first six months of the current Iranian year, 3,354,185 individuals traveled to Iran. The figure includes citizens from neighboring countries such as Afghanistan making visits for non-tourism reasons.
Despite boasting a rich cultural and historical legacy and captivating natural landscapes, in recent years Iran has encountered difficulties in drawing foreign tourists. This challenge has been compounded by reports of the detention of foreigners and dual-nationals, contributing to a decline in tourism interest. Visitors must also contend with stringent dress codes for women and limitations on alcohol and nightlife following the 1979 Islamic Revolution.
Iran’s Defense Minister Mohammad-Reza Ashtiani rejected as “irrational” a US plan to launch a multinational naval coalition to guarantee maritime safety in the Red Sea.
The region has no room for any more power struggles, Ashtiani said, further stressing that in case Washington’s decision is executed, it will face “extraordinary problems.”
Amid attacks by Iran-backed Houthis on commercial shipping off the coast of Yemen, he referred to the Red Sea as “our region” and warned that “nobody can make a move in a region where we have predominance.”
While adopting a defiant and threatening tone, Iran’s defense minister did not specify the moves Tehran is ready to make if the idea of a multinational naval force is implemented.
Iranian Defense Minister Mohammad Reza Ashtiani
His remarks came three days after US National Security Adviser Jake Sullivan announced that Washington is considering to beef up measures to protect shipping in the Red Sea where Iran-backed Yemeni Houthis have been targeting vessels over the past weeks.
“We are in talks with other countries about a maritime task force of sorts involving the ships from partner nations alongside the United States in ensuring safe passage,” he pointed out.
Sullivan called this plan Washington’s “natural response” to the ongoing situation in the Red Sea. Active negotiations are being held with US allies about escorting ships in the region but nothing has been finalized yet, he went on to say.
According to reports, 12 countries may join the US-led naval coalition.
On Wednesday, Mohammed Al Bukhaiti, a Houthi official, said his group possesses “formidable leverage” against countries that participate in a naval coalition in the Red Sea.
Though the Islamic Republic has avoided any direct military involvement in the Israel-Hamas conflict, the regime has used its allies such as Houthis and militant groups in Iraq and Syria to attack Israel and American targets in the region.
Houthis have intensified their attacks since the truce agreement between Israel and Hamas collapsed on November 1.
A US Navy warship also shot down a suspected Houthi drone flying in its direction during the same incident, a US official was quoted as saying by the Associated Press.
Houthis further attacked the Norwegian commercial tanker STRINDA with a rocket on Tuesday.
Houthi military spokesperson Yehia Sareea vowed that the group would continue blocking ships heading to Israeli ports until Israel allows the entry of food and medical aid into the Gaza Strip - more than 1,000 miles from the Houthi seat of power in Sanaa.
US National Security spokesman John Kirby took Iran to task last week for destabilizing the region by providing financial and military assistance to extremist militant groups, such as Yemeni Houthis.
“We know that the Houthis are supported by Iran, not just politically and philosophically but, of course, with weapon systems,” he stressed.
On December 7, the US Department of Treasury slapped sanctions against 13 individuals and entities over their role in financing Iran-backed Houthis in Yemen.
Supported bythe IRGC extraterritorial Quds force, the financing system operated through “a complex network of exchange houses and companies in multiple jurisdictions,” the Department of Treasury announced in a statement.
Earlier in the week, Israeli National Security Council head Tzachi Hanegbi said that Prime Minister Benjamin Netanyahu has talked with the leaders of US, Britain, Germany, and France to discuss the increasing threats posed by Yemeni Houthis against Israel-bound ships.
“Israel is giving the world time to organize and prevent it … If there is no international organization - because this is a global problem - we’ll work to remove the maritime closure,” he said in reference to Houthi’s offensives.
The Wall Street Journal reported last week that Washington has urged Israel not to respond directly to drone and missile attacks by Tehran-backed Yemeni Houthis.
Abram Paley, the US Deputy Special Envoy to Iran, refused to answer a Congressional hearing Wednesday why his predecessor, Robert Malley, has been suspended.
Malley was placed on unpaid leave in April 2023, after his security clearance was withdrawn reportedly for mishandling sensitive information. US lawmakers have tried several times to gain information on why Biden’s top man on Iran lost his security clearance –all to no avail.
The latest hearing on Iran was held by the House financial services subcommittee on oversight and investigation. It was entitled Moving the Money Part 2: Getting Answers from the Biden Administration on the Iranian Regime’s Support for Terrorism.”
Abram Paley and Elizabeth Rosenberg, Assistant Secretary for Terrorist Financing and Financial Crimes, were the two officials testifying in the hearing.
They both confirmed that two transactions have been made from the Iranian funds held in Oman, which were made available to Iran when the US government renewed a sanction waiver allowing Iraq to pay Iran what it owes for imported electricity –reportedly up to $10 billion.
Congressman Bill Huizenga, chairing the hearing, asked if “any issues or problems” have been identified in the two transactions facilitated with the Iranian funds held in Oman. Rosenberg offered to answer “in a closed setting,” implying that the information requested was classified.
"We'll take that as a yes," said Rep. Huizenga.
Other Representatives present in the hearing expressed concerns over the fungibility of the funds made available to Iran, despite assurances by the Biden administration that transactions would only be allowed for humanitarian purposes, such as purchasing medicine or agricultural products.
“Biden’s Deputy Special Envoy to Iran insisted Iran is not to be trusted,” Rep. Dan Meuser posted on X after the hearing. “Yet, this Administration takes Iran at its word that they won’t use the billions of dollars in aid Biden is trying to give them to finance terror.”
Paley explained that the Iraqi sanction waiver has been in place for a long time to allow the country to meet its energy needs. “This is the 21st time it has been renewed,” he said. However, the waiver never allowed Iran to gain access to hard currencies in cash. Money never left Iraq and Iran could only use the funds to import humanitarian needs. For the first time, the Biden administration allowed the funds to go to Oman in June of this year.
Congressman Pete Sessions questioned the reasoning of the waiver and the choice of Oman as the custodian of the Iranian funds.
He said: “[Secretary of State] Blinken statement says France, Italy and Oman faced exceptional circumstances preventing them from significantly reducing their petroleum purchases from Iran… Oman has reserves 79.4 times its annual consumption… This secretary has chosen to fool the US Congress into believing significant and exceptional rather than providing the data and information.”
This is money from Iran’s oil sales that was blocked in South Korea but was released and transferred to Qatar to help release five Iranian-Americans held hostage in Iran. After Hamas’ October 7 attack on Israel, US officials announced that Iran would not be allowed to access the money “any time soon.”
Paley was repeatedly asked to confirm that the Iranian regime has not had access to this fund. “Not one penny has been spent,” he said.
But Rep. Dan Meuser pressed Paley on this point, enquiring whether the hold on the $6 billion was permanent. Paley couldn’t give a straight yes or no answer. So the statement should really be “not one penny has been spent –yet”, Meuser concluded.
Towards the end of the hearing, Congressman Zach Nunn focused on Iran’s oil exports, noting that there’s been a significant increase in the regime’s revenue –that would be used to fund terrorism, he said.
Neither Rosenberg nor Paley managed to explain the rocketing of Iran’s oil revenue in spite of numerous restrictions imposed by a multi-layered sanctions regime.
Rep. Nunn asked about particular steps taken by the Biden administration to address this –including taking action against those facilitating the exports in the shipping industry. Yet again, neither officials could provide a clear answer.
“Mr Paley, I would like a listing of all the actions that have actually resulted in reduction of oil flow out of Iran into terrorist groups,” Rep. Nunn said in the end, demanding a written answer following the hearing.
The issue of Iran’s oil exports using “ghost fleet” was discussed at length in another hearing on Tuesday, entitled Restricting Rogue-State Revenue: Strengthening Energy Sanctions on Russia, Iran, and Venezuela.
A US official revealed on Wednesday that Iran has used some of the money held in Oman, which the Biden administration unblocked in November under a sanction’s waiver.
Speaking during a hearing before the House Financial Services Subcommittee on Oversight and Investigations, Elizabeth Rosenberg, an assistant at the US Department of Treasury acknowledged that the Iranian regime has made “two transactions” using the $10 billion of the revenues the Islamic Republic received from selling electricity to Iraq.
Washington says a thorough vetting process is in place to ensure that any money released is used exclusively for Iran’s humanitarian and "non-sanctionable" needs such as food and medicine.
But critics say money is fungible and the use of this fund, however thoroughly vetted, would free up other foreign currencies for the Iranian regime that can be used for malign activities.
Also during the House hearing, Abraham Paley, the US State Department’s deputy special envoy for Iran, said that the Islamic Republic will not be able to use the $6 billion dollar of its money in Qatar which was released in September as part of a prisoner swap deal with Washington.
“Not a penny of this money has been spent and these funds will not go anywhere anytime soon,” he stressed.
Back in October and following Hamas’ deadly onslaught on Israel, there were reports that US and Qatar reached a deal to refreeze Iran’s money.
The Iranian parliament has rejected the outlines of next year’s budget bill, a symbolic move as the administration has no way to balance the estimated deficit.
The bill, submitted by President Ebrahim Raisi's administration last week was rejected as 127 lawmakers out of the 236 present voted against it on Tuesday, pointing out several fundamental issues including a huge deficit.
This is the first year that the government is mandated to present its budget bill in two parts: One for the expected revenues and the other detailing spendings. The government now has a seven-day window to implement revisions in the first section of the budget bill before re-submitting it for parliamentary consideration.
Lawmaker Ahmad Rastineh argued that the parliament rejected the bill due to a misinterpretation of the new regulation, suggesting that MPs were looking for data that is supposed to be submitted in the second part. “We voted on the first part of the bill, which is on the revenues. The expenditure section will be presented to the parliament after the approval of the first part and the determination on the budget's revenue ceiling.”
The main problem with the bill was the unrealistic figures that the government had projected for its revenues. Despite repeated claims by the administration about its “realistic” numbers, opponents of the bill found discrepancies in several parts of the document. The parliament’s budget committee issued a report earlier in the week, pointing out 13 problems with the bill. However, it finally cleared it for a vote in a full session, which ended poorly for the bill.
The Iranian parliament session in which President Ebrahim Raisi submitted the outlines of the next year’s budget bill (December 2023)
Despite the government’s claim that its budget is balanced, there are several estimates for the deficit, with Iran Chamber of Commerce, Industries, Mines and Agriculture putting it at about 4.5 quadrillion rials or about $9 billion, even the government's over-optimistic projections. Economic website EcoIran cited a report by the parliament’s research center as saying that “the real budget deficit” will be about $22 billion.
In previous years the real deficit has been close to half of the budget. Apparently, the administration’s assessment is that in the next Iranian year (which starts on March 21), it will sell 1,350,000 barrels of oil per day at a price of €65 per barrel. This means around $32 billion annually. However, Iran is selling its oil at much lower prices due to US sanctions, at about $40 to $45 per barrel, which comes out about $22 billion per year.
The exchange rate of the Euro to the rial is considered to be 310,000 rials in the bill. Accordingly, oil and gas revenue for the next year will reach 582.7 trillion tomans (5.8 quadrillion rials or $11.6 billion), which is a 3.5% decrease compared to the current year's budget law. Additionally, tax revenues have increased from 7.4 quadrillion rials in the current year's budget law to 11.2 quadrillion rials (about $2.4 billion) in the next year’s budget.
Iran is offering substantial price reductions to its principal oil customer, China, with details kept secret. Iran has been supplying its oil to Chinese independent and small refineries, known as teapots, with payment delays extending up to three months. Reports from Reuters and Bloomberg indicate that Chinese teapots are securing Iranian oil at a discounted rate, with savings amounting to at least $10-12 per barrel. Iran's approach extends beyond offering price discounts to final oil purchasers; it involves allocating undisclosed portions of its profits to intermediaries and tanker companies involved in these diversionary oil export operations. As a result, the actual revenue realized by Iran may be closer to $40 per barrel, a substantial difference from the international price of about $70.
A point that was highlighted by Iran’s media as the final blow for the rejection of the bill was a lack of fund allocation for a long overdue rise in pensioners’ salaries. Proponents of the bill said that the government had earmarked about $1 billion for the adjustment. In recent years, retirees have held regular protest rallies to demand pension increases in par with rising prices of essential foods. They say the current payments are not in line with decrees by the Supreme Labor Council, which had stipulated a 38-percentincrease in the minimum wage.
Another issue with Raisi’s budget was the estimated revenues from tax rises. According to lawmaker Mohammad Bagheri, the most significant increase in budget resources is attributed to tax and customs revenues, showing a 40% growth, while the budget's dependency on oil revenues has decreased by 24 percent. He said unions and producers are already under economic pressure and the rise in taxes will further strain businesses. Last month, Entekhab news website in Tehran reported that according to the budget bill, even monthly incomes of 100 to 140 million rials ($200 to $280) will be subject to a 10 percent tax.
Hossein-Ali Haji-Deligani, another lawmaker, said that considering the inflation rate in the country, the new budget bill remains practically the same as the current one. Last year, the parliament approved the outlines of the budget bill without considering its unrealistic assumptions.
Deligani said during the Tuesday session that “we will not have any budget increase next year, and this lack of budget increase will lead to the halt of the country's economic growth.” He added that “Increasing taxes will lead to a halt in production, resulting in reduced wages, unemployment, and hardships.”
The government claims that the growth rate will be 8 percent next year, but no one takes it seriously. In January, the World Bank projected Iran to have a 1.9-percent GDP growth, but the figure, even if true, comes on the back of economic retrenchment since 2019.
All in all, the rejection of the bill is more of a political gesture by lawmakers before the March parliamentary elections. There is no possibility for the government to balance the budget. Abbas Abdi, a reformist commentator, suggested that “The outlines of the budget bill were rejected in the open session to convey to the government that the parliament has a say.”