Iranian MP Links Exchange Rate Surge To Israeli Consulate Attack
MP Mohammad Hossein Farhangi has attributed the recent surge in Iran's exchange rate to heightened concerns following Israel's recent attack.
MP Mohammad Hossein Farhangi has attributed the recent surge in Iran's exchange rate to heightened concerns following Israel's recent attack.
Farhangi said, “Israel's efforts to escalate tensions had psychological impacts on various markets.”
Last week Israel struck the Iranian consulate in Damascus killing a key IRGC commander and several other staff at what is believed to be a major IRGC center hidden within the diplomatic compound.
Over the weekend, Iran's currency, the rial, experienced another historic low, breaching the 650,000 threshold to reach 653,000 per US dollar. The spike represents a nearly 30 percent decline for the rial since the beginning of January, marking the highest exchange rate ever recorded for the American currency in Iran.
The increased tensions with Israel have fueled fears of potential Iranian retaliation with calls all the way to the Supreme Leader to strike back, further driving up the price of the US dollar in Iran. However, the exchange rate slightly dropped to 647,000 on Monday as Iranian officials exercised caution in their response to the attack.
The devaluation of the Iranian rial has been a persistent trend since the 1979 revolution, with a significant escalation occurring in 2018 following the US withdrawal from the JCPOA nuclear deal and the imposition of sanctions on Iran's oil exports and banking sector.
In 1978, the rial was valued at 70 rials per dollar. Over the years, the continuous devaluation has exacerbated inflationary pressures, pushing millions of Iranians below the poverty line. While official government figures suggest an annual inflation rate of over 40 percent, many experts believe the actual rate to be even higher, exacerbating economic challenges for ordinary Iranians.
The alleged condition for Iran’s restraint? A ceasefire in Gaza.
That report by Jadeh Iran – unconfirmed by Iran International – is now circulating not just on social media, but has landed in the pages of Israeli news outlets.
Notably, the Iranian regime’s own propaganda media outlets are also giving it credence, including semi-official ILNA and Shahre Khabar.
But, who does this narrative serve? And, where is the original report coming from?
It’s true, the Biden administration, increasingly under pressure to find a solution to Israel’s relentless pounding of Gaza, would certainly benefit from a ceasefire – not in the least at home where several polls show a difficult road ahead for President Joe Biden campaign to hold-on to another term against Donald Trump.
On Iran’s side – desperate to get sanctions relief and already embroiled in multiple of its proxy wars in the region – the regime would do well by refraining from retaliating against Israel – and drawing less anger from the US.
In fact, that alleged report, citing only one Arabic diplomatic source, suggested that "If America succeeds in containing the situation, it will be a great success for the Biden administration and we can build on that".
Kuwaiti-based Al Jarida has since cited a source in the Iranian Foreign Ministry claiming that Washington’s latest proposal to Tehran – though a Swiss mediator – is offering direct negotiations with Tel Aviv to reach an understanding, aiming to de-escalate tensions in the region.
Some Iranians on social media meanwhile, quickly reacted to the report suggesting that the report is likely regime propaganda masking the fact that Tehran lacks the courage to retaliate against Israel.
Who is behind the media outlet “Jadeh Iran”?
Written by Ali Hashem, the Arabic piece in the web-based outlet “Jadeh Iran” paints the picture of Tehran in a dilemma between wanting to preserve its dignity after the Damascus attack – and avoiding escalating tensions in the Middle East and with that warning the US against falling into Prime Minister Benjamin Netanyahu's “trap” and seeking a ceasefire in Gaza as a condition for de-escalation.
Hashem, who describes himself as founder of Jadeh Iran also appears to work for Al Jazeera – long known for its pro-Iranian regime propaganda.
When looking on Jadeh Iran’s official Instagram page and the accounts it follows, you will find personalities like: Former Iranian Foreign Minister Javad Zarif, Seyyed Ali Khomeini, Al Jazeera reporters – and plenty of Iranian regime propaganda pages.
Meanwhile, Israel says it has withdrawn troops from southern Gaza for “tactical reasons” – with no indication that this is connected to the alleged report by Jadeh Iran.
Iran’s Retaliation After Killing Of Soleimani
When it comes to Iran’s retaliation, it is hard to predict how the regime will respond.
Over 4 years after the IRGC Quds Force Commander Qassem Soleimani was killed by a US drone strike in Iraq – Tehran maintains it is still seeking to avenge his death.
But, Iran did carry out what it saw as retaliation at the time, just 5 days after Soleimani’s assassination in January 2020.
It launched over 12 ballistic missiles at the al-Asad Airbase in western Iraq, as well as another airbase in Erbil. Notably, Iran reportedly did inform the Iraqi government of an imminent attack shortly beforehand.
No US service members were killed in the attacks, but about 110 did suffer traumatic brain injuries, mainly concussions – leading to much mockery by Iranian dissidents, who joked that Iran’s promised “harsh revenge” merely resulted in the “headaches” of US soldiers.
Iran however, was anticipating a counter-response from the US – but inexplicably made the decision not to close its airspace to civilian flights.
On the same day, just a few hours later, the regime’s IRGC shot down a passenger flight taking off from Tehran headed for Ukraine. Flight PS752 was hit with two surface-to-air missiles, killing all 176 people onboard – including 138 Iranians with ties to Canada.
