Iran allocates $67M in subsidies for Shia procession despite economic strain
A man serves hot rice and stew to pilgrims during Arbaeen, offering free votive food.
The Iranian government has allocated at least $67.6 million in foreign exchange subsidies for pilgrims attending the upcoming Arbaeen religious procession while the country faces its worst economic crisis since the founding of the Islamic Republic.
Iran’s Supreme Leader Ali Khamenei on Thursday appointed Ali Larijani as his personal representative to the Supreme National Security Council, two days after President Masoud Pezeshkian named Larijani as the council’s secretary.
With the appointment, Larijani replaces Ali Akbar Ahmadian both as secretary of the Supreme National Security Council and as one of Khamenei’s two designated representatives to the body. Saeed Jalili, who served as SNSC secretary from 2007 to 2013, is the other representative currently serving in that capacity.
“Given Dr. Ahmadian’s assignment to important executive responsibilities, I appoint Dr. Ali Larijani as my representative in the Supreme National Security Council, in accordance with Article 176 of the Constitution,” Khamenei wrote in a formal decree.
Khamenei appoints Shamkhani and Ahmadian to Defense Council
In a separate decree, Khamenei named both Ahmadian and former SNSC secretary Ali Shamkhani as his personal representatives to the Supreme Defense Council, a newly revived body expected to oversee national defense policy and coordinate military planning.
The council is part of a broader institutional overhaul announced after a 12-day war with Israel in June, during which Iranian military and nuclear facilities were hit by Israeli and US strikes.
The Defense Council will include the heads of the executive, legislative and judicial branches, top military commanders, and key cabinet ministers. It will be chaired by President Pezeshkian, according to Iranian media.
Larijani returns to powerful role
Larijani, 67, is one of the most experienced figures in Iran’s political system. He previously served as SNSC secretary from 2005 to 2007, and has held positions including speaker of parliament, Minister of Culture, head of state broadcasting (IRIB), and advisor to the Supreme Leader.
Though considered a conservative close to the Supreme Leader, Larijani has occasionally clashed with hardliners. He registered for presidential elections on three occasions but was twice disqualified by Iran’s Guardian Council. His political tone on diplomacy and domestic issues has softened in recent years.
A group of leading Iranian tech entrepreneurs has warned President Masoud Pezeshkian that mounting state interference has left emigration the only remaining option for technology firms trying to survive.
“Some security agencies, through official letters, have prohibited government institutions from cooperating with the country’s major startups. This trend has continued with the sealing of central offices of certain companies, revocation of licenses, arrest of investors and executives, forced exit of shareholders and investors, and prevention of platforms from entering the stock market,” the letter said.
In the letter signed by the founders of Iran's largest e-commerce platform Digikala, travel agency Alibaba, streaming service Filimo, Android App Store Cafe Bazaar, and classifieds platform Divar, the group accused security bodies of executing a systematic effort to subdue and dominate the startup ecosystem and warned of the sector's imminent collapse.
They wrote that increasing political pressure has extinguished motivation among young professionals and forced a shift toward mass organizational migration.
“Now, today, we witness an unprecedented move: the same forces have issued an order to halt the operations and remove the founder of one of the major local platforms. The result of this process is the shutdown of one of the most exceptional innovation ecosystems in Iran’s history…. We are losing our human capital, financial investments, and the motivation of the new generation.”
The letter was referring to the removal of Divar’s founder, which the authors called an “extraordinary sign of security institutions asserting full control over the private sector.” They said the process had moved from interference to outright takeover.
IRGC officials informed regulators that the company’s IPO could proceed only if founder and CEO Hessam Mir Armandehi was removed—an instruction Armandehi later published in full.
The Washington Post on Wednesday reported that the Islamic Revolutionary Guards’ Corp (IRGC) intelligence wing intervened this spring to block Divar’s stock market listing.
The move came after the company’s refusal to hand over user data or sell shares to firms tied to Supreme Leader Ali Khamenei’s economic network, according to the report.
“This leads to lower investment, of course, and it leads to capital flight not only from investors in Divar but also in many other digital companies,” Mahdi Ghodsi, an economist at the Vienna Institute for International Economic Studies, told The Washington Post.
“If they continue these kinds of policies, they are helping the collapse of the Islamic Republic.”
In their letter, the tech founders warned that countries such as the UAE and Saudi Arabia are actively recruiting Iran’s skilled workers and positioning themselves as regional centers of innovation. Iran, they wrote, is forfeiting its greatest asset: its people.
They urged Pezeshkian to end the securitization of the sector and restore trust before the remaining foundations of Iran’s innovation economy fall away.
A document obtained by the Daily Mail lists more than 10,000 individuals from Iran, Syria and Lebanon who were allegedly granted Venezuelan passports, raising concerns over potential infiltration into the United States.
According to the report published Thursday, the list includes names, passport numbers, birth dates and other identifying information for people who would not ordinarily qualify for Venezuelan citizenship. The document covers passports issued between 2010 and 2019 and was compiled by a former Venezuelan official whose identity was not disclosed.
The Daily Mail said the source worked in Venezuela’s internal investigations branch and that his position was confirmed by former US ambassador to Venezuela James Story. The official gave the list to US authorities earlier this year. The Department of Homeland Security did not confirm whether it had received the document and declined to say if it was tracking individuals listed.
Report points to Iran-Venezuela links
The Daily Mail report suggests the alleged scheme may have operated with help from Venezuelan government officials during the presidency of Nicolás Maduro.It also highlights long-standing ties between Tehran and Caracas, including political and security cooperation.
Former US officials cited in the report expressed concern that Iranian-linked individuals may have used the documents to enter South America legally, and later crossed into the United States illegally. The report ties the passport operation to past US findings that Venezuelan travel documents were vulnerable to misuse.
Former officials cite terrorism risk
Jonathan Gilliam, a former FBI agent and counterterrorism analyst, told the Daily Mail that the risk of attacks inside the United States is high following the US airstrikes on Iranian nuclear sites in June. “They get people here, get them in place, and get them supplied and ready to go,” he said.
Thor Halvorssen, a former Venezuelan ambassador for anti-narcotic affairs, said some of the passport recipients may already be inside the United States and integrated into daily life. He said that some might hold jobs in sensitive sectors, but that their identities are difficult to verify. “They are everywhere,” he said.
The document reportedly includes more than 10,000 names, with about two-thirds listed as male.
Diplomatic missions under scrutiny
Halvorssen and others said many of the passports were signed or approved by Ghazi Nasr Al-Din, a former Venezuelan diplomat who served in Syria and was later placed on the FBI’s terror watchlist. In a 2015 notice, the FBI accused him of supporting Hezbollah travel and fundraising efforts.
The Venezuelan Embassy in Damascus denied wrongdoing in a statement to the Daily Mail. “These accusations are false,” the statement said. “Venezuela is a country and a territory of peace and love.”
A 2006 US State Department report warned that Venezuelan travel and identification documents were easy to obtain by individuals not entitled to them, during Hugo Chávez’s presidency.
US Customs and Border Protection reported that more than 380,000 Venezuelan nationals crossed the US-Mexico border between January 2021 and October 2023. In the same period, authorities recorded 382 encounters with individuals on the FBI terror watchlist and 1,504 Iranian nationals, according to the report.
Iran’s Foreign Minister said on Wednesday that the International Atomic Energy Agency (IAEA) must clarify how it would go about inspecting nuclear facilities bombed by Israel and the United States in June.
“If the agency wants to visit our sites, they’ve been bombed. Tell us—how do you expect to inspect a bombed nuclear facility? Is there a rule, a protocol, a guideline for that?” Abbas Araghchi said in an interview with state TV.
Araghchi criticized the UN nuclear watchdog for failing to condemn what he described as “illegal and savage” attacks on the country’s nuclear sites under its supervision. “This is the biggest violation of international law—truly unforgivable,” he said.
IAEA inspectors left the country following the 12-day conflict and whether Iran allows them to resume their work remains a focus of diplomacy between Iran and the West.
US President Donald Trump has repeatedly maintained that US airstrikes "obliterated" Iran's nuclear program but Iran's insistence it will not to renounce enrichment leaves the long-running impasse unresolved.
Talks, not inspection
Araghchi confirmed in the interview that Iran officially invited the IAEA's Deputy Director General to Tehran for a detailed discussion, asserting Iran's view that the framework for working with the UN nuclear watchdog had changed.
"He’s not coming for inspections or evaluations—we have not allowed and will not allow that," Araghchi said without naming the deputy.
Asked how Iran can continue working with the IAEA in light of a recent law suspending cooperation, Araghchi said the legislation only proposes new mechanisms for collaboration.
“The parliament passed a crucial law, effectively tying Iran’s cooperation with the IAEA to decisions by the Supreme National Security Council. Henceforth, all cooperation with the IAEA must go through and be approved by the Council,” Araghchi said.
Israel launched a series of strikes on June 13 targeting military and nuclear sites, assassinating senior commanders and killing hundreds of civilians. Iranian missiles killed 27 Israeli civilians.
The United States attacked the Isfahan, Natanz and Fordow nuclear sites with long-range bombers and submarine-launched missiles on June 22.
France, Germany and the United Kingdom have called on Iran to resume full cooperation with the IAEA, and while Iranian officials have previously indicated some talks might be soon, no definite date has been announced.
Araghchi added that no talks with the United States are finalized but confirmed that some requests have been made.
“There have been discussions and messages from the other side. Whether talks happen in the near or distant future depends entirely on what serves our interests.
“We fight, negotiate, use diplomacy, and rely on our defensive power and our people wherever necessary to secure national interests,” he added.
He added that while messages had been exchanged with the US side, no negotiations had been firmly agreed, and any future talks would depend on what Iran’s interests require.
A young woman in a loosely draped hijab, strands of hair framing her face, flashes a peace sign while holding a photo of a slain Revolutionary Guard commander.
The improbable image fills the front page of hardline daily Vatan-e Emrooz, presented as part of the Islamic Republic’s “new generation of resistance.”
But analysts told Iran International it is less a reflection of reality than a carefully crafted narrative aimed at shoring up support for Tehran after its 12-day war with Israel — the worst direct military confrontation in their fraught history.
The war left hundreds of civilians dead, damaged infrastructure and deepened economic strain. In its aftermath, the Iranian establishment has worked to project resilience and unity, even among citizens who defy its strict social codes.
The Vatan-e Emrooz cover accompanied a story built around a Foreign Policy article by an Iranian-American academic which argued that some young Iranians are rallying behind Tehran’s anti-West, anti-Israel stance in the war’s aftermath.
Following the bruising conflict, Tehran embraced nationalist symbols it long suppressed, with mythological tales and ancient monarchs adorning public billboards.
For author Arash Azizi, whose book What Iranians Want: Woman, Life, Freedom examines political and social change, this type of imagery is part of a familiar playbook.
Referring to a domestic militia and Iran's Islamic Revolutionary Guard Corps, he described Vatan-e Emrooz as “a hardliner outlet, traditionally close to the Basij, which is a section of the IRGC … known for a very sensational sort of tabloid-style headlines.”
The paper, he added, has long featured stylish young who appear supportive of the establishment to imply that “even sections of the population that flout the hijab rules … nevertheless supports its foreign and military policies.”
Holly Dagres, a senior fellow at the Washington Institute for Near East Policy, studies Iran’s younger generations and regularly tracks Gen Z and Gen Alpha trends.
She said that while this visual contrast between appearance and ideology is not new—women without hijab have backed hardliners, and chador-wearing women have voted reformist—the cover is nonetheless a strategic push.
“It’s for the regime to make a point, especially at a time when it has historically high anti‑regime sentiment, that ... we have the support of these individuals too that don’t usually fit the stereotypical box of what a good Islamic citizen in our view is," Dagres told Iran International.
No gesture by chance
Visual communication expert Siavash Rokni, who holds a PhD in communication and researcher in popular music at McGill University, sees deliberate messaging in the picture’s design: the woman’s ear “out of her scarf,” the bright blue clothes “evoking kind of happiness and rejuvenation and the future,” and her phone with a peace sign “as kind of the representation of Gen Z.”
Rokni also points to the way she holds her phone — not in a natural texting or scrolling posture, but almost like a prop, gripped sideways with fingers loosely wrapped around it. The position, he suggests, looks staged.
It’s an example of what Rokni calls the Islamic Republic’s turn to “soft war”—countering Western “soft power” via curated cultural imagery. The same effect is visible, he added, in rap lyrics and music videos where some artists are either funded or influenced by the IRGC to echo establishment talking points, while others openly align themselves with them.
Gen Z beyond reach?
Activist Tara Dachek, part of Iran’s Gen Z and now living abroad, sees the image as a sign of weakness, not strength. “The Islamic Republic is drowning — these are its last desperate gasps,” she told Iran International. Such visuals, she says, reflect “fear, repetition and desperation” rather than genuine engagement.
Having left Iran six years ago, Dachek believes the cover only affirms that her “generation is on the right path — the regime has already lost us.”
"Even back then, I didn’t trust state media. I never followed their news because I knew it wasn’t truth — it was survival wrapped in a lie," said Dachek.
Among younger Iranians, the dissatisfaction runs deep.
Surveys show that nearly 75% of Iranians—including many Gen Z individuals—opposed mandatory hijab, with 84% favoring a secular state over the Islamic Republic, according to GAMAAN — a Netherlands-based research organization that conducts large-scale online surveys of Iranians.
Gen Z, who wasn't yet born at the time of the 1979 revolution, frequently expresses opposition to both political Islam and compulsory dress codes while embracing global cultural values.
Despite Tehran’s efforts to project unity, young Iranians may not be as passive or easily swayed as officialdom believes. Shaped by years of protest and repression, they remain among the most vocal critics of the Islamic Republic.
According to the Central Bank, each pilgrim traveling to Iraq for the annual ceremony may receive up to 200,000 Iraqi dinars at a subsidized rate, priced roughly $18 below Tehran’s open market exchange.
The Arbaeen ceremony marks the end of the 40-day mourning period following Ashura, the religious ritual commemorating the death of the third Shia Imam, Hussain ibn Ali.
Pilgrims crowd at the Shalamcheh Border Terminal on the Iran-Iraq border during Arbaeen.
With officials projecting that 3.7 million people will cross the border, the total state subsidy amounts to nearly 62,900 billion rials or $67.6 million.
Although small groups of Iranians had made the pilgrimage in the years after Saddam Hussein’s fall in 2003, the numbers surged after 2010, when official data first recorded 40,000 pilgrims.
By 2019, participation reached three million, before declining sharply during the pandemic. The growth has been fueled by active promotion by the governmentand large-scale government investment in roads, healthcare services, and logistical support for pilgrims.
In addition to currency subsidies, state-affiliated charities, municipalities, city councils, and various government bodies allocate dedicated budgets each year to organize the event and provide services along the route.
These include free meals, subsidized transport, and free Wi-Fi access along the main routes and within Karbala.
Roundtrip tickets from Tehran to Najaf—where many pilgrims begin the walk—range between 130 and 150 million rials (approximately $138 to $159), Adel Nourali of Iran’s Airlines Association said this week.
The large portion of each fare allocated to Iraqi airport fees has intensified concerns over concealed state subsidies.
1,550 tons of subsidised food including lamb, chicken, sugar, and rice will be distributed to religious camp organizers at massively reduced rates, Jebreil Baradari, head of Tehran’s Agricultural Jihad Organization said this week.
The offer comes as the cost of meat in Iran has soared and per capita meat consumption has fallen as over one third of the country is now living below the poverty line.