Tehran Between Economic Pressure and Hormuz Tension: Bill to Fix the Dollar Rate and Mutual Accusations with Washington
On the economic front, a 24-article bill was entered into the comprehensive legislative system in the Iranian parliament, followed by Tehran MP Peyman Falsafi, proposing a shift to a fixed exchange-rate regime by gradually lowering the official dollar rate over two months and then fixing it for five years at 28,500 toman, while concentrating foreign-currency pricing powers in the Central Bank and abolishing the commercial and parallel exchange markets. The bill also proposes limiting cash subsidies to the three lowest-income deciles, cutting bank interest to zero and restricting banks' dealings in the gold market, all amid inflation approaching 90 percent.
On the Strait of Hormuz file, the Iranian Foreign Ministry said Minister Abbas Araghchi told Iraqi Prime Minister Ali al-Zaidi that the United States had obstructed diplomacy and caused maritime insecurity, and expressed Iran's appreciation for the role of diplomacy in preventing a worsening of insecurity. This coincided with the UK Maritime Trade Operations announcing that a vessel was struck by two projectiles of unknown origin northeast of Khor Fakkan, causing minor injury and damage, amid continued tension in the Strait of Hormuz and the US naval blockade of Iranian ports. Araghchi affirmed that Iran's proposal to reopen the Strait of Hormuz within seven days still stands.
Regionally and internationally, the Secretary-General of the Gulf Cooperation Council said the GCC states had been subjected to repeated Iranian attacks, describing them as a flagrant violation of sovereignty and a direct threat to security and stability, while Bahrain's foreign minister announced his country's support for Oman's and Qatar's mediation efforts between the United States and Iran. US Secretary of State Marco Rubio endorsed the British assessment holding Iran responsible for the attack on "Fairford" air base in Britain, after British Prime Minister Andy Burnham accused the Iranian Revolutionary Guard of being behind the incident and threatened additional sanctions, while Vance revealed what Washington wants from Tehran, describing it as a "final and firm commitment." A report in the "Jerusalem Post" said Israeli security officials assess that US sanctions have begun to press heavily on the Iranian regime, prompting the Revolutionary Guard and security agencies to raise their state of alert for fear of broad popular protests, citing information from Beirut about the transfer of about 200 million dollars to Hezbollah without independent evidence.
In concurrent remarks, the Iranian President affirmed that Iran does not intend to attack any country but will confront any attack with force and will not allow enemies to covet its land, while Rezaei said the Iranian armed forces had prepared a plan for any new adventure that he described as more destructive than the 12-day and 40-day wars, as a report headline indicated the appointment of a new defense minister and the opening of a new military phase. Analysts and writers consider a wide war before the US midterm elections and the Israeli Knesset elections unlikely due to its cost and the absence of consensus, warning that any confrontation could extend to energy facilities and maritime corridors.