Latest news with #IranianParliament
The National
a day ago
- Business
- The National
Iran approves plan to remove four zeroes from national currency
Iran has approved a plan to remove four zeroes from its national currency, pending approval, Tehran's state news agency reported. Irna said the Iranian parliament's economic commission voted in favour of the change during a review of the bill amending the Monetary and Banking Law. The legislation was submitted to parliament in 2019 and passed the following year, but failed to become law as it did not get the go-ahead from the Guardian Council. Government spokeswoman Fatemeh Mohajerani said the currency will remain the rial and the transition period will be gradual. Under the updated system, one rial would be equivalent to 10,000 at the current value and split into 100 gherans, Irna had previously reported. The change comes as Iran's currency continues to tumble. As of Monday, $1 is equal to 42,000 Iranian rials, while it trades for more than 920,000 on the black market, according to the Bonbast tracker. The new system will be introduced as Iran's economy faces continuing challenges including soaring inflation due to the effects of sanctions placed by Washington and US President Donald Trump's renewed " maximum pressure" campaign on Tehran. Iran's Central Bank governor Mohammad Reza Farzin had said the government would pursue the plan to remove the four zeroes from its currency. The bill still requires approval from Iran's parliament and the Guardian Council.
The National
04-08-2025
- Business
- The National
10,000 rials to 1: Iran poised to knock four zeroes off currency
Iran has moved a step closer to knocking four zeroes off its currency, after economic woes pushed the value of one US dollar to almost a million rials. The change would mean 10,000 rials become one, making trading simpler. It was backed by an economic commission of Iran's parliament on Sunday, but still needs approval from higher authorities. The commission also backed keeping the name rial instead of changing it to one toman - which currently refers to 10 rials. The redenomination was first mooted in 2019 but then shelved. Iran's central bank governor Mohammad Reza Farzin said he would pursue the plan in May. He said the Iranian rial "does not have a favourable image" in the global economy. The move comes as Iran faces deepening economic challenges, including runaway inflation, a sharply devalued currency, and the prolonged impact of sanctions on Tehran. US President Donald Trump has reinstated a policy of "maximum pressure" on Iran, which also suffered heavy damage during a 12-day war with Israel in June. As of Sunday, the rial was trading at around 920,000 to the US dollar on the street market, according to local media and a website called Bonbast that monitors unofficial exchange rates. Turkey knocked six zeroes off its currency, the lira, in 2005, after years of high inflation. Zimbabwe once removed 10 zeros, turning 10 billion dollars into one after hyper-inflation ravaged the economy. In June, Iranian lawmakers approved new economy minister Ali Madanizadeh after his predecessor, Abdolnaser Hemmati, was ousted in a no-confidence vote for failing to address the country's economic woes. The current bill will have to pass a parliamentary vote and gain the approval of the Guardian Council, a body empowered to vet legislation. It wasn't clear when that would happen.
Yahoo
13-07-2025
- Politics
- Yahoo
Iran enacts law halting all cooperation with nuclear watchdog IAEA
The bill, titled 'Suspension of the Islamic Republic's Cooperation with the International Atomic Energy Agency with a Two-Urgency Requirement,' was originally put forward in parliament last month. Iranian President Masoud Pezeshkian announced on Wednesday that Iran would suspend cooperation with the UN nuclear watchdog IAEA, Iranian state media reported. The bill, titled 'Suspension of the Islamic Republic's Cooperation with the International Atomic Energy Agency with a Two-Urgency Requirement,' was originally put forward in Iranian parliament last month. "Given the violation of Iran's national sovereignty and territorial integrity by the Zionist regime and the United States of America with respect to the country's peaceful nuclear facilities and the endangerment of Iran's supreme interests, based on Article 60 of the 1969 Vienna Convention on Treaties, the government is obligated to immediately suspend any cooperation with the International Atomic Energy Agency based on the Nuclear Non-Proliferation Treaty (NPT) and its safeguards, until certain conditions are met, including ensuring the security of the facilities and scientists,' it read. Iran's Foreign Ministry spokesperson Esmaeil Baghaei said on Monday that the country cannot be expected to ensure usual cooperation with the International Atomic Energy Agency when the security of agency inspectors cannot be guaranteed days after nuclear sites were hit by Israeli and US strikes. Iran has halted collaborating with the IAEA "until the safety and security of our nuclear activities can be guaranteed," the country's foreign minister, Abbas Araghchi, posted on X/Twitter on Friday. He also indicated that Tehran may reject any request by the head of the UN nuclear watchdog, the IAEA, for visits to Iranian nuclear sites. The decision was made because the agency's Director-General, Rafael Grossi, had facilitated a resolution against the Islamic Republic by the IAEA's Board of Governors that was "politically motivated," Araghchi claimed. The Islamic Republic official also added that the strikes on the country's nuclear facilities by US and Israeli forces also factored into the decision. Araghchi claimed that the strikes were "blatant violations of IAEA safeguards," and that Grossi failed to condemn them. Araghchi also claimed that Grossi's wish to visit the nuclear strikes that were struck is "meaningless and possibly even malign in intent." Grossi then emphasized the need for IAEA inspectors to continue their verification activities in Iran.
Al Jazeera
02-07-2025
- Politics
- Al Jazeera
Iran president signs law suspending cooperation with IAEA
Iran's President Masoud Pezeshkian has signed a law suspending cooperation with the International Atomic Energy Agency (IAEA), amid growing tensions between Tehran and the UN nuclear watchdog over monitoring access and transparency, after United States and Israeli strikes on its most important nuclear facilities during a 12-day conflict last month. 'Masoud Pezeshkian promulgated the law suspending cooperation with the International Atomic Energy Agency,' Iranian state TV reported on Wednesday. The move comes a week after Iran's parliament passed legislation to suspend cooperation with the IAEA, citing Israel's June 13 attack on Iran and later strikes by the US on Iranian nuclear facilities. According to the parliament resolution, IAEA inspectors will not be allowed to visit nuclear sites without approval from Iran's Supreme National Security Council. Iran's foreign minister earlier this week said IAEA chief Rafael Grossi, whom Iranian officials have sharply criticised for failing to condemn Israeli and US strikes during the recent 12-day war, was no longer welcome in the country. Officials have also criticised Grossi over a June 12 resolution passed by the IAEA board accusing Tehran of non-compliance with its nuclear obligations. Iranian officials said the resolution was among the 'excuses' for the Israeli attacks. Iran has also rejected a request from IAEA chief Grossi to visit nuclear facilities bombed during the war. 'Grossi's insistence on visiting the bombed sites under the pretext of safeguards is meaningless and possibly even malign in intent,' said Iran's Foreign Minister Abbas Araghchi on X on Monday. 'Iran reserves the right to take any steps in defence of its interests, its people and its sovereignty.' Earlier this week, Pezeshkian decried Grossi's 'destructive' conduct, while France, Germany and the United Kingdom have condemned unspecified 'threats' made against the IAEA chief. Iran's ultra-conservative Kayhan newspaper recently claimed that documents showed Grossi was an Israeli spy and should be executed. Iran has insisted no threats were posed against Grossi or the agency's inspectors. The 12-day war began when Israel carried out a surprise bombardment of Iranian nuclear facilities and military sites and assassinated several top military commanders and nuclear scientists. Tehran responded with waves of missiles and drones at Israel. On June 22, Israel's ally, the US, launched unprecedented strikes of its own on Iranian nuclear facilities at Fordow, Isfahan and Natanz. A ceasefire between Iran and Israel took hold on June 24. At least 935 people were killed in Israeli attacks on Iran, according to judiciary spokesperson Asghar Jahangir, citing the latest forensic data. The deceased included 132 women and 38 children, Jahangir added. Iran's retaliatory attacks killed 28 people in Israel, according to authorities. US President Donald Trump said the US attacks had 'obliterated' Iran's nuclear programme, though the extent of the damage was not clear. Araghchi has admitted that 'serious' damage has been inflicted on nuclear sites. But in a recent interview with US media outlet CBS Evening News, he said: 'One cannot obliterate the technology and science… through bombings.' Israel and some Western countries say Iran has sought nuclear weapons – an ambition Tehran has consistently denied.
Yahoo
26-06-2025
- Business
- Yahoo
Energy in Europe is also at stake as Israel-Iran conflict escalates
Rising European energy prices are among the many risks of the current geopolitical crisis, which threatens to block one of the world's most important fuel shipping routes. Coupled with the trade war sparked by US tariffs, there are fears that the crisis may also drag down the global economy. After the US launched a strike in Iran over the weekend, oil prices surged on further uncertainty. The price of Brent crude oil was trading at more than $77 on Monday morning, and WTI cost more than $74 a barrel. The price of the international benchmark Brent has risen by around 20% since the end of May. High prices and supply disruptions, coupled with the implications of the trade war, are threatening to lower production globally. Markets are pricing in risks to the global oil and liquefied natural gas (LNG) supply. These threats rose substantially over the weekend, after the US struck Iranian nuclear facilities and the Iranian Parliament voted to close the Strait of Hormuz, a strategic maritime corridor for global oil and natural gas. The final decision now awaits approval from Iran's Supreme National Security Council. Iran is controlling the highly strategic strait, through which a third of global seaborne oil and a fifth of global LNG shipments travel. If the route is blocked, prices could skyrocket beyond $100, according to analysts. Related Israel-Iran crisis: How vital is the Strait of Hormuz for oil market? Israel-Iran conflict fuels best month for energy stocks since 2022 'I do not expect that the strait is going to be closed,' Dr. Yousef Alshammari, President of the London College of Energy Economics, said to Euronews Business — before the US struck Iran. He added: 'It is simply because Iran needs the Strait of Hormuz open for ships to go through for its clients, India and China.' The risks associated with passage have already impacted prices. Some oil tankers have refused to go through. According to the FT, the world's largest publicly listed oil tanker company Frontline said it would turn down new contracts to sail through the Strait of Hormuz. Meanwhile, 'insurance companies are likely to charge more currently, while Qatar is trying to delay its LNG shipments going through the Strait,' added Alshammari. Natural gas fields in the region are also attracting attention. Iran shares the largest natural gas field in the world, the South Pars field, with Qatar. The liquefied natural gas (LNG) coming from this region is vital for the rest of the world, including Europe. Though the EU has adequate supplies of LNG at the moment, the bloc's dependence on global LNG makes it vulnerable to geopolitical shocks as it is lowering its dependence on Russian gas. As the market weighed the recent risk of supply disruptions, European gas prices climbed significantly. The primary benchmark for European gas prices, the Dutch TTF (Title Transfer Facility) rose to a three-month high, nearing €42/MWh on Monday morning in Europe. Europe's imports from Qatar are providing nearly 10% of its LNG needs. Other countries in the region, including Egypt, also export LNG to Europe. However, after the 7 October 2023 Hamas attack, Israel closed down part of its own production, forcing Egypt to stop LNG shipments and prompting a spike in European natural-gas prices. Europe currently has a number of natural gas suppliers. Norway was the top supplier of gas to the EU in 2024, providing over 33% of all gas imports. Other suppliers included the United States, Algeria, Qatar, the UK, Azerbaijan and Russia. The largest LNG importing countries in the EU include France, Spain, Italy, the Netherlands and Belgium. If shipments from Qatar are impacted, Belgium, Italy and Poland are the most impacted, as the country supplies 38-45% of their LNG imports, according to the Institute for Energy Economics and Financial Analysis (IEEFA). The good news is that demand for gas is usually at its lowest level in Europe at this time of the year. Even so, the hotter-than-usual weather across the bloc is boosting demand for cooling, which could increase the need for energy in the coming weeks. 'Spikes in energy prices push up inflation, and can have a knock-on effect on the central bank's policy,' Alshammari said. Central banks, including the US Fed and the Bank of England, have stopped short on cutting interest rates as the uncertainty is rising. If they see that inflation is more persistent in the near term, and that — in the case of the ECB and the BoE — the 2% target is floating away, further monetary tightening could squeeze the economy with higher costs for borrowing and investment. "As a result of the Ukraine War, there was a pivot from the EU in particular to get their liquefied natural gas, their LNG gas, not from Russia but from producers including Qatar,' Marco Forgione, Director General of the Chartered Institute of Export and International Trade, told Euronews. He added that anything constraining the transit of liquefied natural gas will have a quick impact on the EU, 'particularly in the manufacturing sector'. Oil demand is the highest in summer, partially due to industrial activity. But current supply constraints and higher prices could further squeeze manufacturing. For European businesses, who are already facing heightened trade tensions linked to US tariffs, facing the current complications is "like playing four-dimensional chess', Forgione said. He also spoke to Euronews before US strikes over the weekend. Forgione predicted that sudden spikes in oil prices and depressed shipping rates may result in significant consumer price increases, supply shortages, and shrinkflation. This is where a product shrinks in size but the price remains the same. Iran's energy infrastructure is in the crosshairs of the conflict. The country is the ninth-largest oil producer globally. At full capacity, the country produces 3.8 million barrels of oil a day, according to the US Energy Information Administration. But due to Western sanctions, Iran's oil exports are mainly shipped to China and India. Iran exports 1.5 million barrels per day, providing 10% of China's oil imports. If the world's second-largest economy, China, is deprived of this import, it could impact its economy as it is forced to source this from elsewhere, meaning prices could skyrocket. The potential geopolitical consequences of the Iran-Israel conflict are leaving markets on edge, and it seems volatility is here to stay. Meanwhile, Europe's role in the conflict remains to be seen. 'My biggest worry is that it turns out to be a wider conflict, involving European countries, UK and France. This is the scenario that nobody wants to see happen,' added Alshammari. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
