UPDATE, 0830 GMT:

As President Ebrahim Raisi was being inaugurated, the Health Ministry reported another 434 deaths from Coronavirus, the highest daily increase since April 28.

The Ministry announced 38,674 cases, just below Wednesday’s all-time record of 39,357.

Iran’s official toll is now 92,628 deaths and more than 4.06 million cases.

See also Supreme Leader Backs Lockdown Amid Soaring Iran Record for Coronavirus Cases

ORIGINAL ENTRY: Hardliner Ebrahim Raisi has been inaugurated as Iran’s 8th President, in a ceremony in Parliament.

In his inaugural statement, Raisi took a careful and more balanced line than on Tuesday, when he was endorsed by the Supreme Leader who supported him through June’s managed election.

On Tuesday, the former judiciary head struck out at “tyrannical” and “oppressive” US sanctions. He hinted at an ongoing step back from talks over the 2015 nuclear agreement, following Ayatollah Khamenei’s castigation of the “unjust and malicious” West: “we will not condition the people’s livelihood and the economy [on sanctions removal] and will not tie them to the will of foreigners.”

Iran’s Supreme Leader Steps Back from Nuclear Negotiations

But on Thursday, Raisi declared “smart engagement” with the world to lift the sanctions. He also took care to criticize nuclear weapons as forbidden under Islam.

Raisi did not give detail of “smart engagement”, but in a rare flash of consensus with the outgoing, centrist Rouhani Government, emphasized a priority on relations with Iran’s neighbors.

He maintained the tough rhetoric of the Supreme Leader, declaring that the message of his election — in which a historic low of just over 40% of Iranian voters participated — was of “independence” and “resistance” against the wishes of “bullying powers”.

The new President gave no sign of when Iran will return to the Vienna nuclear talks. When they adjourned in June, the head of Iran’s delegation, Deputy Foreign Ministry Abbas Araqchi, said they were “closer to the end of the road”. But with Raisi’s imminent entry, the Supreme Leader focused on criticism of other powers, and US officials said a return to negotiations was unlikely before September.

A “Popular” Administration?

On the domestic front, amid Iran’s economic and social problems, Raisi gave general pledges about political inclusion, improvement of the lives of ordinary Iranians, and “social excitement”.

Iran’s long-standing difficulties with trade, investment, production, and corruption have been compounded by the comprehensive US sanctions imposed in November 2018. The currency has fallen by 80% since early 2018; inflation is more than 40%; and oil exports continue to be depressed below the 2018 level of 2.5 million barrels per day. Blackouts and water shortages have spurred protests, particularly in southwest Iran.

Iran’s Monopoly Challenge: Can Raisi Government Pass Go on Water and Electricity?

Raisi said he will “return stablility”, addressing issues with currency and the environment. He maintained that his administration has a “popular” mandate, despite the low level of support in the June 18 election.

The new President is likely to name his Cabinet on Sunday.

Present: “The Resistance Front”

Some regional leaders attended the ceremony. Iraqi President Barham Salih, Iraq Kurdistan Regional Government President Nechirvan Barzani, and Ammar Al-Hakim, the head of the Hikmah movement, drew attention. Kuwait and Oman sent foreign ministers, and Qatar was represented by the Commerce and Industry Ministry.

With Iran considering role in Afghanistan amid the departure of US military personnel, Afghan President Ashraf Ghani’s attendance was notable.

But perhaps even more significant was the show for the Supreme Leader’s “Resistance Front”. Seated on the front row were the spokesman of the Iran-backed Yemeni insurgency Mohammed Abdulsalam; Hamas leader Ismail Haniyeh; Palestinian Islamic Jihad Secretary-General Ziad Al-Nakhalah; and senior Hezbollah official Naim Qassem.

There was a sign of the nuclear talks through the presence of the European Union’s broker, Enrique Mora.