Donald Trump and Iran’s Supreme Leader


Iran’s Currency Sinks Below 1,000,000:1 v. US Dollar


UPDATE 1541 GMT:

Iran’s embattled currency has rebounded around 6% with news of the forthcoming talks with the US.

The rial closed at 1,000,250:1 v. the US dollar on Tuesday, up from its historic low of 1,062,000:1.

The currency had dropped by around 35% since late November.


ORIGINAL ENTRY: The Trump Administration and Iran will hold discussions in Oman on Saturday about Tehran’s nuclear program.

Iran State media reported that Foreign Minister Abbas Araqchi will lead the Iranian delegation while Donald Trump’s envoy, real estate developer Steve Witkoff, will lead the Americans.

Trump declared the discussions as “direct” in an appearance alongside Israeli Prime Minister Benjamin Netanyahu on Monday. But Iranian authorities maintained, as they have for weeks, that negotiations will be “indirect” with Omani Foreign Minister Badr al-Busaidi as intermediary.

Araqchi posted on social media:

Trump said in the White House press appearance:

We’re having direct talks with Iran, and they’ve started. It’ll go on Saturday.

We’re dealing with them directly and maybe a deal is going to be made. Doing a deal would be preferable to doing the obvious.

Asked if he would pursue military action if the negotiations were unsuccessful, Trump responded, “Iran is going to be in great danger, and I hate to say it.”

In May 2018, the first Trump Administration withdrew from the 2015 nuclear agreement between Iran and the 5+1 Powers (US, France, Germany, UK, China, and Russia). Declaring “maximum pressure”, it imposed comprehensive sanctions on Tehran six months later.

The measures have helped cripple Iran’s economy. However, Tehran is now enriching uranium up to 60%, compared to the 3.67% limit set in the 2015 deal. That 60% fuel could be further enriched to a military grade of more than 90%.

Since taking office in January, Trump has swung between threatening Iran and declaring his desire for a high-profile deal. Last month he sent a letter to the Supreme Leader, Ayatollah Ali Khamenei, via Oman. He emphasized:

There are two ways Iran can be handled: militarily, or you make a deal. I would prefer to make a deal, because I’m not looking to hurt Iran.

Khamenei responded with an apparent rejection: “The insistence on the part of some bully states on negotiations is not to resolve issues, but to dominate and impose their own expectations. The Islamic Republic of Iran will definitely not accept their demands.”

But Iran’s economic woes have intensified since then, with rising inflation, high unemployment, chronic problems with infrastructure, and a historically-low currency.

The rial has lost almost 35% of its value since late November, and is now 1,061,000:1 v. the US dollar.

Iran President Masoud Pezeshkian said on Sunday, “We do not seek war, unrest and nuclear bomb. We seek negotiations, but the Americans must also prove that they seek negotiations.”