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Rouhani summoned by Iranian lawmakers to answer their questions as the economy deteriorates


News Analysis | 

Iranian lawmakers have summoned the President Hassan Rouhani to appear before the parliament and answer their concerns about the issues related to the economy and deteriorating ties with the United States of America. It is coupled with the protests in the major cities of the country over hiking prices, increasing unemployment and electricity and water shortage. The country’s currency, Iranian rial, has lost its value by fifty percent since April which has consequently resulted in inflation.

The lawmakers also want to question the president that why do the Iranian banks still have limited access to global financial market even after two years of signing the nuclear deal. Iran and United States of America are in a row with each other after U.S. President Donald Trump decided to back out of Iran’s nuclear deal, once again leaving Iran vulnerable to severe economic sanctions.

“We are aware of the increase in Iranian naval operations within the Arabian Gulf, Strait of Hormuz and the Gulf of Oman,” said Navy Captain Bill Urban, the chief spokesman at Central Command, which oversees U.S. forces in the Middle East.

Though rest of the signatories vowed to keep the deal alive as Iran was abiding by the terms of the agreement but the United States announced that any country or Multinational Corporation which will continue doing business with Iran will have to face the sanctions too. To demonstrate how seriously the United States sees the matter, it even announced a deadline of November 4, 2018, for countries and MNCs to shift their business.

Read more: Iran replaces central bank chief as economy faces crisis

Lack of trade will result in it economic crisis inside Iran, therefore last week, Iran’s president and then the chief of army staff went to the length of saying that Iran could choke the Strait of Hurmuz which affects the trade for UAE and other Gulf countries. As per reports, Iran is also moving up the timing of its annual military drills. The U.S. military’s Central Command confirmed that it has seen an increase in Iranian activity, including in the Strait of Hormuz.

“We are aware of the increase in Iranian naval operations within the Arabian Gulf, Strait of Hormuz and the Gulf of Oman,” said Navy Captain Bill Urban, the chief spokesman at Central Command, which oversees U.S. forces in the Middle East. Analysts believe that it is most likely to send a message that the world needs to take Iran seriously now as it has got nothing to lose.

Iranian lawmakers have summoned the President Hassan Rouhani to appear before the parliament and answer their concerns about the issues related to the economy and deteriorating ties with the United States of America

Tension is also building up inside the country as masses seems agitated with the pre-nuclear deal circumstances prevailing as they were made to believe that the economic condition would improve if Iran gives up the ambition of nuclear weapons. Since Hassan Rouhani was the architect of the deal, it is particularly a hard time for him as Iran has very limited options right now. The reassurance from rest of the signatories of the nuclear deal has not done much help so far as they corporations feel intimidated by the US threats.

Read more: Iran volatile on eve of US sanctions

Earlier this year, massive violent protests broke out throughout the country with the aim of removing the current government and Supreme Leader Ali Khamenei. The protestors, however, failed to achieve their goals and Iran accused the United States of being the conspirator of attempting to topple the government. The assertion cannot entirely be ruled out as US official has gone on record several times about the idea of the regime change in Iran.

Hassan Rouhani was the architect of the deal, it is particularly a hard time for him as Iran has very limited options right now

Though they have been using the term “peaceful transition of power” but looking back at the history, there has never been a peaceful transition whenever foreign hands are involved in regime change. If the situation continued to worsen it can become very difficult for the government to control the public resentment and those looking for a political change could get a genuine opportunity to do so.

Russia and China have come to Iran’s rescue vowing to fill the gap if Multinational corporations, especially in the petroleum sector, move out due to the U.S sanctions. It may help the economy survive but the long run problem of unemployment and inflation need an extensive trade.

Read more: Iran’s currency crisis triggers corruption crackdown

The only way out right now for Iran, other than blocking the Hormuz passage which is most likely to result in the confrontation with US forces, is to use diplomatic efforts with the help of Europeans signatories to deal alongside China and Russia to persuade the United States not to push for a trade embargo. Though it has already been tried out by the French and German head of states to no avail, the options other than this are disastrous since Iran economic lifeline is at stake.