AP Analysis: Iran protests point to turmoil in the future – Associated Press
DUBAI, United Arab Emirates (AP) Even among hardliners in Iran, there seems to be an acknowledgment of one fact after widespread protests, violence and a security force crackdown following a spike in government-set gasoline prices: This will not be the last time demonstrators come out on the street.
As Iran struggles under crushing U.S. sanctions following President Donald Trumps unilateral withdrawal of America from Tehrans nuclear deal with world powers, its elected civilian government and those in its Shiite theocracy will face ever-tougher decisions on where to cut costs.
Those cuts will more than likely target its vast system of government subsidies that make life affordable for its poor, from low-cost electricity in their homes to the bread on their plates. Any move to increase those prices will draw further protests. But the government may not have any other option.
The protests that struck some 100 cities and towns across Iran beginning Nov. 15 came after Iran raised minimum gasoline prices by 50% to 15,000 rials per liter. Thats 12 cents a liter, or about 50 cents a gallon. After a monthly 60-liter quota, it costs 30,000 rials a liter. Thats nearly 24 cents a liter or 90 cents a gallon. An average gallon of regular gas in the U.S. costs $2.58 by comparison, according to AAA.
Cheap gasoline is practically considered a birthright in Iran, home to the worlds fourth-largest crude oil reserves despite decades of economic woes since its 1979 Islamic Revolution. Gasoline there remains among the cheapest in the world, in part to help keep costs low for its underemployed, who often drive taxis to make ends meet.
Irans per-capita gross domestic product, often used as a rough sense of a nations standard of living, is just over $6,000, compared to over $62,000 in the U.S., according to the World Bank. That disparity, especially given Irans oil wealth, fueled the anger felt by demonstrators.
Irans government, however, likely saw little choice in trying to push through changes to its gasoline subsidies. Iran spent $26.6 billion on oil subsidies in 2018, according to the Paris-based International Energy Agency, the most of any country in the world. Iran spent 15% of its overall GDP, or $69.2 billion, that year on oil, electricity and natural gas subsidies.
Keeping gas costs low also benefits the wealthy, as well as those who smuggle Iranian fuel into other countries.
U.S. sanctions, re-imposed by Trump, largely have stopped Iran from selling its crude oil abroad, cutting into a crucial source of government income. While Iranian President Hassan Rouhani pledged the money saved from cutting gasoline subsidies would go to the poor, Tehran also needs to cut back spending in order to weather the sanctions.
Already, Iranians have seen their savings chewed away by the rials collapse from 32,000 to $1 at the time of the 2015 atomic accord to 126,000 to $1 today. Daily staples also have risen in price.
Even with the hike in gasoline prices, Iran still subsidizes fuel costs. Its economy remains largely state-planned despite privatization efforts. Among other major subsidies are bread and wheat, diesel fuel, heating oil and electricity.
Irans minister of industry and trade, Reza Rahmani, pledged Tuesday that prices will not be increased through the end of the current Iranian year on March 21. However, the gasoline prices came suddenly and without warning overnight, signaling further cuts likely would follow the same way in order to try and control the outcry.
The scale of the gasoline price demonstrations remains unclear even today as Iran so far has not offered nationwide statistics for the number of people arrested, injured or killed in the protests. Amnesty International believes the protests and the security crackdown killed at least 161 people.
One Iranian lawmaker said he thought that over 7,000 people had been arrested, while the countrys interior minister said as many as 200,000 people took part in the demonstrations.
While demonstrators attacked gas stations, the target of choice appeared to be banks. Protesters attacked over 700 banks, smashing ATMs and setting some ablaze, Interior Minister Abdolreza Rahmani Fazli said. That anger doesnt come as a surprise. In recent years, banks burdened by bad debts or circled by corruption allegations have collapsed in Iran, sparking sporadic protests by depositors who lost their money. Some of those banks had ties to powerful people within Iran, leading to allegations of cronyism.
Supreme Leader Ayatollah Ali Khamenei called those who attacked the banks thugs in his first comments on the demonstrations. His website published a cartoon showing masked rioters attacking a bank, while another frame showed a family and an elderly man with a cane peacefully waiting to withdraw money from an ATM.
Setting fire to such and such bank is not the action of the people, it is the action of thugs, Khamenei said, according to his website. These acts of sabotage do not solve any problem. In fact, they add insecurity to the problems that exist.
However, bank attacks were widespread in 1978 in the months ahead of Shah Mohammad Reza Pahlavi abandoning the throne and the Islamic Revolution. Marxists who hated capitalism, Islamists who opposed usury rates and others taking advantage of the chaos ransacked hundreds of banks, angry over corruption. The Iranian economy nosedived as money flooded out of the country.
The revolution saw millions on the street, something not seen in these recent protests. However, these demonstrations turned violent in the span of a day, showing the danger looming ahead for Irans government as it likely faces further hard choices ahead as sanctions look unlikely to be lifted as it has begun breaking centrifuges, enrichment and stockpile limitations in the nuclear deal.
These riots are not the last ones and it definitely will happen in the future, Revolutionary Guard acting commander Gen. Ali Fadavi has warned.
___
EDITORS NOTE Jon Gambrell, the news director for the Gulf and Iran for The Associated Press, has reported from each of the Gulf Cooperation Council countries, Iran and other locations across the world since joining the AP in 2006. Follow him on Twitter at http://www.twitter.com/jongambrellAP .
Continued here:
AP Analysis: Iran protests point to turmoil in the future - Associated Press
- Khamenei of Iran Denounces Negotiation With U.S. but Seems to Leave Door Ajar - The New York Times - February 7th, 2025 [February 7th, 2025]
- Iranian supreme leader vows to respond in kind if US acts on threats against Iran - The Times of Israel - February 7th, 2025 [February 7th, 2025]
- Iran supreme leader criticizes proposed nuclear talks with US, upending push to negotiation - The Associated Press - February 7th, 2025 [February 7th, 2025]
- Trump says hes given advisers instructions for Iran to be obliterated if it assassinates him - The Associated Press - February 7th, 2025 [February 7th, 2025]
- Trump Issues Sanctions on Iran, Threatens to Obliterate It if Hes Killed - Truthout - February 7th, 2025 [February 7th, 2025]
- Iran's first drone carrier joins the Revolutionary Guards' fleet - Reuters - February 7th, 2025 [February 7th, 2025]
- As Trump Makes Overtures, Iran Weighs Its Next Move - Bloomberg - February 7th, 2025 [February 7th, 2025]
- Iran is willing to give Trump diplomacy 'another chance', senior Iranian official says - Reuters - February 7th, 2025 [February 7th, 2025]
- Iran daily urges Pezeshkian to respond promptly to Trumps overtures - - February 7th, 2025 [February 7th, 2025]
- How Close Is Iran to a Nuclear Weapon as Trump Eyes a Deal? - Bloomberg - February 7th, 2025 [February 7th, 2025]
- Maximum pressure returns as Iran reacts to Trumps offer of talks - Amwaj.media - February 7th, 2025 [February 7th, 2025]
- UN rapporteur urges Iran to halt imminent execution of Kurdish woman - - February 7th, 2025 [February 7th, 2025]
- Iran has never pursued nuclear weapons, says President Pezeshkian - the voice of vietnam - February 7th, 2025 [February 7th, 2025]
- Iran Unveils Drone Carrier Warship in Threat to US - Newsweek - February 7th, 2025 [February 7th, 2025]
- Study debunks nuclear test misinformation following 2024 Iran earthquake - The Hub at Johns Hopkins - February 7th, 2025 [February 7th, 2025]
- Deep Dive: Syria spillover for Iran moving towards the Caucasus - Amwaj.media - February 7th, 2025 [February 7th, 2025]
- Trump says he wants to negotiate a nuclear deal with Iran after imposing maximum pressure - CNBC - February 7th, 2025 [February 7th, 2025]
- Iran says verifying its nuclear programme is an 'easy task' - Reuters - February 7th, 2025 [February 7th, 2025]
- Trump Torpedoed the Iran Nuclear Deal. Now Hes Calling for Another One. - The New York Times - February 5th, 2025 [February 5th, 2025]
- Iran praises US for cutting foreign aid funding as it looks for a Trump message on nuclear talks - The Associated Press - February 5th, 2025 [February 5th, 2025]
- Iran calls for OPEC to unite against potential US oil sanctions - Reuters - February 5th, 2025 [February 5th, 2025]
- Denying US and Israel are planning a strike, Trump says he wants a deal with Iran - The Times of Israel - February 5th, 2025 [February 5th, 2025]
- Sharper: Iran and the Axis of Upheaval - Center for a New American Security - February 5th, 2025 [February 5th, 2025]
- Donald Trump signals wish to hold talks with Iran over nuclear deal - The Guardian - February 5th, 2025 [February 5th, 2025]
- Iran says its foreign policy driven by interests after Trump voices readiness to talk - Reuters - February 5th, 2025 [February 5th, 2025]
- Denying Iran All Paths to a Nuclear Weapon: Trump Reimposes Maximum Pressure Against Tehran - Foundation for Defense of Democracies - February 5th, 2025 [February 5th, 2025]
- Trump Has a Rare and Short Window to Solve the Iran Problem Heres How - War On The Rocks - February 5th, 2025 [February 5th, 2025]
- Trump reimposes 'maximum pressure' on Iran, aims to drive oil exports to zero - Reuters - February 5th, 2025 [February 5th, 2025]
- Trump signs memo aiming to block Iran from achieving nuclear weapon - Reuters - February 5th, 2025 [February 5th, 2025]
- Donald Trump Reveals Dead-Man's Switch in Case of Iran Assassination - Newsweek - February 5th, 2025 [February 5th, 2025]
- Trump reimposes 'maximum pressure' on Iran, aims to drive oil exports to zero - VOA Asia - February 5th, 2025 [February 5th, 2025]
- Exclusive: US 'aware' of reports Iran trying to ship missile propellant chemical from China - VOA Asia - February 5th, 2025 [February 5th, 2025]
- Trump Restores Maximum Pressure on Iran - The American Conservative - February 5th, 2025 [February 5th, 2025]
- Shukriya Bradost on the Kurds Struggle in Iran - Middle East Forum - February 5th, 2025 [February 5th, 2025]
- Iran welcomes Trumps foreign aid cuts as both sides hint at nuclear negotiations - The Times of Israel - February 5th, 2025 [February 5th, 2025]
- Peace through strength when it comes to supporting Israel and confronting Iran - JNS.org - February 5th, 2025 [February 5th, 2025]
- Trump says reports hes working with Israel to blow Iran into smithereens are greatly exaggerated - New York Post - February 5th, 2025 [February 5th, 2025]
- What a second round of maximum pressure Iran sanctions means for shipping - Lloyd's List - February 5th, 2025 [February 5th, 2025]
- US believes Iran looking at potential ways to quickly build nuclear bomb report - The Times of Israel - February 5th, 2025 [February 5th, 2025]
- Trump pressure on Iran positive for VLCC rates but with lag effect - Lloyd's List - February 5th, 2025 [February 5th, 2025]
- Iran reformists urge concessions in attempt to reconnect to west - The Guardian - February 5th, 2025 [February 5th, 2025]
- Iran foreign minister: attacking our nuclear sites would be 'one of biggest mistakes US could make' - Reuters.com - February 5th, 2025 [February 5th, 2025]
- Iran's new-found pragmatism in the face of Trump - Le Monde - February 5th, 2025 [February 5th, 2025]
- Trump calls for 'nuclear peace agreement' with Iran rather than blowing country 'to smithereens' - Fox News - February 5th, 2025 [February 5th, 2025]
- Trump orders Iran to be obliterated if it kills him, but open to meeting its leader - The Times of Israel - February 5th, 2025 [February 5th, 2025]
- Trump calls for work on new Iran nuclear deal to begin 'now' - The New Arab - February 5th, 2025 [February 5th, 2025]
- Paul Mauro: Trump is putting Iran back in a box where they belong - Fox News - February 5th, 2025 [February 5th, 2025]
- Trump, Netanyahu to discuss war in Gaza, along with Iran, Arab relations - VOA Asia - February 5th, 2025 [February 5th, 2025]
- 2 IDF reservists, one of them in Iron Dome unit, arrested on suspicion of spying for Iran - The Times of Israel - January 27th, 2025 [January 27th, 2025]
- On GPS: Is Iran weaker than ever? - CNN - January 27th, 2025 [January 27th, 2025]
- Bolton: there is no question in my mind Iran may take action against me - MSNBC - January 27th, 2025 [January 27th, 2025]
- Is Iran inching closer to recognizing Taliban rule in Afghanistan? - Amwaj.media - January 27th, 2025 [January 27th, 2025]
- Online gold platforms thrive in Iran as economic pressures mount - - January 27th, 2025 [January 27th, 2025]
- Who is John Ratcliffe, the Iran hawk heading the CIA? - - January 27th, 2025 [January 27th, 2025]
- Iran says weighing Trump factor, insists on nuclear talks only | Iran International - - January 27th, 2025 [January 27th, 2025]
- 2 IDF reservists, one of them from Iron Dome unit, arrested on suspicion of spying for Iran - The Times of Israel - January 27th, 2025 [January 27th, 2025]
- Iran's judiciary denies release of convicted tycoon Babak Zanjani - - January 27th, 2025 [January 27th, 2025]
- Israel boosts F-16s with $80M upgrades amid rising tensions with Iran - The Jerusalem Post - January 27th, 2025 [January 27th, 2025]
- US ties crucial for Iraq, separate from relations with Iran, says Iraqi FM - Kurdistan24 - January 27th, 2025 [January 27th, 2025]
- Trump urged to rethink nixing security for US ex-officials under threat from Iran - The Times of Israel - January 27th, 2025 [January 27th, 2025]
- Iraq Is a Key Test of Trump's Willingness to Counter Iran - Business Insider - January 27th, 2025 [January 27th, 2025]
- In Iran, One-Third of Patients Refrain from Purchasing Medication - Iran Focus - January 27th, 2025 [January 27th, 2025]
- Iran News: Iranian Arms Smuggling to Hezbollah Disrupted Amid Growing Tensions in Syria - National Council of Resistance of Iran (NCRI) - January 27th, 2025 [January 27th, 2025]
- BCFIF Calls on UK to Act Against Imminent Executions of Political Prisoners in Iran - Iran News Update - January 27th, 2025 [January 27th, 2025]
- Trump Revokes Security Detail for Pompeo and Others, Despite Threats From Iran - The New York Times - January 26th, 2025 [January 26th, 2025]
- How Iran Lost Before It Lost: The Roll Back of Its Gray Zone Strategy - War On The Rocks - January 26th, 2025 [January 26th, 2025]
- Iran's foreign minister meets the Taliban in the first visit to Kabul in 8 years - ABC News - January 26th, 2025 [January 26th, 2025]
- Iran Review - 48th Session of Universal Periodic Review - Welcome to the United Nations - January 26th, 2025 [January 26th, 2025]
- New Russia-Iran Treaty Reveals the Limits of Their Partnership - Carnegie Endowment for International Peace - January 26th, 2025 [January 26th, 2025]
- How quickly could Iran build its first nuclear weapon? Look at China - Bulletin of the Atomic Scientists - January 26th, 2025 [January 26th, 2025]
- Mastermind of Iran's US influence effort appointed head of ministry think tank - - January 26th, 2025 [January 26th, 2025]
- Iran is 'pressing the gas pedal' on uranium enrichment, IAEA chief says - Reuters - January 26th, 2025 [January 26th, 2025]
- Trump said set to appoint Steve Witkoff to manage Iran nuclear file - The Times of Israel - January 26th, 2025 [January 26th, 2025]
- Donald Trump ("Abu Ivanka") and the Gulf States Vs. Iran - The Globalist - January 26th, 2025 [January 26th, 2025]
- Trump to appoint Steve Witkoff as Iran envoy: Report - Anadolu Agency | English - January 26th, 2025 [January 26th, 2025]
- Trump says Iran deal would be 'really nice', bucks hawks - The New Arab - January 26th, 2025 [January 26th, 2025]
- Trump says he hopes not to have to support Israeli attack on Iran - - January 24th, 2025 [January 24th, 2025]
- Trump: Would be nice to solve problems with Iran without Israeli strikes - The Times of Israel - January 24th, 2025 [January 24th, 2025]
- From Iran to European nations: What does the world expect from Trump? - Israel Hayom - January 24th, 2025 [January 24th, 2025]
- The Farda Briefing: Iran Talks Tough But Signals Openness For Negotiations With U.S. - Radio Free Europe / Radio Liberty - January 24th, 2025 [January 24th, 2025]