Despite talk of a defiant 'resistance economy', the consequences may be dire if a nuclear deal with the west does not come soon
Simon Tisdall in Tehran
theguardian.com, Sunday 18 May 2014
A woman buys fruit from a street vendor in central Tehran. Signs of improvement in Iran's economy after Rouhani came to office have given way to renewed gloom. Photograph: Behrouz Mehri/AFP/Getty Images
At the car repair shop on Soreana Avenue in central Tehran, Homayoon is happy to talk; after all, there is not much else to do. Business is bad, he says, as he wipes his hands with an oily cloth. It's the same for everybody.
"It's not good at all. Petrol is expensive, so people drive less, so they break down less," Homayoon says. Wearing a grubby red T-shirt advertising Axol Lubes, he laughs and shrugs when asked whether American sanctions are to blame for high prices and lack of customers.
"Of course it's sanctions!" interrupts Ali, another mechanic. "The economy is sick. My friends have small businesses like this one. Electricity is up 25%, water up 30%, petrol up 75%, business tax up, VAT up. Interest rates are 25%, so they can't borrow. They can't handle it," he says.
What they say at Friday prayers is less forgiving. A day earlier, Ayatollah Ahmad Jannati, one of the Islamic Republic's most venerable imams, treated the weekly televised gathering at Tehran University stadium to a stern anti-American diatribe.
With white beard, flowing robe, turban and walking stick, Jannati is every inch the mullah – a Shia fundamentalist cleric of the old school. He preaches under the slogan "Any diversion from the true path will be the path of accursed Satan".
Today, Jannati is treading the path of self-sufficiency and what the supreme leader, Ayatollah Ali Khamenei, calls the resistance economy –Iran's supposed answer to the crushing American-led oil, banking and trade embargoes.
Iran must make what it cannot buy abroad and learn the skills it needs, he says. "Workers and teachers are the backbone of our society. We should be self-sufficient in all areas of the economy and in all fields."
Inflation in Iran has come down, but is still running at around 20%. Photograph: Atta Kenare/AFP/Getty Images
At his bidding, up to 10,000 prostrate male worshippers, including Revolutionary Guards, uniformed soldiers, airmen and sailors, and rows and rows of black and white-turbaned clerics rise as one with clenched fists and chant: "Death to America! Death to Israel!" Their massed voices roll like thunder across the open-sided, scaffold-roofed stadium.
Officially speaking, the government of President Hassan Rouhani, which took office last August, maintains that the punitive UN, US and EU sanctions imposed in the row over Iran's nuclear programme, which have steadily intensified since 2006, have had little or no impact.
In particular, it says, sanctions have played no role in forcing Tehran back to the nuclear negotiating table. The talks, which resumed last week without making progress, are expected to continue in June in Vienna.
But on the streets of Tehran, and in the capital's shops, garages, markets, businesses and private homes, the story is very different. Isolated and ostracised to an unusual degree, Iran is a nation under appalling stress. The strains are telling. The ties that bind are fraying. The leadership is feeling the heat.