On May 19, three experts discussed the intersection of crises for the Islamic Republic, which was one of the original epicenters of the COVID-19 pandemic. The virus coincided with economic and political challenges that have created a perfect storm for Tehran. Speakers included:
On May 12, Iran temporarily reopened all mosques for three days during the holy month of Ramadan. Iranians celebrated the nights of Laylat al-Qadr, which commemorates the Quran being revealed to the Prophet Mohammed. Prayer services were held in mosques, public parks and hospitals. Worshippers were required to wear masks and gloves and bring their own prayer mats and copies of the Quran.
On May 16, Iran reopened schools in 130 cities with low infection rates after nearly three months of closure due to COVID-19. Students were required to wear masks and gloves during class. But students were not required to return to school.
On May 19, the U.S. Treasury sanctioned a China-based company for providing services to Mahan Air, an Iranian airline blacklisted in 2011 for supporting the elite Qods Force. Mahan Air has transported fighters, weapons, equipment and funds to support the Syrian regime and Iranian proxies across the Middle East, including Hezbollah. Shanghai Saint Logistics Limited was the seventh company sanctioned for acting as a general sales agent for Mahan Air. “We will not hesitate to target those entities that continue to maintain commercial relationships with Mahan Air,” said Secretary Steven T.
On May 14, the United States alerted the maritime industry to the deceptive shipping practices used by Iran, North Korea and Syria to evade sanctions. The joint advisory, issued by the State Department, the Treasury Department and the U.S. Coast Guard, also provided “best practices” for shippers and insurers to mitigate exposure to sanctions risk.
The U.N. ban on conventional arms sales to Iran expired on October 18, 2020. It opened the way for Iran to import weapons – including battle tanks, armored combat vehicles, large caliber artillery systems, combat aircraft, attack helicopters, warships, missiles or missile systems and spare parts – for the first time since 2010. The Trump Administration had called for the international embargo to be extended.
The international community has long been concerned about Iran’s military arsenal. Since the 1979 revolution, the United States and the United Nations have imposed several embargoes on Tehran’s purchase of conventional weapons. The last U.N. embargo on Iran’s purchase of conventional weapons was lifted on October 18, 2020. Ending the embargo had been a key incentive for Iran’s cooperation on unconventional weapons in the 2015 nuclear deal.
On May 4, Iran’s parliament approved plans to replace the rial, the national currency, by shaving four zeros off the end and renaming the primary bill the toman. Each toman will be worth 10,000 rials. The currency changes include creation of the parseh as a smaller currency. One toman will be worth 100 parsehs.
The first cases of COVID-19 in five Arab sheikhdoms — Bahrain, Oman, Kuwait, Qatar and Saudi Arabia—were all traced to travelers from or transiting through Iran, an early epicenter of the pandemic. The United Arab Emirates traced its first case to China. By April 30, the Gulf states reported more than 54,000 total cases, with 298 deaths. Saudi Arabia had the most confirmed cases and deaths.
Already hard hit by U.S. sanctions, Iran faced a stunning decline in the price of oil – a major source of revenue – as an unexpected byproduct of the coronavirus pandemic. By April 1, the price of Iran’s heavy crude fell to below $14 per barrel — down from $44 or more per barrel in February. The trend was worldwide. On April 22, Brent crude, a global benchmark, fell to a two-decade low of $15.98 a barrel — down from nearly $70 per barrel in early January.
