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Miran receives Fed approval, but Japan's stocks are booming. The rest of Asia is uneven.
Asian markets recovered unevenly on Friday. Japan's largest stock index hit a new record high, boosted by strong corporate earnings. Tariffs on goods imported from the country The declines in Hong Kong, South Korea, and Australia were a sign of fragile investor confidence following the Wall Street retreat, as traders assessed the impact that the appointments at the U.S. Federal Reserve would have on the policy direction. The Nikkei index rose by 2%, while the Topix index gained more than 1%. Both reached new records and traded above 3,000 dollars for the first. SoftBank Group shares rose as high as 11% following the announcement by the technology investor that it had returned to profitability in the first-quarter. Sony Group added 6% to its 4.1% gain on Thursday, fueled by earnings. MSCI's broadest Asia-Pacific share index outside Japan fell 0.6%, with Hong Kong leading the declines. This comes after U.S. shares ended their previous session with mild loss after reaching a near-one-week-high. U.S. president Donald Trump announced on Thursday that he will nominate Council of Economic Advisers chairman Stephen Miran to temporarily fill a vacancy at the Federal Reserve while the White House searches for a permanent addition for the central bank's board of directors and continues to search for a Fed chair. Ray Attrill of National Australia Bank, Sydney's head of FX Strategy said: "It locks-in a vote in favor of rate cuts for all meetings from now until the end of the month." He added that "markets are already traveling with a very high expectation of a rate reduction." There is a question over whether he will be able to ratify the agreement in time for the meeting in September. Bloomberg News reported that Fed Governor Christopher Waller was the leading candidate to succeed Chair Jerome Powell whose term expires on May 15, 2026. Gold futures reached a new record after the Financial Times reported that the United States imposed tariffs for imports of 1 kg gold bars. These represent the majority of Switzerland's exports of bullion to the U.S. Gold spot was down 0.1%, and bullion traded at $3393.36 an ounce. The S&P 500 eminis and Nasdaq Futures were both up 0.3%. Both are on course to extend their gains into a second day. Tony Sycamore is a market analyst with IG in Sydney. He said that the rally in stocks came "against... an emerging titanic dovish reversal at the Federal Reserve." After a weak auction of 30-year bond, this is the latest in a series of disappointing sales. The rise in Japanese stocks comes after a mixed bag earnings reports from the country's largest exporters. Some companies, such as Toyota Motor, slashed profit forecasts because of U.S. Tariffs, but Sony and Honda claimed the impact was less than expected. Tokyo's chief trade negotiator announced that the U.S. government promised to adjust some of the overlapping tariffs it has on Japanese products in order to avoid paying duties twice on certain goods. Hong Kong's Hang Seng Index dropped 0.7%. Technology shares led the declines, while China's blue chip CSI 300 index fluctuated between gains and losses and ended up with a 0.1% gain. Australian stocks fell by 0.1%, while Korea's Kospi dropped 0.7%. The dollar increased by 0.1% to 147.24 yen. Data on Friday showed Japanese household spending data rose by a slower-than-anticipated 1.3%. Data on consumer spending is closely monitored as the Bank of Japan discusses whether or not to resume interest rate hikes. The euro currency fell 0.1%, to $1.1652, after gaining 2.13% over the past month. Meanwhile, the dollar index (which tracks the greenback versus a basket other currencies from major trading partners) was up by 0.2%, at 98.188. Brent crude futures remained unchanged at $66.45 a barrel while U.S. Crude futures remained little changed at 63.8.
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ASIA GOLD - Price rise dampens activity in major Asian hubs
This week, physical gold demand in major Asian hubs declined as rising prices dampened interest in buying while higher rates encouraged others to sell their holdings. Gold isn't a popular purchase at the current prices. Some investors are selling the gold bars and coins they bought when prices were cheaper, said Ashok Jain of Mumbai's Chenaji Narsinghji. On Friday, gold prices in India were around 102.100 rupees (1,165.45 dollars) per 10 grams after reaching a record-high of 102.191 rupees. Indian dealers have this week offered a discount The discount last week was up to $7. A Mumbai-based dealer of bullion with a private banking firm said that jewellers are reluctant to purchase gold because the demand for their largest market, which is the United States, will likely fall due to tariffs implemented by President Donald Trump. Bullion was traded in the world's largest consumer, China, at a premium of $2 per ounce to the global benchmark spot rate . Dealers quoted gold last week between a discount and premium of up to $12 per ounce. Last week we saw some interest in buying gold, but prices are on the rise this week so there is less interest. Peter Fung is the head of trading at Wing Fung Precious Metals. He said that people are buying gold when prices dip. In Hong Kong, gold In Singapore, the price was $1.60 higher than par. Gold traded at par prices with a premium of $2.50. We see more retail and wholesale sales as gold prices rise. We are seeing more people borrowing gold now that prices have risen, said Brian Lan of GoldSilver Central in Singapore. In Japan, bullion A Tokyo-based trader said that the product was sold at $0.25 more than spot prices. $1 = 87.6060 Indian Rupees (Reporting from Brijesh Patel in Bengaluru, and Rajendra Jhadhav in Mumbai. Additional reporting by Anushree Mukerjee. Editing by Subhranshu S Ahu.
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Trump's tariffs on Russia’s oil buyers brings economic and political risks
Donald Trump, the U.S. president, has used tariffs to achieve a variety of foreign policy goals. Trump's favorite trade tool has been put to a new, if risky, use. He gave Russia a deadline of Friday to reach a peace agreement in Ukraine, or else its oil customers would face secondary tariffs. Wednesday, the administration took an important step in punishing Moscow's clients by imposing a 25% additional tariff on goods imported from India due to its imports Russian oil. This is the first financial sanction aimed at Russia during Trump's second tenure. A White House official confirmed on Wednesday that secondary measures Trump had threatened against countries purchasing petroleum would be expected on Friday. The latest of Trump's threats to impose tariffs on non-trade matters include attempting to stop the fentanyl delivery from Mexico and Canada and penalizing Brazil for what he called a "witchhunt" against the former president Jair Bolsonaro. Secondary tariffs may hurt the Russian economy by cutting off a major source of funding to President Vladimir Putin's war efforts, but they are also costly for Trump. The oil price will rise and cause him political difficulties before the midterm elections in the U.S. next year. Tariffs could also hinder the administration's attempts to reach trade agreements with China and India. Putin, for his part has indicated that Russia is ready to weather any economic hardships imposed by the U.S. According to Eugene Rumer a former U.S. Intelligence Analyst for Russia, who is now the Director of Carnegie Endowment for International Peace’s Russia and Eurasia Program, there are "nearly zero chances" that Putin will agree to an agreement to ceasefire because Trump has threatened tariffs and sanctions against Russia. Theoretically, if you stopped Indian and Chinese oil purchases that would be a heavy blow to Russian economy and war effort. "But that's not going to happen," said he, adding that China has signaled that they will continue buying Russia's crude oil. The White House didn't immediately respond to an inquiry for comment. The Russian Embassy in Washington has not responded immediately. NEW COSTS FOR RUSSIA Russia would be hurt by secondary tariffs, as it is the second largest oil exporter in the world. Since late 2022, the West has imposed a price limit on Russia's oil exports to reduce its ability to finance wars. This cap has increased costs for Russia, as it forced the country to redirect oil exports to India and China. These countries were able to buy huge quantities of oil at reduced prices. The cap kept oil flowing on global markets. The White House has said that Putin and Trump may meet as early as next week. This follows a Wednesday meeting between U.S. ambassador Steve Witkoff with the Russian leader. Some analysts doubt that Moscow will stop the war. Brett Bruen is the former adviser on foreign policy for Barack Obama, now director of Global Situation Room. He warned that Putin had found ways to evade economic sanctions and sanctions. Even if sanctions and tariffs reduce Russia's revenue, Putin does not feel much pressure at home. Bruen stated that secondary tariffs could cause economic pain. "But it is still unclear whether this will actually change Putin's behavior." Tariffs could create problems for Trump's administration, as it seeks to pursue sweeping trade agreements with India and China. Kimberly Donovan is a former U.S. Treasury Official who said that the tariffs may hamper U.S. trade and bilateral relations with India and China. Donovan is now the director of the Economic Statecraft Initiative at the Atlantic Council’s GeoEconomics Center. China has shown its leverage by cutting off the U.S.'s mineral exports. New tariffs could upset the delicate balance that was negotiated in May to restart these vital flows for a number of U.S. Industries. India has leverage on generic pharmaceuticals and precursor chemicals exported to the U.S. Both countries claim that the purchase of oil is a matter for their sovereigns and that they adhere to the old rules. This includes the price cap placed on Russian crude. RUSSIAN ROULETTE Secondary tariffs will increase the price of imported products into the United States from Russia's clients, which could encourage them to purchase their oil somewhere else. By squeezing the shipments, Trump could face political problems due to a spike in fuel prices and inflation worldwide. Fears of disruptions by Russia in the month following Moscow's invasion of February 2022 pushed crude oil prices near $130 per barrel. This was not far off their previous high of $147. Analysts said that if India stopped buying 1.7 millions barrels of Russian crude per day, which is about 2% global supply, the world price would rise from $66, as it currently does. Analysts at JP Morgan said that it would be "impossible", this month, to sanction Russian crude oil without causing a price spike. Brent oil could reach $80 or more if there is a perceived disruption in Russian oil shipments. They said that despite Trump's claims that U.S. producers will step in, the country would not be able to ramp up quickly. Russia could respond by closing the CPC Pipeline, which would create a global shortage. Western oil companies Exxon, Chevron, Shell, ENI, and TotalEnergies can ship up to one million barrels a day through CPC. The CPC has a total capacity of approximately 1.7 million bpd. Cullen Hendrix is a senior fellow at Peterson Institute for International Economics. He said that energy shocks were never welcomed, particularly in the context of a weakening job market and a softening house price. The key question is if Trump can make any economic pain seem necessary in order to get Russia to negotiate. Hendrix said, "Of his tariff gambits this one could resonate the best with voters in principle, at least," It's also a move with massive downside risk." Timothy Gardner, Don Durfee, Diane Craft, Don Durfee, Matt Spetalnick and Patricia Zengerle reported from Washington, and Seher Dareen and Patricia Zengerle were in London.
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India's IOC and BPCL have said they will buy 22 million barrels non-Russian oil for delivery in September-October
Trade sources reported that Indian Oil Corp. and Bharat Petrol Corp., two of the largest state refineries in India, had bought at least 22,000,000 barrels non-Russian oil for delivery between September and October. This was after U.S. pressed India to stop buying from Russia. After the Russian invasion of Ukraine, Indian state refiners began to purchase cheaper Russian crude. After pressure from U.S. president Donald Trump, they halted their Russian purchases at the end of July. Sources said that in its latest tender IOC purchased 2 million barrels on a delivered-basis of U.S. Mars Crude, 2,000,000 barrels Brazilian grades, and 1,000,000 barrels Libyan crude. BP sold high-sulfur Mars crude cargo for $1.5-$2 a bar above Dubai prices in September, they said. Sources said that Petraco, a European trader, sold 1 million barrels each of Libyan Sarir Mesla and Brazilian Sepia crudes and Totsa (the trading arm of TotalEnergies) sold 2 million barrels each of Brazilian Sepia Sururu crudes. Prices for these cargoes are not yet available. These deals come after IOC purchased 8 million barrels from Middle East, United States of America, Canada, and Nigeria through tenders last week. A source familiar with these purchases revealed that India's second largest state refiner BPCL purchased 9 million barrels through negotiations in September for arrival. He said that the oil included 1,000,000 barrels from Angola Girassol and 1,000,000 barrels from U.S. Mars. 3,000,000 barrels came from Abu Dhabi Murban, while 2,000,000 barrels were Nigerian. Companies usually do not comment about crude deals, citing confidentiality. Sources said that the arbitrage economics for Asian refiners have improved, allowing them to support these purchases. Reporting by Nidhi verma from New Delhi, and Florence Tan from Singapore; editing by Jacqueline Wong & Edwina Gibbs
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Iron ore to gain weekly as China's steel imports reach record high
Iron ore futures dipped on Friday, but are still on track to gain a week-long gain. This is due to China's record steel exports, strong mill margins and low inventories. As of 0318 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.57% lower. It was 787 yuan (109.58 dollars) per metric ton. The contract has risen by 0.57% this week. The benchmark iron ore for September on the Singapore Exchange is down 0.49% at $101.75 per ton but has gained 1.9% this week. After reporting lower half-year profits, major miners have paid out the lowest dividends they've ever paid in order to keep cash on hand for their major projects. BHP plans to invest up to $7.4billion in its Jansen Potash Mine in Canada. Rio Tinto will spend over $13billion in the next 3 years in order to develop new Iron Ore mines in Western Australia, as reserves are declining. China's exports of steel continued to rise in July. They increased by 1.7% on a month-to-month basis, and the total for the entire year is at its highest level since 1990. The move comes despite countries introducing more trade barriers because they are worried that cheap Chinese Steel is undercutting domestic manufacturers. Analysts from ANZ said that iron ore imports in July increased by 2% on an annual basis, which is well above the average monthly imports of the year. This was due to healthy mill margins, and low inventories, motivating mills to restock. S&P Global, a global ratings agency, has maintained China's credit rating at A+. It noted that the country's fiscal stimulus measures will support its economic growth even though it faces challenges in the property sector and from tariff pressures. Coking coal and coke, which are used to make steel, also fell on the DCE. They were down by 0.82% each and 1% respectively. The benchmarks for steel on the Shanghai Futures Exchange have mostly fallen. The price of rebar fell by 0.8%, the price of hot-rolled coil dropped by 0.87% and that for wire rod was down 0.64%. Stainless steel rose 0.08%. ($1 = 7,1820 Chinese yuan). (Reporting and editing by Rashmi Liew)
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Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal
Offshore drilling contractor Shelf Drilling has secured short-term contract for the Shelf Drilling Enterprise and a contract extension for the Trident 16 jack-up drilling rigs.The Shelf Drilling Enterprise has been hired for one firm well operation in Vietnam, with an estimated duration of three months.Shelf Drilling Enterprise, built in 2007 and upgraded in 2022, features Baker Marine Pacific Class 375 design. The jack-up drilling rig is capable of operating in maximum water depth of 375 feet.The rig recently completed its previous campaign in Thailand in late July, and operations in Vietnam are expected to begin in early October 2025 shortly after mobilization.The Trident 16 has been awarded a three-month extension in direct continuation of its current contract with Petrobel Egypt for operations in the Gulf of Suez offshore Egypt, with the rig now firm until November 2025.Trident 16 is a 1982-built jack-up drilling unit featuring Modec 300 C-38 design, that was last upgraded in 20212. The drilling rig is capable of operating at maximum water depth of 300 feet.The estimated combined value of these two awards is approximately $14 million. “These awards contribute to our backlog and near-term revenue visibility and reflect the continued demand for our versatile fleet across core markets. We remain committed to delivering safe, reliable and best-in-class operations for our customers,” said Greg O’Brien, CEO of Shelf Drilling.Earlier in August, Saudi Arabian oil and gas drilling contractor ADES International Holding agreed to buy Shelf Drilling for $379.8 million.The transaction is expected to close in the fourth quarter of 2025.The combined group will boast a fleet of 83 offshore jack-ups, including 46 premium units across the world’s most attractive basins, with a total combined backlog of $9.45 billion as of 30 June 2025.Saudi Rig Owner ADES to Buy Shelf Drilling in $380M Deal
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SBM Offshore Ups 2025 Revenue Forecast After Strong Half-Year Results
Dutch oil and gas services company SBM Offshore raised its full-year core profit and revenue forecasts on Thursday, following a strong financial performance in the first half of 2025.The company, which provides floating production services to the offshore energy industry, sees directional earnings before interest, taxes, depreciation and amortization (EBITDA) of around $1.6 billion this year, $50 million higher than it had originally guided.It also sees directional revenue of more than $5 billion, after saying it would exceed $4.9 billion in February. Analysts on average had projected revenue of $4.96 billion for the year, according to a company-compiled consensus.Strong execution and the commissioning of two major floating production, storage and offloading vessels (FPSOs) in Brazil contributed to the improved first-half results and the outlook hike, CEO Øivind Tangen said in a press release.The Amsterdam-listed company reported half-year directional EBITDA of $682 million, up 10% from the same period a year ago, beating analysts' consensus of $673 million."The deepwater market outlook remains robust, driven by the demand for cost-efficient and low-emission oil production," Tangen said.SBM Offshore operates in the deepwater segment, where production costs per barrel are typically lower than in other offshore regions. This positioning helps shield the company from oil price volatility, making its business model more resilient amid market fluctuations.The group's directional revenue rose 26% to $2.31 billion in the six-month period, beating analysts' consensus of $2.29 billion. It was supported by the turnkey segment, which builds and sells FPSOs, where revenues doubled in the first half.SBM Offshore uses directional reporting, which recognizes revenue from payments received during construction phases before lease contracts are activated.(Reuters - Reporting by Anna Peverieri in Gdansk, editing by Milla Nissi-Prussak)
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Gold futures record highs after US tariffs reported on gold bars
Gold futures reached a new record on Friday, following a report that the United States has imposed tariffs for imports of 1 kg gold bars. Spot gold also continued to rise on the back of tariff turmoil and hopes for interest rate cuts in the United States. Gold spot was down 0.3% to $3,386.30 an ounce as of 0305 GMT after reaching its highest level since July 23 earlier in session. Bullion has risen by 0.7% this week. U.S. Gold Futures for December Delivery were up by 0.9% to $3,484.10 after reaching a record high of $3.534.10. After the Financial Times reported Thursday that the United States had placed tariffs on the import of 1-kg bars of gold, citing an official letter from Customs and Border Protection, the price spread between New York Futures and Spot Prices widened to more than $100. The letter, dated 31 July, said that 1-kg and 100 ounce gold bars would be classified under a special code, which could lead to higher tariffs. This move could affect Switzerland, the largest gold refining center in the world. Brian Lan, Singapore's managing director of GoldSilver Central said that the tariffs on gold bar "will cause a disruption or more accurately some issues with regards to settlement by large banks". This was reflected this morning in the liquidity prices, which jumped everywhere. The U.S. President Donald Trump increased tariffs on imports of dozens countries on Thursday. This left major trading partners like Switzerland, Brazil, and India scrambling to find a better deal. Gold is used to store value in times of political or financial uncertainty. The FedWatch Tool of CME Group indicates that there is a 91% chance of a reduction in interest rates by 25 basis points next month. Other metals include spot silver, which fell 0.6% per ounce to $38.09, platinum, up 0.7% at $1,343.61 while palladium, down 0.8%, is $1,142.
Iran's ruling class caught between Trump's repression and an economy in trouble
Iran's clerical leadership may find that engaging the "Great Satan" in order to negotiate a nuclear agreement and ease crippling economic sanctions is the lesser evil.
Four Iranian officials have said that despite its deep mistrust for the United States and in particular President Donald Trump, Tehran is growing increasingly worried about public anger at economic hardships escalating into massive protests.
People said that despite the defiant and unyielding rhetoric of Iran's clerical leadership in public, there was a pragmatic desire within Tehran's power corridors to strike a bargain with Washington.
Tehran's fears were exacerbated when Trump revived his "maximum-pressure" campaign from his first term, which aimed to reduce Iran's oil sales to zero by imposing more sanctions. This would bring Iran's fragile economy to its knees.
Masoud Pezeshkian, the president of the Islamic Republic of Iran, has repeatedly emphasized the severity of its economic situation, saying that it was more difficult than the Iran-Iraq War in the 1980s. He also pointed this month at the latest round U.S. sanction targeting oil tankers transporting Iranian oil.
According to one of the Iranian officials, leaders are concerned that cutting off diplomatic avenues could further fuel discontent in Iran against Ayatollah Ali Khamenei. This is because he is the final decision maker for the Islamic Republic.
Alex Vatanka is the director of the Middle East Institute's Iran Program in Washington. He said that there was no doubt whatsoever that the man, who has been the supreme leader since 1989, and his foreign policies preferences are the most responsible for the current state of affairs.
Iran's poor economy prompted Khamenei, who was then president of Iran, to back the nuclear deal struck in 2015 with major powers. This led to the lifting of Western sanctions as well as an improvement in economic circumstances. Then-President Trump’s renewed attack on Iran after he withdrew from the nuclear agreement in 2018 squeezed life standards again.
The situation is getting worse every day. I cannot afford to pay rent, bills or clothes for my kids," Alireza Yousefi said, 42, an Isfahan teacher. "Now, even more sanctions make it impossible to survive."
The Iranian Foreign Ministry did not reply to a comment request.
"ON EQUAL TERMS"
Trump, while increasing the pressure on Iran through new sanctions and military threats, also opened the doors to negotiations when he sent a letter to Khamenei suggesting nuclear talks.
Khamenei rejected the offer Wednesday, repeatedly saying that Washington had made excessive demands and that Tehran wouldn't be pushed into negotiations.
In an interview published Thursday, Abbas Araqchi, Iran's top diplomatic official said: "If we negotiate while the other party is exerting maximum pressure on us, we will be in a weaker position and achieve nothing."
He said that "the other side must be convinced of the ineffectiveness of the pressure policy - then we can sit down at the table and negotiate on equal terms."
A senior Iranian official stated that there was no other option but to reach a deal, and it was possible. However, the road ahead was bumpy, given Iran's mistrust of Trump following his abandonment of the 2015 agreement.
Iran's economic collapse has been largely prevented by China, its main oil buyer and one of the few countries still trading with Tehran in spite of sanctions.
According to estimates by the U.S. Energy Information Administration, oil exports dropped after Trump abandoned the nuclear deal, but recovered in recent years. They are expected to generate more than $50 billion of revenue between 2022 and 2023, as Iran finds ways to avoid sanctions.
But uncertainty still looms about the future of exports, as Trump's policy of maximum pressure aims to choke off Iran's crude oil sales by imposing multiple rounds of sanctions against tankers and other entities involved in trade.
PUBLIC ANGER SIMMERS
Iran's rulers also face a series of crises: energy and water shortages; a collapsing dollar; military setbacks for regional allies, and growing fear of an Israeli attack on its nuclear facilities. All of these are exacerbated by Trump's hard stance.
Lack of infrastructure investment, excessive consumption driven by subsidies and declining natural gas production, as well as inefficient irrigation are all contributing to the energy and water sector's problems. This leads to blackouts, and water shortages.
According to foreign exchange websites and officials, the Iranian rial's value has dropped by more than 90 percent against the dollar ever since sanctions were reinstated in 2018.
State media reported that Iranians, worried about Trump's harsh approach, have bought dollars, other hard currency, gold, or cryptocurrency, indicating further weakness in the rial.
State media reported that the price of rice had risen 200% in the past year. Media reports indicate that housing and utility costs in Tehran and other major cities have risen sharply in recent months. They climbed roughly 60%, mainly due to the steep decline of the rial and the rising cost of raw materials.
Some Iranian experts claim that the official inflation rate is over 50%, but it hovers at around 40%. The Statistical Center of Iran has reported a dramatic rise in food costs. In January, the prices of a third of the most essential commodities increased by 40%. They were now more than twice as high as they had been in the previous month.
According to the Tasnim News Agency, Ebrahim Sadeghifar, head of Iran's Institute of Labor and Social Welfare (IILSW), 22%-27% of Iranians are now living below the poverty level.
Last week, Iran's Jomhuri-ye Eslami daily reported that the poverty rate was around 50%.
I can't pay the rent on my carpet shop, or my employees' wages. No one can afford to buy carpets. "If this situation continues, I'll have to layoff my staff," Morteza (39), said over the phone, from Tehran's Grand Bazaar. He gave only his first name.
How can they hope to resolve the economic crisis without talking to Trump? Talk to him, and you will reach an agreement. "You cannot afford to be proud on an empty stomach."
NUCLEAR RED LINE
According to Iranian state media, at least 216 protests took place in Iran during February. These included retirees and workers, as well as students, health professionals, merchants, and healthcare professionals. According to reports, the protests were mainly focused on economic hardships such as low wages and unpaid salaries for months.
Officials fear that a decline in living standards, despite the small scale of most protests, could explode.
One of the four officials who was close to the government said, "The country is a powder-keg and any further economic strains could ignite it."
The officials stated that Iran's ruling class is aware of the possibility of a return of unrest, similar to protests from 2022-2023 over the death of Mahsa Amin in custody or nationwide protests of 2019 over the rise in fuel prices.
Senior Iranian officials said that there were several high-level discussions to discuss the potential of new mass demonstrations and possible measures to prevent them.
Iranian officials, however, said that despite concerns about possible unrest, Tehran would only go so far with any discussions with Trump. They stressed that "excessive requests" such as the dismantling of Iran's nuclear program or conventional missile capability were not on the table.
The senior official stated that "yes, there is concern about increased economic pressure and there are concerns regarding the nation's anger growing, but we cannot give up our right to produce nuclear energy just because Trump wants it."
Ali Vaez is the Iran project director for International Crisis Group. He said that Iran's leaders believed that negotiations with Trump would be a sign of weakness and could lead to more pressure rather than less.
He said: "Ayatollah Khmenei appears to believe that surrendering is the only thing more dangerous than sanctions." (Reporting, Writing and Editing by Parisa Hafezi)
(source: Reuters)