The Latest from Iran (25 June): Doing the Currency Slide

See also Iran Letter: Activist Narges Mohammadi "Prison is Causing My Slow Death"
Iran Caption Competition: Mr and Mrs Ahmadinejad...and a Ballot Box
The Latest from Iran (24 June): "We Can Destroy Anyone"

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2055 GMT: Foreign Affairs (Egyptian Front). Back to today's running story of the Revolutionary Guards' PR offensive to prove Iran's alliance with Egyptian President-elect Mohamed Morsi (see 1025 GMT).

Rivals within the establishment, namely State news agency IRNA, may have denounced the interview of Morsi by Fars, linked to the Guards, as a fake; however, that has not stopped the website. Tonight, its English-language edition features no less than five stories based on the alleged discussion with Morsi.

The Persian-language site of Fars also has several articles, as well as a claimed audio and video of Egyptian media noting the supposed interview.

2030 GMT: Tough Talk of the Day. The Commander of the Revolutionary Guards, Mohammad Ali Jafari, explains that the launch-ready Guards missiles “are sending shivers down the enemy’s spine".

2010 GMT: Economy All-Is-Well Alert. Assadollah Asgarouladi, one of Iran's wealthiest businessmen, offers reassurance:

It is true that inflation is hurting our people. Still there is no shortage. True, we have high prices but we have lower poverty in Iran. No one sleeps hungry in Iran. The number of homeless in Tehran is way lower than the number of homeless people in a city like London....Sanctions have never stopped the process of wealth accumulation in Iran.

1625 GMT: Economy Watch. No one is exempt from Iran's economic challenges --- the cost of clothing for clerics has reportedly risen 15%.

1605 GMT: Oil Watch. European Union governments have formally approved an embargo on imports of Iranian oil to start on 1 July, dismissing calls by Greece for possible exemptions to ease its economic problems.

Athens is Iran's largest European customer and had been offered preferential credit terms by Tehran.

"There is no change in terms of how we're going forward on July 1," EU foreign policy chief Catherine Ashton said. "The sanctions that have been agreed will be implemented."

Government and industry sources confirm that India is allowing state refiners to import Iranian oil, with Tehran arranging shipping and insurance, from 1 July

Shipments were in question because of the withdrawal of European Union cover for tankers.

It is unclear, however, how much oil will be moved. India had been projected to buy 310,000 barrels per day of oil from Iran under contracts during the fiscal year from April to March, butt it has just secured a waiver from US sanctions by cutting imports more than 20%.

Moreover, Iran is using most of its tankers for storing crude as exports decline ahead of the new EU and US-led sanctions.

1555 GMT: Revolutionary Guards Watch. Back from an academic break to find BBC Persian reporting on delay in paying the salaries and benefits of employees of the Islamic Revolutionary Guards Corps.

1205 GMT: An Egyptian Shocker. A twist in the regime's apparent embrace of the new Egyptian President and the Muslim Brotherhood --- looks like some within the establishment are not thrilled about how it is being pursued....

State news agency IRNA has declared that the interview of President-elect Morsi by Fars, in which Morsi supposedly said he welcomed better relations with Tehran as part of a new "strategic balance" in the region (see 0745 GMT), is fake. IRNA cited a denial by a Morsi spokesman --- also circulated by BBC Arabic --- that Fars had spoken with the Muslim Brotherhood official before or after the vote.

A bit of rivalry between press outlets or something more political? Fars is linked with the Islamic Revolutionary Guards Corps, while IRNA tends to back President Ahmadinejad.

1135 GMT: Sedition Watch. The hard-line Raja News has accused the Green Movement of working with groups such as the "terrorist" Mujahedin-e Khalq and other "counter-revolutionaries".

Raja also attacks former President Hashemi Rafsanjani, accusing him of trying to return to the political arena even as he ignores his past and present "big lies" and deceptions.

1025 GMT: Picking A Fight? Looks like the regime is going to use the Egyptian political developments, to claim both an alliance with the Muslim Brotherhood and new President Mohamed Morsi and a stand against the ruling Supreme Council of Armed Forces, supposedly backed by Washington.

The Joint Chiefs of Staff issued a statement:

Following the revolution of the Islamic Republic of Iran 33 years ago, once again, the world is witnessing the overthrow of another US-backed regime in Egypt, the statement read, expressing certainty that a new wave of movements that seek Islamic governments has initiated.

Deputy Chief of Staff Masoud Jazayeri pronounced, "The US and the Zionist regime took countless measures to sway Egypt’s revolution as it is the biggest and the most important Arab country. The US and the Israeli regime cannot tolerate any progress in the Egyptian movement toward freedom and independence."

And Hassan Firouzabadi, the head of Iran's armed forces, lays down the gauntlet to the SCAF, asserting that it "lacks legitimacy according to the yardsticks of democracy".

0745 GMT: Foreign Affairs (Egyptian Front). Iranian media have been quick to portray the confirmation of Mohamed Morsi as a victory for the Islamic Republic. Fars takes the lead with a claimed interview with Morsi in which the President-elect said he will seek better relations with Tehran as part of a new "strategic balance" in the Middle East and Persian Gulf.

0645 GMT: This morning's Iranian State media has the familiar assertions of strength --- "The country’s Army and the Islamic Revolutionary Guards Corps (IRGC) plan to stage a number of joint military drills in the current Iranian calendar year"; " Iranian warships will soon expand their presence in international waters" --- and assurances that all is well despite sanctions, "Oil production to grow fourfold".

What is not mentioned is the state of the Iranian currency, a marker of the country's economic situation. There are signs that the collapse of late 2011, in which the Rial lost 80% of its value against the US dollar, could be replicated. Having been bolstered by Government and Central Bank intervention to recover to 15600:1, a slide of more than 5% last week has brought it down to 19130:1 this morning.

That is still a better position than the low point of more than 21000:1 in early 2012, but more trouble could be on the way. With the stalemate in last week's nuclear talks, Tehran has failed to stave off the European Union's cut-off of imports of Iranian oil, and tighter US restrictions on Iran's Central Bank and financial transactions.