The Latest from Iran (19 August): The Regime Looks for a Boost

0800 GMT Supreme Leader Watch. Appearing at the Eid al-Fitr prayer today, Ayatollah Khamenei declaring the ascendancy of Islamic countries, “Issues of the Muslim world are unique. Developments of the Muslim World are strange and shocking and chart the course of Muslim nations in the future.”

The Supreme Leader described the US and Israel as enemies of the Islamic nations and cautioned against any “analytic blunders", as plots against Muslims are getting more and more complicated.

0525 GMT: Sanctions Watch. The US Government has stepped up pressure on its Iraqi counterpart over sanctions on Iran through an article in The New York Times:

Some current and former American and Iraqi officials, along with banking and oil experts, say that Iraqi government officials are turning a blind eye to the large financial flows, smuggling and other trade with Iran. In some cases, they say, government officials, including some close to [Iraqi Prime Minister] Maliki, are directly profiting from the activities.

“Maliki’s government is right in the middle of this,” said one former senior American intelligence official who now does business in Iraq.

In announcing that he was “cutting off” Elaf Islamic Bank [last month], Mr. Obama said it had “facilitated transactions worth millions of dollars on behalf of Iranian banks that are subject to sanctions for their links to Iran’s illicit proliferation activities.”

But the treatment the bank has received in Baghdad since it was named by Mr. Obama suggests that the Iraqi government is not only allowing companies and individuals to circumvent the sanctions but also not enforcing penalties for noncompliance.

Iraqi banking experts said last week that the bank was still allowed to participate in the Iraq Central Bank’s daily auction at which commercial banks can sell Iraqi dinars and buy United States dollars. These auctions are a crucial pathway for Iranian access to the international financial system. Western officials say that Iran seeks to bolster its reserves of dollars to stabilize its exchange rates and pay for imports.

0510 GMT: The regime continues a wave of ceremonies today, with today's marking of the end of Ramadan with Eid al-Fitr following Friday's denunciation of Israel on Quds (Palestine) Day. The Supreme Leader has led morning prayers at Tehran University.

Meanwhile, Hojatoleslam Seddiqi maintained the rhetoric on Syria on Saturday, pronouncing, "The problems and difficulties created for Syria are the retaliation of the world of blasphemy from the innocent Syrian people for the country's persistent standing in the line of resistance."