The Latest from Iran (24 March): Regime Confidence, Regime Fear?

2210 GMT: Neda Propaganda Overkill. You might think it would be enough for Iranian state media that Caspian Makan, the reported fiancé of Neda Agha Soltan, had met Israeli President Shimon Peres (see separate entry). But, no, Press TV has to go much, much farther:

One of the suspects believed to be involved in the killing of a young woman during Tehran's post-election violence last year has visited Israel.

Caspian Makan, who claims to be Neda Agha Soltan's fiancé, has met with Israeli President Shimon Peres, during his stay in Israel.

Makan was also interviewed as a guest on an Israeli TV channel.

Agha Soltan was shot dead far away from the riot scene on June 20. Western media accused Iranian security forces of killing her, but police rejected the allegations and said Neda was shot with a small caliber pistol which is not used by the Iranian police.

They have described the killing as a premeditated act of murder "organized by US and Israeli intelligence services."

NEW Iran: The Controversy over Neda’s “Fiance”
NEW Iran: An Internet Strategy to Support the Greens? (Memarian)
The Latest from Iran (23 March): Inside and Outside the Country

2140 GMT: Political Prisoner Watch. Gooya reports that more than 900 Iranians have signed a petition calling for the release of imprisoned student Omid Montazeri.


Montazeri was arrested in January after he approached the Ministry of Intelligence following the detention of his mother and guests at the Montazeri house.

2015 GMT: Rafsanjani Watch. On a slow news day, Parleman News has not one but two features around Hashemi Rafsanjani.

The top story on Rafsanjani's latest declaration is not that earth-shaking: the former President issues another fence-sitting declaration that "the majority of protesters are loyal to the regime", which allows him to back some public pressure on the Government while maintaining his own position of backing the Supreme Leader. No real change there.

More intriguing is the appearance of Faezeh Hashemi, Rafsanjani's daughter. The content of the interview is not very subversive. Hashemi talks about her education and passion 4 women's sports as well as making the far-from-controversial assertion that her father wants the common good of society. It's the timing that matters: the interview comes a few days after the regime tried to shut Hashemi up by arresting her son, Hassan Lahouti.


1440 GMT: Sanctions Rebuff. Turkey, a non-permanent member of the United Nations Security Council, has added to the obstacles for tougher international sanctions on Iran. A Foreign Ministry spokesman said, "There is still an opportunity ahead of us and we believe that this opportunity should be used effectively. Not less, but more diplomacy (is needed)."

(I am beginning to suspect that these moves might be political theatre, accepted if not directed by Washington. The Obama Administration's approach seems to be a public posture of the international route, primarily as a response to Congressional pressure, while carrying out the meaningful initiatives in bilateral talks with other countries and even with individual companies.)

1420 GMT: Today's Obama-Bashing. Alaeddin Boroujerdi, head of Parliament's National Security Committee, takes on the daily duty of slapping down the US Government's approach to Iran:

[President Obama's Nowruz] comments were nothing but a deception. They (Americans) have sent several messages during the last year calling for talks with Iran, but at the same time passed more than 60 anti-Iranian bills in their Congress. As long as there is no sense of balance between their comments and actions, offering talks could be only a trick....Obama has lost his prestige among the world's public opinion, therefore his new year message has no value.

1400 GMT: On the Economic Front. This could be significant: The Russian energy firm LUKoil has announced its withdrawal from an oil project in Iran "due to the impossibility of carrying out further work at the field because of the economic sanctions imposed by the U.S. government".

LUKoil has a 25 percent stake in the Anaran project; a Norwegian company, Hydro, has the other 75 percent. We'll see if this withdrawal sticks: LUKoil also announced in October 2007 that it was pulling out of the project, which encompasses Azar, Changuleh-West, Dehloran and Musian oilfields with reserves at the project sites estimated at 2 billion barrels, but it resumed work two months later.

1200 GMT: We've posted an editorial from prominent reformist journalist Masih Alinejad criticising Caspian Makan, the "fiancé" of Neda Agha Soltan.

0925 GMT: Political Prisoner Watch. Iran Human Rights Voice reports that writer and women's rights activist Laleh Hasanpour was detained by Intelligence agents on 16 March and taken to an undisclosed location.

0745 GMT: Iran and Afghanistan. Readers have noted the latest wave of allegations, spurred by The Sunday Times of London that the Iranian Government is providing support, including funding and training, to the Taliban in Afghanistan.

I have been cautious in reporting the allegations, in part because The Sunday Times has been a handy channel in the past for those spreading "information" to discredit Tehran. Far more importantly, key US Government officials and military leaders are also playing down the accusation. General David Petraeus, the head of US Central Command, has said any Iranian Government role in assistance is limited. Secretary of Defense Robert Gates echoes, "There is some [training], but it, to this point, I think, has been considered to be pretty low-level."

Lieutenant Colonel Edward Sholtis said on Monday, "We've known for some time that Iran has been a source for both materiel and trained fighters for Taliban elements in Afghanistan"; however, he added that US officials do not know if the training is "simply something that is happening beyond the government's control".

(hat-tip to an EA reader for raising the story and providing sources)

0730 GMT: With the Green Movement in a quiet phase (defeated, intimidated, or just lying low?), attention is on the continuing battle between elements of the regime and Hashemi Rafsanjani.

Iranian authorities released Rafsanjani's grandson Hasan Lahouti yesterday, albeit on $70,000 bail, and they had to let go the former President's ally Hassan Marashi after a short detention. The anti-Rafsanjani campaign is far from over, however.

The latest assault comes from Gholam-Hossein Elham, a member of the Guardian Council. In a lengthy "unpublished interview" which somehow is published on Fars, Elham details post-election subversion. Specifically, he targets Rafsanjani for Friday Prayers addresses which did not support the Government and thus opened the way for illegal protest and manoeuvres to undermine the Islamic Republic.

So a question: is the sustained assault on Rafsanjani a sign of regime confidence that, having vanquished the opposition outside the system, it can move aggressively against challengers within? Or is it an indication that this is a Government which will never feel secure in its supposed legitimacy?

Iran: An Internet Strategy to Support the Greens? (Memarian)

Omid Memarian writes for The Huffington Post:

We have learned in school that "information is power". In some countries, information and spreading the truth among the people means saving lives and alleviating the suffering of those who are in pain. That's why many of activists, bloggers, and journalists, who are aggressively trying to stop the tragic human rights violations in Iran by gathering and spreading information about current events, believe that providing Internet access for the Iranian people, and other people in the world in similar conditions, is not a political, but a moral act. There is a direct, and positive connection between free access to Internet-information, and the quality of people's lives.

I've talked to many of my friends-- bloggers, journalists and those who have difficulties to even send a simple e-mail or chat on Yahoo Messenger over the past eight months. Almost all of them believe that any kind of support to give Iranians more access to the Internet is supporting human rights and democracy in the country, supporting security in the Persian Gulf region, and most importantly saving the lives of many people who are threatened by restrictions on information that allow the Iranian government to operate behind closed doors as it violates their basic rights.



Almost all of them believe that it's a form of moral support. It should not be seen or used as a means to pursue hidden political purposes, but as promoting human rights as defined by international standards. Providing Internet access for Iranians should not be seen as a part of a possible regime change plan in Iran, because it is up to the Iranian people to decide what to do with their freedom.

Some might say Iranians' obstacle to have access to the Internet is Tehran's domestic issue. But it's not. It concerns a country stuck between other countries that either suffer from radicalism or that export terrorists to the rest of the world, a country between two major sources of conflict in the region, Iraq and Afghanistan. That's why such support is directly related to the security of the region and the world in a long run.

We should not forget that if it were not for the Internet, we would have the same picture of the Iranian government that we had 9 months ago. And if it were not for the limited access to Internet that exists, God knows how many more people would have been killed or tortured inside prisons in Iran.

The United States and some European countries have shown interests in supporting Iranians to fight with Internet censorship and provide more access to information via the Internet. But they should not forget the importance of applying standards in a balanced--not political--way. Not only Iran, but also numerous other countries, violate the right to access the Internet, and the United States and European countries should support compliance across the board. Otherwise, the charge of holding double standards will stick.

But what should be done? Here is a list of actions, policy shifts, and issues that are essential to give Iranians more access to information and help them fight with the Tehran's strong censorship:

Modifying the U.S. sanctions on Iran

Certain sanctions or interpretations of the sanctions have seriously damaged the ability of Iranians to access the Internet and need to be modified.

1) Software download is blocked to IPs from Iran: Many of major companies such as Google and Microsoft block downloads to people in Iran in fear of sanctions. For example, Google Talk or Google Chrome, one of the safest web browsers, is not available for download to Iranian users. All mass-market software that is useful for publishing, communications, and education should be exempted from the sanctions.

2) Online advertising is not allowed for Persian websites: Many companies such as Google or Facebook do not include Persian (Farsi) as a supported language for online advertising websites or allow targeting users with such a language. This is problematic when activists want to use such advertising tools to reach out to Iranians in Iran. It also prevents many of the human rights activist websites from making small amounts of money on advertising that can help them to pay for their server costs.

3) Iranians are not allowed to pay for domain purchase and related issues. In result, Iranian government-sponsored hackers stole many of the domains belonging to Iranian human rights activists because such activists have difficulties registering such domains under their names and have to do this through proxies. But, there is no way to verify their location or identity when their web domains are stolen. Just in the past few months, a few hundred domains registered on Godaddy have been stolen by the Iranian government and there is no way to get them back because the original owners were not allowed to buy those domains legally on Godaddy in the first place.

4) Funding is needed to allow hiring a limited number of web developers in Iran. Many of the small activist groups need to hire developers to build their websites. The number of web developers with a command of the Persian language outside of Iran is very few. These groups need to be allowed to hire web developers in Iran. The amount of payments could be capped to $10000 per year to make sure such a solution is not abused for other purposes.

5) Online access and advertising should be exempted from the current sanction regime via a categorical order. Without a categorical order, such a problem cannot be solved. The reason is that the Iranian market is very small and many of the US-based Internet companies prefer to stay away from it instead of spending tens of thousands dollars on legal fees to apply for an export license.

6) European companies who still sell surveillance or censorship technology to the Iranian government need to be exposed and face sanctions. A number of large European countries have provided Iranian government with technologies to monitor SMS and communications between Iranians. Without the pressure from the European Parliament and U.S. government, taking actions against these companies would be impossible.

Internet access and Security:

1) Giving VPN accounts to the activists and journalists in Iran: VPN provides the best security and functionality compared to any other solution. VPN accounts would need to be bought from different VPN providers and distributed to the activists through different online websites. Each major human rights or pro-democracy website would be given between 100-500 VPN accounts. They would distribute them to trusted activists in Iran they know. [A Virtual Private Network gives extremely secure connections between private networks linked through the Internet. It allows remote computers to act as though they were on the same secure, local network]

2) Purchasing Skype credits for activists in Iran: Using Skype credits, activists in Iran can make secure international calls. Skype's encryption is one of the best among all the voice services.

3) Anti-jamming for satellite broadcasts: The Iranian government sends jamming signals to commercial satellites. Many of the commercial carriers are reluctant to broadcast independent or reform-oriented Iranian TV content because the Iranian government can blind their satellite. Commercial satellites can be jammed because the upload and download signal is the same and the upload signal is a fixed frequency. However, military satellites are built to resist such jamming. For Iranian broadcasts, the US government could dedicate a specific satellite, which is hardened against jamming using technologies similar to military satellites.

4) Provide Iranians with free satellite Internet: The technology for Internet access is not cheap but considering the importance of Internet access in Iran, it is worth investing on this issue. There are technologies for one-way delivery of content or two-way interactive Internet access. Providing such services free of charge to the Iranian people can go a long way in breaking the monopoly of the Iranian government on the dissemination of Information in Iran.

5) Email security: Unfortunately, no secure free email provider exists. Yahoo is particularly insecure, while Gmail provides more security but is still vulnerable to key loggers. For activists, there is a need for an email service to have security as high as PayPal accounts or bank accounts. For example, the login process should be resistant against keyloggers. This can be achieved by showing images or other techniques.

6) PC security: One idea is to provide the activists with free security software and anti-virus software.

Collaborating with the human rights community

Finally, private companies and initiatives can provide resources to support the development of technology designed to combat Internet censorship including those technologies that surpass filters. There are a number of professionals and companies that are focused on developing software that provide such technologies for Iranian users that could be supported.

The Latest from Iran (23 March): Inside and Outside the Country

2030 GMT: For What It's Worth. Mojtaba Samareh Hashemi, a senior aide to President Ahmadinejad, has launched today's attack on the Obama Administration, claiming that its policies were sometimes worse than "the dark era of [former president] George W. Bush":

Today we witness that the US is increasing the number of its forces in Afghanistan and Iraq instead of withdrawing its troops from these countries and is behind the massacre of people and the expansion of poverty in these countries more than before.

Hashemi said that Tehran expects Obama to "rectify the dark Bush-era policies toward the Iranian nuclear program and give up confronting the Iranian nation".

Iran Analysis: Politics and Subsidy Reform (Harris)
Iran: View from Tehran “Changes within the System are Impossible”
The Latest from Iran (22 March): The Economic Clash

1730 GMT: Rafsanjani Watch. Iranian authorities have released Hassan Lahouti, the grandson of Hashemi Rafsanjani, after less than two days in detention. Tehran prosecutor Abbas Jafari Doulatabadi said, "After some investigations and after he expressed regret over his actions, he was released from prison on bail." Lahouti's freedom is conditional: his bail was set at $70,000, and Doulatabadi said his completed file would be sent to a court for consideration of further action.


Lahouti, a student in Britain, was arrested early Monday morning as he flew into Iran for the Nowruz holidays. Rah-e-Sabz claims, from an "informed source", that Lahouti was detained for criticising the Supreme Leader in a phone call monitored by Iranian agencies.

Rah-e-Sabz also claims that Hashemi Rafsanjani has spoken with Sadegh Larijani about Lahouti’s arrest.
Larijani allegedly told Rafsanjani that the intelligence services have been tapping Lahouti’s telephone conversation.

1620 GMT: Hey, Let's Have an All-Out War! One problem with a slow news day is that it lets the inmates out of the asylum. Senator Lindsey Graham of South Carolina decided his time addressing the American Israel Public Affairs Committee would be best spent advocating a full-on military assault: "All options must be on the table....You know exactly what I'm talking about." While war is a "terrible thing", "sometimes it is better to go to war than to allow the Holocaust to develop a second time....Time is not on our side."

What kind of war? A really big one:

If military force is ever employed, it should be done in a decisive fashion. The Iran government's ability to wage conventional war against its neighbors and our troops in the region should not exist. They should not have one plane that can fly or one ship that can float.

The call to arms is at the 2:20 mark:

[youtube]http://www.youtube.com/watch?v=Jtv629Wys1Y&feature=player_embedded[/youtube]

1300 GMT: Will Sanctions Work? Suzanne Maloney of the Saban Center at The Brookings Institution offers a detailed paper, "The Economics of Influencing Iran". The take-away paragraph:

Sanctions must be narrowly construed, in order to offer any real prospect for obtaining Iranian compliance and for attracting sufficient international support. However, Washington’s interests in Iran transcend the nuclear issue, particularly at a moment when Iranian internal dynamics are more fluid than in recent history. For this reason, the Obama administration should make a concerted effort to couple the new efforts at using economic pressure to thwart Iran’s nuclear ambitions with an intensification of rhetoric and measures that call attention to Tehran’s human rights abuses.

0905 GMT: Political Prisoner Watch. Filmmakers have protested in front of Evin Prison on behalf of the detained director Jafar Panahi.

0850 GMT: Green Shoots in Zahedan? Rah-e-Sabz reports that a Green Movement has been formed in Zahedan in southeastern Iran. The statement of "Jonbesh-e sabz-e Zahedan" begins with a commitment to civil rights and equal rights, regardless of gender or belief and goes farther in its political declaration of objectives than figures such as Mir Hossein Mousavi statements. It denies adherence to any ideology.

0800 GMT: Subsidy Battle. The Supreme Leader may have his work cut out for him in the attempt to restore peace (see 0755 GMT). Khabar Online presses Parliament's case with a statement from MP Mohammad Reza Khabbaz: "Instead of [Ahmadinejad's proposed] referendum, the Government can test subsidy cuts in several provinces."

0755 GMT: Parliament v. Ahmadinejad Watch. With all the attention to the Supreme Leader's US-bashing in his Nowruz speech, this important passage has largely been ignored. Khamenei called on the Parliament and the President to reconcile their differences over the subsidy reform plan, declaring that any division into "winners and losers" is the plot of the foreigners.

0745 GMT: A quieter political start today. We've taken the time to update the report on Sunday's protest over Japan's imminent deportation of activist Jamal Saberi.

We're also reading an article by Roger Cohen of The New York Times on "two Iranians, two exiles, one truth of a people defrauded and denied". He uses the cases of Mohammad Reza Heydari, the Iranian diplomat in Norway who resigned his post in protest against his Government, and Negar Azizmoradi, a refugee in Turkey, to put his point: "Her own government stifled Negar’s voice. But the world must listen. It’s her country after all — and the ballot-counting Heydari’s."

Middle East Inside Line: Britain Expelling Israeli Diplomat, Cost of Settlements, Israel on Rising Insecurity

London Expels Israeli Diplomat over Dubai Assassination: Britain is expelling an Israeli diplomat over the use of forged British passports in the assassination of Hamas chief Mahmoud al-Mabhouh in Dubai, according to a British Foreign Office official.

The British Foreign Office said Foreign Secretary David Miliband is making a statement on the matter at 1530 GMT.

The Cost of the Israeli Settlements: According to a study by the Macro Center for Political Economics, Israeli settlements in the West Bank encompass 12 million square meters of roads, homes and factories that cost more than $17 billion to build.


Macro director general Dr. Robi Nathanson said: "The logic behind the economic calculation is to assess the cost of construction and infrastructure in the settlement enterprise. This isn't market value, but rather the cost of building infrastructure."

The Israel Air Force bombed a Gaza City weapons storage facility overnight Monday. On Tuesday morning, the Israel Defense Forces spokesperson said, "The IDF will not tolerate any attempt to harm the citizens of the State of Israel and will continue to operate firmly against anyone who uses terror against it."

On Tuesday, Israel Defense Forces Chief of Staff Gabi Ashkenazi briefed the Knesset Foreign Affairs and Defense Committee on the security situation along Israel's border. He talked about three topics: the Iranian nuclear issue, increased firing of Qassam rockets from the Gaza Strip, and Hezbollah's situation in Lebanon.

On the Iranian nuclear issue, he said: "The Iranians are pressing ahead with their nuclear program. I hope that the trilateral sanctions will prove effective." He also added that it would be a mistake to rely on the opposition within Iran to neutralize the program's progress, as "the [Iranian] regime is strong and effective".

As for the northern border, he said that it is quiet "but that could change" since "Hezbollah is deploying more forces north of the Litani River."

Ashkenazi stated that Hamas was not behind the attacks from Gaza but added that the IDF will retaliate against Hamas targets since they see Hamas as "the sovereign group" in the territory.

Meanwhile, the IDF is investigating two West Bank incidents in which Israeli soldiers shot dead four Palestinians in less than 24 hours.

The Latest from Iran (22 March): The Economic Clash

2100 GMT: Connection of Day --- Baghi's Detention and the "Killing" of Khomeini's Son. Fatemeh Kamali, the wife of the detained journalist Emadeddin Baghi, in an interview with Iranian Students News Agency, said: "The main charge held against him is that he believed that the death of Seyed Ahmad Khomeini was suspicious." (Ahmad Khomeini, the son of Imam Khomeini, died in 1995,allegedly from a heart attack. There have always been rumours of foul play,however; Khomeini had criticised the regime a month before his demise.)

Kamali produced a letter from Seyed Hassan Khomeini, Ahmad’s son, to Baghi which mentions that a Mr. Niazi, the head of judiciary for Iran's armed force, has confirmed the existence of some evidence of the murder of Ahmad Khomeini.

2045 GMT: Yes, This Parliament v. President Thing is Real. Mehr News Agency's English-language site puts out a summary, but the news is clear: Speaker of Parliament Ali Larijani (see 1450 GMT) and his Parliamentary allies are not going to give way on President Ahmadinejad's demand for a reconsideration of their decision on his subsidy reform and spending plans.

NEW Iran Analysis: Politics and Subsidy Reform (Harris)

NEW Iran: View from Tehran “Changes within the System are Impossible”

Latest Iran Election Video: Nowruz and the Green Movement

Iran Snap Analysis: A Rights-First Approach in Washington?

Iran Video and Summary: Karroubi’s New Year Message

The Latest from Iran (21 March): Happy New Year, Mr Ahmadinejad

2030 GMT: Back from a long academic break to post the full video and transcript of Secretary of State Hillary Clinton's speech to the American Israel Public Affairs Committee. Included are remarks on Iran's threat to the Middle East and its nuclear programme.

1450 GMT: Larijani Stands Firm. Speaker of Parliament Ali Larijani has pointedly rejected President Ahmadinejad's call for a national referendum on the proposed subsidies reductions and spending. Larijani said that Ahmadinejad had been authorised to spend $20 billion extra from the savings from the reductions, and he would not get any more. The Parliament's decision was not up for revision.

1440 GMT: Rafsanjani Watch. A reliable EA source confirms that Hasan Lahouti, the grandson of Hashemi Rafsanjani and son of Faezeh Hashemi, was arrested by Iranian authorities at Imam Khomeini airport this morning. While the story broke in Fars, which has been known to post disinformation, it is also being carried in Tabnak and Alef.

Lahouti, who is studying at a British university, was returning to Iran for the Nowruz holidays when he was detained. There has been no comment from Rafsanjani or Faezeh Hashemi.

A few weeks ago, Lahouti was interviewed by BBC Persian, and he criticised the Government's harassment of his mother and grandfather. There is also speculation that Lahouti may have been arrested to put pressure on Mehdi Hashemi, Rafsanjani's son, to return to Iran. Mehdi Hashemi, who was named by Government prosecutors in the Tehran trials as culpable for election manipulation and misuse of funds, remains in Britain --- he has not been to Iran since last summer.

1430 GMT: Economy Watch. We've just posted a new analysis by Kevan Harris of "Politics and Subsidy Reform".

1250 GMT: Communications Battles. Fulfilling an initiative that we noted last week, European Union foreign ministers have declared, "The European Union expresses its grave concern over measures taken by the Iranian authorities to prevent its citizens from freely communicating and receiving information through TV, radio satellite broadcasting and the Internet. The EU is determined to pursue these issues and to act with a view to put an end to this unacceptable situation."

What that action might be was left undefined.

1140 GMT: Holding the Line. Secretary of State Hillary Clinton's office is briefing the press that she will tell the American Israel Public Affairs Committee that the US "is taking time to produce these sanctions [against Iran]... but we will not compromise our commitment to preventing Iran from acquiring these weapons".

The surprise here is not Clinton's insistence on "sanctions that will bite" as "the United States is determined to prevent Iran from acquiring nuclear weapons". She has to say this, given the tightrope the US is walking in trying to get the Israeli Government to make a commitment to talks over Palestine.

The surprise is that she is not offering the prospects of tougher sanctions in the near-future: is that because of difficulties in getting international acceptance or because the Obama Administration does not think sanctions --- at least the sweeping version proposed in the US Congress --- are an optimal way of dealing with Tehran?

1120 GMT: Rafsanjani Watch. Fars News is claiming that Iranian authorities have detained the grandson of Hashemi Rafsanjani. Hasan Lahouti was allegedly arrested in Tehran airport upon arrival from London late Sunday.

0750 GMT: Political Prisoner Watch. Student Mehdi Kalari has been released from Evin Prison, reportedly after a protest by 2000 candidates at Sharif University last week against the detention of three classmates.

0720 GMT: In Case You're Still Wondering. Continued coverage in media of Ayatollah Khamenei's blasting of the US in his Nowruz speech in Mashhad. Press TV gives the state line: "Sometimes the US government appears as a wolf or a fox and looks violent and arrogant, and sometimes they look different."

For a different perspective, see the video we have just posted of chanting during Khamenei's speech.

0700 GMT: Political Prisoner Watch. It is reported that Mohammad Davari, the imprisoned editor-in-chief of Mehdi Karroubi’s website Saham News, has gone on hunger strike.

Davari was arrested at Karroubi’s office on 8 September. Recently he was moved to solitary confinement, allegedly after complaining about harsh prison conditions during a visit by a Deputy Minister of Intelligence. He went on hunger strike a week ago.

0500 GMT: We begin the morning with a special from inside Iran. The friend of a top EA source has written from the Iranian capital to report on the latest political situation: resistance is alive, the Supreme Leader's "honour is broken", and sanctions are necessary.

Elsewhere, we are watching the ongoing Parliament-President battle over the budget, subsidy reform, and revenues. After three leading members of Parliament --- Tavakkoli, Naderan and Mesbahi Moghaddam --- declared Ahmadinejad's suggestion of a referendum is a defiance of the Majlis' authority and the Constitution. Mohammad-Nabi Habibi, the head of the Motalefeh Party, insisted that Ahmadinejad should obey the Majlis and there was no need for a referendum, while another observer noted that if the President wanted a public vote on the budget, there should also be one on his Government.

Economist Fereydoun Khavand, who is based in Paris, assesses that there is an unprecedented turmoil in economic policies, with the fight over the subsidies and possible 50-60% inflation.