Pentagon denies claim of Iranian drone 'mothership' off East Coast

Government officials announced that the closures affecting both public and private institutions will continue through Thursday in several major cities including Tehran, Isfahan and Ahvaz.

The capital Tehran has seen its air quality deteriorate to the point where clean air days accounted for just 15% of the annual total over the past eight years. Nationwide, air pollution contributes to 25,000 deaths each year, according to official statistics.

The economic toll is also heavy, with air pollution costing the country an estimated $12 billion annually.

The crisis is not only disrupting education but also straining the healthcare system. In central Markazi Province, hospital official Behrooz Irannejad reported that 900 patients with respiratory and cardiac issues sought medical care in one city, Arak, between October 22 and December 10 due to pollution.

Davood Mirshekar, an air quality official in southwestern Khuzestan, announced similar closures across the province. In the central city of Isfahan, elementary and middle schools have switched to remote learning due to stagnant air conditions which have left pollution stubbornly in place.

Ahvaz in the south remains the most polluted city in Iran, with 55% of its days classified as polluted.

Sedigheh Torabi, deputy director of the Department of Environment, attributed this to a mix of natural pollutants such as dust storms and human-generated emissions from power plants, industries and waste burning.

A 2017 Clean Air Law designed to tackle air pollution has been largely ignored. Of the 174 obligations assigned to 23 government agencies, less than half have been implemented over seven years.

Critics argue that the government has prioritized social regulations like the controversial hijab law over addressing environmental concerns.

Outdated vehicles and automaker responsibility

Transportation accounts for 60% of Iran’s air pollution, according to Deputy Health Minister Alireza Raeisi.

Eleven million of 12 million motorcycles and 2.5 million of 14 million vehicles are outdated, exacerbating the crisis. The automakers Iran Khodro and Saipa have come under fire for not tightening emissions standards.

A law requiring the replacement of aging vehicles was abandoned during Hassan Rouhani's presidency, aggravating the issue.

While outdated vehicles play a significant role, air pollution persists even during periods of reduced traffic, such as during the COVID-19 pandemic. This suggests that industrial emissions and low-quality fuels also significantly contribute to the crisis.

Sanctions and government efforts to keep fuel prices low have led to the use of an oil product called naphtha, a cheap but highly polluting alternative.

In May 2024 the government invested $3 billion to produce naphtha.

Reformist newspapers have highlighted the issue, but official data on the extent of its use remains unavailable.

Iran’s use of mazut, a low-quality heavy fuel oil, for energy production has also become a significant environmental and public health concern. Faced with a shortage of natural gas during colder months, Iran has increasingly relied on mazut in its power plants and industries, exacerbating already severe air pollution levels in major cities.

Iran’s air pollution crisis underscores the need for comprehensive reforms. From enforcing environmental laws to modernizing transportation and regulating industrial emissions, the country has yet to address its environmental challenges to protect public health and reduce economic losses.

Totaling $10 billion, the funds are Iraqi payments for electricity provided by neighboring Iran.

The move was made two days after the November presidential election, the state department confirmed last week, riling Biden's critics.

“The House voted to eliminate these waiver authorities - twice. But the Biden administration is still waiving the sanctions, putting more money in the Iranian regime’s pockets to fund its terrorist proxies and nuclear weapons program," Republican Michael McCaul said on X.

"The US should not be subsidizing Iran’s malign activities.”

On November 8, Secretary of State Antony Blinken announced: "it is in the national security interest of the United States" to waive mandatory economic sanctions that bar Iraq from transferring upward of $10 billion to Iran in electricity import payments.”

Republicans have objected to the move, warning that the money will not be used for the benefit of Iran’s cash-strapped population - one third of which now live below the poverty line - but will instead be funneled toward Tehran’s militant allies in the region.

The administration previously signed off on renewing the waiver one month after Hamas's October 7 attack on Israel, the Washington Free Beacon reported on Tuesday. Iran has armed, funded and trained the Palestinian militant group.

Last year, the US unfroze $6 billion in Iranian funds to bank accounts in Qatar in exchange for the release of five US-Iranian prisoners held by Tehran. That move was lambasted by Republican critics as indulging Iranian hostage diplomacy.

Amid bipartisan pressure following the Oct. 7 attack by Iran-backed Hamas against Israel, the Biden administration told lawmakers it would effectively refreeze those funds for the foreseeable future.

The most recent waiver lifted sanctions for 120 days and will overlap with the incoming administration of Donald Trump, whose punishing sanctions gutted Iranian finances.

Given the pledge by incoming Trump administration officials to renew that “maximum pressure” stance on Iran, the waiver could be scrapped.

During the previous Trump administration the waiver was in force but access to the funds was stricter, according to the Beacon, which regularly lampoons Democrats and supports Republicans.

“The Biden State Department tweaked the waiver last year to allow Tehran to convert the funds from Iraqi dinars to euros, then hold those euros in bank accounts based in Oman,” the Beacon reported.

“Access to a widely traded currency like the euro enables Iran to more easily spend the cash in international markets. Under the first Trump administration, Iran had to keep the cash in an escrow account in Baghdad, making it more difficult to access.”

State Department deputy spokesman Vedant Patel told reporters in a briefing on Nov. 7 that the administration still considered Iran an adversary but wanted to facilitate the provision of Iranian electricity to Iraq.

"We remain committed to reducing Iran's malign influence in the region,” he said. The United States last year designated Iran the world’s top state sponsor of terrorism.

"Our viewpoint is that a stable, sovereign, and secure Iraq is critical to these efforts.”

The funds are mandated for use on humanitarian needs such as medicines, according to the Biden State Department instructions.

However, its Republican detractors maintain that the money is fungible, allowing Tehran to divert its dwindling cash reserves to regional allies such as Hamas, Hezbollah, and the Houthi rebels in Yemen.

"Joe Biden and his team are taking credit for bringing down Assad just a few weeks after renewing a sanctions waiver to give Iran access to billions of dollars," Richard Goldberg, a former White House National Security Council member who worked on the Iran portfolio, told the Beacon.

"Give me a break. This policy of appeasement needs to end on January 20, and locking down these accounts so Iran can't get access should be priority one.”

Western countries stepped up sanctions on Iran this year over its human rights record and support of Russia in its war on Ukraine.

Iran has managed to circumvent many of the sanctions and boost revenue from oil exports during Biden's term, leading critics including some Democrats to urge a more muscular approach.

“The blows inflicted on the resistance movement should not be denied, nor should false remedies be applied to conceal the pain,” IRGC-affiliated Javan newspaper said Tuesday.

Specifically, Iran's largest militia, Hezbollah in Lebanon, considered a terrorist organization by countries including the US and UK, has seen huge blows since September as Israel ramped up airstrikes and targeted killings. It has seen massive losses to its military infrastructure and leadership.

Iran's Gaza-based ally, Hamas, also considered a terrorist organization by countries such as the US and UK, has also suffered huge blows since the retaliatory offensive launched by Israel in the wake of the group's invasion of Israel on October 7 last year.

The IRGC-linked paper focused on the implications of Assad’s fall for Iran’s proxy groups, known as the 'axis of resistance'. Syria, under the rule of Bashar Al-Assad, has long been a key component for these groups.

The paper acknowledged that Syria’s strategic location and logistical role made it a vital connection point for Iran and its allies, including Hezbollah. "Syria was both a cornerstone of the resistance axis and a vital link connecting Iran to Hezbollah in Lebanon," Javan wrote, warning that its loss disrupts coordination and weakens the operational capacity of the resistance axis, Syria a key smuggling route to Lebanon for Tehran.

The paper also addressed Israel's targeted assassinations, which saw top levels of the group killed including long-time leader Hassan Nasrallah, described as a significant blow, both symbolically and strategically.

Despite the admissions, Javan argued that the ‘resistance axis’ is built to endure such challenges. "The resistance is not overly reliant on individuals or states," the article said, adding that its structure prevents the loss of leaders or allies from crippling the movement entirely.

The article concluded with drawing on the Houthis in Yemen as an example of the “continued path of resistance” and comparing the ‘axis of resistance’ to a river that "always finds its way to the sea despite obstacles."

Kayhan ties Assad’s fall to Western compromise and internal missteps

The hardline daily Kayhan newspaper, closely aligned with Supreme Leader Ali Khamenei’s office, framed Assad’s fall as a cautionary tale on the dangers of compromising with Western adversaries, while justifying Iran’s expenditures in support of his government in Syria.

Kayhan argued that Iran’s involvement in Syria was essential, writing: “Our costs in Syria were never wasted. The threat of ISIS near Iran’s borders justified these expenses, which have brought security to the nation. Without this investment, Iran’s current situation could have been unpredictable.”

The paper attributed Assad’s fall to internal factors, including a lack of motivation within the Syrian army, intelligence compromises among officials, and economic mismanagement. “The Syrian government lacked the moral readiness to continue resisting, and Iran could not shoulder these costs alone,” Kayhan said.

In an editorial criticizing President Masoud Pezeshkian’s administration, Kayhan linked Syria’s crisis to leniency towards Western powers. “Compromising with the enemy brings nothing but losses,” it said. “The pro-Western approach weakens internal power structures and paves the way for the enemy. Syria’s recent collapse demonstrates the failure of such strategies.”

The paper also accused the media of discrediting Assad among Syrians and argued that infiltration projects and economic neglect contributed to his fall. Kayhan concluded by warning against compromise with the West and asserting: “Assad's failure and the fall of his government was turning away from the resistance front and leaning towards the West and Arab countries. Once again, it has been proven that the cost of compromise outweighs the cost of resistance.”

As Khamenei prepares his address on Wednesday, experts argue his speech is likely to reinforce this narrative, underscoring Iran's defiance in the face of adversity and its determination to sustain the ‘resistance axis’ despite the challenges.

The remarks were Khamenei's first since Assad fled the country for Russia on Sunday in the face of a shock rebel advance, but offered little indication of what Iran's next strategic move would be after suffering the epochal setback.

“There should be no doubt that what has happened in Syria is the result of a joint American and Zionist plan. Yes, a neighboring country of Syria has played a clear role in this regard, continues to do so even now—this is evident to everyone. But the main conspirator, the primary planner, and the central command rooms are in the US and the Zionist entity," he said in his first remarks on the Syrian uprising since Assad's departure on Sunday.

Khamenei’s reference to a neighboring country was widely interpreted to mean Turkey. Over the years, Turkey has been a key backer of Syrian armed opposition groups. The power vacuum created by Assad’s fall has boosted Ankara’s regional position, weakening the influence of Iran and Russia on Syrian affairs.

“The aggressors I mentioned each have their own motives. Their goals are different—some seek to occupy land in northern or southern Syria, while America aims to solidify its foothold in the region," Khamenei added.

"These are their objectives, and time will show that, God willing, none of them will achieve these goals. The occupied regions of Syria will be liberated by the brave Syrian youth; have no doubt, this will happen,” he said.

Assad’s ouster has not only deprived Tehran of a strategic ally but also disrupted Iran’s ability to transport weapons to its biggest military ally, Hezbollah in Lebanon, through its land corridor. This route was a cornerstone of what is described as Iran’s Shia crescent, linking Tehran to the Mediterranean via Baghdad and Damascus.

In spite of the massive setbacks Israel has inflicted in recent months on both Hezbollah and Hamas in Gaza, also supported by Tehran, Khamenei said the Resistance - a term for Iran-backed militias across the region - would grow stronger.

"The more pressure you exert, the stronger the resistance becomes. The more crimes you commit, the more determined it becomes. The more you fight against it, the more it expands," Khamenei said. "Iran is strong and powerful—and will become even stronger."

The new government in Damascus, comprised of Sunni insurgents, signals a significant shift in the balance of power in the region. Syria's significance for Iran and the Islamic Republic's support for Hezbollah in Lebanon were so substantial that, over the years, Israel has also targeted several IRGC commanders in Syria as part of its efforts to counter Tehran and its regional influence.

In April, Israel struck the Iranian consulate compound in Damascus, killing Quds Force commander Mohammad Reza Zahedi, and other senior IRGC figures, triggering Iran's first ever direct attack on Israel in the same month.

Even after Assad's fall, Israel has continued to deliver significant blows to the remnants of both Assad's military forces and arsenal, and IRGC facilities, with around 300 airstrikes carried out since Sunday as Israel destroys any potential weapons falling into the hands of Syria's new extremist groups.

Iranian Islamic Revolutionary Guard Corps (IRGC) forces and militias such as the Fatemiyoun and Zainabiyoun brigades were deeply involved in defending Assad during Syria’s civil war.

These militias, composed mainly of Afghan and Pakistani recruits residing in Iran, were promised financial incentives and residency permits in exchange for their service. Despite Iran’s consistent denials of direct military intervention, these groups played a critical role on the ground.

The dollar was trading at more than 730,000 rials in Tehran’s free exchange market on Tuesday, up from 700,000 just a week ago.

The downfall of Assad, whose ruling family has been the one of the Islamic Republic's earliest and strongest allies since 1979, severs Iran's land corridor to Lebanon which supplied weapons to Hezbollah for its periodic confrontations with Israel.

The slide adds to Iran’s vulnerabilities and could indicate its relative weakness in the region.

In addition to recent regional setbacks, the Islamic Republic faces the imminent challenge of Donald Trump assuming office in the United States, who will likely ramp up economic pressure on Tehran.

The euro was trading at almost 770,000 rials, as most other hard currencies rose in tandem with the US dollar in Tehran. The rial has fallen 18-fold since 2018, when the United States withdrew from the JCPOA nuclear deal and imposed sanctions on Tehran.

Before the establishment of the Islamic government in 1979, the US dollar was worth just 70 rials.

The rial’s steady decline signals further price hikes in Iran as imports grow more expensive, with inflation already nearing 50 percent. Meanwhile, oil exports constrained by sanctions have fail to generate sufficient foreign currency to stabilize the rial.

The only recourse for Tehran is to convince the US to lift its economic sanctions, but so far, Iran has not made sufficient concessions on its ambitious nuclear program or its regional policies to sway Washington.