Dozens remain hospitalized after port blast, says official

A former senior Iranian diplomat said Thursday that the United States is now in urgent need of negotiations with Iran, and that Tehran should seize the opportunity to rebuild regional ties and economic influence, state media reported.

“The US is in serious need of dialogue with Iran,” Mohammad Hossein Adeli, a former central bank chief and ambassador, said at a conference on the Persian Gulf. “If we use this opportunity wisely, Iran can reopen its path into the region.”

Adeli urged Iran to forge a comprehensive partnership with Saudi Arabia and expand direct foreign investment with Persian Gulf states, suggesting that Riyadh could invest in Iran’s renewable energy sector. He said Tehran should prioritize cross-border infrastructure in electricity and gas.

A group of active and retired teachers gathered outside the Ministry of Education headquarters in Tehran on Thursday to mark International Workers’ Day.

The protest, organized by the Coordinating Council of Iranian Teachers' Trade Associations, was met with a heavy security response.

According to a statement from the council, “Security forces violently dispersed demonstrators,” preventing any photography and arresting an unspecified number of participants.

“The security atmosphere was so heavy that even the right to take pictures was denied,” the group said. “Teachers were beaten and forced to leave.”

Similar gatherings were reported in other cities under tight security. Authorities did not immediately comment on the reported arrests or use of force.

Meanwhile, Iranian government officials sought to reassure workers facing mounting economic hardship in a bid to calm tensions.

Government spokeswoman Fatemeh Mohajerani acknowledged the ongoing economic challenges, citing recent inflation estimates and the impact on workers’ purchasing power as two thirds of the country now live below the poverty line.

She also announced the government’s intention to maintain healthcare coverage for 75 days after insurance cancellation — a policy seen as crucial for many precarious workers.

Mohajerani also addressed wage concerns, saying that although a 45% increase in minimum wages was approved by the Supreme Labor Council for the current Iranian year that started on March 21, “inflation has eroded much of that gain.”

The minimum salary of Iranian workers is about 100 million rials, about $125 at today’s rate. The inflation rate in Iran is about 45%, according to official data, with prices of food and housing increasing at higher rates.

To mitigate the impact on lower-income households, she said the government continues to promote “remedial policies” such as food coupons and subsidies for vulnerable groups, including mothers and pregnant women.

On pension reform, Mohajerani said the second phase of salary adjustments for retirees would proceed as outlined in the national budget. “The government is legally bound to fulfill its obligations, even if at times delays occur due to unforeseen conditions,” she added.

In a nod to one of the long-standing demands of workers, Mohajerani highlighted government efforts to improve access to housing. “Agreements have been made between the Ministry of Roads and Urban Development and industrial zones to help workers live closer to their workplaces,” she said.

She also addressed delays in the passage of legislation to organize public employment contracts, noting the complexity of balancing workforce rights with the legal mandate to limit the size of government under Iran’s development plan. “The government's approach is to support the private sector rather than expand itself,” she said.

On the broader economic picture, labor economist Alireza Heidari said taming inflation remains the number one priority for workers, who have been protesting ever worsening conditions in recent years. Complaints include wage cuts, unpaid wages and worsening working conditions.

“In recent years, workers’ livelihoods have become directly tied to inflation,” he told ILNA. “The vast majority of wage earners fall within the seven lowest-income deciles of society, and they have been hit hardest.”

He warned that recent wage increases may be neutralized by future price hikes. “We ended last year (March 20) with the (exchange rate for one) dollar hovering at 1,000,000 rials. If this affects prices further, even a 45% wage increase won’t prevent a real income decline.”

Heidari stressed that structural reforms are essential to curbing inflation. “Experience shows that inflation in Iran is largely driven by the government’s lack of financial discipline,” he said. “Though the new administration is making efforts, the challenge is deeply structural.”

He cautioned against linking economic mismanagement solely to external factors or international negotiations. “Some officials try to attribute all issues to foreign policy, but many of the problems are internal and systemic.”

He said that without tackling inflation, any other policy amendments are redundant. “We talk about insurance, safety, and union rights, but it all comes back to the issue of livelihoods,” he added.

Iran on Thursday condemned fresh US sanctions targeting its petrochemical and trade networks, warning that Washington’s “contradictory and provocative” actions would carry consequences, Iranian state media reported.

Foreign Ministry spokesperson Esmail Baghaei said the sanctions, which also targeted entities in the UAE and Turkey, were part of a “failed and criminal policy of maximum pressure” and showed the United States’ lack of seriousness in pursuing diplomacy.

“The responsibility for the consequences of these contradictory behaviors and inflammatory statements lies with the US,” Baghaei said, according to IRNA. He accused Washington of violating international law and engaging in “economic terrorism” against developing countries.

The US Treasury on Wednesday announced new sanctions against companies allegedly involved in the sale and transport of Iranian petrochemical products, just days before a new round of nuclear talks is set to begin.

Washington said the blacklisted entities had generated hundreds of millions of dollars in revenue for Iran’s government, which it accused of advancing a nuclear program and funding proxy groups in the Middle East.

Videos circulating online show a group of people in the southern port city of Bandar Abbas holding a candlelight vigil in remembrance of those who died in the explosion at Rajaei port.

A senior Iranian cleric warned on Thursday that the Islamic Republic would not be intimidated by foreign threats, saying "playing with Iran is playing with the lion’s tail," Iranian Labour News Agency (ILNA) reported.

Ahmad Khatami, a hardline cleric and Tehran’s interim Friday prayer leader, made the comments during a speech in South Khorasan province. Referring to past pressure from the United States, he said Iran had chosen its own course.

“Trump wrote letters saying: either negotiate or be bombed,” Khatami said. “Iran chose a third way — indirect negotiations — and that shows our strength.”

He also accused Western powers of trying to drive a wedge between the Iranian people and the Islamic system through a cultural and psychological campaign, but said those efforts had failed. “Iran is not an easy bite for global arrogance,” he added.