Iran says cannot guarantee safety of UN nuclear watchdog's inspectors

The legislation classifies any collaboration with Israel and the United States as “corruption on earth”, which is punishable by death.

“Any intelligence, espionage, or operational activity for Israel, the US, or other hostile regimes and groups or their agents against the country’s security or national interests is considered corruption on earth and punishable by death,” the law says.

It further criminalizes “any security, military, economic, financial, technological action or any direct or indirect assistance knowingly done to approve, strengthen, consolidate, or legitimize Israel,” also punishable by death.

The third article specifies that manufacturing, transferring, or importing drones with military or sabotage uses against critical infrastructure qualifies for the death penalty. It also includes cyberattacks, disruption of communication networks, and sabotage of public or private facilities.

The law penalizes receiving funds from intelligence agents knowingly, regardless of active involvement.

Political, cultural, media, or propaganda activities causing public fear, division, or damage to national security carry 10 to 15 years imprisonment.

Sharing content with "hostile foreign networks" that weakens morale or creates division results in two to five years in prison.

Illegal wartime protests carry five to ten years imprisonment.

The use or import of unauthorized internet communication tools like Starlink is punishable by six months to two years in prison, according to the law.

Importing more than ten Starlink devices “with intent to oppose the Islamic Republic” results in five to ten years’ imprisonment.

The law applies retroactively to offenses committed before its enactment, violating Iran’s constitution and penal code provisions prohibiting retroactive laws, according to experts.

Despite some limited card reactivations, Pasargad’s most banking services remain offline, leaving customers unable to perform routine transactions.

In Tehran, customers report that banks are refusing to process checks, urging clients to wait days for resolution.

During the recent Israeli and US airstrikes on Iran’s nuclear sites, a cyber battle erupted targeting critical Iranian infrastructure.

Sepah Bank, Pasargad Bank, and Nobitex, Iran’s largest cryptocurrency exchange, confirmed cyberattacks against their systems.

Internet banking, mobile banking, and ATMs of these banks remain largely nonfunctional.

A physical malware intrusion in Sepah Bank’s systems prevents successful data backup restoration, prolonging the outage, Rouydad 24 website reported Sunday.

The pro-Israel hacker group Predatory Sparrow, known for prior cyberattacks on Iran’s fuel infrastructure, claimed responsibility for disabling Sepah Bank, writing on X that they paralyzed the state bank.

The bank is responsible for processing the payments of military personnel.

Predatory Sparrow also hacked Nobitex. According to the cryptocurrency exchange's CEO Amir Rad, hackers extracted approximately $100 million from the platform.

While no hacker group has claimed responsibility for the cyberattack against Pasargad Bank, Iranian media are portraying it as part of Israel’s campaign against the Islamic Republic.

“Europeans have extremely powerful leverage,” Jean-Noël Barrot said on LCI Television Sunday.

Europe could reinstate the UN sanctions through the so-called snapback mechanism to press Iran for a diplomatic resolution, Barrot added.

“France, together with its European partners, can, with a simple letter, reimpose a global embargo on weapons, nuclear equipment, and banking and insurance sectors in Iran, which were lifted 10 years ago.”

Under UN Security Council Resolution 2231, any current party to the 2015 nuclear deal (JCPOA) including France, Germany, the UK, Russia, and China can file a non-compliance complaint with the Security Council.

If no resolution is adopted within 30 days to maintain sanctions relief, all previous UN sanctions automatically snap back, including cargo inspections, arms embargoes, and restrictions on missile-related technologies.

To prevent snapback, the Council must pass a resolution during the 30-day review period; however, any permanent member can veto it. Therefore, if the US or E3 oppose, sanctions are reinstated by default.

US President Donald Trump said after military operations in Iran that Tehran "doesn’t want to speak to Europe. They want to speak to us. Europe is not going to be able to help in this one.”

In response to Trump’s remarks, Barrot said: “We hold this power, which is why we will play an essential role in these negotiations. Ten days ago, at President Trump’s request, I was in Geneva with my German and British counterparts to begin face-to-face discussions with Iran’s Foreign Minister.”

Barrot further said Iran’s continued cooperation with the International Atomic Energy Agency (IAEA) is vital, calling the agency the most effective tool to implement and verify Non-Proliferation Treaty compliance.

Last week, Iran’s parliament approved a bill to suspend cooperation with the IAEA, just one day after a ceasefire with Israel ended 12 days of conflict. Subsequently, Iran’s Guardian Council ratified the bill, mandating the government to halt cooperation.

“The capacities they have are there. They could have, in a matter of months—or even less—a few cascades of centrifuges spinning and producing enriched uranium,” Grossi told CBS News' Face the Nation on Sunday.

“Frankly speaking, one cannot claim that everything has disappeared. There is still something there.”

Asked about the extent of damage from US military actions on nuclear sites, Grossi said it depends on how one defines damage.

“What happened—particularly in Fordow, Natanz, and Isfahan, where Iran used to have, and still retains to some extent, capabilities for uranium treatment, conversion, and enrichment—has been significantly destroyed,” he said.

US special envoy Steve Witkoff said on Wednesday there are “signs” that an agreement can be reached with Iran.

“We’re having conversations with the Iranians. There are multiple interlocutors reaching out to us. I think that they’re ready,” he told CNBC.

In his interview with CBS, Grossi clarified that the IAEA is not involved in those negotiations. “Our role is to monitor and verify. We’re not part of the direct talks,” he explained.

On whether Iran’s nuclear activity before the US and Israeli strikes indicated weaponization, Grossi said: “We haven’t seen a program aiming in that direction. But they are not answering very important, pending questions. That’s the truth.”

Last week, Iran’s parliament passed a bill to suspend cooperation with the IAEA. The Guardian Council approved it shortly afterward.

Grossi said that Iran remains a signatory to the Non-Proliferation Treaty (NPT), which overrides domestic law.

“An international treaty takes precedence. You cannot cite internal legislation to avoid your international obligations. Iran has not done so yet, which I see as constructive,” Grossi added.

Over 99 percent of listed companies dropped in value, triggering an unprecedented 350 trillion-rial (approximately $416.7 million) sell-off queue.

By the close on Saturday, total sell orders reached 350 trillion rials. The main index fell 62,503 points, or 2.1 percent, to 2,922,101. The equal-weight index lost 15,522 points, ending at 908,163.

The market’s sensitivity to political and security developments deepened investor distrust and anxiety this time. Tehran’s stock market had previously declined amid Tehran’s risky foreign ventures.

In prior crises such as earlier missile strike operations on Israel and after the death of former president Ebrahim Raisi, the Securities and Exchange Organization curtailed daily trading limits to contain losses. Normally, Iran’s daily price fluctuation limit is five percent.

“It was expected the market would start negatively after nine days of closure. Officials tried to control the fallout from Israel’s attack but failed,” economic journalist Arash Hassannia told Iran International.

The market reopened amid crisis signals. Within 90 minutes, over 99 percent of stocks traded in the red. The main index dropped about one percent to 2,957,000 points. The equal-weight index slid nearly 3,800 points, nearing 920,000.

Trade volume in the first 90 minutes exceeded 20 trillion rials ($23.8 million), with nearly 12 trillion rials ($14.3 million) withdrawn by individual investors. Banks and investment firms led trading values with 6.6 trillion rials ($7.85 million) and 2.8 trillion rials ($3.33 million), respectively.

Economy news outlets described the market situation as “a full-scale crisis.” One warned that the military conflict’s end failed to calm the market; instead, uncertainty deepened, with investors fearing new fighting. Analysts see this drop as potentially signaling a longer-term crisis.

Massive sell queues, scarce buyers, broad liquidity outflows, and widespread losses are signs of what analysts call “the start of a psychological and structural crisis.”