Iran using post-war crackdown to reassert control, experts say

If the European Union believes Tehran's nuclear program must be ended, then "the participation and role of the European Union and its member states, plus the UK, in any future negotiation would be irrelevant and therefore meaningless,” Iranian Foreign Minister Abbas Araghchi wrote on X.

His statement came in response to a post by EU foreign policy chief Kaja Kallas, who urged Iran to resume talks aimed at ending its nuclear program.

“Negotiations on ending Iran's nuclear program should restart as soon as possible. Cooperation with the IAEA must resume. The EU is ready to facilitate this,” Kallas wrote.

She added that she had discussed the matter with Araghchi in a phone call on Tuesday. “Any threats to pull out of the Non-Proliferation Treaty don’t help to lower tensions,” she said.

Araghchi also accused Kallas of disregarding the provisions of the Nuclear Non-Proliferation Treaty (NPT) "which explicitly affirm the right of all signatories to develop, research, and use nuclear technology for peaceful purposes."

On Wednesday, Iranian state media announced that President Masoud Pezeshkian had enacted a law suspending cooperation with the UN nuclear watchdog, following its approval by parliament and the Guardian Council.

The law mandates a halt to cooperation under the Safeguards Agreement tied to the Nuclear Non-Proliferation Treaty, unless Iran’s demands—such as security assurances for its nuclear sites and scientists—are met.

Despite the suspension of cooperation with the UN’s nuclear watchdog, IAEA inspectors remained on the ground in Iran as of Wednesday, according to a diplomat familiar with the agency’s operations who spoke to the Associated Press.

The IAEA said it is awaiting clarification from Iranian authorities. “We are aware of these reports. The IAEA is awaiting further official information from Iran,” the agency said in a statement.

The US State Department said on Wednesday "it is unacceptable that Iran chose to suspend cooperation with IAEA at a time when it has a window of opportunity to reverse course and choose a path of peace and prosperity."

"Iran must cooperate fully without further delay," State Department spokesperson Tammy Bruce told reporters.

"Iran must fully comply with its safeguard agreements required under the NPT including by providing IAEA with information required to clarify and resolve long standing questions regarding undeclared nuclear material in Iran, as well as provide unrestricted access to its newly announced enrichment facility," Bruce added.

The pair have also been charged with "conspiracy to overthrow the regime and corruption on earth", the report added.

"All we know is that they have seen a judge who confirmed the three charges," Kohler's sister said.

Since the end of the 12-day Israeli campaign on June 24, Iran has executed several individuals and arrested hundreds of others on charges of espionage and collaboration with Israel.

Cécile Kohler and Jacques Paris were arrested in May 2022 during a tourist trip to Iran. Both were charged with espionage, which they deny. They remain in detention in Tehran.

In May, France filed a case against Iran at the International Court of Justice (ICJ), accusing Tehran of unlawfully detaining the two French citizens for three years and violating international law.

“They have been held hostage… detained in appalling conditions that amount to torture,” French Foreign Minister Jean-Noël Barrot told France 2 television. He said Iran had denied France’s requests for consular access.

Kohler, a teacher, and Paris, her partner, are the last known French citizens held in Iran. French President Emmanuel Macron has described them as “state hostages.”

France and other European Union members accuse Iran of practicing “hostage diplomacy” — detaining foreigners to pressure Western governments.

Iran denies the accusation. Its officials say the arrests followed legal procedures and reject claims of mistreatment.

The selloff came as the Tehran Stock Exchange plunged for a fourth consecutive trading day after the ceasefire. The main index dropped by 57,000 points to 2.73 million.

On Tuesday, individual investors pulled out 64.78 trillion rials—around $71 million—in a single trading day, according to Iranian media.

That followed a deep-in-red opening on Saturday, the first trading day after the 12-day war, when 99% of listed stocks declined and the market lost 62,503 points.

The panic coincided with a cyberattack on Sepah and Pasargad banks that further fueled public distrust in the financial system.

In the days following, large sums were moved abroad through exchange shops. To stem the outflow, multiple exchanges experienced technical disruptions beginning Monday, Iran International previously reported.

During the war, currency and gold markets were largely inactive, but they resumed trading this week with both the US dollar and gold prices climbing.

The Tehran bourse has historically been sensitive to geopolitical stress, but recent market behavior suggests a deeper crisis of confidence—compounded by economic mismanagement, financial sector instability, and the Islamic Republic’s response to external shocks.

“We are well aware that the phrase ‘deportation of illegal migrants’ is a euphemism for inhumane treatment of all migrants—both legal and illegal,” the letter said.

The signatories say that while the Iranian government previously justified deportations with claims such as curbing rising unemployment, in the aftermath of the 12-day war with Israel, it has begun using new allegations—accusing some Afghans of being “key espionage elements and part of an infiltration network.”

Following the ceasefire with Israel, Iran launched a sweeping crackdown on Afghan migrants, targeting them for deportation under alleged national security concerns, according to officials and media reports.

According to Afghanistan International, Iranian police in multiple cities have been confiscating Afghan migrants’ mobile phones, citing suspicions of “communication with Israel.”

Migrants—even those with valid residency documents—have reported being stopped at checkpoints or avoiding travel for fear of arrest.

Iran’s interior minister said on Wednesday that 400,000 foreign nationals have been deported over the past four months.

“The injustice currently being inflicted on Afghans and other voiceless minorities is, above all, a betrayal of the core values we uphold—humanity, justice, and freedom,” the letter reads.

Some prominent dissident public figures, including actresses Taraneh Alidoosti and Lili Farhadpour as well as human rights lawyer Mehrangiz Kar are among the signatories.

The IAEA said it was awaiting formal clarification from Iranian authorities on what the suspension will mean in practice.

“We are aware of these reports. The IAEA is awaiting further official information from Iran,” the UN nuclear watchdog said in a statement.

On Wednesday, Iranian state media announced that President Masoud Pezeshkian had enacted the law, following its approval by parliament and the Guardian Council.

The law mandates a halt to cooperation under the safeguards agreement tied to the Nuclear Non-Proliferation Treaty (NPT), unless Iran’s demands—such as security assurances for its nuclear sites and scientists—are met.

The move follows a sharp escalation in Iranian criticism of the IAEA, particularly after a resolution passed by the agency’s Board of Governors was cited by Tehran as paving the way for Israeli and US strikes on its nuclear sites last month.

Iranian newspaper calls for arrest and execution of IAEA chief

Iran’s hardline newspaper Kayhan, overseen by Iran's Supreme Leader Ali Khamenei, published an editorial last week accusing IAEA Director General Rafael Grossi of working as an Israeli agent. The paper said Grossi should be arrested and executed if he enters Iran.

The comments triggered swift condemnation from France, Germany, and the United Kingdom. “We condemn threats against the Director General of the IAEA, Rafael Grossi,” the three governments said in a joint statement on Monday. They reaffirmed their full support for the agency and its mandate.

Judiciary signals possible in absentia prosecution of Grossi

On Wednesday, a senior Iranian judicial official suggested Grossi could face trial in absentia for his alleged role in facilitating the attacks. Deputy judiciary chief Ali Mozaffari said the case was under review by the judiciary’s international affairs office and that legal teams were compiling evidence to seek damages.

He accused the IAEA chief of “deceptive actions and falsified reports” that, in Tehran’s view, laid the groundwork for foreign aggression.

Officials press IAEA to condemn strikes

Iranian officials have also criticized the IAEA for failing to condemn the attacks on Iran’s nuclear facilities. Foreign Ministry spokesman Esmail Baghaei told the Hindustan Times over the weekend that Tehran had expected a clear denunciation from the IAEA leadership and Board of Governors.

“We are not hostile to any person at the international organizations, IAEA being one of them,” Baghaei said. “The point is that, yes, we are outraged—our people are really unhappy and angry about the IAEA’s position.”

He accused Grossi of including “concepts” in his latest report that allowed Western nations to push through the resolution. Although Grossi told CNN there was no evidence of an Iranian weapons program, Tehran claims the report provided cover for the subsequent attacks.

Atomic Energy Organization head Mohammad Eslami echoed the criticism Wednesday, saying the strikes would not deter Iran’s nuclear development. “The nuclear industry cannot be destroyed by bombing,” he said. “The path forward is open.”