UN sanctions on Iran officially reinstated: here’s what they target

“They demanded that we hand over all our enriched uranium and in exchange they give us a temporary relief of 90 days, which is absolutely unacceptable,” Iranian President Masoud Pezeshkian said on Saturday.

“If we are to choose between the unreasonable demands of the Americans and the snapback, our choice is the snapback,” Pezeshkian added, hours before the return of UN sanctions against Tehran.

Foreign Minister Abbas Araghchi also said Saturday that "the three European countries and the United States expected Iran to give up all its nuclear material or hand it over to them, in exchange for delaying the activation of the snapback mechanism by three or six months."

"This is the height of a brazen approach toward us, and we will not submit to such humiliation," Araghchi told Iran's state TV. "Iran will not accept the humiliating pressure over snapback."

The fate of Iran’s highly enriched uranium (HEU) stockpile of 400 kg (882 pounds) remains under investigation, while Tehran claims it is trapped under rubble after US attacks on three nuclear sites in June.

After triggering the so-called snapback mechanism on August 28, the Europeans asked Iran to address concerns over the highly enriched uranium stockpile, cooperate with the UN nuclear watchdog, and engage in talks with the United States.

Iran accuses US of swaying Europeans

While talks with European leaders had produced some convergence, Washington’s stance remained irreconcilable, Pezeshkian said upon arrival in Tehran after a visit to New York.

"On the snapback mechanism, we apparently reached an agreement with Europe, but when they spoke with the United States, they came up with various excuses."

Barbara Slavin, a longtime Iran analyst, wrote in a post on X that Pezeshkian told a private meeting France had floated a similar idea, proposing Iran hand over its enriched uranium in return for just one month’s extension.

The so-called snapback mechanism stems from UN Security Council Resolution 2231, which endorsed the 2015 Joint Comprehensive Plan of Action (JCPOA). It allows any participant to reimpose sanctions if Iran is judged in “significant non-performance.”

The United States, Britain, France and Germany argue that Iran’s growing uranium stockpile and failure to resolve International Atomic Energy Agency (IAEA) concerns meet that threshold.

A May 2025 IAEA safeguards report concluded Iran had concealed activities, sanitized sites, and retained undeclared nuclear materials, leading to its referral to the Security Council. The vote has now restored suspended measures.

On September 23, Iran's Supreme Leader reiterated that Tehran does not need and seek to develop nuclear weapons, so it enriches uranium to up to 60% purity, unlike nuclear-armed countries that enrich it up to 90% purity.

The decision, adopted during the Central Bank’s High Council session this week, applies to all traders and users on licensed digital platforms and must be implemented within a one-month transition period, according to Asghar Abolhasani, secretary of the High Council.

“From now on, the ceiling for purchasing stablecoins is set at $5,000 per user annually, and holdings cannot exceed $10,000,” Abolhasani told Iran's state TV.

He said those already holding stablecoins will have only a brief period to comply.

“The important point is that in regard to stablecoins currently in possession, a maximum one-month transition period has been set, during which the authorized ceiling for holdings must be observed.”

Stablecoins are digital tokens pegged to traditional currencies, with Tether (US dollar) being the most widely used.

In Iran, Tether has become a lifeline for households and traders seeking to protect savings from inflation or to move money abroad, offering the stability of the US dollar without the barriers of the formal banking system.

The new restrictions come as the rial continues to collapse, hitting an all-time low of 1,136,500 per US dollar on Saturday. The national currency is likely to lose further value amid the looming renewal of UN sanctions and worsening public confidence in government controls.

Stablecoins such as Tether have surged in popularity among Iranians since the war with Israel and US earlier this year. For many, converting rials into digital dollars has been the only way to preserve value.

The new cap is expected to affect thousands of small traders who have been making a living in crypto and could now face penalties for exceeding the legal ceiling.

The Central Bank’s move mirrors past efforts to curb demand for foreign currency during sharp market downturns. In earlier crises, authorities restricted access to dollars and gold in hopes of stabilizing the rial, but the measures had little long-term impact and often pushed transactions into black markets.

Iran’s currency has steadily depreciated over the past decade, battered by sanctions, inflation, and mismanagement.

The documentary, The Spider’s Hideout, aired on state television on September 24, presenting alleged intelligence on Israeli nuclear sites, including Dimona.

Intelligence Minister Esmaeil Khatib described it as "a major infiltration yielding a treasure of top-secret intelligence," seemingly in response to criticism of his ministry’s failures during Israel’s June campaign.

Independent reviews, however, revealed that most images were publicly available online. Critics noted some visuals depicted Israel’s nuclear research collaboration rather than weapons programs, and the individuals named were publicly known Israeli Atomic Energy officials.

The incident has raised concerns about the inefficiency of Iran's intelligence apparatus and its propaganda methods.

Mehdi Kharratian, head of an Iranian think tank close to power circles, wrote: "Superiority must be shown not in the media but in the field—by raising levels of deterrence and increasing the costs to any enemy that acts against the country's security."

He also urged the establishment of a fact-finding committee to address inefficiencies and security gaps within the intelligence apparatus.

Guards-linked outlets admit use of online photos

Fars News Agency, affiliated with the Revolutionary Guards (IRGC), acknowledged using archival images, describing the choice as “poor judgment” that allowed critics to call the documentary “fabricated.”

It confirmed that all images, including archived ones, were labeled as “exclusive photos.”

Mashregh News, also linked to the IRGC, claimed the documents came from human sources inside Israel and were used in targeting sites during the 12-day war.

While admitting some images were available online, it alleged Israel had waged a Persian-language social media campaign to discredit the documentary.

Social media reactions

Iranian media largely avoided direct criticism of the intelligence ministry probably due to fear of prosecution, but X users from opposition and Islamic Republic loyalists were scathing:

“The Islamic Republic’s problem is that it thinks it is ruling over people aged 5 to 10… This is how the clerics have driven a great country into ruin," one user said on X.

"Calling (the documentary) a media stunt would be generous — it was more like a media toy; like a rattle handed to a child to distract them," reads another post.

Ghasem Mohammadi, a supporter of the Green Movement leader Mir-Hossein Mousavi, lamented wasted resources, writing: “Once again the people’s money has been squandered.”

“It is truly upsetting to see the state of the country’s intelligence apparatus like this! Some things are a matter of dignity.”

“Believe me, if the enemy wanted to ruin an institution’s reputation with a media operation, they couldn’t have done better.”

Why are ultra-hardliners criticizing the ministry?

Some ultra-hardliners’ criticism may reflect a structural conflict between Iran’s Intelligence Ministry and the IRGC’s parallel intelligence network, which aligns more with hardline factions.

Although appointed with the Supreme Leader's approval, the Intelligence Minister formally reports to the president and is intended to serve as the country’s main civilian intelligence body, while the IRGC’s intelligence organization reports directly to the Supreme Leader and the Guards’ command.

This dual structure creates overlapping responsibilities and frequent rivalries, with the IRGC often acting independently of—or even in opposition to—the ministry’s priorities.

The ministry has supported President Masoud Pezeshkian’s push for social and cultural relaxation, including resisting the enforcement of the new Hijab law. These changes, now increasingly irreversible, are seen as undermining hardline influence.

“We’re not afraid of war. We do not seek war,” he told NBC’s Tom Llamas. “President Trump has said that his administration has come to create peace, but the path that they have embarked upon will set fire to the entire region.”

Iran would never initiate a conflict but would give “the strongest answer” to any attack, Pezeshkian said.

Tehran continues to build its defense capabilities to deter adversaries, he added.

On nuclear issues, he rejected suggestions that Iran is developing weapons, pointing to the Supreme Leader’s fatwa against weapons of mass destruction.

He said inspectors from the International Atomic Energy Agency were welcome to visit sites in Iran, dismissing reliance on satellite images as insufficient.

Iran has resumed construction at an underground mountain site following US and Israeli strikes on its nuclear facilities, with satellite imagery and analysts indicating the work may reflect efforts to rebuild its damaged nuclear program.

The president also commented on domestic unrest, saying Iranians “have a right to choose” in response to questions about the enforcement of hijab laws. He acknowledged mishandling of Mahsa Amini’s case but accused outside observers of exaggerating Iran’s record while ignoring civilian deaths in Lebanon, Gaza, Yemen, and Syria.

Supreme Leader Ali Khamenei has ruled out direct talks with the US on missiles and uranium enrichment.

The president also referred to an injury he sustained during Israeli strikes in June’s 12-day war, saying doctors drained fluid from his knee and that the wound was minor.

Several Iranian economists say the downturn is already entrenched and that officials are underestimating the severity of the crisis.

Tehran University professor Albert Boghozian argued last week that Iran now shows the classic symptoms of stagflation—negative growth, high inflation, and rising unemployment.

“Officials must not ignore the danger of deepening stagflation, which is likely to intensify if the snapback proposed by the UK, France, and Germany is implemented,” he cautioned.

The Statistical Center of Iran reported that GDP shrank by 0.1% in the spring.

Excluding the petroleum sector, the contraction deepened to -0.4%. Agriculture was the hardest hit, with output falling 2.7%. This downturn marks the first time since 2021 that Iran’s economy has posted negative quarterly growth.

'Worse to come’

The reversal is striking given the 3.0% expansion recorded in the last full calendar year ending March 2025. That period, supported by high oil revenues and relative stability, allowed for modest but steady growth.

Ali Ghanbari, a macroeconomist and former deputy agriculture minister, predicted conditions will deteriorate further in the coming months.

“Iran is heading toward a more difficult economic period in the second half of the Iranian year (September 2025 to March 2026),” he told reporters in Tehran.

He forecast a contraction of 1–2% by March 2026 and inflation climbing above 54%.

“The downturn had been anticipated due to sanctions and political tensions,” he added, “but the scale of inflation will place even greater strain on household budgets.”

Such levels of inflation would erode real incomes and fuel social discontent — a sensitive issue for the government as it braces for renewed sanctions.

‘Sanctions hinder development’

The Majles Research Center has argued that renewed UN sanctions would be less damaging than existing US restrictions, which already limit Iran’s access to global markets and financial channels.

But economists such as Boghozian believe Tehran has few tools left to cushion the blow.

“The Iranian government cannot do much about the UN sanctions,”he warned. “Continued stubbornness will only deepen the suffering.”

Sweeping UN sanctions are set to be reimposed on September 27 following the end of the 30-day snapback period.

Boghozian warned that their return could have consequences far beyond economic hardship, setting the scene for more confrontation with Iran’s foes.

“With the threat of war, Iran cannot realistically pursue development,” he said. “War and sanctions will rob the country of opportunities. If we fail to take initiative, the other side will dictate the terms.”