Iranian filmmaker and actress charged with defying hijab

These challenges span a broad spectrum, including foreign policy and pressing economic issues such as the budget deficit, corruption, inflation, housing shortages and unaffordability, and high fuel subsidies draining the treasury.

During an event on Tuesday to introduce the new oil minister, Mohsen Paknejad, Pezeshkian criticized the allocation of massive fuel subsidies. This remark was widely interpreted as a signal that fuel prices may increase, despite the minister's earlier assurances that no such plans were in place. So far, no clarification has been provided.

The crippling strike of thousands of nurses that has spread to several cities now is another major and urgent issue to be addressed. The minister of health, Mohammad-Reza Zafarghandi, has promised to resolve the problem of the long overdue payments, but nurses’ demands go much beyond the payment of owed salaries.

Meeting the expectations of large groups of reluctant voters, who voted for Pezeshkian because he vowed to address Iran's multiple crises, is another serious challenge. These voters expected see more rational governance, justice, economic improvement and to have more women in the cabinet and at least some ministers from among Sunnis and ethnic minorities.

Since the cabinet's approval, three more women have been appointed to government positions in the past few days. These appointments include a Special Assistant to Vice President Mohammad-Reza Aref, a Deputy Head of the Department of Environment, and a government spokesperson.

The appointment of Fatemeh Mohajerani as government spokesperson is a first in the history of the Islamic Republic. The appointment announced Wednesday was welcomed by many social media users who called Mohajerani a “brave woman” for a fiery speech she delivered at one of Pezeshkian’s campaign gatherings.

In her speech she not only mentioned a young protester killed by security forces during the Woman, Life, Freedom protests by name but also referred to him as a “martyr”. As a mother, she said in her speech, she would not “allow the blood of the youth to color the streets.”

However, some dissidents and critics see her as an opportunist who used the names of government victims to squeeze herself into Pezeshkian's team, while it is unclear if she is a real reformer.

The appointment of a Sunni deputy, also a first in the history of the Islamic Republic, is another step Pezeshkian has taken in the past few days to appease the critics. Abdolkarim Hosseinzadeh who has been appointed as rural and deprived area’s development deputy is a reformist politician and former lawmaker from the Kurdish cities of Naghadeh and Oshnavieh.

Appointment of one Sunni deputy is unlikely to do much to appease the Sunnis who make up between five to ten percent of the Iranian population, most of whom also belong to ethnic minority groups such as Kurds, Baluchis, and Turkmen.

Many reformists remain unconvinced by Pezeshkian’s assurances that the ministers he selected, with Supreme Leader Ali Khamenei’s approval, will prove their efficiency given time.

The return of Mohammad-Javad Zarif to the cabinet as Pezeshkian’s “Strategic Deputy” is one of the steps Pezeshkian has taken to placate disappointed supporters in the 'reform' camp.

The government also seems to be taking measures to ease tensions in Iranian universities for the upcoming academic year. As an initial move, Ali Sharifi-Zarchi, a prominent lecturer at Sharif Industrial University who was dismissed for supporting student protesters during the Woman, Life, Freedom movement, has been reinstated to his academic position.

This move could significantly enhance Pezeshkian’s standing in academia if followed by the reinstatement of other dissident professors who were dismissed or forced into early retirement in recent years, as well as students who were suspended or expelled for their political activism or defiance of hijab rules.

The issue of hijab enforcement is one of the big challenges that Pezeshkian’s government is facing. Brigadier General Eskandar Momeni's appointment as interior minister disappointed many, who hold him responsible for crackdowns on anti-government protests and defending hijab enforcement. Momeni has not commented on the issue of social freedoms so far.

The rescue operation involved a rigid inflatable boat from the USS Daniel Inouye and a search and rescue helicopter from USS Theodore Roosevelt, the US CENTCOM announced on Thursday.

Rear Adm. Christopher Alexander, commander of Carrier Strike Group 9, commended the "swift and professional" response of the Navy sailors and aircrew, saying, "Aiding distressed mariners is a mission that our strike group will always stand ready to support."

The Theodore Roosevelt Strike Group has been conducting routine operations in the CENTCOM area of operation to deter Tehran-backed aggression and promote regional stability amid fears of an Iran-led retaliatory attack on Israel.

The rescue of Iranian sailors comes amidst ongoing tensions in the region, with Iran-backed Houthi rebels wreaking havoc on the international shipping in the area since November 2023.

The rebels released a video on Thursday showing them planting explosives aboard the Greek-flagged tanker Sounion, which had been abandoned after multiple attacks last week. The Houthis are seen in the video chanting their slogan: “Death to America; death to Israel; curse the Jews; victory to Islam.”

EU Foreign Policy Chief Josep Borrell on Friday warned that the attack by the Houthis against Greek oil tanker MV Sounion could result in an environmental disaster.

Since November last year, the Houthis have launched numerous attacks on international shipping in the Red Sea, following Iran's Supreme Leader Ali Khamenei's call for Muslim nations to blockade Israel's trade routes amid the Gaza war.

Hossein Shamkhani’s father, Ali Shamkhani, served as the secretary of Iran’s Supreme National Security Council (SNSC) for almost a decade until last year, but he remains an advisor to Supreme Leader Ali Khamenei.

The Shamkhanis have been known to Iranians as insiders and Hossein, like the children of many other Iranian officials, has been implicated in several scandals over his diverse portfolio in shipping and international oil trade. However, the Bloomberg report has shed new light on his recent ventures, including his Dubai-based company, Milavous Group Ltd.

Read more: Tehran Media Speculate On Security Chief’s Dismissal

In the heart of Dubai’s corporate skyline, the relatively obscure firm quietly rented an office two years ago. Few had heard of the company, yet it soon emerged as a significant force in global energy markets. At the helm of the operation, according to insiders, is Hossein Shamkhani -- a man known in trading circles as “Hector” or simply H. Despite his low profile and sanctions on Tehran’s oil trade, Shamkhani has become one of the most influential figures in the distribution of Iranian oil worldwide.

Based on interviews with more than a dozen sources familiar with the matter, who requested anonymity to discuss confidential business dealings, Bloomberg has uncovered details about Hossein Shamkhani's activities that suggest a complex, sprawling web of interconnected businesses are pushing vast quantities of Iranian and Russian oil into the market.

“People familiar with Shamkhani’s empire said he effectively oversees an intertwined web of companies, with Milavous operating as one of the parent firms. Business ownership, shareholding and control information are easy to obscure, and other executives have been formally registered as the owners and managers, the people said.”

His influence is so pervasive that the companies he oversees have a substantial global footprint, even though many in the industry remain oblivious to his true identity and the source of the crude they are trading.

Milavous, through its subsidiaries, engages in the blending and rebranding of crude oil and various petroleum products from Iran and Russia in third-party jurisdictions, such as the UAE port city of Fujairah. Additionally, it handles oil from countries that are not subject to sanctions. Such methods can obscure the origins of the oil and fuel, making it difficult for clients trying to determine its provenance, Bloomberg cited Matthew Levitt, a former counterterrorism official at the Treasury Department and FBI.

Milavous and other companies within Shamkhani’s network reportedly supply oil to the industry’s giants, including China’s Sinopec, Chevron in the US, and BP in the UK. While these corporations maintain they comply with all laws and sanctions, their connections to Shamkhani’s network highlight the opaque world of policing global oil trade. 

According to Bloomberg sources, Milavous has generated billions of dollars in sales with its turnover in 2022 amounting to some $15 billion.

Unlike his father, Hossein Shamkhani has not been listed as a sanctions violator. Additionally, the UAE has not banned companies from trading crude oil from Iran or Russia. Entities within his network also engage in significant business dealings with Chinese buyers, often conducting transactions in yuan and beyond the purview of American sanctions, Bloomberg sources said.

However, if the US government decides to sanction any UAE-based company involved in violating US regulations, it can add them to its sanctions list. This can be especially problematic for banks facilitating such trades.

Despite not being personally sanctioned, Shamkhani has faced scrutiny from US authorities. Dozens of ships believed to be under his control have been sanctioned by the US Treasury, but their links to him were not publicized. Apparently, the US Treasury Department can sometimes find it more effective to target tankers rather than individuals because of frequent changes in ownership.

Back in 2022, a cargo ship reportedly belonging to the Admiral Shipping Company that Iranian media said is owned by Hossein Shamkhani and his brother Hassan was impounded in one of India’s ports.

Shamkhani and Milavous have repeatedly denied any involvement in illicit activities. In a written statement, Shamkhani categorically rejected claims of a connection to Milavous, asserting that he has no control over any oil companies or trading networks. Mohamed Al Hashmi, the Managing Director of Milavous, likewise dismissed allegations of ties to Shamkhani or involvement in Iranian or Russian oil trading. However, multiple sources suggest that Shamkhani's influence extends far beyond public knowledge. He is believed to have been instrumental in establishing dozens of companies.

Shamkhani's network extends beyond Iran. He spent time studying in Moscow and Beirut before returning to Tehran to earn a Master of Business Administration. His ties to Russia have proven especially valuable as Tehran and Moscow have forged deeper economic and military partnerships in response to Western sanctions.

Hossein Shamkhani's ascent in the oil industry is inextricably linked to his family's legacy. His father has been a towering figure in Iran's military and security establishment for decades and like many of his peers, he is dogged by scandals. Apart from reports about his sons -- Hassan and Hossein -- owning dozens of businesses, there have also been reports about the extravagant lifestyle of his family members in Iran and abroad. Iran International’s investigative journalist Mojtaba Pourmohsen has published several exposés about the family corruption, including his nephews Mo’ud and Naji Shamkhani. 

Controversies reached their peak following allegations of extravagant properties and bank accounts held by Shamkhani’s family, including those of his toddler grandson.

In 2022, the Shamkhani family was implicated in the collapse of a building in southwestern Khuzestan province that killed scores of people. The owner of the building, Hossein Abdolbaghi, a well-connected businessman, had broken multiple regulations when constructing the building, having enjoyed the backing of officials including members of the Shamkhani family.

While the elder Shamkhani encouraged his son to pursue a career in the private sector, his connections and influence have undoubtedly played a pivotal role in Hossein's success.

Amanollah Kahrazehi, speaking to local media, pointed out that the strong US presence in Pakistan, funding military expenses, is the primary reason for the complexities in Tehran's economic ties with -Islamabad.

Nonetheless, he discussed the imports, which appear to serve as a potential substitute for monetary transactions: “Since the beginning of this year [20 March], the trade volume between the two countries has exceeded $928 million, with rice, cotton, and sesame remaining the primary commodities imported from Pakistan to Iran.”

Earlier in August, Iran’s Customs Administration reported that new restrictions imposed by Pakistan on the entry of Iranian goods have resulted in a downturn in trade between the two nations, without providing specific details.

Meanwhile, last year, Iran, under the weight of sanctions, enthusiastically highlighted its ability to export gas and oil to Pakistan and "reduce reliance on the dollar," as Pakistan unveiled a list of goods open for a barter arrangement between the neighbors.

Amid critically low foreign exchange reserves last year, barely enough to cover one month's imports, Pakistan urgently sought to manage a balance of payments crisis and control inflation, which had surged to nearly 38%. The Pakistani government issued a special order allowing barter trade with Afghanistan, Iran, and Russia for specific goods, including petroleum and natural gas, as announced by the Ministry of Commerce.

Russia, also under heavy sanctions, was also an eager supplier of energy to Pakistan as the West moved away from its resources following Moscow's invasion of Ukraine in February 2022.

Last year, Pakistan, traditionally an ally of the US, received its first shipment of crude oil and liquefied petroleum gas from Russia. The Russian embassy noted that the gas delivery was facilitated via the Sarakhs Special Economic Zone with Iranian assistance.

Nonetheless, it was later revealed that the plan had fallen short of Pakistan's expectations, with the anticipated benefits being undermined by higher shipping costs and the inferior quality of refined products compared to those produced from crude sourced from Pakistan's primary suppliers, Saudi Arabia and the UAE.

Dalga Khatinoglu, an oil, gas, and economic analyst for Iran, told Iran International that Iran exports a range of petroleum products and electricity to Pakistan, including approximately 500 gigawatt-hours of electricity annually.

He noted that Iranian customs data reveals the sale of around $20 million in propane and $50 million in butane to Pakistan last year—both of which are raw petroleum products in the form of liquefied gas. Additionally, he highlighted that Iran exports fuel oil (mazut) to Pakistan, a trade that does not appear in the official statistics.

While Pakistan produces crude oil and natural gas, its output is insufficient to meet domestic demand, necessitating the import of both crude oil and refined petroleum products to bridge the gap.

In May, it was revealed that Iranian traders are smuggling over $1 billion worth of fuel into Pakistan annually.

The crippling sanctions, levied for Iran's nuclear program, human rights abuses at home and support for Russia's war on Ukraine, have prompted Tehran to seek alternative markets. It has led to a substantial rise in smuggling operations across the 900-kilometer Iran-Pakistan border.

The report disclosed that, in the past year alone, approximately $1.02 billion worth of Iranian petrol and diesel was illegally transported into Pakistan, accounting for about 14% of the country's annual fuel consumption

The significantly lower cost of Iranian fuel compared to domestic supplies caused challenges for Pakistani refineries in maintaining stock uptake, further exacerbating the country's own economic difficulties.

According to draft regulations released by the Saudi Ministry of Hajj and Umrah, pilgrims are forbidden from bringing any prohibited items, such as pictures, books, flags, slogans, political publications, or other banned materials, into Saudi Arabia, according to the Saudi Gazette.

Pilgrims are strictly barred from engaging in activities or gatherings that could disrupt public order, security, tranquility, or health, as part of Saudi Arabia's efforts to ensure a peaceful pilgrimage.

The Islamic Republic of Iran, which places significant emphasis on the intertwining of religion and politics, has long marked the "Disavowal of Polytheists" ceremony as a politically charged ritual. Since the 1979 revolution, Iranian pilgrims in Mecca have observed this ceremony, traditionally accompanied by the chant of "Death to America." However, in 1987, this ritual led to a tragic confrontation between Shia demonstrators and Saudi Arabian security forces, resulting in the deaths of over 400 individuals.

In the aftermath of the 1987 incident, the Islamic Republic refrained from holding the ceremony for several years. It wasn't until 2001 that it was reintroduced, albeit in a symbolic and significantly scaled-down form. Since then, it has been conducted within the confines of a closed tent operated by the office of the Supreme Leader of the Islamic Republic.

However, almost during every annual hajj pilgrimage there have been incidents involving some Iranians and Saudi authorities related to political manifestations. The Iranian regime, sending its supporters to the hajj, seems eager to use the opportunity to steer up sentiments during the most important Islamic gathering.

Iranian authorities and state media also describe another religious act, the Arbaeen Walk to sites in Iraq, which attracted over 3.6 million Iranian participants this year, as an expression of “Shia soft power.” This characterization highlights a divergence in how mass religious gatherings are perceived and managed, with Iran framing such events as a display of cultural and sectarian influence, while the Saudi regulations for Hajj stress the importance of maintaining political neutrality and public order during religious pilgrimages.

The Arbaeen ceremony, marking the conclusion of the 40-day mourning period following Ashura—which commemorates the martyrdom of Hussain ibn Ali, the third Shia Imam and grandson of the Prophet Muhammad in 680 AD—is recognized as the world's largest annual gathering.

Traditionally, Shia Muslims convene in Karbala, Iraq, at the burial site of Imam Hussain to observe Arbaeen. Pilgrims often undertake extensive journeys on foot, spanning hundreds of kilometers, to reach the shrine of Imam Hussain and other significant Shia sites. This mass pilgrimage not only serves as a religious expression but also provides a fertile ground for the dissemination of Iranian propaganda and influence among other pilgrims during the ceremonies.