On August 28, 2025, the United Kingdom, France, and Germany initiated efforts to reinstate United Nations sanctions on Iran, triggering a sharp devaluation of the Iranian rial, which plummeted to one million per U.S. dollar. This marked the second occasion in recent months the currency breached this critical level. Iranian officials warned of further deterioration, projecting the dollar could exceed 1.5 million rials and inflation might reach 100 percent. n nPrior negotiations between Iran and the European nations failed to yield progress. Earlier in the year, a halt to uranium enrichment might have opened diplomatic avenues, but by late August, Tehran was seeking dialogue with Washington, which remained unresponsive following military strikes on Iranian nuclear infrastructure in June. n nSupreme Leader Ali Khamenei’s August 24 address, in which he rejected negotiations with the United States, signaled a firm stance against compromise. Appearing fatigued and speaking deliberately, the 85-year-old leader still appeared to hold authority over national policy. Speculation about his succession centers on his son, Mojtaba. The June attacks, which eliminated key figures in the Islamic Revolutionary Guard Corps, may have weakened the military’s political influence in the near term. n nThe UN’s sanctions “snapback” mechanism, which would revive restrictions lifted under the 2015 nuclear deal, is expected to take about a month to activate. Diplomats indicate substantive talks with Tehran will only begin once the process advances. n nA European diplomatic source stated that the E3 nations believe Iran has long violated its 2015 agreement commitments without corrective action. n nIranians in their thirties express frustration online, noting that nuclear negotiations have persisted since childhood while living standards have declined. In August 2005, one dollar equaled 9,000 rials. Over two decades after the West uncovered Iran’s covert nuclear activities, talks continue without resolution. Many citizens doubt the regime’s sincerity and question Europe’s continued engagement. n nReza Pahlavi, an exiled opposition figure, urged the E3 to swiftly reinstate sanctions, arguing delays benefit a state labeled a top sponsor of terrorism, not European nations or the Iranian public. n nState-controlled Iranian media minimized coverage of the failed talks and the European decision, with some outlets omitting the story or merely citing foreign reports. n nIn a gesture aimed at easing European concerns, Tehran recently permitted International Atomic Energy Agency inspectors limited access to oversee fuel replacement at the Bushehr reactor, but not to inspect sites damaged in June’s strikes. Concerns persist about the whereabouts of over 400 kilograms of highly enriched uranium. Since 2021, Iran has restricted agency access and avoided meaningful cooperation. n nEarlier in the month, threats of additional military action from a regional power added pressure to the stalled negotiations. Prospects for Tehran making concessions to avoid sanctions or further strikes appear slim, especially if Khamenei’s recent statements reflect enduring policy. n nAs economic instability deepens and international isolation grows, many Iranians anticipate worsening conditions. n— news from Middle East Forum n
— News Original —nIran Confronts Snapback Sanctions, Israeli Threats, and Economic FreefallnAfter news broke on August 28, 2025, that the United Kingdom, France, and Germany, the so-called E3, would begin restoring United Nations sanctions on Iran, the Iranian rial collapsed to one million per U.S. dollar. This marked the second time in recent months that the currency crossed that dangerous threshold. Officials in Tehran warned that the dollar could climb above 1.5 million rials and inflation could hit 100 percent. n nLast-minute talks a day earlier between the European states and Iran produced no breakthrough. A few months ago, if Tehran had announced an end to uranium enrichment, the West likely would have moved toward a deal that might have spared the country from economic ruin. By the end of August, however, Tehran was practically begging for talks with Washington—whose leaders appeared indifferent after bombing Iran’s nuclear facilities in June. n nThe failure with European powers surprised no one after Supreme Leader Ali Khamenei’s August 24 speech, in which he dismissed accommodation with the United States. Taking aim at domestic advocates of engagement with Washington, Khamenei said: “Those who argue, ‘Why don’t you hold direct negotiations with America and resolve your issues?’—in my opinion, they too are only seeing what’s on the surface. That is not the essence of the matter. This is not a matter that can be resolved.” n nHe looked older than just weeks earlier, before he went into hiding—tired, hoarse, and speaking slowly—but he still appeared to be in control and dictating policy. At 85, however, his time may be short. Many speculate that his son Mojtaba could succeed him. With Israel’s June strikes killing much of the Islamic Revolutionary Guard Corps’ top command, the military may not be in a position to exert much political influence soon. n nThe process of triggering the United Nations “snapback” mechanism will take about a month. Diplomatic sources say serious negotiations with Tehran will begin only once that process moves forward. The mechanism automatically restores Security Council sanctions suspended under the 2015 Joint Comprehensive Plan of Action nuclear agreement. n n“The E3 leaders believe Iran has spent years openly violating its obligations under the 2015 nuclear deal without taking concrete steps to fix the situation,” a European diplomat explained. n nAs Iran’s economy collapses, Iranians in their thirties complain on social media that nuclear talks have dragged on since their childhood, while living conditions steadily declined. One U.S. dollar traded at 9,000 rials in August 2005. Western powers first discovered Iran’s clandestine nuclear program more than twenty years ago, and negotiations have continued ever since. Many Iranians argue the regime will never make a genuine attempt to reach an agreement and question why Europeans keep engaging. n nExiled opposition leader Reza Pahlavi criticized Europe’s willingness to keep dealing with Tehran. “The E3 must reinstitute snapback sanctions without further delay. The extra time only helps the world’s foremost state sponsor of terrorism, not the UK, France, Germany, or the Iranian people,” he wrote on X. n nGovernment-controlled media in Tehran downplayed the failed talks and the European snapback decision. Some leading websites ignored the issue altogether; others limited coverage to citing Western reports. n nTrying to placate the E3, Tehran allowed International Atomic Energy Agency inspectors to visit in recent days, but only to supervise fuel replacement at the Bushehr nuclear reactor—not to inspect the sites Israel bombed in June. Questions remain about the fate of more than 400 kilograms of Iran’s highly enriched uranium. Since early 2021, Tehran has restricted International Atomic Energy Agency access and refused to cooperate meaningfully with the international watchdog. n nEarlier this month, Israeli officials threatened a second wave of strikes, a warning that may tie directly to the nuclear talks. Few expect Tehran to make concessions sufficient to prevent either the snapback sanctions or another Israeli assault—especially if Khamenei’s latest words truly reveal the essence of his policy. n nAs the Iranian economy teeters and isolation increases, Iranians must realize the worst is yet to come.