By SRH
First, Bessent’s massive TSY share buyback failed to lower rates. Bloomberg reported today that the US’s “economic D-Day” against Iran was “less Normandy and more Grenada.” As I mentioned, Treasury CTA shorts are at their biggest level ever, so the Treasury secretary simply needs to start a short squeeze to hurt Iran like last week’s “failed intervention” did.
Bloomberg reports that Iran is having problems procuring fuel because the US is restricting sales of a troublesome item.
On Sunday, the state-run Hamshahri daily reported that Tehran gas stations had long lineups because customers filled their cars before half full out of fear of price hikes.
A top US energy official blamed excessive demand, war damage, and “changes in the national budget’s priorities.” for the 14–15 million-liter daily gasoline market imbalance.
Last week, Energy Optimization and Strategic Management Organization head Esmaeil Saqab Esfahani remarked, “We have to do something to bring consumption down to the level of domestic production.” Semi-official Iranian Students’ News Agency reported this.
Iran must work harder to maintain the economy while the US launches “the single greatest financial offensive ever marshaled against an adversary.” For lack of fuel and mounting unrest. On Monday, Treasury Secretary Scott Bessent remarked.
Iranians refueled at gas stations on February 28.
Bloomberg claims that gas prices in oil-rich Iran are sensitive because the government subsidizes it to the lowest in the world. Or must.
Security forces killed hundreds of Iranian protesters in 2019 over rising prices. With long-term inflation and a deepening currency situation harming millions of Iranian households, rising fuel prices could unleash another public wrath wave like in January.
Iranian officials have warned for months that US and Israeli assaults on oil storage sites and other energy installations could raise prices due to a long-term supply-demand imbalance. Trump’s port blockade has made things worse by preventing Iran from getting products to make up for shortages.
The deposed president, Masoud Pezeshkian, threatened reductions and promoted public transit in May to rally support. It appears alarms failed.
Mohammad Bagher Ghalibaf, Iran’s parliament speaker and war strategist, claimed last week that the US and Israel would strike the Islamic Republic with increasing gas prices. An unknown “foreign country” was blamed by officials for a 2021 gasoline network cyberattack.
The government wants 4.5 million gasoline-diesel drivers to switch to compressed natural gas to make up the shortfall. Iran’s largest oil factory, Persian Gulf Star, announced it began making gasoline with methanol on Sunday. Esfahani, the energy official, said the administration is considering three gap-filling strategies.
When fuel is out, gas stations “turn off” forecourt pumps. They receive 121 million liters of fuel daily.
The second option is to raise prices to stimulate sales, and the third is to prioritize individuals over cars.
Every month, Iran’s tiered limit system lowers car petrol prices. The first 60 liters sold for 15,000 rials ($0.008), then 50 for 30,000, and so on for 50,000.
Last week, the government abruptly terminated a Kerman trial program to boost the cap and levy 872,000 rials per liter ($0.46) for sales above it.
Officials blamed poor management for the pilot’s failure, but Kerman concerned about the higher fee and suspected the government may hike rates nationwide.
Prices rose on Monday when the US imposed fresh sanctions on Iran, lowering its currency. This prompted people to rush to exchange lines to save.
Monday morning, the rial was worth 2.02 million US dollars, half of its start-of-year value.
Since the war began about six months ago, the rial has fallen gradually. Iranians are rushing to acquire US dollars before the currency falls further. Sadegh Mahmoudi, 73, told the AP at an exchange line in downtown Tehran that “no deal and peace are possible.”
Years of Western sanctions and soaring inflation have devalued Iran’s rial since November. The war worsened everything.
Hyperinflation destroyed the Iranian rial.
Iran pays the market rate, not the Central Bank rate of 1.5 million rials per dollar.
According to Sunday’s Financial Times article by US Treasury Secretary Scott Bessent, the rial has never been lower and inflation has never been greater.
He added, “The regime’s last refuge is now in the self-deception of scared countries that still think giving in to aggression can keep the peace for good.”
Trump said that future fines would “collapse the regime.” similarly to Bessent.
The pres. Rump stated on Truth Social, “IRAN IS COMPLETELY COLLAPSING!!!”
Afterward, Bessent tweeted, “Iran’s currency fell to 2 million rials per dollar today.” Over the weekend, Iran’s central bank governor Abdolnaser Hemmati said the decline in oil earnings, tax income, and social security payments has impacted the entire economy. Coming: 3 million!”
Iran has warned economic retaliation after the UAE broke off trade, citing “anything that makes this situation worse will definitely have consequences,” according to Foreign Ministry spokesman Esmail Baghaei. “We have free hands.”
