Latest / The President's Daily Brief / The PDB Situation Report | September 26th, 2026: Iran’s Economy Is Starting to Fall Apart
Transcript
- 0:07Welcome to the PDB Situation Report.
- 0:10I'm Mike Baker.
- 0:11Your eyes and ears on the world stage.
- 0:13All right,
- 0:14let's get briefed.
- 0:15First up,
- 0:15Washington is tightening the screws on the Iranian regime
- 0:18with new sanctions and of course the continuing blockade of Iranian ports.
- 0:23We'll be joined by Miyad Maliki of the Foundation for Defense of Democracies
- 0:27to examine the sanctions campaign,
- 0:29the blockade's effectiveness,
- 0:30and what else the US could do as it looks to force change in the Iranian regime.
- 0:36Later in the show,
- 0:36as Washington increases the economic pressure on Tehran,
- 0:40we'll look at the impact that
- 0:41that pressure is having on the Iranian people and whether that strain
- 0:45could translate into new unrest.
- 0:48We'll get an inside look from Alireza Jefferzadeh of
- 0:51the National Council of the Resistance of Iran.
- 0:53But first,
- 0:54today's Situation Report spotlight.
- 0:57Washington is turning up the economic pressure on Iran,
- 1:00and the latest move is aimed at something very visible
- 1:03keeping Iranian aircraft on the ground.
- 1:05The Treasury Department is warning foreign airports,
- 1:08fuel suppliers,
- 1:09ground handlers,
- 1:10and ticketing companies
- 1:11that servicing sanctioned Iranian carriers could expose them to US penalties.
- 1:16Some countries have already begun restricting flights,
- 1:19while others,
- 1:20including China,
- 1:21well,
- 1:21there's a surprise,
- 1:22are resisting the pressure.
- 1:24The question now is how effective this campaign can be,
- 1:27how much further Washington can push it,
- 1:29and whether Tehran
- 1:30can find enough willing partners
- 1:33to keep its airlines operating.
- 1:35Joining me now is Mia Maliki.
- 1:37He's a senior fellow at the Foundation for Defense of Democracies
- 1:40and a former senior sanctions official at the US Treasury Department.
- 1:44And during his time at Treasury,
- 1:45Miyad helped oversee sanctions targeting Iran
- 1:48and the network of groups that it supports across the Middle East,
- 1:51and it's quite the network of groups including Hezbollah,
- 1:54Hamas,
- 1:54the Houthis,
- 1:55and Iraqi militias.
- 1:57Miyad,
- 1:57thank you very much for taking the time to join us here on The Situation Report.
- 2:02Thanks for having me.
- 2:03Great to be with you.
- 2:04Uh,
- 2:04I appreciate that very much.
- 2:06And
- 2:06let me ask you a question.
- 2:07It's gonna sound very simplistic,
- 2:09but I think a lot of people probably think the same way that I do.
- 2:12I,
- 2:12I pride myself on my
- 2:14simplistic ways.
- 2:16Uh.
- 2:18We just,
- 2:19uh,
- 2:19we,
- 2:19we,
- 2:19I wanna ask you questions about the airline sanctions that have been put into place,
- 2:23that,
- 2:23that Treasury Secretary Scott Besson talked about.
- 2:26But
- 2:27in the world of sanctions,
- 2:29And I realize every,
- 2:31every situation is somewhat different.
- 2:34But with Iranian regime
- 2:36sanctions.
- 2:37You look at all the,
- 2:38the,
- 2:38the different things you could do.
- 2:40And
- 2:41I guess my question is,
- 2:42why don't we just do it all at one time?
- 2:44It seems like there's a never-ending
- 2:46supply of other sanctions that we can layer on
- 2:49when perhaps
- 2:51when we're talking about an organization like the Iranian regime.
- 2:54Maybe we just say,
- 2:55let's just
- 2:55do them all at once.
- 2:59That's actually is not a simple question.
- 3:02That's a very nuanced question.
- 3:04And um
- 3:05and,
- 3:06and,
- 3:06and here's,
- 3:07here's my
- 3:08response to that,
- 3:09you know,
- 3:09sanctions.
- 3:11Work
- 3:12when they're enforced.
- 3:14Uh,
- 3:14these aviation sanctions they use as an example,
- 3:18these sanctions have been in place
- 3:20for a very long time.
- 3:22What Secretary Besson is doing is bringing
- 3:26the,
- 3:26the,
- 3:26the operational aspect of sanctions,
- 3:28the enforcement.
- 3:30Um,
- 3:31yes,
- 3:32he's expanding the scope of sanctions,
- 3:34the new,
- 3:35the new sanctions that are being added.
- 3:37Um,
- 3:38but the most important part of it
- 3:40is the enforcement and why it's important?
- 3:42Sanctions are not,
- 3:43um,
- 3:44they don't work
- 3:45when you add a name to the list of sanctions.
- 3:48Sanctions work
- 3:49when compliance officers
- 3:51in companies,
- 3:53when,
- 3:53uh,
- 3:53bankers,
- 3:54when CEOs,
- 3:56uh,
- 3:57of,
- 3:57of corporations that are involved,
- 3:59for example,
- 3:59in this case in service providing,
- 4:02provi provision of services to aviation companies,
- 4:04catering.
- 4:06Those companies,
- 4:07those individuals,
- 4:08they make decisions to stop Iran business,
- 4:11and they make those decisions when they see there is a risk of being sanctioned.
- 4:16So,
- 4:17You create that risk
- 4:19by enforcing,
- 4:20by showing them
- 4:21that there is a high level of risk
- 4:24if they get engaged and if they get involved in
- 4:27in bypassing those sanctions.
- 4:29So what Secretary Passon is doing
- 4:31is what,
- 4:32for example,
- 4:33President Biden
- 4:35administration didn't do.
- 4:36President
- 4:36Biden
- 4:37came in,
- 4:38wanted to engage with the Iranian regime for a deal.
- 4:41He didn't enforce sanctions.
- 4:43He didn't remove any sanctions,
- 4:44but he did.
- 4:45He simply just stopped enforcing,
- 4:47and when you stop enforcing,
- 4:49you have sanctions kind of not working anymore.
- 4:52So Iran went from
- 4:54at the end of the Trump administration.
- 4:56Uh,
- 4:56basically,
- 4:57uh,
- 4:57exporting around 100,000,
- 5:00100,000 barrels a day
- 5:02to,
- 5:03uh,
- 5:032.5 million barrels a day.
- 5:06Um,
- 5:06sanctions didn't fall,
- 5:07sanctions were in place,
- 5:09they were just not being enforced,
- 5:10and what Secretary Besson is doing today
- 5:13is really enforcing the sanctions and putting the sanctions to work.
- 5:17OK,
- 5:17well,
- 5:17I think that's going to confuse a lot of people who assumed that
- 5:21the,
- 5:21yeah,
- 5:21the only reason to have sanctions
- 5:23is if there are consequences,
- 5:25right?
- 5:25Otherwise,
- 5:26otherwise they're not really even sanctions.
- 5:28They're just like,
- 5:29you know,
- 5:29they're suggestions,
- 5:31you know,
- 5:31hey,
- 5:31maybe you don't work with Maha Air,
- 5:34um,
- 5:35so
- 5:36it is,
- 5:36it is,
- 5:37I think.
- 5:38A very interesting point that you raised that probably will
- 5:41surprise a lot of people to think that the US is
- 5:43engaging in like this paper exercise of saying that we're sanctioning
- 5:47and then there are no consequences.
- 5:49Uh.
- 5:50Now,
- 5:52if
- 5:53If that's the case,
- 5:54and if we're now
- 5:55uh engaged in,
- 5:58in sort of the,
- 5:58the logical
- 5:59step here,
- 6:00which is to say that we are going to,
- 6:03uh,
- 6:03you know,
- 6:03follow through,
- 6:05uh,
- 6:05on our,
- 6:06on our talk about sanctions.
- 6:09This is a very broad question and kind of take it wherever you'd like to,
- 6:12but
- 6:15They also only work,
- 6:16would be my understanding,
- 6:18if
- 6:19Uh,
- 6:19key nations comply.
- 6:22And
- 6:23the key nation for Iran is,
- 6:24of course,
- 6:25China.
- 6:26And China seems to have no interest
- 6:28in
- 6:30worrying about US sanctions on Iran,
- 6:32at least at the present time.
- 6:35And yet we also as a country or as an administration right now,
- 6:38we seem to have no interest in
- 6:41In making that point known to the Chinese regime.
- 6:44It seems like we've been very timid
- 6:46in approaching the Chinese Communist Party or Xi Jinping,
- 6:49the Chinese government,
- 6:49and,
- 6:50and
- 6:51really,
- 6:53Arguing this point or,
- 6:54or,
- 6:54or even bringing it up.
- 6:56It seemed like certainly during the summit,
- 6:58um,
- 6:59President Trump was like,
- 7:00it's a very good meeting.
- 7:02Well,
- 7:02I don't see how you'd have a very good meeting if we're at war with the country
- 7:05and China is the primary supporter of that nation.
- 7:08I guess what I'm saying is,
- 7:10do you see,
- 7:11uh,
- 7:13Where these sanctions actually can have
- 7:16a serious impact.
- 7:17I know the blockade is having a great impact,
- 7:19and I apologize for this long rambling question that I'm throwing your way.
- 7:22The blockade is having an obvious impact,
- 7:24but the sanctions themselves,
- 7:26if the key trading partner for
- 7:28Iran is not engaged in that with the US.
- 7:32I suppose the question is very cynical,
- 7:33but what's the point?
- 7:37No,
- 7:37that's a really great question and a great point.
- 7:39So yes,
- 7:40China has been always a problem,
- 7:43uh,
- 7:43when it comes to our worst adversaries.
- 7:45Uh,
- 7:46China was a problem
- 7:47when Biden administration was trying to,
- 7:50um,
- 7:50uh,
- 7:50put pressure on,
- 7:51on Russians,
- 7:53and China has always been a problem with Iranians.
- 7:55Matter of fact,
- 7:56um,
- 7:57the only
- 7:59Um,
- 7:59uh,
- 8:00so our,
- 8:01for example,
- 8:01like our F-15
- 8:04that,
- 8:04that was targeted in over Iranian airspace and,
- 8:07and
- 8:08went down,
- 8:09it was targeted by,
- 8:11uh,
- 8:11Iranian used,
- 8:12um,
- 8:13a shoulder launcher,
- 8:14the surface to air missile
- 8:16that is made in China and was given to the Iranians.
- 8:20So
- 8:20it,
- 8:20it,
- 8:21it,
- 8:21it is,
- 8:22uh,
- 8:22it is a problem
- 8:23and I got to tell you.
- 8:25Uh,
- 8:25it's also very tricky to deal with China.
- 8:28US-China trade is somewhere between
- 8:31$500 to $600 billion.
- 8:33Remember,
- 8:34after Mexico and Canada,
- 8:36um,
- 8:37uh,
- 8:37China is
- 8:39our closest
- 8:40trade partner.
- 8:42It's a close,
- 8:43I mean,
- 8:43you look at those numbers and you think we're close friends,
- 8:46we're buddies.
- 8:47We're the best friends,
- 8:48you're looking at the numbers,
- 8:49right?
- 8:49But the reality is China has leveraging,
- 8:52um,
- 8:53that,
- 8:53that trade partnership
- 8:55to make things painful and difficult for us on a national security front.
- 8:59So I think we do need to look into opportunities to,
- 9:03to,
- 9:03um,
- 9:03to also leverage
- 9:05the,
- 9:05the level that the Chinese rely
- 9:08on US dollar and US financial system
- 9:11to,
- 9:11to compel them.
- 9:13Uh,
- 9:13to stop being a,
- 9:14a,
- 9:15a,
- 9:15um,
- 9:16a problem for us
- 9:17on a,
- 9:17on a national and foreign policy perspective,
- 9:19national security perspective.
- 9:22Now,
- 9:22I think,
- 9:23um,
- 9:2370 to 80% of Chinese trade still goes through US dollar
- 9:27and,
- 9:27and US financial system,
- 9:29um,
- 9:29and or,
- 9:30or is done or transactions are settled using US dollars.
- 9:33So there's a lot of opportunities there for us to put the,
- 9:35push the Chinese
- 9:37to,
- 9:37to,
- 9:38um,
- 9:39To be more aligned or at least not
- 9:41throwing roadblocks where we're trying to address certain issues.
- 9:44Now,
- 9:45um,
- 9:45Iran and China trade is somewhere between $10 to $12 billion a year,
- 9:50um,
- 9:51If you add oil to it,
- 9:53Iran's
- 9:54main
- 9:55purchaser of oil is the Chinese.
- 9:57However,
- 9:58the Chinese are not buying Iranian oil as Iranian oil.
- 10:02It goes to China as Malaysian,
- 10:04as Iraqi oil,
- 10:06but,
- 10:06but the trade with Iran
- 10:08is
- 10:09about $10 to $20 billion a year.
- 10:11The trade with the US is $500 to $600 billion a year.
- 10:15So
- 10:16the Chinese understand
- 10:18that
- 10:18they can't risk their US trade.
- 10:21Uh,
- 10:22over the Iran trade,
- 10:23and
- 10:24I've heard from Chinese officials
- 10:26that they view Iran's trade more of a liability
- 10:29and problems opposed to a partnership.
- 10:32So,
- 10:33um,
- 10:33I think we haven't pushed them hard enough.
- 10:35I think there are opportunities to push the Chinese to,
- 10:38to,
- 10:38to at least in this case,
- 10:40um,
- 10:40uh,
- 10:41not being as
- 10:42problematic as they've been,
- 10:44um,
- 10:45but also
- 10:45Iran's decision to close the Strata Formos.
- 10:49It has been a major annoyance.
- 10:51It's really has annoyed the Chinese.
- 10:53So
- 10:54we also have a diplomatic opportunities with the Chinese right now,
- 10:58um,
- 10:59to,
- 10:59to convince them
- 11:00that there would be consequences if they continue to
- 11:03use Iran as a leverage to pressure us,
- 11:06um,
- 11:07and that we are serious about the issue of Iran.
- 11:09I heard that President Trump actually raised this issue,
- 11:12um,
- 11:12in the meetings yesterday,
- 11:14um,
- 11:15and,
- 11:15and I.
- 11:16I think there are
- 11:17probably,
- 11:17and I,
- 11:18what I'm hearing is a lot of behind the scenes engagements with the Chinese,
- 11:22the Chinese private sector,
- 11:24putting aside
- 11:25the,
- 11:25the slogan that comes out of the Chinese government,
- 11:28the Chinese private sector really care about their access to US dollars.
- 11:32They really care about the US trade,
- 11:34and I think
- 11:35we have the engagement with the government,
- 11:37but the engagement with the private sector in China
- 11:40can be very fruitful
- 11:41and helpful in this case.
- 11:44Yeah,
- 11:44I would worry that,
- 11:46you know,
- 11:46when you say private sector,
- 11:47there's really not a private sector in China.
- 11:49Uh,
- 11:50ultimately
- 11:51they're not going to act,
- 11:52you,
- 11:52you're not gonna find it.
- 11:53It's like when we talk about,
- 11:54um,
- 11:55the concern that,
- 11:56you know,
- 11:57that some Chinese companies are providing satellite imagery
- 12:00that's helping the Iranian regime target American assets.
- 12:03It's not as if those companies are rogue.
- 12:05They're not acting unilaterally without the tacit understanding or approval
- 12:10of the Chinese government.
- 12:11You know,
- 12:12that's just,
- 12:12it,
- 12:12it's,
- 12:12it's not that sort of system.
- 12:15And so I,
- 12:16I worry about
- 12:17this notion
- 12:18that,
- 12:19uh,
- 12:19you know,
- 12:20perhaps we can,
- 12:21we can be pragmatic with the Chinese government,
- 12:23you know,
- 12:24talk to them about their support to Iran and do that,
- 12:26and then still do business with the private sector and,
- 12:28and one doesn't affect the other.
- 12:31But
- 12:31going back to your earlier point,
- 12:32you're absolutely correct and you,
- 12:34you,
- 12:35you put it very succinctly.
- 12:36It's very complex,
- 12:38uh,
- 12:38dealing with China.
- 12:39Now,
- 12:40I want to jump back into that,
- 12:41um,
- 12:42Miyad,
- 12:42in just a second,
- 12:43but first,
- 12:44if you'll stay right where you are,
- 12:46we do have to take a quick break
- 12:48and then we'll be back with more from Miyad Malekki of the Defense for Democracies.
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- 14:08Welcome back to the PDB Situation Report.
- 14:11Joining me once again
- 14:12is senior fellow at the Foundation for Defense of Democracies,
- 14:15Miyad Mawlaki.
- 14:16Miyad,
- 14:16thank you very much for sticking with us.
- 14:19Um,
- 14:19we're talking all things sanctions in the Iranian regime.
- 14:22And,
- 14:23uh,
- 14:24talk to me about,
- 14:25without,
- 14:25I,
- 14:25I,
- 14:26without going too far into the weeds,
- 14:27I think it's probably a very technical subject,
- 14:29but talk to me about the difficulty
- 14:31of enforcing sanctions
- 14:34in today's world.
- 14:37Sure,
- 14:37that's again,
- 14:38another great question.
- 14:39I think here's,
- 14:39here's a challenge.
- 14:40When you get to
- 14:42When rubber hit the road and you're actually going after
- 14:46enforcement of secondary sanctions,
- 14:48and secondary sanctions means when you go and tell
- 14:52foreign countries,
- 14:54foreign partners,
- 14:55foreign governments,
- 14:56meaning
- 14:57non-Iranian,
- 14:57non-Russian,
- 14:58but
- 14:59enablers,
- 15:00facilitators,
- 15:01those who help our adversaries bypass sanctions.
- 15:04Those who have
- 15:06touch points with US businesses and US financial system,
- 15:09that's where the sanctions work.
- 15:11And when you go after those type of targets
- 15:14with tools like sanctions,
- 15:16there are a couple of things that you got to think about.
- 15:18One,
- 15:19what is,
- 15:20are you going to achieve the goal you want to get out of sanctioning that entity?
- 15:26Um,
- 15:26in a way that it would
- 15:28pressure,
- 15:28put pressure on your adversary,
- 15:30and how much of that pressure is going to be on the US business
- 15:34because remember every time you use sanctions you're giving away US business,
- 15:39right,
- 15:40in the interest for the benefit of our national security interest.
- 15:43So
- 15:44we,
- 15:44we discussed,
- 15:46we discussed the Chinese entities,
- 15:48right?
- 15:48So
- 15:49remember we have an
- 15:51extreme
- 15:51large interest in the Chinese market manufacturing
- 15:55um uh industry in China.
- 15:57So when we use these tools,
- 15:59how much of that is going to hurt
- 16:01US businesses and US interests versus how much of
- 16:04that is going to be pressure on our adversaries,
- 16:07right?
- 16:07So
- 16:08I think it's,
- 16:08it's appropriate to use sanctions to go after bad actors.
- 16:12Um,
- 16:13but we also,
- 16:14the difficulty here is to measure the effectiveness
- 16:18to see how much of that is going to really pressure our adversaries
- 16:21versus how much of that is going to really,
- 16:23uh,
- 16:24deprive US business interests,
- 16:26right?
- 16:26Um,
- 16:27so that's,
- 16:28um,
- 16:28that,
- 16:28that's kind of the complexity of,
- 16:30of using sanctions when it comes to going after very effective targets.
- 16:35And then I guess you have the,
- 16:37all the difficulties involved in the investigative process,
- 16:40right?
- 16:40Because it really is an investigative process
- 16:43to identify
- 16:44how
- 16:45a country is getting around sanctions,
- 16:48right?
- 16:48Because in part that's it,
- 16:49it all goes hand in hand,
- 16:50right?
- 16:51You lay out the sanctions,
- 16:52you explain the consequences and the secondary sanctions for countries that
- 16:55or groups or companies that decide to work with that sanctioned country,
- 16:59uh,
- 17:00but you've got to be able to gather the evidence that's involved.
- 17:04Right,
- 17:04and then sanctions evaders have become very smart
- 17:08in how they're evading sanctions,
- 17:10uh,
- 17:10whether it's counterfeiting documents,
- 17:13using
- 17:14series of front companies,
- 17:15for example,
- 17:17it does create a cost
- 17:19when sanctions evaders,
- 17:21when Iranians.
- 17:21Russians,
- 17:23instead of putting oil on a tanker,
- 17:25going from
- 17:26the oil terminal to the buyer,
- 17:29they have to do 4 or 5 rounds of ship to ship transfers.
- 17:32They have to counterfeit documents,
- 17:34they have to go through layers of intermediaries that are corrupt,
- 17:37that are charging commission.
- 17:38It's black market.
- 17:40So they lose a lot of profit
- 17:42and that's really a part of the goal of the sanctions,
- 17:44right?
- 17:45It makes those cargoes,
- 17:46those exports less profitable
- 17:49for adversaries,
- 17:50but also going after those intermediaries is very challenging
- 17:54because they're really good at hiding
- 17:56their identities.
- 17:57They're really good at
- 17:59evading our sanctions.
- 18:00So
- 18:01you're absolutely right.
- 18:02And also remember,
- 18:03Sanctions are legal tools.
- 18:05You have to establish some,
- 18:07uh,
- 18:07you need to meet some legal threshold
- 18:10that certain entity has in fact engaged in bypassing sanctions.
- 18:13You've got to have evidence,
- 18:15you know,
- 18:15we're,
- 18:15we're a country of justice,
- 18:17um,
- 18:18a very strong judiciary,
- 18:19like
- 18:20we've got to establish some evidence before you can sanction an entity
- 18:24and,
- 18:24and it takes time and in most cases.
- 18:27That activity should have happened already,
- 18:30meaning someone had done something wrong and then you go after them with sanctions.
- 18:34So sometimes
- 18:35the effectiveness comes after the conduct has already taken place,
- 18:39yet
- 18:40it,
- 18:40it cut them off from the,
- 18:41from the financial institutions and it has some serious effects.
- 18:45Yeah,
- 18:46no,
- 18:46and you,
- 18:46you,
- 18:47you raised a very good point which is that look,
- 18:48they've been,
- 18:49the Iranians certainly have been doing this for a
- 18:50long time in terms of understanding how to get around
- 18:54US sanctions,
- 18:55right?
- 18:55And they've become
- 18:57relatively sophisticated.
- 18:59Uh,
- 18:59the Russians,
- 19:00uh,
- 19:01likewise,
- 19:02uh,
- 19:02particularly since Putin's invasion
- 19:04in 2022,
- 19:05and the relationship between the Iranians and the
- 19:07Russians is such that they're sharing that knowledge,
- 19:10right?
- 19:11It's like one fraudster helping another,
- 19:13you know,
- 19:14and to commit.
- 19:16More fraud,
- 19:17and it is,
- 19:18it's from an investigative
- 19:20point of view,
- 19:20it's a very tough thing to do
- 19:22because they're constantly shifting and adjusting.
- 19:24We've talked on the PDB before about
- 19:26the sort of the Russian networks
- 19:28and how they
- 19:29evade.
- 19:30The sanctions and obviously the,
- 19:32the Iranians have been engaged in the same thing.
- 19:34Let me take just a little bit of a turn.
- 19:35Talk to me about your,
- 19:37your thoughts,
- 19:38um,
- 19:38how you view the blockade,
- 19:40the US blockade of,
- 19:41uh,
- 19:41Iranian ports.
- 19:43Talk to me about,
- 19:43you know,
- 19:44your perspective on that,
- 19:45how effective it's been,
- 19:46um,
- 19:47and,
- 19:48you know,
- 19:48whether
- 19:49that may be the one thing
- 19:51that,
- 19:52um,
- 19:53Has
- 19:54maybe gotten to the Iranian regime,
- 19:56maybe getting them to the point where they're thinking
- 19:58we probably do need to negotiate something.
- 20:02Absolutely,
- 20:03so I think blockade is something we've never had with the Iranian regime.
- 20:06We always had robust set of sanctions,
- 20:09some other foreign policy tools that we have
- 20:11deployed to degrade the Iranian regime's ability to,
- 20:14to generate revenue and,
- 20:16and procure weapons systems and
- 20:18uh and,
- 20:19and,
- 20:20and boost its nuclear program,
- 20:21but the blockade is very unique in a way
- 20:23that we've never had such a physical disruptive tool.
- 20:27Being deployed against his adversary.
- 20:30Now,
- 20:31um,
- 20:31a couple of things,
- 20:32so one,
- 20:34At the beginning of the,
- 20:35the,
- 20:35um,
- 20:36when,
- 20:36when there were talks about the naval blockade,
- 20:38you know,
- 20:39um,
- 20:39my thoughts were the blockade is going to
- 20:42be in somewhere in the Persian Gulf,
- 20:44um,
- 20:45and it's going to really block off Iran's oil terminals.
- 20:48What happened,
- 20:49um,
- 20:49the blockade line
- 20:51was
- 20:51placed outside the Strait of Hormuz,
- 20:54uh,
- 20:54which makes sense,
- 20:55makes sense,
- 20:56um.
- 20:57But,
- 20:57but it gave Iranians some time
- 20:59to,
- 21:00to use their assets in the Persian Gulf freely
- 21:03to not have to drop the oil extraction
- 21:06because the naval blockade goes in place,
- 21:08it doesn't allow Iranians to send oil out of the Strait of Hormuz,
- 21:12and it wouldn't allow them to bring imports
- 21:15through the Strait of Hormuz,
- 21:17and that's about $435 million a day in trade
- 21:20that is gone.
- 21:21Um,
- 21:22with oil extraction,
- 21:23it took some time,
- 21:25but now they have dropped the oil extraction
- 21:28to
- 21:28probably somewhere between 1.2,
- 21:301.3 million barrels a day,
- 21:32and that is the amount they can refine domestically.
- 21:35Otherwise they have probably shut in their wells
- 21:38and the extraction level has been dropped to a point that if they want to
- 21:41take it back up
- 21:42to 4 million barrels a day.
- 21:44Um,
- 21:45it's gonna probably take months if,
- 21:46if not years.
- 21:47So that has caused a serious damage in the long term.
- 21:51But in the day to day
- 21:53economic activities,
- 21:55they're,
- 21:55they're losing $435 million in trade,
- 21:58and it has accelerated the effect of sanctions.
- 22:01Now,
- 22:02and
- 22:03the reason that I'm saying it's gonna keep
- 22:04getting worse for them every day is because,
- 22:07um,
- 22:07you know,
- 22:07during the
- 22:08last year or two years of the Biden administration,
- 22:12And then when the blockade,
- 22:14before the blockade was
- 22:15imposed and when there was a
- 22:17pause in the blockade,
- 22:18Iranians managed to get a lot of oil out of the Shred of Hormoz,
- 22:21so they had around 130 million,
- 22:23160 million
- 22:25barrels of oil
- 22:26sitting in international waters outside the blockade
- 22:29that has now been dropped.
- 22:32To somewhere close to 20 to 25 million barrels,
- 22:35and that's because Chinese keeps buying some of that oil.
- 22:38Now the Chinese are only buying close to like 300,000 to 400,000
- 22:42barrels a day,
- 22:43so they're
- 22:44buying less and the only
- 22:46buyers in China are the already sanctioned
- 22:48refineries that are buying Iranian oil.
- 22:51We talk about,
- 22:52we,
- 22:52we,
- 22:53we talk about this a lot.
- 22:54Uh,
- 22:54we,
- 22:54we talk about how much is moving through the strait,
- 22:57how much has gotten through,
- 22:58uh,
- 22:59what the Chinese are buying,
- 23:00what they're not able to do,
- 23:01what the Russians are.
- 23:02How accurate
- 23:03from your perspective and your experience,
- 23:06how accurate,
- 23:06how credible are these numbers that we're throwing out there when we talk about,
- 23:10uh,
- 23:10levels of production and,
- 23:12you know,
- 23:13what's getting moved.
- 23:15So the level of production are um
- 23:19pretty accurate.
- 23:20The reason is for that is because we,
- 23:22we,
- 23:22we see the contracts,
- 23:23you know,
- 23:23like how much you're actually
- 23:25promising to buyers
- 23:27and,
- 23:27and the satellite images or companies are monitoring the movement
- 23:31of tankers out of the solar from months but also
- 23:33uh the tankers are getting filled.
- 23:35Um,
- 23:36filled up
- 23:36at Iran's Khark Island,
- 23:38the main oil terminal.
- 23:39So those numbers are accurate.
- 23:41The,
- 23:41the,
- 23:41the numbers when it comes to export import,
- 23:43those numbers are,
- 23:44we rely on Central Bank of Iran own own numbers,
- 23:48but these are not numbers that they would mess around with.
- 23:50These are numbers that,
- 23:51that we can probably take us closer to the reality.
- 23:54But at the end of the day,
- 23:55it's The dictatorship
- 23:56they control the information,
- 23:58uh,
- 23:58they own the information.
- 24:00We just work with what we can get,
- 24:01um,
- 24:02out of,
- 24:03out of the central bank,
- 24:04uh,
- 24:05and also we're talking,
- 24:06we're talking about China as the,
- 24:08the key partner and,
- 24:09and there of course there's a significant lack of transparency there
- 24:13in terms of,
- 24:14of what they're doing,
- 24:15um.
- 24:17Last question,
- 24:18are you,
- 24:21where I,
- 24:21I don't wanna
- 24:23have you,
- 24:23well,
- 24:23of course I do wanna have you speculate.
- 24:25Do you,
- 24:26do you,
- 24:27um,
- 24:28are you hopeful
- 24:29about
- 24:30where this is going?
- 24:31Uh,
- 24:32do you think that
- 24:34Uh,
- 24:34there is the potential for a,
- 24:37uh,
- 24:37whatever you wanna call it,
- 24:38regime change because of unrest in,
- 24:41in the country.
- 24:42Do you think we're gonna end up with the same regime
- 24:44and just concessions given in order to get this straight open,
- 24:47so,
- 24:48you know,
- 24:48the gas prices drop and people forget about it before the US elections.
- 24:52Where are you on,
- 24:53on all of this from your own personal perspective?
- 24:57Sure,
- 24:57I mean that's a,
- 24:58a million-dollar question,
- 24:59but here's,
- 24:59here's the way I'm looking at it.
- 25:01If you look at the economic
- 25:02um situation in Iran,
- 25:05um,
- 25:06The current situation the Iranian regime is in right now,
- 25:09you have a naval blockade.
- 25:11You don't have an ongoing conflict or war,
- 25:13meaning the economy is up and running,
- 25:15so you have a market demand that is going up.
- 25:18The inflation rate is going up
- 25:20significantly,
- 25:2180%,
- 25:2190% inflation rate,
- 25:23food inflation rate of 300%.
- 25:25No oil being exported,
- 25:27no
- 25:28imports are coming through.
- 25:30Um,
- 25:30and,
- 25:31and,
- 25:31and,
- 25:31and the,
- 25:32um,
- 25:32domestic manufacturing has,
- 25:34has,
- 25:35um,
- 25:35been
- 25:36targeted.
- 25:37During the war and it's been on the decline.
- 25:40So if you look at those economic
- 25:42numbers,
- 25:42it's
- 25:43it's a collapsed economy.
- 25:45It's an economy that
- 25:47is like a ticking bomb.
- 25:48So
- 25:49any minute something could trigger an uprising in Iran,
- 25:53but look at
- 25:55very quickly,
- 25:56Iran had this regime had to deal with the eight year war
- 25:59in the 80s,
- 26:00Iran-Iraq war.
- 26:01They've learned how to manage the economy that is dealing with a war on its Under
- 26:06a lot of pressure.
- 26:07These guys are also revolutionaries.
- 26:09They know how to avoid or deter a revolution.
- 26:11They came out of the revolution.
- 26:13They're thugs.
- 26:14They're terrorist militias.
- 26:15That's these guys are good at avoiding a revolution.
- 26:18So it's going to be very challenging
- 26:20for the Iranians to topple this regime.
- 26:23But at the same time,
- 26:25every year,
- 26:26every 2 years we have uprisings in Iran
- 26:28that that come very close
- 26:31to starting a political transition there.
- 26:34So.
- 26:35Putting all of that together and the gap
- 26:37that exists between the regime and its people,
- 26:39it's hard to believe that this regime is going to be in place for much longer,
- 26:43but it's probably going to take some time
- 26:45before the Iranians can
- 26:47be united in a way to actually take over
- 26:51the government.
- 26:52I think the pressure by the US government right now today is working very well.
- 26:56I think it's really has crippled the government's ability to
- 26:59collect taxes that is need,
- 27:01revenue from oil that it needs.
- 27:03It's
- 27:03printing a lot of real,
- 27:05uh,
- 27:05Iranian currency
- 27:07so it can continue to pay salaries,
- 27:09so it doesn't have to cut salaries,
- 27:11so it doesn't have to trigger uprising,
- 27:14but it can print gasoline.
- 27:15It's gonna run out of gasoline very soon.
- 27:18That might be a triggering factor for significant pressure domestically.
- 27:23And,
- 27:23and also the reality is,
- 27:24is almost worthless at this point,
- 27:26but,
- 27:27uh,
- 27:27and,
- 27:28and if they get to the point where they can't pay the security
- 27:31personnel,
- 27:32uh,
- 27:32and the militia,
- 27:33and the besieged militia and,
- 27:35and IRGC,
- 27:36uh,
- 27:37low-level,
- 27:37mid-level,
- 27:38you know,
- 27:38that's when you could start to see,
- 27:40you know,
- 27:41some
- 27:42opportunity.
- 27:42But you're right,
- 27:43it is a,
- 27:43it's an enormously heavy lift to ask people who don't have the guns.
- 27:48To go back out on the streets against a
- 27:50very repressive regime that just finished slaughtering thousands of citizens
- 27:55earlier in the year.
- 27:56Uh,
- 27:57so,
- 27:57I,
- 27:57I do worry,
- 27:58it's a little bit like the,
- 27:59the Michigan candidate,
- 28:01uh,
- 28:01for,
- 28:02uh,
- 28:02Senate,
- 28:02uh,
- 28:03Syed,
- 28:04um,
- 28:04was asked about.
- 28:06You know,
- 28:07do you,
- 28:08do you denounce the IRGC or do you,
- 28:10you know,
- 28:11how do you,
- 28:12you know,
- 28:12how do you respond to,
- 28:13you know,
- 28:14concerns about what the Iranian people are going through?
- 28:16And,
- 28:16and his point was,
- 28:17well,
- 28:17I support democracies everywhere.
- 28:19I don't think the US had any right to get involved.
- 28:22You know,
- 28:22what happens to the Iranian people should be left to the Iranian people.
- 28:25I'm thinking,
- 28:25well,
- 28:26yeah,
- 28:26that's a,
- 28:26that's a great,
- 28:27you know,
- 28:28say nothing statement
- 28:29when you're talking about a people
- 28:31that have been under the,
- 28:32the,
- 28:33the,
- 28:33you know,
- 28:33the regime there,
- 28:35uh,
- 28:35and have seen what they're willing to do to,
- 28:37to people when they come out in the streets and protest.
- 28:40Uh,
- 28:41didn't mean to disappear down that rabbit hole,
- 28:42me.
- 28:43I do wanna say thank you very,
- 28:45very much for taking time.
- 28:46I hope you'll come back again because I got,
- 28:48I got 7 more pages of questions I was gonna throw your way,
- 28:51but we are out of time.
- 28:54Would love to be back.
- 28:55Great to be with you.
- 28:56Excellent.
- 28:57Thank you very much,
- 28:57sir.
- 28:57I really appreciate it.
- 28:58I look forward to the next time.
- 28:59Mia Maliki of the Foundation for Defense of Democracies.
- 29:03Well,
- 29:03all right,
- 29:03coming up next,
- 29:04while Iran
- 29:05is under growing economic pressure from abroad,
- 29:08the bigger question,
- 29:09as we just alluded to,
- 29:10maybe what happens inside the country
- 29:13as inflation,
- 29:14unemployment,
- 29:15and public frustration
- 29:16continue to build.
- 29:17We'll be joined by Alireza Jaffazadeh.
- 29:20He's with the National Council of Resistance of Iran
- 29:23for more on that.
- 29:24So please
- 29:25stick around.
- 29:28Hey,
- 29:28Mike Baker here.
- 29:29The President's Daily Brief is brought to you
- 29:31by Mod.
- 29:32Now Mod prescribes a once or twice daily modafinil drink.
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- 30:31Welcome back to the PDB Situation Report.
- 30:34As sanctions continue to squeeze Iran from the outside,
- 30:37the pressure inside the country is building.
- 30:39Iranian officials
- 30:40have acknowledged serious economic problems.
- 30:43Well,
- 30:43how gracious of them,
- 30:44including currency instability,
- 30:46inflation,
- 30:47and unemployment.
- 30:49The government has also moved to raise fuel prices for the heavier users.
- 30:53And that's a politically sensitive step in a
- 30:55country where previous gas increases have
- 30:58helped trigger unrest.
- 30:59For more on this,
- 31:01I want to turn to a great friend of the show,
- 31:03Alireza Jeffrizadeh,
- 31:04deputy director of the Washington Office
- 31:06of the National Council of Resistance of Iran.
- 31:09Alireza,
- 31:10great to see you again.
- 31:12Always a pleasure,
- 31:12Mark.
- 31:13Great to be on your show.
- 31:15Uh,
- 31:15thank you.
- 31:16Thank you very much.
- 31:16You've been busy.
- 31:17I understand you've been traveling.
- 31:20Yes,
- 31:20I was actually,
- 31:21I just came back from New York
- 31:24and we had a very eventful two day
- 31:29major
- 31:31rally across from the United Nations.
- 31:34The first rally was on the first day of the General Assembly
- 31:39just to coincide with the beginning of it where all the world leaders were there.
- 31:44The message was very clear,
- 31:46telling the world leaders
- 31:48that Iran
- 31:50is not recognized by its regime
- 31:53rather by its people,
- 31:55that Poshkian and the regime do not represent
- 31:59the people of Iran.
- 32:00They represent a repressive regime
- 32:03that kills its own people,
- 32:05massacres,
- 32:06supports terrorism in the region,
- 32:08spends all the money and resources of the country.
- 32:11On developing nuclear weapons and missile program
- 32:15that undermines not only the interests of the people
- 32:18of Iran but the rest of the world,
- 32:20and that
- 32:22it shouldn't be like that.
- 32:23There is an alternative,
- 32:25and that alternative is actually the people of Iran and the organized resistance
- 32:30fighting for freedom
- 32:32for 4 decades,
- 32:33over 4 decades.
- 32:35And it has a very clear leadership.
- 32:37Mrs.
- 32:37Rajavi introduced a 10 point platform
- 32:40for the future of Iran that corroborates with all the international norms,
- 32:45a clear roadmap
- 32:47for change in Iran.
- 32:49There's a
- 32:49powerful network inside Iran.
- 32:51All the world needs to do
- 32:53is to look at Iran through the prism of its people,
- 32:56not the regime.
- 32:58Yeah,
- 32:59yeah,
- 32:59it's easier said than done since people really don't get much of a voice.
- 33:03Um,
- 33:04now,
- 33:04it is,
- 33:05it is remarkable when you think about we're in this direct conflict with Iran
- 33:09and
- 33:10here
- 33:11in UN
- 33:12General Assembly Week,
- 33:13which by the way,
- 33:14is the worst time to be in New York,
- 33:16um,
- 33:17is,
- 33:19is Mossud Bazeskian,
- 33:20right,
- 33:20is the
- 33:21president of this country that we're in a direct conflict with.
- 33:25And here he comes,
- 33:27allowed to address
- 33:28the uh
- 33:29the assembly,
- 33:30and everyone dutifully,
- 33:32you know,
- 33:32sits and listens.
- 33:33Uh,
- 33:34they also have a framed picture of Qasem Soleimani,
- 33:37um,
- 33:38on their uh desk there in the General Assembly and talk
- 33:41about someone who had a lot of blood on his hands.
- 33:44Um,
- 33:44so it's,
- 33:45it is
- 33:46a,
- 33:46a very bizarre dynamic.
- 33:51Absolutely it's really bizarre because you know United Nations as the name says
- 33:57it has to be about the nations,
- 34:00not just regimes.
- 34:01It's not about united regimes or united governments
- 34:05and then yet you have
- 34:07the consistently over the past few decades
- 34:10you have the leaders of the Iranian regime
- 34:13coming to the UN while they have presided over
- 34:16massacre and killings and threatening the rest of the world.
- 34:20And then they get at the podium they start,
- 34:23you know,
- 34:23giving lessons
- 34:25preaching to the rest of the world about human rights,
- 34:27about,
- 34:28you know,
- 34:29peace and all of that and that's why,
- 34:32you know,
- 34:33we felt it very important.
- 34:36To once again gather in front of the UN as Pezekian was speaking,
- 34:40you know,
- 34:41there were thousands of Iranian resistance supporters
- 34:46right across the UN chanting,
- 34:49you know,
- 34:49Down with terrorist regime
- 34:51of ruling Iran.
- 34:54And
- 34:55calling change change change regime change
- 34:58in Iran by the people of Iran.
- 35:00So
- 35:00they were
- 35:01do any of those images,
- 35:02Ali Reza,
- 35:02do any of those images get into Iran?
- 35:05Do
- 35:05the
- 35:06people of Iran,
- 35:07they have the opportunity to see what's happening
- 35:09as an example?
- 35:10I know they can't turn on the TV and watch it,
- 35:12but still.
- 35:13Right,
- 35:13yes,
- 35:14you know
- 35:15what we did
- 35:16on both days
- 35:18we had the live feed into Iran
- 35:21on
- 35:21there's a satellite TV.
- 35:23It's called Iranian TV
- 35:25and they beam into Iran
- 35:27extensively and people can watch it,
- 35:30of course you know it's banned,
- 35:31but a lot of people.
- 35:34Watch banned programs,
- 35:35but also it was available live on social media.
- 35:39A lot of media covered it like Fox had several reports about this.
- 35:43CBS News had it,
- 35:45and you know some of those gets into Iran
- 35:48and so people find ways of getting that message
- 35:52that,
- 35:53you know,
- 35:53position
- 35:54is not what he says,
- 35:56that he was rejected.
- 35:57By the people that people are talking about the alternative about the future,
- 36:02not about the current theocracy or the past dictatorship of the Shah,
- 36:07and that message was very delivered very,
- 36:10very clearly,
- 36:11but it's not enough because you know so long as the mullahs are in power
- 36:15they would try to use every means available to them.
- 36:18That's why our effort
- 36:20has to be doubled and everything
- 36:22you know we do on social media and other places
- 36:25we need to spread the word.
- 36:27Yeah,
- 36:28I wanna talk to you about the,
- 36:29the economic
- 36:30conditions inside the country,
- 36:31but,
- 36:32uh,
- 36:32you know,
- 36:32I just,
- 36:33as we wrap up the kind of look at what happened to the UN,
- 36:36I,
- 36:37uh,
- 36:38my,
- 36:38my personal feeling is that the UN is a fairly feckless organization.
- 36:42It takes up a lot of space and
- 36:44rarely actually at the end of the day accomplishes.
- 36:47Uh,
- 36:47a lot of meaningful activity.
- 36:49You do need people talking,
- 36:50you need diplomatic channels,
- 36:51all of that.
- 36:52I get it.
- 36:53But the UN as an organization has always
- 36:55just struck me as this enormously immovable,
- 36:57feckless organization.
- 36:59It would have a little more credibility,
- 37:00I think,
- 37:01if,
- 37:02uh,
- 37:02all those same people who self-righteously stormed out when Netanyahu was
- 37:06about to speak would have done the same thing with possession,
- 37:09you know,
- 37:09in protest of,
- 37:10of the regime slaughter of thousands and thousands
- 37:13of their own citizens earlier in the year.
- 37:16Well,
- 37:17interestingly,
- 37:18Mark,
- 37:18you know,
- 37:18the
- 37:20UN has different organizations,
- 37:22bodies.
- 37:22They have fact finding missions,
- 37:25some of their own
- 37:27reports as recent as just this past month,
- 37:32plus so many other reports came out by the United Nations saying that
- 37:37The Iran regime was involved in the massacre
- 37:40of
- 37:41thousands upon thousands of political prisoners in 1988.
- 37:46Not only that,
- 37:47they said it amounted to crimes against humanity and even genocide.
- 37:51They also talked about the massacre this year in 2026 in January.
- 37:58All of that.
- 37:59Yet you know when it comes to those reports that are there,
- 38:02but when it comes to the whole
- 38:04Organization or the member states,
- 38:07they just go their own way.
- 38:08That's why I think
- 38:10it's so important to get the voices out,
- 38:12to have the voices of the people
- 38:15to be heard,
- 38:15because if you just leave it
- 38:17to those countries or the institutions,
- 38:20it will not go anywhere.
- 38:22And that's why I think those two days
- 38:25were extremely important
- 38:27to get the message out and we got very good coverage,
- 38:30but it's never enough.
- 38:33Did you get any sense that there was uh
- 38:36Any
- 38:38Um
- 38:39Feedback?
- 38:40Have you heard any feedback?
- 38:41Has it,
- 38:42I don't necessarily mean direct feedback,
- 38:43but
- 38:44have there been any statements from the Iranian regime,
- 38:47uh,
- 38:48over,
- 38:48you know,
- 38:48the,
- 38:49the two days,
- 38:50uh,
- 38:50that you were there?
- 38:52Well,
- 38:52you know,
- 38:53Pozhkin himself addressed the UN saying that
- 38:57Iran is being attacked by terrorists,
- 38:59and
- 39:00of course you know they're referring to
- 39:03those who are fighting the Iranian regime over the years
- 39:07and every time they attack it,
- 39:09the Iranian media attacked us saying that,
- 39:11you know,
- 39:12the terrorists and
- 39:15Agents of other countries
- 39:18were demonstrating across from the UN.
- 39:19These are not agents of other countries or terrorists.
- 39:22I remember the very first rally that I participated across from the UN.
- 39:27I was much younger at the time.
- 39:28That was 46 years ago in 1981
- 39:32that we had the first rally in front of the UN
- 39:36when the killings had
- 39:37started,
- 39:38and every single year
- 39:40all throughout this period,
- 39:41with the exception of one year because of COVID.
- 39:44The people gathered in front of the UN,
- 39:47you know,
- 39:47our movement
- 39:48was involved
- 39:50in galvanizing everybody,
- 39:52just keeping the voice,
- 39:54you know,
- 39:54repeating about the killings in Iran,
- 39:57but also the desire of the people
- 39:59for change.
- 40:00When you have that level of continuity.
- 40:02Over different administrations,
- 40:04different circumstances,
- 40:06continuing,
- 40:08you know,
- 40:08protesting and calling for change and democracy,
- 40:12this is the true voice of the people of Iran,
- 40:15not those ruthless mullahs,
- 40:17and the real terrorists are those who are
- 40:20ruling the country.
- 40:23Yeah,
- 40:23no,
- 40:23it is,
- 40:24it is the,
- 40:24the,
- 40:25the lack of,
- 40:26of self-awareness and of irony of,
- 40:27of,
- 40:28of the
- 40:28Iranian regime complaining and
- 40:30calling,
- 40:31calling the resistance terrorists
- 40:33is,
- 40:33is really,
- 40:34uh,
- 40:34you know,
- 40:35it's just again another indication of they,
- 40:37they are living in an alternative world.
- 40:39Um,
- 40:40Alireza,
- 40:41I wanna talk,
- 40:42I wanna pivot over to the economy and
- 40:44what it's doing internally inside the country and,
- 40:46and its impact on the population,
- 40:48but,
- 40:48but first,
- 40:50we do have to take a quick break.
- 40:52So,
- 40:52stick around and we'll be back with more from Alireza Jaffazadeh and the
- 40:57National Council of Resistance of Iran.
- 40:59Stick with us.
- 41:01Welcome back to the PDB Situation Report.
- 41:04Joining us once again is Alireza,
- 41:05Jefferzadeh.
- 41:06He's the deputy director of the National Council
- 41:08of Resistance of Iran.
- 41:11Um,
- 41:11Alireza,
- 41:12let's,
- 41:13let's talk about the economic conditions inside Iran.
- 41:16We've touched on it before in the past,
- 41:18but now,
- 41:20Since we last talked,
- 41:21obviously the blockade of Iranian ports
- 41:24has been in place for quite some time.
- 41:27We're getting all sorts of reports on,
- 41:30you know,
- 41:30the impact it's having.
- 41:32The
- 41:32Uh,
- 41:33the inflation rate,
- 41:34food prices increasing,
- 41:36uh,
- 41:36you know,
- 41:37shortages of fuel.
- 41:39But
- 41:39sometimes you do wonder whether
- 41:41the numbers we're hearing,
- 41:42the things we're hearing
- 41:44out in the West,
- 41:45just how accurate they are.
- 41:47So give us your impressions of,
- 41:49of what's happening inside the country from an economic perspective and how it's,
- 41:53how it's really impacting the people.
- 41:57Well,
- 41:58you know,
- 41:58economy has been one of the most
- 42:00important elements that has really galvanized the protests
- 42:05in Iran since at least the past decade.
- 42:09And it's astonishing that a country
- 42:12so rich,
- 42:14so powerful,
- 42:15so resourceful
- 42:16like Iran,
- 42:17you have 80% of the Iranian population
- 42:21living
- 42:21below the poverty line.
- 42:23It's not that we don't have money and resources,
- 42:25we have
- 42:25the second largest oil and gas reserves combined in the world.
- 42:29Any resource you can think of,
- 42:31we have it in Iran,
- 42:32but because of the corruption,
- 42:34because of the mismanagement.
- 42:37Because the money is the priority of the regime
- 42:40is not its own people.
- 42:42The priority is the IRGC and
- 42:45sponsoring their nuclear program,
- 42:47their missile program.
- 42:49The regime has over 38 missile cities they built.
- 42:53I mean,
- 42:54think about it,
- 42:55cities under underground
- 42:57tunnels,
- 42:58what they call missile cities.
- 43:01You know how much that costs that drains the entire.
- 43:04Really wealth of a nation.
- 43:06The whole nuclear weapons program of Iran has called
- 43:09some $2 trillion
- 43:12and everything else that they're,
- 43:14I mean,
- 43:15can I interrupt you there $2 trillion over the years for their nuclear program.
- 43:20Yes,
- 43:21and you know,
- 43:22the
- 43:23just think about that number,
- 43:25the whole Iran-Iraq war that lasted for eight years
- 43:28that we had so many cities destroyed and all of that.
- 43:32The official estimate was that it cost Iran
- 43:36$1 trillion
- 43:38and then this whole nuclear program has cost the
- 43:42nation $2
- 43:45trillion so
- 43:46that's a very,
- 43:47very
- 43:48this is more than all the
- 43:50oil revenue that Iran has generated since the mullahs came to power.
- 43:55I added all of the numbers based on
- 43:58OPEC and all of that.
- 44:00The value of the oil revenue all of the time was about $1.5 trillion.
- 44:06So that's why the country is going squeezed.
- 44:11That's why the people feel
- 44:13like,
- 44:13you know,
- 44:14they're under tremendous pressure.
- 44:16And you know,
- 44:17so it's not just about the sanctions or anything like that.
- 44:20Even before the sanctions
- 44:22or when there were sanctions relief,
- 44:24the people
- 44:26condition didn't improve.
- 44:28So that's why I think
- 44:30and that has become the foundation.
- 44:33For the protests in Iran
- 44:36and things are getting worse.
- 44:38I'll give you one example.
- 44:39One of the indications is the value of the
- 44:41Iranian currency.
- 44:43You know,
- 44:43the Iranian currency is riyal,
- 44:45and 10 riyal is the equivalent of 1 to 1.
- 44:48And I remember when the mullahs came to power at the time,
- 44:52you could
- 44:53buy,
- 44:54you know,
- 44:55it
- 44:55was,
- 44:56you would only need 7 to 1
- 44:58to buy $1.
- 45:00Now it's over 200,000
- 45:03for $1.
- 45:05I mean $200,000 actually went as high as $230,000.
- 45:10So that's really,
- 45:11that's really,
- 45:12that's really
- 45:14over $2 million
- 45:15real.
- 45:17Right,
- 45:18yes,
- 45:19uh,
- 45:20and over 2.2 million dial,
- 45:22so,
- 45:22uh,
- 45:23that's a clear indication how bad the situation is now.
- 45:27The toll is on the population,
- 45:29and that's why you had all these protests,
- 45:31uh,
- 45:31shaping up the foundation of that.
- 45:34was always
- 45:35economic.
- 45:36Adding to it was the political freedoms,
- 45:39and that's why we are facing a very explosive society
- 45:44right now.
- 45:44The regime is so
- 45:47paranoid about the prospect
- 45:50of the revival of the uprisings.
- 45:53That explains why they have been stepping up execution
- 45:57of political prisoners.
- 45:58In Iran,
- 45:59they started in March
- 46:01executing 9
- 46:03political prisoners belonging to the MEK,
- 46:05the main opposition that exposed the nuclear sites and
- 46:08acts as an engine for change in Iran,
- 46:10but they also expanded it to the rest of the
- 46:13young people who were pursuing
- 46:15the same strategy as the MEK.
- 46:17The MEK's strategy is to confront the Revolutionary Guards,
- 46:21to push back against them,
- 46:22to fight them.
- 46:23In order to win,
- 46:27and the younger generations are picking up that strategy
- 46:30as so many others were executed in the past few weeks,
- 46:33and these were young people
- 46:35who were either confronting the revolutionary guards or trying to disarm
- 46:39the revolutionary guards.
- 46:40There are over 100
- 46:42political prisoners who are on death row right now.
- 46:45That's a clear indication of the vulnerability of
- 46:47the regime and how paranoid they are.
- 46:51Well,
- 46:51yes,
- 46:52um,
- 46:53we've,
- 46:53uh,
- 46:53we've talked about,
- 46:54I'm glad you raised that,
- 46:55that whole issue.
- 46:55We've talked about on the PDB in the past is,
- 46:58you know,
- 46:58while everybody's focused on the Strait of Hormuz and,
- 47:01you know,
- 47:02what,
- 47:02what the gas price is doing,
- 47:04um,
- 47:05under that cover,
- 47:06the regime has accelerated.
- 47:08Uh,
- 47:08the arrests,
- 47:09the detentions,
- 47:11the executions,
- 47:12um,
- 47:13really of anyone they,
- 47:14they consider a threat.
- 47:15I mean,
- 47:15you can kind of throw out a net that broad and say it's really anyone that they,
- 47:19they view as a threat.
- 47:21Um,
- 47:22the
- 47:23The prices,
- 47:24talk to me,
- 47:25what is the,
- 47:26let me ask you this,
- 47:26what is the um average monthly wage for an Iranian?
- 47:32Well,
- 47:32it fluctuates.
- 47:33I don't know the exact numbers right now.
- 47:36I can give you the official numbers and then there are others,
- 47:39but you know,
- 47:41whatever it is,
- 47:42it's way below the actual,
- 47:46you know,
- 47:47the cost of living.
- 47:49Sometimes families
- 47:50run out of the money,
- 47:53even the second.
- 47:54Week of the month
- 47:56and whatever the salaries are,
- 47:58especially for workers,
- 48:00they're not being paid for it,
- 48:02you know,
- 48:03for instance,
- 48:03some
- 48:04some companies
- 48:06they are like
- 48:076 months,
- 48:078 months,
- 48:0810 months behind.
- 48:10They haven't paid their workers for 10 months
- 48:12and when you are like paycheck to paycheck
- 48:15and you don't even survive with a paycheck.
- 48:17Imagine how
- 48:19vulnerable the population will be,
- 48:22you know,
- 48:22when this economic situation is really
- 48:27deteriorating,
- 48:28impacting the whole population,
- 48:30and you know,
- 48:31for instance,
- 48:32one of the companies,
- 48:33I'll give you one example.
- 48:35That was making steel mills.
- 48:39It was a steel mill company making steel rods,
- 48:41and it went off the production.
- 48:45It's been for several months.
- 48:47It had over 1000 workers,
- 48:49so they're not being paid.
- 48:51So what do the workers do?
- 48:53They come to the street and protest.
- 48:54You see a lot of protests are now shaping up
- 48:57by people who were laid off or lost their job,
- 49:00who haven't been paid,
- 49:01retirees who are not being paid.
- 49:04There's a lot of sectors of the population
- 49:08that now,
- 49:09even in the middle of an uncertain war situation,
- 49:13they're protesting.
- 49:15But now when you say protesting,
- 49:16are they grumbling,
- 49:18meaning they're sitting and they're,
- 49:19they're complaining or they're complaining to maybe
- 49:21relatives they have outside of the country,
- 49:23but they're not taking to the street,
- 49:24or do you mean they're actually taking to the streets?
- 49:27They are,
- 49:27they're taking to the streets,
- 49:29but their,
- 49:29their demands are,
- 49:30you know,
- 49:30they're peacefully coming to the streets
- 49:32with their banners,
- 49:33with their posters saying that,
- 49:35you know,
- 49:35we need our wages to be paid,
- 49:37um,
- 49:37you know,
- 49:38our,
- 49:38our condition,
- 49:39you know,
- 49:39is specifically demanding.
- 49:42They pay for
- 49:44whatever
- 49:45company it is
- 49:46and you know it's not limited to a certain city or a certain company
- 49:51and it's expanding.
- 49:52That's an indication of the deteriorating
- 49:56economic situation.
- 49:58And what the regime is afraid of
- 50:01is that what if,
- 50:02and it's not what if when
- 50:04this whole thing is going to turn into
- 50:06a major uprising the way we saw for instance in January
- 50:11of this year that people
- 50:13didn't just settle for
- 50:14They started
- 50:16getting confrontational with the Revolutionary Guard,
- 50:18chanting slogans
- 50:20day and night against the regime,
- 50:22not just about their wages,
- 50:23not about economic demands.
- 50:25Quickly all of that could turn
- 50:27into major political demands,
- 50:29which is regime change.
- 50:31Uh,
- 50:32but,
- 50:33you know,
- 50:33let me interrupt,
- 50:34let me interrupt you there,
- 50:34Ali Razor,
- 50:35because I think it's um.
- 50:37I,
- 50:37I,
- 50:38I agree with you.
- 50:38I mean,
- 50:39in,
- 50:39in theory,
- 50:40right?
- 50:40Yes,
- 50:40all of this pressure building and building and building,
- 50:43right?
- 50:43We saw it earlier in the year,
- 50:45of course,
- 50:45we also saw the,
- 50:46the regime's response.
- 50:48Um,
- 50:48and in that time,
- 50:50you know,
- 50:51the situation has gotten worse.
- 50:53So,
- 50:53in theory,
- 50:54you'd say,
- 50:54OK,
- 50:54fine,
- 50:55the people are going to at a certain point,
- 50:58just lose it and get back on the streets regardless of what they know will likely be
- 51:02the response from the regime.
- 51:04Uh,
- 51:04are you worried that
- 51:06That could be
- 51:09Off in the future,
- 51:10and yet it seems like
- 51:12the closer we get,
- 51:13and I know President Trump has said repeatedly,
- 51:15he doesn't care about the midterm elections.
- 51:17And that's fine,
- 51:17you know,
- 51:18you can say that
- 51:19all you want.
- 51:20Voters care about
- 51:21what the,
- 51:22the price of gas is,
- 51:23right?
- 51:24And so,
- 51:25and there's a lot of,
- 51:26you know,
- 51:26politicians who are concerned.
- 51:27And President Trump understands if he loses in the midterm elections.
- 51:32This whole dynamic changes,
- 51:34right?
- 51:34He's,
- 51:35he's gonna be facing two years of impeachment attempts by,
- 51:38by the Democrats.
- 51:39It's gonna be much harder for him to engage in any sort of unilateral military
- 51:44uh
- 51:44activity.
- 51:45And so,
- 51:46you know,
- 51:47it's fine to say that you
- 51:48don't care about the elections.
- 51:52you know,
- 51:52I think that's,
- 51:53I think the reality is different.
- 51:54So,
- 51:55are you worried because there's all this talk now about,
- 51:57oh,
- 51:57we've restarted negotiations,
- 52:00um,
- 52:01and
- 52:02it feels like
- 52:04there's a,
- 52:05uh,
- 52:06a real desire,
- 52:08right,
- 52:08on the part of the White House
- 52:09to get this over with.
- 52:11And the Iranians are talking about,
- 52:13fine,
- 52:14we can open the Strait of Hormuz,
- 52:16and it would only take us a few days to do that.
- 52:19Uh,
- 52:19but we're gonna need you to lift the blockade on the Iranian imports,
- 52:24uh,
- 52:24provide access to some frozen assets,
- 52:27you know,
- 52:28and so suddenly we might find ourselves in,
- 52:31and,
- 52:31and then of course they're gonna crow at the end of that and say,
- 52:34look,
- 52:35we defeated America.
- 52:38Well,
- 52:39exactly as you said,
- 52:40you know,
- 52:41the mullahs are masters
- 52:43of portraying their weakness as their strength.
- 52:47They're
- 52:48going around boasting that,
- 52:49you know,
- 52:49look,
- 52:50we haven't been overthrown.
- 52:53Therefore,
- 52:54you know,
- 52:54we managed to resist the United States,
- 52:57to resist
- 52:59the attacks and all of that.
- 53:01But the one thing that they cannot hide and they cannot boast about
- 53:05is their internal situation.
- 53:07That's why
- 53:07I keep coming back to this point.
- 53:10The Achilles' heel of the Iranian regime
- 53:13is inside Iran.
- 53:15You know
- 53:16they can.
- 53:17that we fire missiles and
- 53:20attacking ships,
- 53:21but none of that is going to improve the economy.
- 53:24None of that is going to improve
- 53:26the condition of the people.
- 53:27None of that is going to
- 53:29make the people of Iran friends of the mullahs.
- 53:32That's why no matter what they do,
- 53:34the internal situation
- 53:36is increasingly getting worse,
- 53:38and I think that's what needs to be understood whether
- 53:42it's the White House or the capitals in Europe,
- 53:45that this regime is vulnerable internally.
- 53:49If anyone wants to
- 53:51have leverage
- 53:53against the Iran regime,
- 53:54the leverage is inside the Iran and the
- 53:57vulnerability of the regime and on the other side those who are trying
- 54:02to overthrow this regime.
- 54:03That's why the regime constantly demands foreign capitals
- 54:07don't get close to the organized opposition.
- 54:10Don't even get close to the MEK.
- 54:12That's actually MEK how
- 54:14it was designated
- 54:16decades ago.
- 54:16They had to fight for 15 years to get off the list.
- 54:19You know all of the pressure
- 54:21that is built
- 54:23on the organized opposition
- 54:25as a result of the regime using that and leveraging and all of that,
- 54:30you need to reverse that.
- 54:32You need to show the Iranian regime
- 54:34that the outside world are not going to be intimidated by their terrorism,
- 54:38by their promise.
- 54:40all of that because they have violated all of that
- 54:44in the past.
- 54:45So if they want to sit down and negotiate,
- 54:47that's fine.
- 54:48What are the terms of
- 54:49the negotiations?
- 54:50What is it that they're holding the regime accountable?
- 54:54That's why I think it's so important
- 54:56for the outside world,
- 54:58especially the White House,
- 54:59to
- 55:00Realize the one leverage
- 55:02that needs to be
- 55:04taken into consideration
- 55:06is the people of Iran,
- 55:07the
- 55:08vulnerability of the regime inside Iran,
- 55:11and the desire,
- 55:12strong desire of the people
- 55:14to bring about change.
- 55:15You know,
- 55:15we have never asked for arms or
- 55:17boots on the ground or money,
- 55:19none of that.
- 55:21Well,
- 55:21let me ask you this.
- 55:22So I would assume you're in favor of maintaining the blockade.
- 55:26Um,
- 55:27and maintaining the sanctions
- 55:28and the economic pressure.
- 55:31Uh,
- 55:31as opposed to
- 55:33what appears to be this,
- 55:34this.
- 55:35Potential effort or this.
- 55:37It's always,
- 55:37it's sort of a false start.
- 55:38We've seen a lot of false starts with the negotiations over the many months.
- 55:42But
- 55:43Um
- 55:44So I,
- 55:45I,
- 55:45it,
- 55:45it,
- 55:45it,
- 55:46it sounds like what you're saying is just give the,
- 55:48the economic pressure time
- 55:50and
- 55:52you may then get that result that you're talking about in terms of the civil unrest.
- 55:57Well,
- 55:57you know,
- 55:58certainly the building pressure on the regime is important
- 56:03economic pressure,
- 56:04because
- 56:04at the end of the day it's the pressure on the IRGC
- 56:07limiting their resources,
- 56:09but that's not enough because at the same time
- 56:12you need to recognize the right of the people of Iran
- 56:15to
- 56:16overthrow this regime.
- 56:17You need to recognize the right.
- 56:18What does that mean,
- 56:19Ali Raisa?
- 56:20What does that mean when you say you need to recognize the rights of the people,
- 56:23because I think a lot of nations have said we'd love to see.
- 56:27You know,
- 56:27the,
- 56:27the,
- 56:27the,
- 56:28the,
- 56:28the people.
- 56:29Have a better opportunity,
- 56:30you know,
- 56:31to be self-determining and all that,
- 56:32but
- 56:33when you say it,
- 56:33what does that mean?
- 56:35Well,
- 56:35it means that when the regime starts executing
- 56:39the very same freedom fighters who are
- 56:41fighting and confronting the revolutionary Guards,
- 56:43you need to speak up.
- 56:45You need to have outrage.
- 56:46You need to hold the regime accountable.
- 56:49You need to tell the Iranian regime that even if for every single
- 56:53freedom fighter that they have
- 56:54executed
- 56:56since at least since March.
- 56:57Of this year
- 56:59there is a price that Tehran has to pay.
- 57:01That's how you defend
- 57:02those who are fighting the regime.
- 57:04You stand on their side.
- 57:05You hold the regime accountable
- 57:07for hurting them,
- 57:08for imprisoning them,
- 57:10for executing them.
- 57:12That hasn't been there.
- 57:13You know how many times you have seen
- 57:16condemnation
- 57:17of the execution of political prisoners.
- 57:19Iran
- 57:20or the other means of repression executing the rest of the population,
- 57:25there has to be a lot of
- 57:27pressure built on it.
- 57:28What is the accountability?
- 57:30The UN report came out saying that Iran was involved
- 57:33in the suppression and the massacre of people in January.
- 57:39What price did Tehran pay for it?
- 57:41Nothing.
- 57:42You know what price they're paying for their terrorism?
- 57:44Nothing.
- 57:45That's why I think it's important.
- 57:47Accountability is the other side
- 57:50of,
- 57:50you know,
- 57:51recognizing the right of the people
- 57:53to resist and stand up against the Iran regime.
- 57:57Let,
- 57:58let me ask you one last question,
- 57:59uh,
- 57:59being mindful of time,
- 58:00Alorez,
- 58:01um,
- 58:02it's,
- 58:02it's,
- 58:02it's a bit of a pivot,
- 58:03I admit,
- 58:04uh,
- 58:05but I'm very,
- 58:06uh,
- 58:06keen to get your perspective.
- 58:08Um.
- 58:10The Houthis
- 58:12and their escalation,
- 58:14you know,
- 58:15they kind of kicked off this renewed aggression
- 58:17offensive
- 58:18uh against the Saudi-backed Yemeni government.
- 58:21What's your perspective on the relationship between the Iranians and the Houthis?
- 58:27Well,
- 58:27the Houthis are really the product of the years of cultivation and work
- 58:34and development of the Iran regime.
- 58:38The whole
- 58:39movement,
- 58:40the way it is now,
- 58:42the organization,
- 58:43the whole
- 58:44funding,
- 58:44the structure.
- 58:46were basically created by the Iranian regime
- 58:49when they had the founders in Iran like almost 30 years ago
- 58:54training them
- 58:56and then eventually funding them
- 58:58helping creating their units
- 59:01whether it was like naval units we put out
- 59:04a detailed press conference right here in Washington about 5 years ago
- 59:10about how the regime
- 59:12Had created
- 59:14naval,
- 59:15you know,
- 59:16force naval units
- 59:18by the Houthis that they can operate on their own and
- 59:23in the in the region in the in the in the waterways and
- 59:27All of those things we predicted all of
- 59:28that we showed like where they were being trained
- 59:31in Iran,
- 59:33specific location they were being trained,
- 59:35what kind of training they were going through,
- 59:37all of that
- 59:38and now it's not a surprise
- 59:40for us.
- 59:40So
- 59:41if you want to really
- 59:43curb the activities of the Houthis,
- 59:46you have to curb
- 59:48the Iranian regime.
- 59:49And that's why I think it all boils down that
- 59:52if you want to see peace in the region.
- 59:54We have to see
- 59:56a change by the people of Iran in Iran.
- 59:58There's no other shortcut.
- 1:00:00There's no other way.
- 1:00:01At the end of the day,
- 1:00:02that's what it boils down to.
- 1:00:05Yeah,
- 1:00:05no,
- 1:00:05I could,
- 1:00:05I could agree with you more.
- 1:00:06I think you want,
- 1:00:07you want short,
- 1:00:08mid,
- 1:00:08long-term stability
- 1:00:09in the region.
- 1:00:10You want a better opportunity for the Iranian people,
- 1:00:12you want,
- 1:00:13you know,
- 1:00:13a more prosperous region.
- 1:00:15Um,
- 1:00:17that all means you,
- 1:00:18this regime at some point has to disappear,
- 1:00:21uh,
- 1:00:22because,
- 1:00:23you know,
- 1:00:23otherwise,
- 1:00:24they're not gonna change their stripes,
- 1:00:26I would argue.
- 1:00:27Um,
- 1:00:28and,
- 1:00:29uh,
- 1:00:29uh,
- 1:00:29listen,
- 1:00:29Ali Raza,
- 1:00:30I,
- 1:00:30I wish we had more time,
- 1:00:32but we don't,
- 1:00:33uh,
- 1:00:34so that means you gotta come back next time.
- 1:00:37Absolutely,
- 1:00:37I'm always very happy to be on your show.
- 1:00:40Really appreciate the opportunity.
- 1:00:41Thank you so much.
- 1:00:42That's great.
- 1:00:43Listen,
- 1:00:44have a very good weekend,
- 1:00:45Ali Raza.
- 1:00:45We'll talk soon.
- 1:00:47Sure,
- 1:00:47thank you.
- 1:00:48Take care.
- 1:00:50Well,
- 1:00:51that is all the time
- 1:00:53we have for this week's PDB situation report.
- 1:00:55I know,
- 1:00:56I know.
- 1:00:56Somewhere out there in the distance,
- 1:00:57you can hear a sad trombone.
- 1:00:59If you have any questions or comments,
- 1:01:00just reach out to me at PDB@firstv.com.
- 1:01:03You know
- 1:01:04what happens every week.
- 1:01:06Carl Lamelman drops off another sack of your mail,
- 1:01:09postcards and your Western Union Telegrams.
- 1:01:12Actually,
- 1:01:12the little guy with the hat shows up with the telegrams.
- 1:01:15That's an old reference,
- 1:01:16isn't it?
- 1:01:17Uh,
- 1:01:17and,
- 1:01:18uh,
- 1:01:18you know,
- 1:01:18we sit down,
- 1:01:20we dump all those cards onto the rich mahogany conference table.
- 1:01:24And the entire team,
- 1:01:25including our above-average interns,
- 1:01:27we select the best questions and comments,
- 1:01:29put them together in an Ask Me Anything episode,
- 1:01:32and
- 1:01:33we,
- 1:01:33uh,
- 1:01:34put that on
- 1:01:35the internets,
- 1:01:37the webs thing,
- 1:01:38whatever it is that Al Gore created.
- 1:01:41So,
- 1:01:41what all that means is keep your cards and letters coming.
- 1:01:44That was a long way to get to that point,
- 1:01:45wasn't it?
- 1:01:46It's like
- 1:01:46taking forever to get to the punchline of a joke.
- 1:01:49All right.
- 1:01:49Finally,
- 1:01:50listen to the podcast ad-free.
- 1:01:52You can do that.
- 1:01:52I've talked about this before.
- 1:01:53It's very,
- 1:01:54very simple.
- 1:01:54Just become a premium member
- 1:01:56of the President's Daily Brief by visiting PDBpremium.com.
- 1:02:00And by doing that,
- 1:02:01you also get access to the Ask Me Anything episodes.
- 1:02:04See how I brought it all around.
- 1:02:05It's like the circle of life.
- 1:02:07I'm Mike Baker.
- 1:02:08And until next time,
- 1:02:09yeah,
- 1:02:10stay informed.
- 1:02:11Stay safe.
- 1:02:12Stay cool.