President PEZESHKIAN said a pledged increase in subsidies tied to exchange-rate
rises was not delivered, blaming an imbalance in state finances and saying the
government must curb demand. He warned that when exports stop there are no FX
inflows, and without demand control a shortage of FX amid strong demand will
push the exchange rate higher; authorities have partly suppressed demand but a
large supply–demand gap remains. He said political events move the market — US
announcements of tighter blockade lift the exchange rate immediately, while
visits by Omani negotiators cause it to fall. Authorities are reluctant to raise
fuel prices because of the burden on households, and continue to supply fuel at
current levels despite the fiscal cost.
