The Latest from Iran (21 September): Worrying about Inflation

See also The Latest from Iran (20 September): The Currency "Situation"

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1900 GMT: Reverse Sanctions Watch. The Supreme Leader's military advisor, Yahya Rahim Safavi, has urged Muslims to "sanction" the US by boycotting American products.

1810 GMT: Discovery of the Day. Alaeddin Boroujerdi, the head of Parliament's National Security Committee, has claimed that the German company Siemens installed explosives in equipment for an Iranian nuclear site. He said that the operation was discovered by authorities, and Siemens must explain itself.

Reports have circulated that the Stuxnet virus was introduced into Iranian computers, used in the nuclear programme, through vulnerabilities in Siemens equipment.

1800 GMT: All-Is-Well Alert. Minister of Economy Shamseddin Hosseini explains that foreign currency was suspended at official rate for importers because of a decrease in oil revenues. However, since the oil price has increased, the problem has been solved.

The Government and Central Bank have faced heated criticism for halting the subsidised currency --- half as expensive compared to the open-market rate --- to the importers. Earlier this week, after Hosseini refused to answer questions about the issue, the Ministry of Industry said the Government would take control of the issue from the Bank.

1740 GMT: "Terrorism" Watch. Back from an academic break to find reports that the State Department is removing the Iranian insurgent group Mujahedin-e Khalq (MKO) from its terrorism list.

An official said Secretary of State Hillary Clinton will notify Congress today of the decision, with a formal announcement by 1 October.

The US put the group on the terrorism list in 1997 for its alleged involvement in the killing of six Americans in Iran in the 1970s. The MKO has sought the overthrow of the Iranian regime, including through bombing and assassinations, since soon after the 1979 Islamic Revolution.

Earlier this week, remaining MEK members were moved from Camp Ashraf in Iraq, where they have lived for more than 25 years, to Camp Liberty, a former US military base in Baghdad. They are expected to be resettled overseas

1340 GMT: More Tough Talk of the Day. In addition to declarations that they will destroy any enemies who dare to attack, the regime has used the start of the "Sacred Week of Defense" to display a new, domestically-made air defense system.

Officials said the Raad (Thunder) is more advanced than its Russian predecessor, defending against fighter jets, cruise missiles, smart bombs, helicopters, and drones.

At the parade marking the 32nd anniversary of the start of the Iran-Iraq War, Amir Ali Hajizadeh, the head of the Revolutionary Guard's airspace division, said, "This system is built with the aim to confront American warplanes," claiming it carried missiles with a range of 50 kilometers (30 miles), capable of hitting targets at 22,000 meters (75,000 feet).

Hajizadeh continued, "The Zionist regime is capable of starting the war" he said. "But the final moment (of the war) will be in our hands. In that case, there will be no Zionist regime anymore."

1330 GMT: Honouring the Political Prisoner. The 2013 Student Peace Prize, given by the International Student Festival in Trondheim in Norway, has been awarded to Iranian student activist Majid Tavakoli, imprisoned since December 2009 and serving an 8 1/2-year sentence.

1251 GMT: Worse than Toilet Worm? Ayatollah Mesbah Yazdi has explained that, according to the Qur'an, those who knowingly follow the path of pagans are worse than a "toilet worm" .

1158 GMT: Tough Talk of the Day. Iran's military leaders have used the ceremonies for the 32nd anniversary of the Iran-Iraq War to put out the theme of defiance against "enemies", with State outlet Press TV's top three Iran stories devoted to the proclamations.

The commander of the Islamic Republic's armed forces, Hassan Firouzabadi, announced, “We do not feel threatened by the ravings of the leaders of the Zionist regime. They (Israeli officials) are...frightened so they make hue and cry because they know that Iran’s response to any threats will be prompt and unstoppable,"

The commander of Iran's ground forces, Ahmed Reza Pourdastan, warned "enemies": "If anybody seeks to implement a threat, he will receive a crushing response from Armed Forces of the Islamic Republic who have a very rapid and strong capability,”"

Commander Ataollah Salehi chipped in, "We warn the Zionist regime that...if they seek to implement their threats, these threats will only lead to their sooner destruction."

But the most colourful statement of the day may be that of Commander Morteza Qorbani, "If Ayatollah Khamenei gives the order, we will fire more than 2000 missiles on the enemy."

1144 GMT: Irony of the Day. Press TV features a photograph from a protest in Conakry in Guinea, "Transparent Elections, Pledge for Peace":

The State outlet does not mention if the photograph has any significance for Iranian affairs.

0836 GMT: Nuclear Watch. How keen are Iranian state media to press the possibility of resumed talks on Tehran's nuclear programme? Press TV reports, without any criticism of the US and highlighting the American line challenging Iran:

US ambassador to the United Nations Susan Rice says there is still room to resolve issues regarding Iran's nuclear energy program through diplomatic channels.

“We believe there is still time and space for diplomacy," Rice told a UN Security Council (UNSC) meeting on Thursday.

She repeated Washington’s allegations against Tehran, saying, “However, the onus is on Iran to respond constructively."

0831 GMT: Scare Story of Day. NBC News claims, from "national security officials":

The continuing cyber attacks this week that slowed the websites of JPMorgan Chase and Bank of America are being carried out by the government of Iran. One of those sources said the claim by hackers that the attacks were prompted by the online video mocking the Prophet Muhammad is just a cover story.

A group of purported hackers in the Middle East has claimed credit for problems at the websites of both banks, citing the online video mocking the founder of Islam. One security source called that statement "a cover" for the Iranian government's operations.

0827 GMT: Ceremony Watch. Iran's military is marching today for "Sacred Defense Week", the 32nd anniversary of the start of the Iran-Iraq War.

At the parade at the mausoleum of Ayatollah Khomeini, President Ahmadinejad declared: “Our sacred defense was not defending a territory, a nation or a school of thought alone. It was well beyond that. It was defending human dignity, the rights of all nations and those of the oppressed people of the world."

he President also commented on the US film "The Innocence of Muslims", claiming that it is an Israeli plot "to divide (Muslims) and spark sectarian conflict" and accusing the American Government of a "deception" in its claim that it cannot censor the movie.

0822 GMT: Sanctions Watch. Bloomberg highlights some of the "collateral damage" of US sanctions --- Iranians who can no longer get visas for study, research, or employment:

A promising future in academia and business beckoned Majid Abbasi. His research on how welding affects the properties of steel earned him a doctorate from Brigham Young University and a job offer from the University of Alabama. He was also seeking to patent and commercialize a technique he’d invented to improve cleaning of contact lenses.

Then he made a fateful move that shattered those prospects: he visited his parents.

Since Abbasi went home to Iran on vacation in December, the U.S. government has barred him from returning. The State Department twice denied him visas, saying it had reason to believe he would engage in espionage, sabotage or prohibited export of sensitive information. Alabama withdrew its offer. Because of U.S. sanctions on trade with Iran, the startup that licensed his contact lens concept can’t pay him.

“My first reaction was the famous American slang: Holy Cow, seriously? I’m a scientist and avoid politics,” Abbasi, 31, wrote in an e-mail. “Sabotage, espionage, technology transfer are baseless, unfair labels. I do not appreciate such labels.”

0618 GMT: Press Watch. The prominent newspaper Jomhouri Eslami has halved its daily edition to eight pages because of high prices for newsprint.

0610 GMT: Waving a Finger at Cairo. The Supreme Leader, after 18 months of declaring a promising alliance with the "new" Egypt, showed frustration on Thursday. He declared, "Some countries that revolted have bowed to the US while the Islamic Republic never did so in 33 years."

Iran was unsettled last month when Egyptian President Mohammad Morsi's visit to Tehran, pushed by the Islamic Republic as the sign of a relationship to reshape the Middle East, took an unexpected turn. Addressing the Non-Aligned Movement's summit, Morsi supported the Syrian opposition against the "oppressive regime" of President Assad, an ally of Iran.

There has been further disappointment for Tehran this week when the meeting of a new "contact group" in Cairo did not accept Iran's plan for an initiative on the Syrian crisis.

0515 GMT: On Thursday, Inspector General Mostafa Pourmohammadi reportedly said that 5% inflation would cause a crisis in Europe, but people in Iran will stay calm even with 40% inflation.

Some within the regime are not convinced, however. Three Grand Ayatollahs --- Makarem Shirazi, Safi Golpayegani, and Nouri Hamedani --- have warned MPs that rising prices will cause people to lose faith in the system.

Makarem Hamedani expressed concern over the declining Iranian currency with its "real and psychological impact" and continued: "People suffered so much, we cannot indefinitely tolerate this".