Iran Snap Analysis: The Wave of Economic Discontent?

Yesterday's breaking news for many outside was the latest statement by Mir Hossein Mousavi linking criticism of Western sanctions against Iran with criticism of the Government's mismanagement of foreign policy and the economy.

Inside Iran, however, the most significant incident appeared to be the continuing furour, including strikes, in the Tehran Bazaar over proposed tax riss. The immediate reversal of a 70% increase may have stemmed discontent, but it does so at the risk of making the Government look vulnerable.

The story beyond --- which I'm not sure has been picked up --- is that this clash may be only a foreshadowing of political difficulties. The Government has declared, after many stop-start moments, that the implementation of the subsidy reduction plan will begin this autumn. But, if as that it is likely to lead to price rises for essentials such as food and energy, are we only at the beginning of a wave of economic discontent?

And what connection, if any, will that have with the Green Movement and opposition on other fronts?