Wall Street Journal: Trump's Team Working on New Sanctions and Attack Options Against the Islamic Republic

The Wall Street Journal reports that while the Islamic Republic of Iran faces a severe economic crisis domestically and setbacks in the Middle East in 2024, the new year will also be difficult for it as it confronts the new government of Donald Trump. According to this reputable American newspaper, published on Sunday, January 6, the new U.S. administration under President Donald Trump plans to increase sanctions against the Islamic Republic as part of its aggressive efforts to curb the support of the Iranian religious government for militia groups in the Middle East. Trump's team is also considering options, including airstrikes, to prevent the Islamic Republic of Iran from developing nuclear weapons before his official inauguration on January 20. The Wall Street Journal states that the economy of the Islamic Republic of Iran is already paralyzed by mismanagement, corruption, and existing sanctions. Power shortages have led to the closure of government offices, schools, and universities, and production in dozens of factories has been disrupted. Meanwhile, the military threat of the Islamic Republic has diminished due to Israeli attacks on its allies, such as Hezbollah in Lebanon, Hamas in Gaza, the 'collapsed Assad regime in Syria,' and a large portion of Iran's air defense systems. The Wall Street Journal notes that the current problems of the Islamic Republic represent the biggest challenge for its leaders since 2022, when the country faced widespread unrest sparked by the death of Mahsa Amini in the custody of the 'morality police.' While protests over the deteriorating economic situation in Iran remain limited, the government appears to be more vulnerable to unrest now. The economic crisis has increased the risk of social unrest and raised concerns among Iranian officials. Merchants have gathered in protest against skyrocketing inflation, while retirees and oil workers have also protested due to delays or reductions in their wages. The value of Iran's national currency, recognized as an indicator of economic sentiment, reached its lowest level at 821,500 rials against the U.S. dollar by the end of 2024, a 40% decrease from the beginning of the year. According to the World Bank, per capita GDP has also sharply decreased by 45% since 2012, when sanctions against the Islamic Republic's nuclear program intensified, reaching $4,465.60 last year. Recently, shoe sellers and other merchants in Tehran's Grand Bazaar held a rare strike in late 2024 in protest against high inflation. In posts shared by Iranian trade unions on social media, some said: 'Don't be afraid, shut down.' Economic protests are spreading across various industries throughout Iran. Nurses and communication workers have protested due to delays in their wages. According to one teachers' union, retired teachers have also protested in front of the Islamic Consultative Assembly over delayed welfare payments in recent weeks. This discontent has extended to the oil sector, the country's most vital industry and largest source of foreign currency. According to reports from state media and Iranian trade unions, workers at the Abadan petrochemical plant, one of the largest facilities in the country, protested over three months of unpaid wages. The Wall Street Journal states that protests in Iran have increasingly become political, with some accusing the 'regime' of focusing too much on the ideological agenda of the Islamic Republic and neglecting the economy. A banner carried by protesting retirees in Ahvaz read: 'Enough warmongering, our table is empty.' Another banner, shared by the Free Workers' Union of Iran, a group composed of various trade unions, showed a message saying to abandon the hijab and think about us workers. The energy crisis has also intensified due to years of mismanagement and lack of investment by the Islamic Republic. Last month, due to shortages in electricity and natural gas supply, industrial facilities were reported to be operating at only 41% of their capacity, according to the Iran Chamber of Commerce, Industries, Mines, and Agriculture. This chamber announced that reduced production among poultry and meat suppliers threatens the country's food security. Masoud Pezeshkian, the head of the 14th government of the Islamic Republic, recently stated that the government is 'addressing' the energy shortage by encouraging businesses and households to reduce natural gas and electricity waste and combat fuel smuggling. Part of the Wall Street Journal's report cites the Iranian Labor News Agency, ILNA, stating that the energy crisis has shut down 22 cement plants and slowed down drug production. Ali Gholi Imami, head of the National Wheat Farmers Association, also told the economic newspaper Tejarat News that with the shutdown of water pumps and disruptions in the supply of fertilizers dependent on natural gas, it is expected that electricity issues will disrupt the harvest of agricultural products in Iran this year. 'Factories are experiencing a deep recession,' said Mahmoud Najafi Arab, head of the Chamber of Commerce representing some of the largest companies in the Islamic Republic, in a statement published on the chamber's website. He added that the current situation cannot be economically profitable for these enterprises. The energy crisis has exacerbated inflation, which the Central Bank reported was running at an annual rate of 37% in November. Food products have been the hardest hit. According to the Iranian Statistical Center, on the last day of 2024, meat prices have quintupled and potato prices have more than doubled over the past three years. According to the Chamber of Commerce, compared to 18 million people living below the poverty line in 2017, now about 32 million Iranians, or more than one-third of the country's population, live below the poverty line. The dire economic situation has raised concerns among the leaders of the Islamic Republic. The Islamic Revolutionary Guard Corps warned on December 30 about further unrest and protests, criticizing what it called efforts to portray the regime as ineffective and instill fear in society. The Islamic Republic is now relying on its Iraqi and Yemeni allies to threaten Israel. However, their bases are far from Israel, limiting the effectiveness of these groups. These events have given the Iranian government much less maneuvering room ahead of what may be a major confrontation with Trump. The setbacks of the past year have raised concerns that the regime may accelerate its nuclear program to restore some deterrence against foreign attacks. However, the Wall Street Journal writes that Trump is also exploring ways to prevent Tehran from developing nuclear weapons, including potential preemptive strikes, which would contradict Washington's long-standing policy of containing the Islamic Republic through diplomacy and sanctions. In the face of the prospect of new sanctions, Iranian Foreign Minister Abbas Araghchi stated on Friday that Tehran is ready to resume nuclear negotiations in exchange for the 'immediate' lifting of sanctions. Last November, he also stated that the progress of the Islamic Republic's nuclear program indicates that this government can cope with any new restrictions.