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INSIGHT

Drought and bad policy turn Iran’s largest lake into a salt desert

Maryam Sinaiee
Maryam Sinaiee

Iran International

Aug 4, 2025, 19:48 GMT+1Updated: 05:37 GMT+0
Lake Urmia in northwest Iran
Lake Urmia in northwest Iran

Iran’s Lake Urima, once the largest lake in the Middle East, is now all but dry, threatening mass displacement and environmental collapse amid the country’s worst drought in living memory.

Despite repeated government pledges over two decades, the lake’s revival plans have faltered due to chronic underfunding, bureaucratic turf wars, and weak enforcement.

Over 90 percent of the country is experiencing some level of drought, with rainfall plummeting and water reserves dwindling.

The drying of major water bodies like Lake Urmia and the Zayandeh Rud River has intensified Iran’s overlapping economic and ecological crises, as decades of mismanagement catches up with the theocratic establishment.

A mighty ecosystem in retreat

Lake Urmia was once the sixth-largest saltwater lake in the world, spanning over 5,000 square kilometers. It supported rich biodiversity and helped regulate the region’s climate.

But years of poor water management, over-extraction, and climate change have pushed it to the edge. On July 20, Hojjat Jabari, an environmental official in West Azerbaijan Province, issued a stark warning:

“If current conditions continue, Lake Urmia is likely to dry up completely by the end of the summer. We haven’t reached that stage yet—but we’re getting dangerously close.”

Recent satellite images confirm that more than 95% of the lakebed is now dry. Scientists warn that full ecological collapse may soon become irreversible.

What went wrong?

Since the early 2000s, Iran has constructed over 20 major dams and countless smaller ones that divert water from the lake’s main tributaries. Tens of thousands of deep wells—legal and illegal—also draw heavily from groundwater reserves that once fed the lake.

The situation has been worsened by state policies promoting water-intensive crops such as sugar beets, melons, and apples, far beyond the region’s ecological limits.

One of the most damaging interventions came in the early 2000s, when a causeway and bridge were built across the lake, splitting it in two. The structure disrupted natural water circulation and caused the southern basin to turn into a salt flat years before the northern section followed.

Salt storms and human costs

Estimates suggest the lake holds between 1 to 2 billion tons of salt. As the water disappears, winds pick up this salt and spread it across surrounding areas. Videos shared on social media show sweeping salt storms engulfing nearby villages.

If the lake fully dries up, the health and livelihoods of over five million people in cities like Oroumieh, Salmas, and Tabriz could be severely affected. Salt particles in the air can cause respiratory illnesses, destroy farmland, and contaminate water supplies.

In the worst-case scenario, experts warn, northwestern Iran could face mass migration as the region becomes increasingly uninhabitable.

100%

Is there still hope?

Experts caution that without immediate and drastic intervention, the opportunity to revive the lake may be lost for good. But partial recovery is still possible—if bold reforms are enacted now.

These include halting dam expansions, reducing agricultural water consumption, switching to less water-intensive crops, and modernizing irrigation infrastructure.

The challenge is immense, but failing to act would mean not just the death of a lake, but the beginning of a wider environmental and human catastrophe.

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Iran parliament advances plan to slash four zeros from rial

Aug 4, 2025, 18:07 GMT+1

Iran's parliament has approved a bill in committee that paves the way to remove four zeros from the national currency, the rial, in an effort to tackle long-term inflation.

Under the proposed plan, the new unit also called the rial would be equivalent to 10,000 of the current rials.

The head of the parliament's economic committee announced on Sunday that each new rial would be divided into 100 qirans.

Iran's banking system continues to face major challenges due to international sanctions and its disconnection from global financial networks. Corruption and economic mismanagement have also contributed to widespread economic hardship and market instability.

The rial has lost over 90% of its value since US sanctions were reimposed in 2018.

Inflation in Iran has remained high for years. The latest data shows that the annual point-to-point inflation rate reached 38.7% in May 2025.

Experts say that while cutting zeros from the currency may have some benefits, it does not offer a clear solution to Iran’s deeper economic problems.

“This policy is a superficial move. It removes several zeros, which creates a psychological effect, making people feel the value of money has changed. It also simplifies accounting,” economist Ahmad Alavi told Iran International on Monday.

“The abundance of zeros in the currency is a symptom of structural inflation rooted in deep-seated economic issues, policy failures, systemic constraints, and a corrupt, rentier economy,” Alavi added.

Official inflation rates in Iran have not dipped below 30% in recent years. According to data from Trading Economics in one year May 2024 to 2025, the lowest recorded was 31% in May 2024, while the highest was 38.9% in April 2025.

“The core issue lies in the structure. Either Iran’s economy and governance must undergo fundamental reform to create conditions for monetary stability and lower inflation, or, if the current structure persists, the problems will remain—and the rial’s value will continue to erode against other currencies,” Alavi added.

The bill still needs to go through final approval in the parliament and then head to Guardian Council to be signed into law.

‘Buy now, pay later’ culture spreads to Iran’s corner shops due to cash crunch

Aug 4, 2025, 12:46 GMT+1

As inflation continues to erode household incomes in Iran, a growing number of corner shops and grocery vendors across the country are quietly reviving an old tradition: the ledger-based, buy-now-pay-later system, Iranian daily Etemad wrote on Monday.

Once limited to big-ticket items like furniture or electronics, installment purchases are now being used to pay for daily essentials, from fruit and rice to detergent and chicken.

According to Etemad, field reports from Tehran and other cities suggest that even small neighborhood grocers and butchers are offering informal credit lines to loyal customers, often without collateral, checks, or formal agreements — simply on trust.

“They come every week and settle their bills at the start of the month, once salaries come in,” said one Tehran shopkeeper. “It’s like an installment plan — just between us.”

Strain breeds new norms

The practice, known locally as “hesab-daftari” (ledger credit), is expanding rapidly amid what economists describe as a deepening period of stagflation — a toxic mix of high inflation and economic stagnation. The article says the shift reflects a broader trend: the normalization of debt as a tool for day-to-day survival.

“In the past, installment buying was for luxury goods,” Etemad cited Ahmad Janjan, an economist based in Tehran. “Now it’s a way to afford bread and shampoo.”

He added that this shift is driven primarily by falling real wages, lack of liquid savings, and the rising cost of living.

From credit apps to corner stores

While fintech platforms like Digikala and Snapp Pay – Iran's top online markets -- have introduced digital installment options with slogans such as “no check, no guarantor,” it is the informal, person-to-person credit that is becoming more prevalent.

Some meat shops now allow buyers to split payments for poultry and beef. In produce markets, fruit vendors maintain handwritten tabs for repeat customers. Others offer agreements on mutual trust, sometimes in exchange for steady patronage.

'Buy now, pay more'

But not everyone is embracing this development as a lifeline.

“The shirt I bought online cost me 1,500,000 rials (about $2) more than in the store,” one customer wrote on social media. “But the store wouldn’t sell in installments. I had no choice.”

Others raised concerns about hidden fees and rising consumer debt. “This isn’t just delayed payment,” another user commented. “It’s disguised interest — and it adds up.”

Etemad cited Iranian economists as warning that while installment buying can temporarily soften financial blows, it also carries long-term risks in the absence of consumer protections or reliable credit scoring systems.

“There are no unified regulations on this,” said Janjan. “People may end up with debt they can’t service, all for everyday necessities.”

The growing reliance on credit is also changing spending behavior. Morteza Afghah, another economist, told the daily, “You get what you need today, but repayment obligations can pile up and strain households even more.”

Afghah links the trend to "deep-rooted structural issues, including political instability, bureaucratic inefficiencies, and unstable regulation — all of which raise production costs and feed into the country’s chronic inflation."

He warned that installment-based purchases are becoming more diverse fast, attributing the trend to what he called "stagflation."

“We are not only facing inflation and recession at the same time, but their combination — stagflation — has become a chronic condition in Iran’s economy, making it more difficult and time-consuming to address.”

20 arrested in Tehran over bribery and influence-peddling at judiciary

Aug 4, 2025, 11:30 GMT+1

Iran has arrested 20 people in a crackdown on a suspected bribery and influence network operating within Tehran’s judiciary system, a top official said on Monday.

According to judiciary intelligence chief Ali Abdollahi, those detained include six judicial staff, five lawyers, four notaries, and five legal consultants and experts. The arrests were made in connection with activities at a major judicial complex in the capital.

Authorities seized a significant amount of gold coins, jewelry, and foreign currency during raids on properties linked to the group.

Abdollahi said the network was involved in “structured bribery, corruption, and manipulation of legal outcomes.” The investigation, he added, is part of broader efforts to root out internal corruption and restore public trust in Iran’s legal institutions.

No names have been released, and judiciary officials say the case is ongoing.

Iran MP calls recent energy sector fires abnormal, hints at Israeli sabotage

Aug 3, 2025, 17:00 GMT+1

A senior Iranian lawmaker has raised the alarm over what he described as an abnormal and dangerous surge in fires and explosions at the country’s oil, gas, and petrochemical facilities, blaming Israel for at least some of the incidents.

“The pattern of fires this year in oil, gas, and petrochemical facilities is abnormal,” Mohammad Bahrami, a member of parliament’s energy committee, told the Iranian news outlet Didban Iran.

“Some of these incidents have occurred repeatedly and within short time intervals at sensitive complexes,” he added.

While Bahrami blamed aging equipment and lack of preventive maintenance as the key causes, he did not rule out possible sabotage operations by Israel.

“Around 50 percent of these incidents are caused by aging equipment, a lack of preventive maintenance, and outdated monitoring systems. About 30 percent stem from human error, insufficient training for operational staff, and failure to follow safety protocols," Bahrami said.

"The remaining 20 percent are a combination of managerial failures, delays in emergency response, weak HSE budgets, inadequate digital warning systems, and recent hostilities with the Zionist regime (of Israel),” he added.

A report by New York Times last month said Iranian officials increasingly suspect a coordinated campaign of sabotage may be behind the recent wave of unexplained fires and explosions across the country.

At least 12 major or mid-scale fires and explosions have occurred in oil and gas infrastructure during the first half of the current Iranian year which began in late March, according to estimates cited by Didban. The number exceeds 20 when minor fires and smoke-causing leaks are included.

Bahrami said the fires had led to deaths in incidents such as those at the Kharg petrochemical facility and Abadan refinery.

“Gas units have been taken offline for days, and both production and exports have been affected. Our international insurance and energy market reputation has suffered,” he said.

Bahrami warned that without structural reform and investments in digital safety infrastructure, Iran’s energy sector could suffer deeper reputational, financial, and operational damage.

Tehran cleric steps down from Friday prayers amid family corruption scandal

Aug 3, 2025, 11:02 GMT+1

A senior Iranian cleric whose family is at the center of a high-profile corruption investigation has stepped down from his role as Tehran’s interim Friday prayer leader, Iranian state media reported on Sunday.

Kazem Sedighi, a longtime ally of Supreme Leader Ali Khamenei, requested to be relieved of his duties in order to focus on academic and religious work. The request was approved by Khamenei, in line with Article 110 of Iran’s Constitution, which gives the Supreme Leader authority over key appointments.

Sedighi, a prominent religious figure often seen at the pulpit of Tehran University’s weekly Friday prayers, had held the post since 2009.

The move comes weeks after Sedighi’s son and daughter-in-law were arrested by the Revolutionary Guard’s Intelligence Organization in connection with an alleged land deal involving public property in northern Tehran.

The case, which has sparked widespread attention on Iranian social media, centers on the transfer of a 4,200-square-meter plot—valued at around $20 million—from a seminary founded by Sedighi to a company linked to his family.

According to documents leaked by Iranian journalist and whistleblower Yashar Soltani, the company was established in mid-2023 and included several close associates of Sedighi, including his daughter-in-law and a member of his personal security detail.

Sedighi initially denied the allegations, saying that he was unaware of the land transfer and alleged that his signature on the documents had been forged.

However, mounting public pressure and additional disclosures prompted him to issue a public apology and confirm the return of the land to the seminary.

Iran’s judiciary and the IRGC-affiliated Fars News Agency confirmed that Sedighi’s son and daughter-in-law were arrested in July. Authorities have said the case is under “careful and independent judicial review.”

While Sedighi has not been formally charged with wrongdoing, the episode has reignited public debate around accountability and corruption within Iran’s religious and political elite.

Friday Prayer Imams in Iran serve not only as religious leaders but also as political representatives of the Supreme Leader in their respective cities. There are more than 900 such figures across the country, many of whom hold influence over local institutions and business interests.

Sedighi, sometimes referred to by his critics as “the weeping sheikh” for his emotional sermons, has been a fixture of Iran’s clerical establishment for decades and was known for his outspoken loyalty to Khamenei.