WarSclerotic

Iranian Supreme Leader Ayatollah Ali Khamenei on Monday rejected U.S. President Donald Trump’s offer of unconditional talks to improve bilateral ties and accused the Iranian government of economic mismanagement in the face of reimposed U.S. sanctions.

The U.S. reimposed the sanctions last week after pulling out of the 2015 international deal aimed at curbing Iran’s nuclear program. Trump has also threatened to penalize companies that continue to operate in Iran.

“I ban holding any talks with America. … America never remains loyal to its promises in talks,” Khamenei, who has the final say on policy in the Islamic republic, was quoted by state TV as saying at a gathering of thousands of Iranians on Monday.

“America’s withdrawal from the nuclear deal is clear proof that America cannot be trusted,” he said. “Negotiation with the bullying and very eager government of the U.S. means giving it an instrument through which it can add to its hostility.”

The sanctions target Iran’s trade in gold and other precious metals, its purchases of U.S. dollars and its car industry.

The U.S. had said Iran’s only chance of avoiding the sanctions would be to accept Trump’s offer to negotiate for a tougher nuclear deal. While Iranian officials have already rejected the offer, this was the first time Khamenei publicly commented on the issue.

However, Khamenei ruled out the possibility of war with the United States.

“They [the Americans] are exaggerating the possibility of a war with Iran. There will be no war. … We have never started a war and they will not confront Iran militarily,” he said.

Economic woes

Khamenei, whose remarks came amid a sharp fall in the rial currency and angry public protests, criticized the government of President Hassan Rouhani, the pragmatist cleric who championed the 2015 deal aimed at ending Iran’s political and economic isolation.

“More than the sanctions, economic mismanagement [by the government] is putting pressure on ordinary Iranians. … I do not call it betrayal but a huge mistake in management,” state TV quoted Khamenei as saying.

“With better management and more efficient planning we can resist the sanctions and overcome them.”

Khamenei was apparently attempting to deflect public anger over the deteriorating economy towards Rouhani’s government.

The European countries that still back the 2015 deal fear Trump’s moves will undermine Rouhani and strengthen the hand of his hard-line rivals in the clerical establishment.

The rial has lost about half of its value since April in anticipation of the renewed U.S. sanctions, driven mainly by heavy demand for dollars among ordinary Iranians trying to protect their savings.

Iranian officials have blamed “enemies” for the fall of the currency and a rapid rise in the price of gold. Over 60 people, including several officials, have been arrested on related charges that carry the death penalty.

“The corrupt people [officials] should be punished firmly,” Khamenei said on Monday.

Thousands of Iranians have protested in recent weeks against sharp increases in the prices of some food items, a lack of jobs and state corruption. The protests over the rising costs of living have often turned into anti-government rallies.

Defying U.S. demands to curb its missile program, Iran unveiled a new generation of its “Fateh Mobin” short-range ballistic missile on Monday, state TV reported.

“Our will to enhance our defense power in all fields will increase if the pressure mounts on Iran,” Defense Minister Brig. Gen. Amir Hatami said after unveiling the “fully homemade precision-guided” missile. Hatami told state TV the radar-evading, surface-to-surface missile was effective in all weather conditions.

He did not discuss the range of the missile, but older versions such as the Fateh-313 have a range of some 500 kilometers (300 miles). Iran is believed to have long-range missiles with a range of 2,000 kilometers (1,250 miles), which are capable of reaching U.S. bases in the region and Israel.

Iran often announces military achievements that cannot be independently verified.

Trump has said Iran must also stop meddling in conflicts in Syria and Yemen, but Foreign Minister Javad Zarif struck a defiant tone on Monday, telling Qatar’s Al-Jazeera TV, “Iran will not change its policies in the region because of U.S. sanctions and threats.”