divisions

Trump vows to escalate war as divisions in Iran emerge

Signs of division emerged in Iran’s leadership Saturday as U.S. and Israeli strikes continued battering targets throughout the country, with Tehran sending mixed signals on whether it would keep attacking Washington’s Arab allies entering the war’s second week.

Iranian President Masoud Pezeshkian began the day offering an apology “on behalf of Iran to the neighboring countries affected,” promising to halt the attacks that have affected nearly every nation in the Middle East. But strikes continued within hours, hitting Qatar, Bahrain and the United Arab Emirates, and Pezeshkian quickly issued a statement walking back his remarks.

President Trump vowed on social media to “hit Iran very hard” on Saturday, shortly before flying to Dover Air Force Base in Delaware for the dignified transfer of six service members killed in the war.

Speaking at a summit of Latin American leaders in Miami before his trip to Delaware, the president said the fallen service members were heroes “coming home in a different manner than they thought they’d be coming home.” He said it was “a very sad situation,” and he pledged to keep American war deaths “to a minimum.”

And Israel launched its own wave of fresh attacks against Iran while taking incoming fire from Hezbollah, Iran’s allied force in Lebanon, that set off sirens in Tel Aviv. Reports of a fire at a major oil refinery outside Tehran sparked fears the conflict was only escalating, marking the first attack on Iran’s energy infrastructure, if confirmed.

The burst of activity over the weekend underscored that Trump’s unexpected war with Iran, launched alongside Israel just a week ago, is continuing at full force with no sign of slowing.

Missile and drone strikes by Iran against Arab nations, targeting U.S. military assets in the region as well as civilian targets, including hotels and airports, have been an effort by Iran’s Islamic Revolutionary Guard Corps to pressure regional governments to in turn press Trump to end the U.S. air campaign. The strikes have jolted markets worldwide and sent the price of oil soaring.

President Trump salutes as soldiers carry a flag-draped coffin

President Trump salutes Saturday as soldiers carry the coffin of Sgt. Declan Coady, 20, of West Des Moines, Iowa. Coady and five others were killed in a drone strike in Kuwait.

(Roberto Schmidt / Getty Images)

While the attacks have decreased substantially over the course of the week, with U.S. Central Command recording a 90% decrease in ballistic missile launches and an 83% drop in drone attacks as of Friday, Iranian strikes are still penetrating regional air defenses. One drone hit the world’s busiest airport, in Dubai, on Saturday, dashing hopes that flights could resume from the regional hub.

Hours after Pezeshkian’s apology, Iran’s Foreign Ministry issued a statement vowing to continue strikes on territories that host U.S. offensive forces. Iran’s Defense Ministry said that its strategic stockpile of munitions was sufficient to sustain a protracted campaign. And a Revolutionary Guard spokesperson issued a statement addressing Trump, calling him “the corrupted island man,” referring to his former friendship with Jeffrey Epstein, the late sex offender who allegedly trafficked girls to his private island.

“The ground and the map of the war is in our hands,” the Revolutionary Guard official said. “This will continue.”

In his videotaped remarks, Pezeshkian also rejected Trump’s call for Tehran’s “unconditional surrender.” Trump later said he would be satisfied reaching a point at which Iran is no longer capable of fighting back.

“The idea of Iran surrendering unconditionally is a dream they will take to their graves,” Pezeshkian said.

A member of Iran’s Assembly of Experts, a council of 88 clerics responsible for naming the country’s supreme leader, was quoted in local state media vowing to select a new ayatollah within the next day, more than a week after U.S. and Israeli forces assassinated Ayatollah Ali Khamenei in the opening salvo of the war.

Trump has said he expects a say in that decision, preemptively rejecting the late supreme leader’s son, Mojtaba Khamenei, who is seen as the most likely successor.

Mojtaba Khamenei is seen as even more ideological than his father, with deep ties throughout Iran’s security apparatus — and with a potential vendetta against Trump, on the heels of U.S. forces killing much of his family.

Ali Larijani, secretary of Iran’s Supreme National Security Council who formerly served as the late Khamenei’s top advisor, said in his first remarks since the ayatollah’s killing that his assassination was unprecedented. “The price for this is not small,” Larijani said.

“They shouldn’t think we’ll let America quickly sweep this under the rug and say, ‘We hit, now let’s move on,’” Larijani continued. “Things will only resolve when they understand they no longer have the right to violate Iran, and when they compensate the Iranian people for their losses.”

More that 1,200 people have been killed in Iran since the war began, according to Iranian officials.

“He killed and martyred our leader,” Larijani added. “We’re not letting it go.”

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Iran seeks to get out of FATF blacklist amid domestic political divisions | Financial Markets News

Tehran, Iran – Iran says it will continue efforts to get out of a blacklist of a prominent global watchdog on money laundering and “terrorism” financing despite “20 years of obstruction” from domestic opponents.

The statement by the Financial Intelligence Unit of Iran’s Ministry of Economic Affairs on Sunday came two days after the Paris-based Financial Action Task Force (FATF) renewed its years-long blacklisting of Iran, according to a report by the official IRNA news agency.

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The FATF also ramped up measures aimed at isolating Iran from global financial markets with a particular focus on virtual asset service providers (VASPs) and cryptocurrencies.

It recommended member states and financial institutions around the world to:

  • Refuse to establish representative offices of Iranian financial institutions and VASPs or consider the noncompliance risks involved.
  • Prohibit financial institutions and VASPs from establishing offices in Iran.
  • On a risk basis, limit business relationships or financial transactions, including virtual asset transactions, with Iran or people inside the country.
  • Prohibit financial institutions and VASPs from establishing new correspondent banking relationships and require them to undertake a risk-based review of existing ties.

Even the flow of funds involving humanitarian assistance, food and health supplies as well as diplomatic operating costs and personal remittances are recommended to be handled “on a risk basis considering the “terrorist” financing or proliferation financing risks emanating from Iran”.

What does the FATF move mean?

Iran has been blacklisted by the FATF for years and is currently on the list in the company of just two other countries: North Korea and Myanmar.

Since October 2019, Iran has had “heightened measures” like supervisory examination and external audit requirements recommended against it and has been subject to “effective countermeasures” since February 2020.

This contributed to making access to international transactions increasingly difficult or impossible for Iranian banks and nationals and made the country more dependent on costlier shadowy third-party intermediaries for transactions.

The new countermeasures emphasise existing frameworks but also specifically cite virtual assets, signalling an increased focus.

The fact that the FATF also urges countries and global institutions to remain wary of risks of having any dealings with Iran may mean even more limited transaction opportunities for Iranian entities and nationals.

Small banks maintaining old correspondent relations with Iranian counterparts may also reconsider after being recommended to re-evaluate existing links.

The isolation has hobbled state-run or private income streams and contributed to the continuous depreciation of the Iranian rial over the years.

The FATF, formerly known by its French name, was established by the Group of Seven (G7) countries in 1989 to combat money laundering but later had its mandate expanded to countering financing of “terrorism” and weapons of mass destruction.

It has been formally raising concerns about Iran since the late 2000s, which is also when it started calling for countermeasures as international tensions grew over Iran’s nuclear programme and the country was sanctioned by the United Nations Security Council.

But a year after Iran signed a landmark 2015 nuclear deal with world powers that lifted the sanctions, the FATF also acknowledged a “high-level political commitment” from Iran and agreed to an action plan for the country to address its compliance requirements.

The centrist government of President Hassan Rouhani, who had clinched the deals, pressed ahead with ratifying several laws needed to fulfil the action plan despite opposition from hardliners who were firmly against the increased financial transparency and international supervision.

But United States President Donald Trump unilaterally reneged on the nuclear deal in 2018, imposing a “maximum pressure” campaign that has remained in effect until today. The move empowered the argument from the hardliners in Tehran, who succeeded in blocking the ratification of the rest of the FATF-linked legislation, leaving the issue dormant for years.

Washington has retained the sanctions over the years with some of the latest – including the blacklisting in January of two United Kingdom-based cryptocurrency exchanges – allegedly connected to Iran’s Islamic Revolutionary Guard Corps.

The UN Security Council sanctions were also reinstated against Iran in September when Western powers triggered the “snapback” mechanism of the nuclear accord. They include an arms embargo, asset freezes and travel bans as well as nuclear, missile and banking sanctions that are binding for all UN member states.

Support for ‘axis of resistance’

The Iranian hardliners railing against any progress on FATF-related legislation have presented two main concerns.

They assert that fully adhering to the watchdog’s guidelines would curb Tehran’s ability to back its “axis of resistance” of aligned armed groups in Lebanon, Iraq, Yemen and Palestine. The axis lost its base in Syria with the fall of President Bashar al-Assad in December 2024.

Hardliners have also suggested that Iran’s ability to circumvent US sanctions may be significantly compromised by disclosing all the information required by the FATF.

Iran has been selling most of its oil to China at hefty discounts, using a shadow fleet of ships that turn their transponders off to avoid detection in international waters. The country has also for years been forced to rely on a capillary network of currency exchanges and intermediaries, some of them based in neighbouring countries, such as Türkiye and the United Arab Emirates.

To assuage some of the domestic concerns, two FATF-related laws ratified by Iran in 2025 were passed with special “conditions” and reservations infused in the text.

One of the main conditions was that the ratified regulations must not “prejudice the legitimate right of peoples or groups under colonial domination and/or foreign occupation to fight against aggression and occupation and to exercise their right to self-determination” and “shall not be construed in any manner as recognition of the Zionist occupying regime”, a reference to Israel.

Iran also said it would not accept any referral to the International Court of Justice and asserted that its own Supreme National Security Council would determine which groups qualify as “terrorist” outfits.

Those conditions were rejected by the FATF, leading to the increased countermeasures.

The watchdog also said it expects Iran to identify and freeze “terrorist assets” in line with relevant UN Security Council resolutions. Some of Iran’s nuclear and military authorities are among individuals sanctioned by those resolutions.

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