US President Donald Trump sent a letter to Iranian Supreme Leader Ali Khamenei on March 5 that proposed negotiations on Iran's nuclear program.[41] Trump told reporters in Washington, DC, on March 7 that he would prefer to pursue a nuclear deal, but that ”the other option will solve the problem.”[42] Trump is presumably referring to a military strike targeting Iran‘s nuclear facilities.[43] Trump warned that ”something is going to happen very soon” regarding Iran.
Iranian political and religious officials rejected negotiations with the United States in the immediate hours following the announcement of Trump's letter. It is unclear how the Supreme Leader will respond in the days and weeks ahead. Iranian Foreign Affairs Minister Abbas Araghchi told Western media on March 7 that Iran will not resume negotiations with the United States while the United States continues to impose its ”maximum pressure” policy.[44] Several Friday prayer leaders across Iran rejected negotiations with the United States in sermons on March 7.[45] Friday prayer leaders receive guidance for the content of their Friday sermons from the Office of the Supreme Leader, which indicates that their comments are a coordinated messaging campaign. Khamenei previously categorically rejected nuclear negotiations with the United States during a speech on February 7.[46] Khamenei may choose to negotiate with the United States indirectly through European, Russian, or Qatari intermediaries, for example. Khamenei is scheduled to meet with senior military officials and civil servants for Ramadan on March 8 where they will likely discuss the letter.[47]
Iran's refusal to negotiate with the United States will further deteriorate Iran's economic situation, which could trigger internal unrest. Iran is facing dire economic conditions, with inflation reaching approximately 35 percent in February 2025 and the Iranian rial regularly reaching record-low exchange rates.[48] Trump re-instituted ”maximum pressure“ sanctions, which target Iranian oil exports to discourage Iran from pursuing a nuclear weapon, on February 4.[49] The United States is also considering a plan under which it could ask allies to stop and inspect Iranian oil tankers, which will help impose the “maximum pressure“ policy at sea.[50] Iranian officials are insisting that Iran should increase its ideologization efforts, such as countering alleged US-instituted soft war and psychological operations, rather than addressing economic concerns.[51] Increased maximum pressure sanctions, combined with ideologization efforts, could stoke unrest and lead to protests in Iran.
Senior Iranian military advisors, IRGC officials, and parliamentarians are increasingly lobbying the Supreme Leader to pursue a nuclear weapon.[52] Iranian officials continue to suggest that Iran could change its nuclear strategy to address growing external security threats as Iran continues to increase its enriched uranium stockpile.[53] It is unclear at this time whether the Supreme Leader has decided to pursue a nuclear weapon or a nuclear deal. Khamenei’s decision will likely depend on whether Iran calculates that the greatest threat to regime survival is internal or external.
Russian Permanent Representative to the UN in Vienna Mikhail Ulyanov stated that Iranian production of 60 percent enriched uranium has “no weapons risk.”[54] International Atomic Energy Agency Director Raphael Grossi said on March 3 that Iran currently has enough 60 percent enriched uranium, if enriched further, to produce six nuclear weapons.[55] Western media reported on March 4 that Russia offered to mediate talks between the United States and Iran.[56] Ulyanov’s statement further demonstrates that Russia would not help secure US interests as a mediator between the United States and Iran in nuclear negotiations.[57]
https://www.understandingwar.org/backgrounder/iran-update-march-7-2025
The individuals and entities targeted are Iranian business people and companies connected to procurement networks that acquire and supply sophisticated technology that supports the Islamic Revolutionary Guard Corps’ (IRGC’s) weapons production and sales, including to Russia for use in its illegal war against Ukraine.
In light of Iran's destabilizing activities in the Middle East region and globally, the Special Economic Measures (Iran) Regulations have been amended to enable Canada to impose sanctions in response to the evolving peace and security threat that Iran poses to the region and globally. In addition to nuclear activities and human rights violations, the Iran regulations can now capture the broad scope of malign activities carried out by, or consistent with, the policies of Iran. This amendment also enables Canada to designate any current or former senior government officials beyond senior IRGC officials.
Iran Update, March 10, 2025
Iranian Supreme Leader Ali Khamenei reiterated his rejection of negotiations with the United States. Khamenei rejected negotiations with Western powers during a speech to senior Iranian officials in Tehran on March 8.[17] Khamenei dismissed talks as a ”tool for imposing new restrictions” on Iran’s defense capabilities, missile range, and international partnerships. Khamenei framed Western insistence on negotiations as a ”pressure tactic” and emphasized that ”Iran will not accept any new demands.” Khamenei’s remarks come after US President Donald Trump sent a letter on March 5 proposing nuclear talks.[18] Khamenei’s remarks reinforced his speech on February 7, where he categorically rejected nuclear talks and called negotiations with the United States, “unwise, unintelligent, and dishonorable.”[19] Senior Iranian military officials, including Armed Forces General Staff Chief Major General Mohammad Bagheri, have echoed Khamenei’s rejection of negotiations since his speech on March 8.[20]
Khamenei also addressed Iran’s economic challenges during his speech and tried to downplay the impact of sanctions.[21] Khamenei demanded currency system reforms, increased investment in domestic industries, and stronger action against smuggling to stabilize the economy. It is unlikely that any of these policies would outweigh the effects of US sanctions on the Iranian economy or solve the underlying issues that plague the Iranian economy. These issues include corruption, nepotism, and the outsized role of the IRGC and parastatal organizations in the economy. Khamenei warned that Western powers aim to weaken Iran by targeting public livelihoods and claimed that Iran’s adversaries want to make Iran’s economy fail. Khamenei framed economic reforms as essential to resist Western pressure. Khamenei remarks reflected the regime’s concern over economic instability, rising inflation, national currency devaluation, and the impact of renewed US ”maximum pressure” sanctions against Iran.[22]
https://www.understandingwar.org/backgrounder/iran-update-march-10-2025