Iran’s pension schemes are believed to be on the brink of collapse following U.S. sanctions and a ‘maximum pressure campaign.’
The country is reported to be suffering significant losses as President Donald Trump increases the pressure against Iran in a bid to force them to sign a new nuclear deal that will limit their uranium enrichment plans, Fox News reported.
National Security documents revealed that 17 of Iran’s 18 existing retirement funds were in the red, including funds set to go to members of their armed forces.
The use of government subsidies to prop up more than 80 per cent of pensions funds has been described as unstable in the document.
Iran’s real estate market had also taken a hit and was described as a ‘house of cards.’
President’s Donald Trump’s economic sanctions and ‘maximum pressure campaign’ are said to be pushing Iranian pension schemes to the ‘brink of collapse.’ America hopes the tactic will force Iranian President Hassan Rouhani (right) to the negotiating table
Of the 18 retirement funds in Iran, 17 of them are believed to be in the red according to National Security documents obtained by Fox
Tensions have continued to escalate after Trump announced plans to pull the U.S. out of the Iran nuclear deal in 2018.
He called the agreement, signed by former-president Barack Obama in 2015, the ‘worst deal ever’ during his campaign.
America is now employing a ‘maximum pressure campaign to get Iran back to the table [for a] better deal,’ a U.S. State Department counter terror official told the Jerusalem Post.
Secretary of State Mike Pompeo believes that Iran being left with ‘fewer resources’ could force it to instigate change.
He said: ‘We can see it with the Shia militias in Iraq. They’re scrambling for resources.
‘We think the Iranian government will shrink, that their GDP will shrink by as much as 12 or 14 percent this year.’
Speaking to Fox News on Sunday, Pompeo spoke of the difficulties Iran faced due to the economy sanctions.
He said: ‘This will reduce their capacity to purchase the things they need, the equipment they need, the materials they need, to inflict terror around the world.’
Iran’s foreign minister Javad Zarif condemned America and Pompeo for repeated statements urging the nation to halt its nuclear plans.
Zarif wrote in a tweet: ‘Iran must change its policies in order for Iranians to eat is pure #EconomicTerrorism.
‘Tying bread & medicine to politics is to kill & starve people into submission. Iranians will never capitulate.’
Iran’s foreign minister Javad Zarif has accused the American administration of economic terrorism by only being willing to drop the sanctions against the nation when they sign a deal to restrict their enrichment of uranium.
It remains uncertain whether Rouhani (above) will meet with U.S. President Donald Trump to discuss a new nuclear deal. The Iranian president has stated that he will only be willing to meet once sanctions are lifted
Other countries including France, Britain and Germany are still in the nuclear deal with Iran and are trying to keep the agreement intact along with allowing the nation to sell its oil.
France and Japan have met with Iranian officials to discuss future terms and China continues to buy Iranian oil despite American sanctions.
Trump could throw support behind a plan drafted by French President Emmanuel Macron that would take Iran back to compliance terms of the 2015 agreement.
If they accept, a $15billion line of credit would be made available to them.
But Iran has distanced itself from the deal announcing that it would take new measures to speed up uranium enrichment.
‘We have made clear that the regime’s political and economic isolation will only deepen if it takes further steps that increase concerns about its nuclear program,’ a U.S. State Department spokesperson told Fox.
They considered the announcement to be ‘another transparent attempt to generate negotiating leverage and extort the international community.’
Trump could meet with Iranian President Hassan Rouhani later this month at the United Nations General Assembly in New York.
Despite Trump stating that he would be willing to meet, the Iranian president has ruled it out stating that America must drop sanctions before anything can happen.
Rouhani announced: ‘Americans have to realize that warmongering and war mongers are not to their benefit.
‘They should not only abandon warmongering but also abandon their ‘maximum pressure’ policy.’
On camera Trump took similarly strong stance, he said: ‘We hope that we can make a deal and if we can’t make a deal that’s fine too.
‘If they are thinking about enrichment they can forget about it.’