Keep a resource: SCO allows economic support for Iran
The Shanghai Cooperation Organization allows for the possibility of providing economic assistance to Iran. This was reported to Izvestia by SCO Secretary General Nurlan Yermekbayev. However, experts note that the organization does not have the resources to eliminate the consequences of large-scale destruction in the country: the ongoing strikes by the United States and Israel have already led to the destruction of key energy infrastructure facilities. Meanwhile, diplomatic activity is intensifying, and the parties are in contact through intermediaries. Conditions for possible negotiations are being discussed, including control over the Strait of Hormuz and restrictions on nuclear and missile programs.
Damage to Iran's economy
The SCO is closely monitoring developments around Iran, but as of today, its secretariat has not received any official requests from the Islamic Republic for specific assistance from the organization. The SCO Secretary General informed Izvestia about this.
— There is currently no question of economic and other assistance, which does not exclude the possibility of its provision on a bilateral basis and consideration in the future. In addition, a proposal to create a mechanism or fund for emergency assistance is being studied within the SCO," Nurlan Yermekbayev stressed.
The Secretary General also clarified that the SCO is not a military—political union, and the principle of collective security does not apply in it. The main goal of the organization is to develop political dialogue, strengthen trust and coordinate the efforts of the member States to maintain security, as well as counter terrorism, extremism and separatism.
At the moment, Russia has already sent 300 tons of medicines to Iran through the Red Crescent as humanitarian aid, but this is only a small part of what will be required for reconstruction.
Nikolai Sukhov, a leading researcher at the E.M. Primakov Center for Middle East Studies of the Russian Academy of Sciences, believes that the SCO's capabilities to support Iran remain extremely limited. According to him, the organization is unlikely to be able to provide significant economic assistance, especially if it is a question of full-fledged participation in the reconstruction of the country after large-scale destruction.
According to him, Iran approached the current armed conflict already in a state of deep economic crisis, aggravated by sanctions, inflation and structural problems. In such circumstances, he emphasizes, none of the countries — even the largest SCO members — has sufficient resources to significantly influence the recovery of the Iranian economy in the short term.
Hadi Issa Dalul, an expert on international relations, notes that the SCO can provide Iran with only limited and mostly indirect economic support.
— Key assistance is provided through bilateral channels, primarily through China as the largest buyer of Iranian oil, as well as through trade and logistics ties with Russia and Central Asian countries. At the same time, Iran's membership in the SCO has brought fewer economic benefits than expected: major projects have been frozen due to the risk of secondary sanctions, and the organization itself does not have the resources for large-scale assistance, the expert told Izvestia.
The economic situation in Iran continues to deteriorate every day. According to analysts, the country's GDP may decrease by 10% by the end of 2026. Damaged oil storage facilities and refining facilities near Tehran have forced restrictions on fuel supplies to industry and the public. The closure of the Strait of Hormuz, through which about 20% of the world's oil passes, has exacerbated the problems. The energy supply to industry and households has been disrupted, and chronic power outages have intensified.
More than 85,000 civilian facilities, including industrial, export infrastructure, and defense production facilities, have already been damaged. The Iranian rial, which was in deep crisis before the war, practically lost its function as a means of payment in the first weeks of March. The exchange rate in the parallel market collapsed to 1.75 million rials per $1. Even if it succeeds in ending the fighting, the country will need many years and huge investments to rebuild its energy, transport and social infrastructure.
The strikes have paralyzed key sectors of Iran's economy, primarily oil and gas exports. The Yuzhno-Parsskoye field, the largest in the country, which provided about 70% of gas production and a significant part of electricity generation, has been partially decommissioned: phases 3-6 have been damaged, and production has been reduced by tens of billions of cubic meters per year. Kharq Island and oil terminals, the country's main export hub, were also hit.
The current conflict may cost Iran significantly more than last year's: if the previous 12-day war required half a trillion dollars to restore energy and infrastructure, the current strikes affecting even more facilities and key industries will lead to a multiple increase in damage.
Negotiations around Iran
In parallel with the ongoing hostilities, attempts at a diplomatic settlement are intensifying. According to Western media reports, contacts between the United States and Iran are maintained through third countries, although direct negotiations have not been officially confirmed. According to the Wall Street Journal, Tehran has put forward a number of conditions for the start of a dialogue, including economic control over the Strait of Hormuz, the cessation of hostilities between Israel and Hezbollah and the preservation of the missile program without restrictions. Earlier, demands were also mentioned for the dismantling of American military bases in the region and the payment of compensation for the damage caused.
Washington insists on limiting Iran's missile potential, abandoning support for allied armed groups in the region, and dismantling the nuclear infrastructure. Parliament Speaker Mohammad Bagher Ghalibaf is being considered as a possible negotiator from the Iranian side, and the format of contacts is being discussed at the level of US Vice President Jay Dee Vance. Several mediators are involved in the negotiation process at once — Egypt, Turkey, Qatar and Pakistan, while Islamabad may become the venue for the next round of consultations.
Thus, Al Mayadeen reports that Iran has already notified Pakistan that it cannot accept the 15 points proposed by the United States to resolve the conflict. The document called on the republic to dismantle its three main nuclear facilities and completely abandon uranium enrichment on its territory, suspend the development of ballistic missiles, limit support for its proxies and fully open the Strait of Hormuz.
Despite the diplomatic activity, it is still premature to talk about full-fledged negotiations. Rather, it is about attempts by the parties to probe each other's positions and prevent further escalation. At the same time, the signals remain contradictory: Washington claims that the initiative of the contacts came from Tehran, while the Iranian side accuses the United States of trying to manipulate markets and gain time to prepare new military steps.
The build-up of the American military presence in the region creates additional tension. Soldiers of the US airborne division and about 2.5 thousand Marines have already been sent to the conflict zone, and the total number of US military personnel involved was previously estimated at about 50 thousand people.
On the evening of March 24, Israel and the United States launched a new strike near the Bushehr nuclear power plant in southwestern Iran. According to the Atomic Energy Organization of Iran, the plant was not damaged, and there were no casualties among the personnel. Alexey Likhachev, CEO of Rosatom, stressed that the strike occurred in the immediate vicinity of the operating power unit No. 1. However, no damage was caused to the NPP and its personnel.
Under these conditions, according to the Fars news agency, Iran is not considering the possibility of a truce and considers negotiations with the United States premature. The country's authorities point out that a cease-fire is possible only if "strategic goals" are achieved. At the same time, they acknowledge that they receive signals through intermediaries that Washington is ready to discuss de-escalation. At the same time, the key positions of the Islamic Republic, including the approach to the Strait of Hormuz, remain unchanged.
The Iranian Foreign Ministry clarified that the Strait of Hormuz is open to friendly countries, including Russia, China and India.
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