Sanctions and a hobbled economy pull rug out from under Iran's carpet weavers

Iranian carpet shop owner Ali Faez works at his shop at the traditional bazaar of the city of Kashan, about 152 miles south of the capital Tehran, Iran

The historic Kashan bazaar in central Iran once sat on a major caravan route, its silk carpets known the world over.

But for the weavers trying to sell their rugs under its ancient arches, their world has only unraveled since the collapse of Iran’s nuclear deal with world powers and wider tensions with the West. It has seen rug exports plummet from over $2billion two decades ago to under $50million last year.

With international transactions becoming more challenging and tourist numbers dwindling, Iranian carpets are piling up unsold, leaving some weavers earning as little as $4 a day. Ali Faez, who runs a carpet shop within the bazaar’s ancient arches, lamented the loss of American buyers: “Americans were some of our best customers,” he said.

“Rugs are a luxury product and they were eager to buy it and they used to make very good purchases. Unfortunately this has been cut – and the connection between the two countries for visitors to come and go has gone away.”

Kashan’s age-old rug-weaving craft has been recognised by UNESCO as part of the world’s “intangible cultural heritage.” The intricate Farsi weaving style is predominantly kept alive by female artisans, who have inherited their expertise through generations. They utilise natural elements such as vine leaves, pomegranate skins, and walnut shells to create vibrant dyes for their yarns.

Crafting a single rug can span several months. For years, Iran was a hotspot for Western tourists seeking unique souvenirs, with Persian rugs being a top choice. However, following the 1979 Islamic Revolution, the US clamped down on Iran with sanctions due to the American Embassy crisis, Tehran’s alleged involvement in militant activities, among other concerns.

Yet, in a move by the outgoing Bill Clinton administration in 2000, restrictions on importing Iranian caviar, rugs, and pistachios were lifted. “Iran lives in a dangerous neighborhood,” declared then-Secretary of State Madeleine Albright. “We welcome efforts to make it less dangerous.”

The ban on Persian rugs resurfaced in 2010 amid escalating tensions about Iran’s nuclear ambitions. This embargo remained until 2015 when Iran agreed to a landmark nuclear deal with global powers, leading to significant reductions and purity limitations on its enriched uranium reserves. Consequently, the trade in Persian rugs resumed.

Three years on from the 2015 nuclear deal, then-President Donald Trump pulled the US out of the agreement in 2018. This led to Iran ramping up uranium enrichment to near-weapons-grade levels and being implicated in various attacks, including a significant drone-and-missile strike aimed at Israel last month.

For carpet weavers, this meant their products were once again subject to a US ban. “It started when Trump signed that paper,” lamented Faez, referring to the re-imposed sanctions. “He ruined everything.”

The head of a national handwoven rug producers’ syndicate, Abdullah Bahrami, also pointed fingers at the Trump-era sanctions for the industry’s downfall, noting that exports to the US used to be worth as much as $80million annually. “The whole world used to know Iran by its rugs,” Bahrami declared to the state-run IRNA news agency back in March.

Compounding the issue is the perceived decline in tourists visiting Kashan. High-spending American and European tourists have all but ceased coming to Iran, as highlighted by the Shargh newspaper last year. Despite this, Ezzatollah Zarghami, Iran’s tourism minister, claimed in April that the country had seen 6 million visitors over the past year, though this figure likely includes religious pilgrims and less affluent Afghans and Iraqis.

Moreover, those tourists who do make it to Iran are hamstrung by the financial system, which doesn’t accept any major international credit cards. Faez recounted his encounter with a Chinese customer recently: “I had a Chinese customer the other week. He was struggling to somehow make the payment because he loved the rug and didn’t want to let go of it,” Faez explained.

“We have to pay a lot of commission to those who can transfer money and have bank accounts abroad. Sometimes they cancel their orders because they don’t have enough cash with them.”

The tumble in the value of the rial currency has hampered many Iranians from procuring these handcrafted rugs. To add insult to injury, the rug-weaving industry proffers low wages, resulting in an increasing number of Afghan migrants working in factories around Kashan.

Sadly, stalwart designers like Javad Amorzesh, one of the few old-school artisans in Kashan, speaks of falling numbers of orders: “Inflation rose every hour. People were hit repeatedly by inflation,” he lamented. “I used to have four to five assistants in a big workshop.”

Working alone in his confined workshop, he chuckled bitterly about his situation, saying, “We’ve been left isolated.”