Facts Matter: Iran’s President Says Country Is Running Out of Water, Government Offices Shut Down, Extreme Rationing

Podcast: Facts Matter
Host: Roman, The Epoch Times
Date: August 29, 2025

Episode Overview

In this episode, Roman explores Iran’s rapidly escalating water crisis—an issue overshadowed by recent turmoil including American bombings, Israeli military actions, and tightening sanctions. With Iran’s President openly admitting to government mismanagement, major cities experiencing water shortages, and the government imposing unprecedented measures, Roman examines the roots, consequences, and politics surrounding Iran’s dire water shortage.

Key Discussion Points & Insights

The Overlooked Crisis Amid Geopolitical Chaos

• Fast-moving news cycle: Roman highlights how recent “seismic events” (U.S. bombing of Iranian nuclear sites, Israeli strikes, sanctions escalation) faded quickly from public consciousness, even as Iran faces new, severe problems.
  • Quote: “If Canada bombed, surprise bombed, the nuclear sites here in the US, we would be talking about that nonstop for...many months. It would be like the Pearl Harbor of the 21st century...But we did it last month, and already most people have forgotten that it even happened.” (00:22)
• Iran now faces a mounting internal crisis: “The country is running out of water.” (00:54)

Water Shortages in Major Cities

• Water crisis not restricted to arid regions—it affects urban centers like Tehran, where:
  • Many apartment buildings have taps running dry for hours.
  • People are “desperately searching for water tanks, but...they just can’t find them anywhere. They’re all sold out.” (01:22)
• People hoarding every drop; reservoirs are “literally in the process of running dry.” (01:48)

Government Acknowledgment & Response

• President Masoud Peschechkian (01:54) made a striking admission in last Monday’s cabinet meeting:
  • Quote: “The water crisis is more serious than what is being talked about today. And if we do not make urgent decisions today...we will face a situation in the future that cannot be cured. We cannot continue this way.” (02:12)
  • Remarkably, he admits government mismanagement as a cause—rare candor for an Iranian official.
• Two days later: sweeping shutdown of all government offices and services in Tehran and two dozen cities; instituted a three-day weekend to reduce water/electricity use. (03:02)
• Government spokeswoman Fatima Mohajirani urged people to “go on holiday in order to preserve water.” (03:21)

Causes of the Water Crisis

• Natural Factor:
  • Severe multi-year drought: annual rainfall fell from 11 inches to 6 inches, “the worst drought in 50 years.” (03:43)
    • Led to drying reservoirs, destroyed wetlands, sand/dust storms, crop/livestock death; some cities (like Tehran) are sinking due to depleted aquifers: “parts of the city are sinking at a rate of over 12 inches per year.” (04:28)
• Human Mismanagement:
  • Decades of poor policy: overdevelopment, groundwater overuse, excessive dam construction.
  • Water diverted to government-owned, water-intensive industries (e.g., steel production) in desert regions. (05:10)

“Water Mafia” and Structural Corruption

• The so-called “water mafia”—networks of political elites, contractors, engineering firms, IRGC affiliates—control major water projects, often ignoring environmental assessments.
• Projects “benefit a small circle of well-connected people...to the detriment of the common people.” (06:55)
  • Quote: “In the US, it’s an endless amount of red tape to do anything...In Iran, it’s the exact opposite; as long as you’re in the right circles...you can do anything.” (06:35)

Agricultural Practices & Water Waste

• 90% of Iran’s water is used in agriculture—much lost to “outdated irrigation, misallocation, and inefficient farming techniques stuck in the 1970s.” (07:37)
  • Central government pushes water-intensive crops (pistachios, sugarcane, rice), exacerbating shortages.

Consequences of the Latest Heat Wave

• July 2025: Heat index hit 149°F (65°C) in parts of Iran.
• Twofold impact:
  • Remaining water in reservoirs evaporated more quickly.
  • Residents suffered extreme heat with even less water. (08:32)
• On top of water shortage: rolling blackouts, skyrocketing inflation, and post-war instability.

Expert Interview Highlights

[09:08] Interview with the CEO of Persian Epoch Times

• Water hoarding: “People are looking to store water...when [the water] is on, you’re filling your bucket.” (09:11, CEO)
• Electricity crisis linked to cryptocurrency mining:
  • In 2021, Supreme Leader allowed cryptocurrency mining, utilizing Iran’s ultra-cheap electricity.
  • Many crypto farms are IRGC-affiliated. Some are operated by Chinese nationals (since mining is banned in China).
  • This serves to circumvent economic sanctions:
    • Quote: “This is a very smart way to do that.” (10:38, CEO)
    • Iran’s foreign currency reserves have dropped from $120B (2018) to $33B (2025)—mining provides a financial lifeline.
• Trade-off: Resources (water and electricity) are devoted to lucrative, elite-controlled activities while ordinary citizens are left suffering.

[11:28] Water Diversion for Industrial Use

• Not just Tehran—provinces like Isfahan are heavily impacted.
  • Two government-owned steel manufacturers divert river water:
    • Rivers beloved by locals are “stopped for many months…divert[ed] to somewhere else...can go to steel or to other provinces for agriculture.” (11:40, CEO)
    • This has been happening for “at least 20 years.” (11:51, CEO)

Notable Quotes & Memorable Moments

• Iranian President Masoud Peschechkian:

  • “The water crisis is more serious than what is being talked about today. And if we do not make urgent decisions today...we will face a situation in the future that cannot be cured. We cannot continue this way.” (02:12)

• Host, Roman:

  • “In the US, it’s an endless amount of red tape to do anything...In Iran, it’s the exact opposite; as long as you’re in the right circles...you can do anything.” (06:35)

• CEO of Persian Epoch Times:

  • “Iran’s foreign currency reserves...shrinking to $33 billion in 2025…so they need some way to get around the sanctions. And this [crypto mining] is a very smart way to do that.” (10:31, CEO)
  • “There are two steel manufacturers in the province of Isfahan...for many months of the year, they stop the water in the river...to divert the water to somewhere else...steel, or to other provinces for agriculture.” (11:29, CEO)

Important Segment Timestamps

• 00:00 - 01:48: Framing the crisis—recent events, the overlooked water crisis
• 01:48 - 03:32: First-hand accounts of urban water shortages; government admissions
• 03:32 - 05:35: Causes—drought, environmental collapse, government mismanagement
• 05:35 - 07:59: “Water mafia” corruption, broken regulation, agricultural waste
• 08:00 - 09:08: Compounding impact of record heat, blackouts, and crisis context
• 09:08 - 12:05: [Interview] Connections to cryptocurrency mining, elite industrial interests, resource diversion

Conclusion

This episode of Facts Matter delivers an unvarnished, fact-based look at Iran’s spiraling water crisis, a problem that’s the consequence of both nature and systematic, elite-driven mismanagement. With real-world impacts—urban thirst, agricultural collapse, government shutdowns—and deeply rooted political economy (“water mafia," crypto mining, industrial policy), Iranian society faces a dire challenge that mere temporary measures are unlikely to resolve.

Recommended for those seeking to understand the intersection of environmental crisis, authoritarian governance, and everyday hardship in contemporary Iran.