A gas station lies empty because the petrol pumps were out of service, in Tehran on Tuesday. AP
A gas station lies empty because the petrol pumps were out of service, in Tehran on Tuesday. AP
A gas station lies empty because the petrol pumps were out of service, in Tehran on Tuesday. AP
A gas station lies empty because the petrol pumps were out of service, in Tehran on Tuesday. AP

Tehran petrol stations hit by suspected cyber attack


Leila Gharagozlou
  • English
  • Arabic

Petrol stations across Iran halted sales on Tuesday after a government system controlling fuel subsidies suffered a widespread power cut, in an incident described briefly by semi-official ISNA news agency as a "cyber attack".

Images shared on a state TV Telegram account showed long queues of cars waiting to fill up in Tehran, only weeks before the country was due to mark the anniversary of the 2019 fuel protests which broke out after prices increased by up to 200 per cent.

No explanation was given by officials about what caused the issue on Tuesday but oil ministry officials were holding an “emergency meeting” to solve the technical problem.

Iran's Interior Minister Ahmad Vahidi on Tuesday said the disruption at some gas stations was “due to a technical and systemic problem and will be fixed soon”. He said that there was no plan to increase the price of petrol.

The semi-official ISNA news agency called the incident a cyber attack but later retracted the statement. It reported that those trying to buy fuel with a government-issued card through the machines received a message reading “cyberattack 64411”.

Most Iranians rely on government subsidies to fuel their vehicles – particularly amid the country’s economic downturn.

In 2019, thousands of people took to the streets across Iran to protest against sudden fuel price rises. Amnesty International estimated that more than 300 people were killed, with thousands more arrested.

The code said to have shown up on machines at petrol stations is associated with a telephone hotline run through the office of Iranian supreme leader Ayatollah Ali Khamenei that handles questions about Sharia.

No group immediately claimed responsibility for the power cut. However, the use of the number 64411 mirrored an attack in July on Iran’s railway system in which the same number was displayed.

Social media users noted that electronic billboards around the country also displayed messages reading: “Khamenei, where is our fuel?”

Israeli cybersecurity firm Check Point later attributed the railway cyber attack to a group of hackers that called themselves Indra, after the Hindu god of war.

Iran has experienced several high-profile cyber attacks in recent months, including one that in August leaked video of abuse of prisoners at Evin jail in Tehran.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Our family matters legal consultant

Name: Dr Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Updated: October 26, 2021, 1:18 PM