News

Reporting from Tehran and Beirut —
A standoff between Iranian merchants and tax collectors ended Saturday as the two sides reached a compromise in a weeks-long on-and-off strike that had cast a spotlight on the economic troubles of a nation now facing tightened sanctions.

For weeks, Tehran's normally bustling Grand Bazaar had been eerily quiet and palpably tense as security forces stalked its dim galleries, the stalls of gold, jewelry, shoes and clothing that were shuttered under the pretense of painting their storefronts.

The strike followed a restructuring of Iran's tax system that had reportedly improved audit functions, bringing more revenue for the government of President Mahmoud Ahmadinejad, but aggravating bazaar business owners.