Indeed "as" is can be used to mean "when" for example, to explain something that happens simultaneously. In a certain, meaning "when OR while one event happens while other is in progress" here, the event of women being forced into using hijab (event #1) when they select (event #2) Iran to host the chess championship. That is, for argument´s sake, if FIDE didn´t decide for Iran to host the championship, women chess players wouldn´t be forced into wearing the hijab.
One may ask, but how is it that they talk about something as it is happening right now? It´s Journalese, the lingo of headlines.
In this way one can talk about one event that has not taken place yet, but he has a high degree of certainty. Or about one event that took place as it is happening now.
For example, in the following site it mentions the headline "“Ship sinks and leaves 300 deaths.
” (the event has happened, but as it is recent the headline factual truth still holds, because the reader don´t know about the fact yet.)http://nofeargrammar.blogspot.com.br/20 ... tense.html
"Journalese" is a bit tricky sometimes, it grabs the attention of the reader, as it has happened right now; and it allow a faster reading of the news of the day. But then, sometimes it gets difficult or ambiguous, even natives admit that:http://www.economist.com/blogs/johnson/ ... journalese
And not all newspapers have an "Ombudsman" (take Folha de São Paulo and O Globo for example) or an "After The Deadline" section, as the New York Times.http://afterdeadline.blogs.nytimes.com/2015/03/_r=0