Iran’s leaders acknowledge economic toll of war, pledge diplomacy, defence

Iran’s leaders have acknowledged the severe economic impact of six months of conflict with the United States, with President Masoud Pezeshkian reporting a nearly 35 percent decline in foreign trade due to US sanctions and a naval blockade affecting Iranian ports. The government is now prioritizing economic recovery, focusing on inflation control, job creation, and reducing reliance on the US dollar.

Speaking to state media, Pezeshkian confirmed that despite the challenges, Iran had managed to export around 90 million barrels of oil during a brief period in June when a Memorandum of Understanding (MoU) with Washington temporarily permitted oil sales. The economic strain has been compounded by annual inflation reaching 66 percent, disrupting daily life for many Iranians. Residents in Tehran described rising costs and job losses, with one woman, Maryam, noting she had to find work to support her household, while a local business owner, Omid, cited unaffordable rents and struggling employees.

Supreme Leader Ayatollah Mojtaba Khamenei, who has not been seen publicly since the war began on February 28 with an attack that killed his father, Ayatollah Ali Khamenei, called for urgent action to address economic hardships. In a written statement, he emphasized the need to tackle inflation, unemployment, and price management, urging national unity and social cohesion. The government has framed diplomacy and defense as essential, dual strategies for protecting Iran’s interests and territorial integrity.

Iran’s diplomatic efforts have included high-level talks with Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, who visited Tehran on Thursday to advocate for the reopening of shipping routes through the Strait of Hormuz. Iran’s Foreign Minister Abbas Araghchi described the discussions as productive. Meanwhile, Iran’s military has taken a defiant stance. Army commander-in-chief Amir Hatami stated that despite attempts to weaken Iran’s drone and missile capabilities, the military had maintained its defenses and fired its arsenal “with the utmost intensity until the last moment.” Acting Defence Minister Majid Ibn Reza warned that Iran had “surprises” in store, cautioning enemies to anticipate further developments.

The government’s messaging has emphasized balance, with Pezeshkian advocating for dialogue with neighboring countries and the supreme leader stressing domestic unity. Analysts suggest that while Iran remains under significant pressure, its leadership is attempting to project resilience through a mix of economic adjustments, diplomatic engagement, and military readiness.

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