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

Iranian authorities have recognized the severe economic consequences of the ongoing six-month conflict with the United States, with President Masoud Pezeshkian stating that foreign trade has plummeted by over a third due to US sanctions and a naval blockade. Despite the economic strain, Tehran has maintained its resolve, vowing to endure US pressure, engage in diplomatic efforts, and retain control over the Strait of Hormuz.

The government has prioritized addressing the economic fallout, which includes curbing inflation, generating employment opportunities, and gradually reducing reliance on the US dollar.

Supreme Leader Ayatollah Mojtaba Khamenei, who has remained largely out of public view since the war's initiation on February 28, has urged the government to tackle the economic and livelihood challenges faced by the nation, such as inflation, unemployment, price management, and market regulation for goods and services. The government has emphasized that diplomacy and defense are "two complementary, coordinated, and inseparable wings" that will be pursued in a balanced approach to safeguard national interests and territorial integrity.

President Pezeshkian has called for dialogue and a less confrontational relationship with neighboring countries, emphasizing that none of them holds dominance over the others.