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

Key Points:

• Iran’s president acknowledged that foreign trade has decreased by over 35% due to US sanctions and a naval blockade amid six months of conflict with the United States, while pledging to withstand pressure and maintain control over the Strait of Hormuz.
• The government is prioritizing economic recovery by addressing inflation, unemployment, and reducing dependence on the dollar, as annual inflation reached 66% and daily life hardships intensify for Iranian citizens.
• Supreme Leader Ayatollah Mojtaba Khamenei emphasized the need to tackle economic challenges seriously and called for domestic unity and social cohesion in response to the ongoing conflict.
• Tehran described diplomacy and defense as complementary strategies, pursuing dialogue with neighbors and maintaining military readiness, highlighted by recent talks with Qatar and statements about Iran’s robust drone and missile capabilities.
• Iranian officials hinted at undisclosed military "surprises," signaling continued defiance against US and allied pressures while promoting a message of national resilience and unity.