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

Iran's leaders have acknowledged the mounting economic damage of six months of war with the United States, with the president saying foreign trade has shrunk by more than a third under US sanctions and a naval blockade.

Key points

• President Masoud Pezeshkian informed state media that exports and imports had slumped almost 35 percent since of sanctions and the blockade of Iranian ports.
• Annual inflation hit 66 percent last month, and residents in Tehran informed Al Jazeera the war had upended daily life.
• Al Jazeera's Sinem Koseoglu, reporting from Tehran, remarked the administration was promoting a message of unity.
• Iran's Foreign Minister Abbas Araghchi described the discussions as "creative".
• Since the war, I've had to find a job to support backing my household, noted Maryam.

Notably, the admissions came on Saturday as Tehran signalled it would not back down, pledging to withstand US pressure, pursue diplomacy and maintain what it notes is control over the Strait of Hormuz.

Authorities stated addressing the economic fallout was now a central focus, including curbing inflation, creating jobs and gradually reducing dependence on the dollar.

When oil sales were briefly permitted, he remarked Iran had nonetheless managed to sell concerning 90 million barrels of oil during the short-lived Memorandum of Understanding (MoU) signed with Washington in June.

Supreme Leader Ayatollah Mojtaba Khamenei. This person has not been seen publicly since the US and Israel introduced the war on February 28 with an attack that killed his father, Ayatollah Ali Khamenei, called on the administration to tackle the hardship.

"There is the need to seriously address the chain of economic and livelihood challenges, ⁠such as inflation, unemployment, management of prices and the market for goods and services, " read a written statement attributed to Khamenei.

"Before the war, I didn't work. Since the war, I've had to find a job to support backing my household, " noted Maryam. "Everything has become so expensive."

Omid, who runs a food business, remarked trade had dried up as rents rose: "We can barely afford to pay our workers."

In an official note on Saturday, the administration described diplomacy and defence as "two complementary, coordinated and inseparable wings" for protecting national interests and territorial integrity, saying it would pursue both in a balanced manner.

While the supreme leader has called on domestic unity and the preservation of social cohesion, she noted, pezeshkian has pressed dialogue and a less confrontational relationship with neighbouring countries, saying none of them ruled over the other.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani met Iranian leaders in Tehran on Thursday, stressing the importance of returning to open shipping through the strait. Iran's Foreign Minister Abbas Araghchi described the discussions as "creative".

Iran's military, meanwhile, struck a defiant note, with army commander-in-chief Amir Hatami telling the Fars news agency that although the "enemy" had tried to destroy Iran's drone and missile capabilities, its stockpile had been fired "with the utmost intensity until the last moment".

On Friday, Acting Defence Minister Majid Ibn Reza remarked Iran had "surprises" in store: "Everyone, and especially the enemies, should know that they will become aware of Iran's surprises in due time, " according to the Tasnim News Agency.

In short, iran's leaders acknowledge economic toll of war, pledge diplomacy, defence is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.