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What lies ahead for Iran’s economy as scope of US war grows beyond Hormuz? | US-Israel war on Iran News

Tehran, Iran – Iran and the United States have returned to mediated talks, and their military action is temporarily suspended, but the war continues to impact international maritime corridors beyond the Strait of Hormuz as well as domestic markets.

The near-total closure of the strategic waterway, disruptions in the Red Sea by the Iran-aligned Houthis in Yemen and Ukraine attacking an Iranian vessel in the Caspian Sea have all kept tensions high.

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Iran’s government is also facing more tough choices, including a potential fuel price hike amid high social and economic discontent, as the US military enforces a naval blockade of the country’s southern ports for a second time.

The Ministry of Petroleum said on Saturday that Iran has sold $11.5bn of crude oil during the war without specifying the exact dates and $6.5bn during the period of the now-suspended memorandum of understanding (MoU) signed with the US last month. It said the combined figure represented 60 percent of the full-year oil revenue target in the budget.

The signing of the June 17 MoU led to the partial reopening of the Strait of Hormuz and lifting of the US naval blockade on Iran, which eased some of the pressure on global oil markets and allowed Iran to export oil stored on supertankers waiting to sail from its territorial waters. Iran’s Petroleum Ministry said increased oil prices generated about $3bn in additional value in the first half of the year and $11bn from the yields has so far been transferred to government coffers despite US embargoes.

During the previous blockade that was imposed on April 13 and lasted a little over two months, Iranian authorities attested to near-zero crude exports. A prolonged second blockade risks further reducing Iran’s export revenues and piling pressure on Kharg Island, through which about 90 percent of Iran’s crude oil exports pass, and other Iranian storage and export sites, which could in turn affect production at petrochemical plants and make an eventual restart costlier and slower.

The US military’s Central Command (CENTCOM) said that as of Saturday, soldiers had redirected 12 commercial vessels trying to run the blockade that has been in place since mid-July, disabled two that did not comply and boarded two “to ensure total compliance”.

The US military also showed footage of heavily armed soldiers rappelling down from a helicopter onto the deck of the Charminar, an Iran-linked oil tanker subject to US sanctions since last year for allegedly being part of the Shamkhani network. The US says Iranian oil magnate Mohammad Hossein Shamkhani plays a central role in Iranian and Russian shadow fleet operations.

Iran has also said it has been redirecting multiple ships each day to keep the strait closed as its armed forces emphasised that they will not bow to pressure. On Sunday, Iranian media reports said a vessel blew up after hitting a naval mine in the Strait of Hormuz.

Still, CENTCOM has stopped extensive bombing strikes against Iran for two nights with US Ambassador to the United Nations Mike Waltz saying President Donald Trump is giving talks with Tehran “some space”.

Iran has also stopped retaliatory attacks across the region while Ministry of Foreign Affairs spokesman Esmaeil Baghaei said discussions with Oman on reopening the Strait of Hormuz have been productive.

A woman and girl cross a street in central Tehran on July 22, 2026
A woman and girl cross a street in central Tehran on July 22, 2026 [Vahid Salemi/AP Photo]

The domestic picture

The oil export constraints, however, are still adding to Iran’s existing economic woes, which are linked to domestic structural issues and mismanagement as well as years of harsh sanctions.

Iran’s infrastructure has also suffered significant damage during the war launched by the US and Israel in late February and may fare worse if the conflict escalates.

The government said last month that about 230 million cubic metres (300 million cubic yards) per day of Iran’s pre-war natural gas output of roughly 650 million cubic metres (850 million cubic yards) was lost due to US and Israeli bombing, worsening electricity and petrochemical shortages.

Sekhavat Asadi, managing director of the Pars Special Economic Energy Zone, said on Sunday that Iran expects to restore more than 100 million cubic metres (130 million cubic yards) per day of that lost production capacity within the coming months.

Authorities are also managing a fuel imbalance as the country faces a deficit of more than 20 million litres (5.3 million gallons) per day of petrol. The shortage is managed through limited but costly imports, blending fuel components, tapping inventories stocked before the war and repeatedly asking citizens to consume less.

The Petroleum Ministry said tighter monthly fuel consumption caps may be imposed if the imbalance persists.

The government said this week that it is seriously considering doubling the price of a third tier of monthly petrol quotas allocated to individuals.

Another petrol price hike was made in December, weeks before the country was swept by a wave of nationwide protests, in which thousands of people were killed in a government crackdown in January. An overnight fuel price increase in November 2019 also triggered deadly nationwide protests.

The capital, Tehran, and cities across the country are facing rolling electricity cuts, which also create water and communications disruptions. President Masoud Pezeshkian said he has ordered industries not to be cut off until late September to avoid further inflaming a bruised jobs market.

The closure of the Strait of Hormuz has also hit Iran’s commerce with China, its largest trading partner and buyer of oil, which has considerably curtailed its overall crude oil imports to adapt to conditions created by the war.

But nonoil trade with China has also deteriorated since the start of the war, falling by 75 percent in March and June when compared with a year before, according to Chinese customs data.

Two near-total internet shutdowns imposed by the authorities, first during the January protests and then during the war, only worsened conditions for Iran’s economy this year as it battles chronic inflation and a rapid dwindling of public purchasing power.

A report last year by the Saba Pension Strategies Institute, a think tank affiliated with Iran’s state-run pension fund, found that while a little more than 30 percent of Iranians lived below the poverty line five years ago, that rate was projected to have reached 45 percent this year – and was still rising.

Spread to Bab al-Mandeb, Caspian Sea

After repeated Iranian threats that escalating the war could spread the scope of maritime disruptions to the Red Sea, the Houthis in Yemen last week declared a blockade against Saudi Arabia, turning back or hitting vessels transiting near the strait of Bab al-Mandeb while also bombing Saudi oil facilities.

Dozens of commodity vessels have still continued their transit through the strait, including Chinese supertankers, but war-risk premiums have increased, raising import and insurance costs for all.

Saudi authorities, who lead a coalition backing Yemen’s internationally recognised government against the Houthis, have responded by launching major air attacks across Yemen.

And farther north, Ukraine has confirmed that it struck a vessel in the Caspian Sea with President Volodymyr Zelenskyy alleging it was carrying Iran-linked military cargo.

Iran’s authorities said it was a commercial vessel importing iron from Astrakhan, a port on the Volga River in Russia, and bound for Bandar Anzali in northern Iran. They said one sailor was killed and three were wounded.

The Iranian Ministry of Foreign Affairs summoned Kyiv’s charge d’affaires in Tehran to deliver a strong protest and a warning that “the act will not go unanswered”.

The incident has raised concerns that the Caspian Sea, a waterway previously used safely for trade, could also become the scene of more military confrontations.

Iran’s Caspian trade is primarily with Russia, Kazakhstan, Turkmenistan and Azerbaijan. It imports essential goods, such as wheat and other grains, corn, barley and animal feed as well as timber and fertiliser.

The country’s exports through the northern maritime route include construction materials, steel products, agricultural goods and some refined petrochemical products.

The war’s expanding disruptions have only prompted hardline state-linked analysts to advocate closer strategic partnerships with China and Russia.

“We can now say that the two war fronts in the Middle East and Ukraine are increasingly intertwined,” Mahdi Kharratiyan, a political analyst linked with Iran’s Islamic Revolutionary Guard Corps, wrote on X on Sunday.

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Exploitation Lies Behind a Veil of Diplomacy in Iran

Behind a veil of good-natured diplomacy, American adversaries are exploiting the conflict in Iran by gaining insights, strategic lessons, and geopolitical power while the United States wages feckless war against the Middle Eastern theocracy. Beyond the bombings, the blockade, and the oil prices, Russia and China keenly watch how America struggles, succeeds, and scrambles. In doing so, these adversaries are leveraging the conflict to challenge America’s readiness, aid its adversaries, and gain invaluable intel on America’s successes and failures.

The concept of observing a conflict to acquire critical intelligence on how to best conduct combat is not unique to the war in Iran. For example, in the Russo-Ukrainian War, America has gained indispensable knowledge on the most and least effective tools of 21st-century warfare, including information on the power of unmanned aerial systems. With the war in Iran, though, Russia and China are the scientists, and America is the experiment. The Middle East is now a testing ground for cutting-edge drone swarm technologies and a catalyst for how smaller powers can effectively deny their adversaries from accomplishing their objectives—a lesson that China is certainly eager to learn about for a possible conflict over Taiwan. Therefore, when America wages war against Iran, there are consequences that are crucial to recognize, and one of those consequences is that the United States is inadvertently empowering and informing its adversaries.

Maintaining its signaled commitment of multipolarity and geopolitical neutrality, China’s Foreign Ministry spokeswoman Mao Ning commented, “…China…has been making active efforts to promote ceasefire and peace…we will continue playing an active role in restoring…tranquility to the Middle East…” Reality demonstrates that this is false. China is discreetly gaining intelligence on the U.S. military’s readiness, pacing, and warfighting strategies. Furthermore, China has directly supported Iran, providing anti-missile weaponry, building blocks for ballistic missiles, and invaluable military intelligence to the Iranian Revolutionary Guard Corps. Instead of promoting peace and tranquility, these actions are designed to empower Iran and keep America locked in the struggle, weakening the country and allowing China to acquire more intelligence on U.S. readiness. Despite China’s claimed intentions, it’s clear that the nation is bolstering Iran’s strength and sustaining its defenses. Even from a domestic point of view, these actions are increasing domestic American division and the depletion of America’s defense resources. The conflict with Iran is not limited to Iran; by proxy, it’s with America’s foremost adversaries, too.

Similarly, Russia has provided critical support to Iran in the form of targeting intelligence, which Iran couldn’t have otherwise acquired. Shahed drones, assets that have proven to be exceptionally effective against western defenses, are manufactured in Russia’s Alabuga Special Economic Zone and are being provided to Iran by Russia. Contradicting these actions, a statement by the Russian Ministry of Foreign Affairs declared that the country “…stands ready to assist in advancing peaceful solutions grounded in international law, mutual respect, and a balanced consideration of interests.” But equipping Iran with efficacious tools of war is not a peaceful solution. Giving the nation targeting information cannot be construed as a neutral or geopolitically insignificant act. In reality, America’s adversaries are taking an active, hands-on approach to the war in Iran, indirectly but clearly aiding the nation and actively working against U.S. goals.

In response to this tacit yet significant aid to Iran, the natural response for America should be to publicly highlight the hostile actions of its adversaries. But the United States has been hesitant, if not downright unwilling, to do so. For example, Matthew Whitaker, the U.S. Permanent Representative to NATO, commented that “China certainly is not participating and is not aiding and abetting the Iranian demise…” Separately, he claimed, “There’s no indication that we can talk about publicly that the Russians are participating with the Iranians.” Public investigations, though, have proven both those assertions false. The trepidation of the United States to clearly and confidently condemn its adversaries’ belligerence in the region is an enormous blunder of strategic communications. Contrasting this, Russia and China have simultaneously and aggressively pursued campaigns of condemnation to weaken America’s global power. For example, Russia has often claimed that certain U.S. support to Ukraine may constitute an act of war; China strongly condemned recent American intervention in Venezuela as violating the international laws by which America claims to be guided. U.S. adversaries are eager and willing to strategically undermine and criticize U.S. actions, yet America is unwisely unwilling to do the same.

Russia’s and China’s cooperative aid to Iran demonstrates that the conflict is, in many senses, between world powers. A new ‘axis of resistance’ against Western liberalism is developing, and allowing American adversaries to act without denunciation is a failure of strategic communications and allows these nations to act with undeserved impunity. As the United States continues to wage war against Iran, it’s crucial to recognize that every bomb America drops, every mission American soldiers complete, and every destroyed military asset is a datapoint that U.S. adversaries will exploit. Russia’s and China’s critical support to Iran is hostile and counter to American goals; ignoring this is strategically imprudent. Beyond the explosions, America’s adversaries are watching—and acting. It’s the responsibility of the United States to expose those actions for what they really are.

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Hailey Bieber sizzles as she lies on the beach in a tiny bikini for racy Rhode ad

MODEL Hailey Bieber gives her business a bit of a helping sand.

The 29-year-old, wed to singer Justin, posed on a beach in an ad campaign for her own skincare and make-up brand Rhode.

Hailey Bieber in a brown bikini poses on a sandy beach, holding a Rhode product.
Hailey Bieber poses on a beach in an ad campaign for her own skincare and make-up brand Rhode Credit: Rhode
Hailey Bieber modeling Rhode's summer collection, wearing a red cardigan and red shorts, holding a plush terry cloth towel.
Stunning Hailey’s brand was named one of Time magazine’s 100 most influential companies Credit: Rhode Skin

It was recently named one of Time magazine’s 100 most influential companies.

And she told the mag she is hungry for more.

Hailey said: “I’m an entrepreneur at the end of the day.

“I want to expand in business and I want to be able to do more things.

Read more on Hailey Bieber

“But I’m definitely not in a rush.”

Last year the brand was valued at a billion dollars.

Hailey launched it in 2022 and last year it turned over £150million in sales.

She recently posed in a chic yellow bikini for another fashion shoot and she was also pictured out in New York in a white mini dress for the Met Gala after-party.

Just last November the model posed up a storm for GQ magazine in another set of sizzling swimwear snaps.

Justin and Hailey have been married since 2018, with the pair welcoming their son Jack Blues in 2024.

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