USIsrael

While the United States backs away from threats to resume bombing Iran if it does not agree to a peace deal, Israel’s political establishment is reportedly itching for war.

Shimon Riklin, an anchor for the right-wing Israeli Channel 14, blurted out apparently confidential plans about a renewed attack on Tehran, which included the location of what he claimed was a uranium storage facility that could be targeted.

Members of the Israeli parliament roundly criticised Riklin’s supposed revelations, leading the anchor to say his comments were purely hypothetical.

Still, despite broad agreement that Israel is eager to restart hostilities, it is unlikely to be able to do so without US permission. That does not look like it will be quick in coming. Reports of a call overnight between Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump over Washington’s push for a truce irrespective of Israeli concerns left the Israeli leader reportedly with his “hair on fire”.

This week, Israeli media reported that Netanyahu chaired the second meeting of his security cabinet to discuss renewing the conflict with Iran. Despite billions of dollars in Israeli and US ordnance thrown at Iran, the government in Tehran remains in place.

Iran’s deterrence strategy of striking regional states and the subsequent closure of the Strait of Hormuz has dented the US’s appetite for renewing a costly and perhaps unremitting war against Tehran.

Iranophobia

For Netanyahu, the April 8 ceasefire – agreed with little Israeli involvement – has proven politically costly and, analysts say, unnerved a public conditioned to view Iran as an existential threat.

Opposition leader Yair Lapid and former Prime Minister Naftali Bennett have used the ceasefire as political currency in their attacks on Netanyahu. Lapid described the truce as one of the greatest “political disasters in all of our history”, a view that appears to be in line with that of the Israeli public.

A poll conducted by the Israel Democracy Institute in early May showed that a majority of Israelis believed a premature end to the war ran counter to their country’s security interests, while a similar percentage thought that a resumption of the conflict is likely.

To a public and political class accustomed to viewing Iran as their number one nemesis, it is unclear what solution they want in dealing with Tehran, Haggai Ram of Ben-Gurion University told Al Jazeera.

“Both politicians and public have been inculcated into seeing Iran as their ultimate foe,” said Ram, whose book Iranophobia chronicles Israel’s longstanding fixation on Iran.

Israeli people have been effectively trained for most of their lives to see war as inevitable, Ram said, a situation evident in their approach to bomb shelters when Iranian missiles fell, with Israelis whom Ram met at the time seemingly unfazed by the experience.

“It was perfectly normal to them that they should effectively stop their lives if it prevented Iran from completing its nuclear programme, or, from their perspective, if it helped ‘free the people’,” he said.

The only question for many Israelis, Ram said, is how Netanyahu – regarded in some quarters as a “magician” – would bring Iran to its knees.

Political necromancy

Many in Israel have grown accustomed to seeing Netanyahu defy the laws of political gravity. In 2022, he won an election despite being hounded by multiple corruption charges. He has managed to distance himself from the security failures of the Hamas-led attack on southern Israel on October 7, 2023, and achieved credit – even if he officially denies it – for allegedly manipulating Trump into joining the war on Iran.

The October 2023 attacks and the US-brokered truce with Iran, which Israel had no role in, will be the foremost political concerns on Netanyahu’s mind, Alon Pinkas, a former Israeli ambassador and consul general in New York, told Al Jazeera. He noted that these could serve as an incentive for resuming military operations.

“My guess is there are three interlocking reasons why Netanyahu is looking to restart the war,” Pinkas said. “Firstly, there’s the distance he wants to put between him and October 7 – he needs a big strategic victory and he’s not going to get that in Gaza or Lebanon, so this is it.

“Secondly, the war wasn’t finished. Every taxi driver or second-rate political commentator will tell you: Israel achieved nothing with its war on Iran.

“Thirdly, and you only need to look at the polls to see it, he needs a victory with Iran to take with him into the [election] later this year.”

Iran’s seizure of the Strait of Hormuz, which has thrown global markets into turmoil, as well as Tehran’s strikes on its neighbours, appear to be consequences that Netanyahu never considered when starting the conflict. Israel’s failures in the war on Iran are expected to be key debates in the general election, slated for August.

Geopolitical shizzle

A few weeks after the April 8 ceasefire, Israeli Defence Minister Israel Katz boasted that once the US gave the green light, Israel was ready to bomb them “back to the Stone Ages”, highlighting the government’s eagerness to restart the conflict.

“There are those in Israel who would like to cut their losses and walk away,” former Israeli government adviser Daniel Levy told Al Jazeera.

“And then there are those, like Netanyahu, and much of the Israeli political mainstream, who want to double down and use all that US hardware [assembled off the coast of Iran] in an attempt to seriously degrade Iran.”

Ultimately, despite the broad political support for a renewed war with Israel, there are still limits to what Netanyahu can do. “This stops when the US says it stops,” Levy said.

Or, as Trump said of Netanyahu after their overnight call on Tuesday, he’ll “do whatever I want him to do”.

Warning comes after Trump threatened military action against Iran and gave it ‘two to three days’ to strike a deal.

Foad Izadi of Tehran University says US President Trump’s repeated threats of renewed full-scale war are a sign of weakness, coming after 37 days of US bombing failed to force Iran into capitulation.

Al Jazeera’s correspondent in Tehran says Iranian leaders are ‘projecting defiance’ and rejecting ‘public pressure’ from the US.

Iran’s national football team has arrived in Turkiye for a pre-World Cup training camp, but players are yet to receive visas for entry into the US. FIFA says it is confident Iran will be able to play in next month’s tournament despite the uncertainty.

EXPLAINER

The fear of renewed US strikes in Iran looms while Israeli attacks continue in Lebanon despite extended ‘ceasefire’.

United States President Donald Trump has warned Iran that the “clock is ticking” to clinch a deal to end the war as reports have emerged that Washington and Israel might be planning to carry out air strikes on Iranian energy infrastructure.

“For Iran, the Clock is Ticking, and they better get moving, FAST, or there won’t be anything left of them,” Trump wrote on his Truth Social platform. “TIME IS OF THE ESSENCE!”

Iranian Ministry of Defence spokesperson Reza Talaei-Nik said on Sunday that the military is “fully prepared” to confront any new aggression from the US and Israel.

Saudi Arabia on Monday said it intercepted three drones, a day after a drone strike hit the Barakah Nuclear Energy Plant in the United Arab Emirates.

Meanwhile, Israel has continued its bombardment of Lebanon despite another “ceasefire” extension.

As the US-Israeli war on Iran continues for its 80th day, here is what we know:

In Iran

• Mohsen Rezaei, a member of Tehran’s Expediency Council and former Islamic Revolutionary Guard Corps commander, issued a warning to the US to lift its blockade of Iranian ports, saying the Iranian military is ready for further confrontation. Rezaei made this warning while speaking to state television.
• Talaei-Nik said the Iranian armed forces are “fully prepared to confront any new potential attack by the US and the Israeli regime against the country”.

War diplomacy

• Mikhail Ulyanov, Russia’s envoy to international organisations in Vienna, suggested in an X post that Iran appoint a special envoy to Moscow, similar to Tehran’s arrangement with China.
• In an X post, Jean-Luc Melenchon, the leading figure of France’s left-wing La France Insoumise party, condemned “European complicity” in the US-Israeli strikes on Iran, which have triggered a wider regional war.

In the Gulf

• The New York Times reported that the Israeli military has operated two “covert” outposts in Iraq’s western desert and killed a shepherd and a soldier in a bid to hide one of the sites near the town of al-Nukhaib.
• After the drone attack on the nuclear facility caused a fire, the UAE Ministry of Defence said two other drones had been “successfully” dealt with after they were launched from the “western border”. It did not elaborate.
• The drone that got through the UAE’s defences hit an electrical generator outside the inner perimeter of the Barakah Nuclear Energy Plant, the Abu Dhabi Media Office said. Radiological safety levels were unaffected, and there were no injuries, it said. The UAE’s Federal Authority for Nuclear Regulation later confirmed that the plant remained safe with no radioactive material released from the strike.
• Saudi Arabia said the three drones it intercepted entered from Iraqi airspace and warned that it would take the necessary operational measures to respond to any attempt to violate its sovereignty and security.

In the US

• Marjorie Taylor Greene, a former US congresswoman and a once-close ally of Trump, has warned in a post on X that any attempt to send US troops into Iran would trigger what she described as a “political revolution”.
• Republican Senator Lindsey Graham, speaking to the NBC broadcaster, urged Trump to “hurt” Iran, including launching attacks on its energy sites, until it agrees to US terms on its nuclear programme. The US and Israel have hit civilian targets multiple times during the war on Iran. Attacks on civilian facilities are considered war crimes under international law.

In Israel

• Israel’s Channel 13 reported that dozens of US cargo planes carrying ammunition from bases in Germany have landed in Tel Aviv.
• Israeli media reported that the military is preparing for renewed hostilities with Iran. The public broadcaster Kan quoted an unnamed security official as saying that Israel would join any new US strikes and target Iranian energy infrastructure.

In Lebanon

• Israeli strikes have continued in southern Lebanon, where Israel issued evacuation orders for four towns and villages and then struck two of those locations.
• Strikes were also reported in Az-Zrariyah on a moving vehicle while another raid in Tayr Debba resulted in some significant casualty numbers, Al Jazeera’s Obaida Hitto reported from Tyre, Lebanon.

Global markets

• Stalled peace efforts between Iran and the US caused oil prices to rise again on Monday. This pushed the price of the global benchmark Brent crude up to about $111 per barrel, close to its highest level in weeks.

Iran to reveal its plan for Strait of Hormuz soon as Israel attacks Lebanon and Gaza, killing and wounding dozens.

Lebanon’s Ministry of Health said Israeli attacks have killed 2,951 people since March 2 with at least 8,988 wounded.

EXPLAINER

The US and Chinese leaders agreed during talks in Beijing that the Strait of Hormuz should remain open to ensure global energy supplies.

United States President Donald Trump and Chinese President Xi Jinping discussed the Strait of Hormuz during talks in Beijing, with the White House saying Xi agreed the strategic waterway “must remain open to support the free flow of energy” as tensions over the Iran war continue to roil global markets.

Meanwhile, Iran’s Foreign Minister Abbas Araghchi urged fellow BRICS nations at a meeting in New Delhi, India, to condemn the US-Israel war on Iran as a violation of international law, insisting Tehran would “never bow to any pressure”.

At the same time, a third round of direct talks between Lebanese and Israeli negotiators is under way in Washington, DC, aimed at ending hostilities, even as Israeli attacks continue across towns and villages in southern Lebanon.

Here is what we know:

In Iran

• Iran urges BRICS to condemn US and Israel: Araghchi told the BRICS+ bloc that Iran was a “victim of illegal expansionism and warmongering” and called on member states to oppose “Western hegemony” by condemning the actions of the US and Israel.
• Iran accuses UAE over war: Araghchi also accused the United Arab Emirates of playing an active role in the war against Iran, saying during the BRICS summit in India that the UAE was “directly involved in the aggression against my country”.
• Iran signals new Hormuz strategy: Iranian media reported that more than 30 ships, including some linked to Chinese companies, were allowed to transit the Strait of Hormuz overnight as Tehran signalled the waterway was “open to all commercial ships” that cooperate with Iranian naval forces.

War diplomacy

• Xi offers help on Hormuz: Trump said Xi Jinping had offered China’s help to open the Strait of Hormuz and pledged not to send military equipment to aid Iran in its war against the US and Israel.

• Trump-Xi summit held amid ‘promise fatigue’: Analyst Drew Thompson said Washington and Beijing remain deeply distrustful after years of unmet expectations, with both sides accusing the other of breaking promises. He described the summit as “carefully managed” and focused on preventing further deterioration in ties.

• US says Israel-Lebanon talks ‘positive’: A US official said talks in Washington on Thursday between Israel and Lebanon about an expiring ceasefire were “positive” and will take place as planned for a second day.

In the US

• Trump wants Iran’s uranium for ‘public relations’: The US president suggested that hunting down Iran’s enriched uranium was primarily for political optics, after Israel demanded it as a goal in the war. “I just feel better if I got it, actually, but it’s – I think, it’s more for public relations than it is for anything else,” Trump told Fox News.
• Trump says Iran must make deal: In the same interview, Trump told Sean Hannity he was running out of patience to reach a truce with Iran as peace talks have stalled. “I’m not going to be much more patient… They should make a deal. Any sane person would make a deal, but they might be crazy,” Trump said.

In Israel

• NYT lawsuit: Israel says it will sue The New York Times after the newspaper published an article by columnist Nicholas Kristof detailing rape allegations by Palestinian detainees against Israeli forces. The Israeli Prime Minister’s Office announced the legal move three days after the report, which was based on accounts from 14 male and female Palestinian victims.

In Lebanon and Syria

• Hezbollah claims attacks on Israeli forces: The group said it launched rockets, drones and artillery attacks on Israeli troops and military vehicles in southern Lebanon, and claimed to have downed Israeli drones.
• Israel-Lebanon talks face uncertainty: According to Al Jazeera’s Manuel Rapalo, Israel is seeking stronger security guarantees and Hezbollah’s disarmament, while Lebanon wants a permanent ceasefire and Israeli troop withdrawal from the south. Rapalo says Hezbollah’s refusal to commit to any future agreement adds significant uncertainty, although diplomats still view the talks as a breakthrough.
• Amnesty urges Israel to conduct Syria war crimes probe: The rights group called for investigations into Israeli raids and shelling in southern Syria, which residents say have destroyed homes and farmland and led to detentions. Israel has also seized additional territory beyond the occupied Golan Heights, in violation of the 1974 disengagement agreement.

The next global food crisis is unfolding in a narrow stretch of water.

The United Nations warns that if fertilisers cannot pass through the Strait of Hormuz within just a few weeks, the world could face mass starvation.

It says the consequences could be severe if shipping disruptions linked to the Iran conflict drag on.

Food prices are already at a three-year high, while fertiliser costs critical for agriculture have rocketed.

Aid agencies fear a prolonged disruption could push tens of millions more people into hunger.

For vulnerable economies already struggling with debt and high import costs, the risks are growing fast.

Iran’s First Vice President Mohammad Reza Aref said Tehran’s ‘right’ to the Strait of Hormuz is ‘established and the matter is closed’, state media reports.

US president lauds Islamabad, but his Republican ally says he does not trust Pakistan to facilitate Iran diplomacy.

Donald Trump has reasserted his support for Pakistan to serve as a mediator between Iran and the United States after Senator Lindsey Graham, a close ally of the US president, disparaged Islamabad’s diplomacy.

In remarks on Tuesday, the US president lauded Pakistan’s Prime Minister Shehbaz Sharif and its army chief Asim Munir, who helped negotiate a fragile ceasefire in Iran that came into effect last month.

Trump added he is not reconsidering Pakistan as a mediator.

“They’re great. I think the Pakistanis have been great. The field marshal and the prime minister of Pakistan have been absolutely great,” Trump told reporters.

Hours earlier, Graham had pressed Pentagon chief Pete Hegseth and top US general Dan Caine about a CBS News report claiming that Pakistan is allowing Iran to park military assets on its airfields, in order to shield them from potential US and Israeli attacks.

Both officials declined to comment on the veracity of the report, citing the sensitive nature of the talks between the US and Iran.

Asked by Graham whether it would be “consistent” for Pakistan to act as a fair mediator if the CBS report is confirmed, Hegseth said, “I wouldn’t want to get into the middle of these negotiations.”

The Republican senator quickly interrupted the defence secretary.

“I do. I want to get in the middle of those negotiations,” Graham said.

“I don’t trust Pakistan as far as I can throw them. If they actually have Iranian aircraft parked in Pakistan bases to protect Iranian military assets, that tells me maybe we should be looking for somebody else to mediate. No wonder this damn thing is going nowhere.”

The senator — an outspoken foreign policy hawk who has been calling for regime change in Iran — is seen as one of the most influential figures in Trump’s circle.

Graham has also been one of the most vocal supporters of the war with Iran, repeatedly cautioning Trump against agreeing to a deal that would include concessions to Tehran.

Weeks before the war broke out on February 28, Graham met the US president in Florida, where he handed Trump a hat that says, “Make Iran Great Again.”

Pakistan has been pushing to revive the stalled diplomacy between Iran and the US, following the April 8 ceasefire agreement.

On Sunday, Trump said Tehran’s latest proposal to end the war was “unacceptable”.

In late April, the US president announced he was sending his envoys to Pakistan to meet Iranian officials, but he called off the trip after Iran pushed the US to lift the naval blockade against its ports as a condition for resuming the talks.

US Department of Energy moves to transfer 53.3 million barrels amid rising oil prices.

The United States has announced its latest release of emergency oil stockpiles in coordination with the International Energy Agency (IEA).

The US Department of Energy said on Monday that it had begun transferring 53.3 million barrels from the strategic petroleum reserve after awarding contracts to nine companies under its emergency exchange programme.

Trafigura Trading LLC, a Texas-based commodities trading company, was granted the biggest haul of nearly 13 million barrels, with Marathon Petroleum Corporation and ExxonMobil set to receive 12.4 million barrels and 11.4 million barrels, respectively.

Macquarie Commodities Trading US, Atlantic Trading & Marketing, BP Products North America, Energy Transfer Crude Marketing, Mercuria Energy America and Phillips 66 will receive between 1.05 million and 6.55 million barrels each, according to the Energy Department.

Under the department’s exchange scheme, participating firms are required to replenish the stockpile with new barrels at a later date.

“These actions continue to move oil swiftly into the market, address near-term supply needs, and ensure that the Strategic Petroleum Reserve remains strong through the return of premium barrels,” Kyle Haustveit, the head of the department’s Hydrocarbons and Geothermal Energy Office, said in a statement.

The transfer comes after US President Donald Trump’s administration agreed in March to release 172 million barrels of crude as part of the IEA’s coordination of the largest unloading of global stockpiles in history.

Oil prices have surged since the US and Israel launched their war on Iran in late February, with Tehran’s retaliatory blockade of the Strait of Hormuz paralysing one of the world’s most important trade routes.

Maritime traffic in the strait has ground to a halt amid Iranian threats against commercial shipping, disrupting about one-fifth of the global oil trade.

Oil prices continued to edge higher on Monday after Trump dismissed Iran’s latest peace proposal and warned that the ceasefire between the sides was “on life support”, dampening hopes for a quick resolution to the conflict.

Facing growing public discontent over rising fuel prices, Trump on Monday also pledged to waive the 18.4 cents-per-gallon federal tax on petrol, though taxation is the purview of the US Congress.

Futures for Brent crude, the international benchmark, were up about 1 percent in Asia on Tuesday morning, topping $105 a barrel.

Iran’s parliamentary speaker Mohammad Bagher Ghalibaf says US has ‘no alternative but to accept’ Tehran’s 14-point proposal to end war.

Iran’s Foreign Ministry spokesperson Esmail Baghaei says Tehran’s response to the latest US proposal to end the war was “not excessive.” He says it’s the US that continues to make “unreasonable demands” during negotiations over ending the war and reopening the Strait of Hormuz.

Iranian foreign ministry spokesman Esmaeil Baqaei says Iran’s latest response to the US had asked for an end to the war, removal of the naval blockade, and release of assets.

The US had dismissed the Iranian response, Baqaei said, as it clings to its ‘unreasonable demands’.

US president says Tehran’s response to US peace proposal ‘unacceptable’, as the Iranian military warns it is ready if war resumes.

South Korea says it is investigating an incident on May 4 when two unidentified objects struck a Korean-operated cargo ship in the Strait of Hormuz.
The strike caused a fire and damaged the vessel’s stern.

President Donald Trump has warned that the United States will target any Iranian trying to reach the country’s highly enriched uranium, saying that the nuclear material is under constant surveillance by the US military.

In an interview with the syndicated TV show Full Measure that aired on Sunday, Trump appeared to play down the significance of the uranium, which is believed to be buried under the rubble of nuclear facilities, remaining in Iran for now.

“We’ll get that at some point, whenever we want. We have it surveilled,” Trump said.

“I did a thing called Space Force, and they are watching. If somebody walked in, they can tell you his name, his address, the number of his badge … If anybody got near the place, we will know about it, and we’ll blow them up.”

Iran’s highly enriched uranium is one of the major sticking points between Washington and Tehran in ceasefire negotiations to end the 10-week US-Israel war on Iran.

The US wants Iran to transfer the uranium outside the country and completely shut down its nuclear programme, but Tehran has stressed that it will not give up its right to a domestic enrichment programme.

Several international media reports have said that the uranium remains under nuclear sites that the US bombed in June 2025, but Tehran has not confirmed the location of the nuclear material.

Last month, Trump announced that Iran had agreed to allow Washington to retrieve the uranium and bring it to the US – claims that Tehran quickly dismissed.

Trump told Reuters on April 17 that the US would work with Iran “at a nice leisurely pace, and go down and start excavating with big machinery” to retrieve the uranium stockpile at the sites.

“We’ll bring ⁠it back to the United States,” he added.

Iran’s Foreign Ministry spokesperson Esmaeil Baghaei denied Trump’s claim. “Enriched uranium is as sacred to us as Iranian soil and will not be transferred anywhere under any circumstances,” he said.

Iran is estimated to have more than 400kg (882lb) of uranium enriched at 60 percent purity.

Uranium enrichment is a complex process of isolating and garnering the most radioactive variety – isotope – of the element to produce nuclear fuel.

When enriched to around 90 percent purity, uranium can be used to make nuclear weapons.

In 2015, Iran agreed to a multilateral deal that saw Tehran scale back its nuclear programme and cap its uranium enrichment at 3.67 percent under strict international supervision in exchange for lifting sanctions against its economy.

Trump nixed that agreement – known as the Joint Comprehensive Plan of Action (JCPOA) – and started reimposing sanctions on Iran.

In response, Tehran – which denies seeking a nuclear weapon – began to advance its enrichment programme well beyond the limits set by the JCPOA.

Trump has argued that the ongoing conflict with Iran aims to prevent the country from acquiring a nuclear bomb.

Asked about the rising oil prices due to the war, Trump said: “We cannot let Iran have a nuclear weapon because they’re crazy.”

The average price of one gallon (3.8 litres) of petrol or gasoline in the US has risen to more than $4.50 due to supply issues linked to the Iranian blockade in the Strait of Hormuz, fuelling inflation. It was less than $3 before the war.

Despite the truce that came into effect last month, skirmishes have erupted in the Gulf over the past week as the US continues to enforce a siege on Iranian ports amid Tehran’s Hormuz blockade.

Iranian state-affiliated news outlets reported on Sunday that Iran has delivered its response to the latest US proposal to end the war to Pakistan, which is mediating the talks.

But Trump said the war is not over while reiterating his claim that Iran has been “defeated”.

“They are defeated, but that doesn’t mean they’re done,” the US president said. “We could go in for two more weeks and do every single target. We have certain targets that we wanted, and we’ve done probably 70 percent of them, but we have other targets that we could conceivably hit.”

Tehran, Iran – Skyrocketing inflation is jeopardising food security among households in conflict-hit Iran, new figures show, as diplomatic efforts to end the war launched by the United States and Israel intensify.

“The people must realistically understand the conditions and restrictions of the country,” President Masoud Pezeshkian told a group of officials who gathered on Sunday to discuss rebuilding structures damaged or destroyed in US and Israeli attacks.

“It is natural that there are difficulties and problems in this path, but through people’s cooperation and reliance on national cohesion, problems can be solved,” he was quoted as saying by state media.

Pezeshkian’s comments came a day after the Statistical Center of Iran (SCI) said Farvardin, the first month of the Persian calendar year that ended on April 20, had an inflation rate of 73.5 percent compared to the same month of the previous year. The SCI also noted that inflation was five percent higher in Farvardin compared to the previous month.

The Central Bank of Iran, which reports figures based on a different method and with different data sets, reported a slightly lower inflation rate of 67 percent for Farvardin compared to a year earlier, and a seven percent monthly increase.

Although not matched, both figures indicate a considerably accelerating pace for general inflation, which has been among the highest in the world over recent years, and is continuously making Iranians poorer.

A Tehran resident told Al Jazeera she could no longer afford some of the items she could just last month.

“And it’s not just me – I think most people in society right now can’t afford many of the things they want,” she said.

Figures from the institutions also showed that food inflation is much higher than headline inflation, meaning that people are increasingly forced to pay an expanding share of their shrinking salaries on basic items.

The SCI reported a staggering 115 percent food inflation rate for the first month of the year, compared to the same period the year before, with several staple items more than tripling in price.

Solid vegetable oil had the highest increase at 375 percent, followed by liquid cooking oil at 308 percent; imported rice at 209 percent; Iranian rice at 173 percent; and chicken at 191 percent. The lowest price hikes were for butter, at 48 percent, followed by infant formula at 71 percent and pasta at 75 percent.

Majid, a young man who works at a liver kebab shop in the capital, said the eatery has increased prices three times in recent months.

“The price of liver has doubled. When we ask suppliers why, they either say there’s a shortage or that sheep are being exported. Honestly, there’s no real oversight,” he said.

The state-run Consumers and Producers Protection Organization said in a directive sent to 31 governors across Iran on Sunday that new price hikes for cooking oil are “illegal” and “must be returned to previous levels”, without saying how officials expected that to happen amid deteriorating economic conditions.

The country’s embattled currency, the rial, has also been registering new all-time lows over the past two weeks. On Sunday afternoon, it stood at about 1.77 million against the US dollar in Tehran’s open market after marginally recovering. The rate was about 830,000 per US dollar a year ago.

Subsidies and ‘enemy plots’

The response from the government has included offering subsidies and coupons, while trying to crack down on acts such as hoarding that are perceived to be contributing to price hikes.

But this has not been accompanied by a clear macroeconomic stabilisation package as the US presses on with a naval blockade of Iranian ports.

As Iranian media reported on Sunday that Tehran had sent an official response to the text for an agreement earlier proposed by the US through mediator Pakistan, Pezeshkian said, “If there is talk of negotiations, it does not mean surrender.”

The government hands out monthly cash subsidies and electronic vouchers to buy essential goods at select stores, which together amount to less than $10 each month per person. Authorities are considering raising the amount, but a hefty budget crunch has made that more difficult.

Pezeshkian and Central Bank chief Abdolnasser Hemmati have said they are aware of the price increases, but have blamed the war that began in late February while coordinating with the judiciary to act against price gauging and hoarding.

A number of lawmakers in Iran’s hardline-dominated parliament, as well as state television hosts and outlets linked to the Islamic Revolutionary Guard Corps (IRGC), have said the price surges are suspicious. They have described the runaway prices as being part of an “economic revenge” campaign by enemies who suffered failures in the military arena.

“I want the people of Iran not to be fooled by the enemy-made price hikes,” a guest on state television’s Ofogh network said on Saturday. “Great things have happened, and great things are ahead. The economic achievements of the war are unrivalled by any other period.”

But some of the economic pain continues to be inflicted as a direct result of a near-total internet shutdown now being imposed by Iranian authorities for a 72nd day.

Numerous officials in the government, internet infrastructure firms, telecommunication companies and other state-linked organisations have emphasised that they are against a tiered internet system that is now being implemented. But they have said they bear no responsibility, since the blackout, which is expected to remain in place until the war ends, is ordered by the Supreme National Security Council.

In the meantime, the combined impact of local mismanagement, Western sanctions, blockade, war and the internet shutdown is squeezing people and businesses hard.

“The startup ecosystem of the country is dead, we are searching for a tombstone for it,” the Guild Association of Internet-based Businesses said in a statement on Saturday.

A fragile ceasefire in the US-Israel war on Iran is coming under growing strain as several Gulf countries have reported drone attacks.

Qatar said on Sunday that a drone struck a cargo ship in Qatari waters, sparking a fire, while Kuwait and the United Arab Emirates said they repelled drone attacks.

Though no Gulf country reported casualties in the latest attacks, they have put pressure on the fragile ceasefire, which took effect on April 8.

Qatar’s Ministry of Defence said the freighter had been arriving in the country’s waters from the UAE capital, Abu Dhabi, and was hit by a drone northeast of the port of Mesaieed.

“The vessel continued its journey toward Mesaieed Port after the fire was brought under control,” the ministry said.

The United Kingdom Maritime Trade Operations (UKMTO) said a bulk carrier reported being struck by an “unknown projectile”, and a small fire had been extinguished, but there were no casualties from the incident. “There is no reported environmental impact,” it said.

Kuwait’s Defence Ministry said a “number of hostile drones” were detected in the country’s airspace at dawn. In a post on X, a spokesperson said the drones were dealt with “in accordance with established procedures”, but did not specify where the drones were launched from.

The UAE Defence Ministry said two Iranian drones were intercepted.

“UAE air defence systems successfully engaged two UAVs launched from Iran,” the ministry said in a statement on X.

Ceasefire tested

The Trump administration has said the truce is still in effect, but a naval battle has been taking place in the Gulf region, with Iran restricting traffic through the Strait of Hormuz, a strategic waterway through which a fifth of traded oil transited before the war, and the United States imposing a blockade of Iranian ports.

Several attacks have been reported on ships in the Gulf and the countries in the region over the past week.

On Friday, the US struck two Iranian oil tankers, saying they were trying to breach its blockade of Iran’s ports.

On Tuesday, the UAE said it came under attack from Iranian missiles and drones for the second day in a row. Iran’s Islamic Revolutionary Guard Corps (IRGC), however, denied the claim.

The IRGC Navy on Sunday reiterated its warning that any attack on Iranian oil tankers or commercial vessels would be met with a “heavy assault” on one of the bases in the region used by US forces and enemy ships.

The spokesperson for the Iranian parliament’s foreign policy and security committee, Ebrahim Rezaei, said Tehran’s “restraint is over”.

“Any aggression against our vessels will be met with a heavy and decisive Iranian response against American vessels and bases,” Rezaei wrote on X.

“The clock is ticking against the Americans’ interests; it is to their benefit not to act foolishly and sink themselves deeper into the quagmire they have fallen into. The best course is to surrender and concede concessions. You must get used to the new regional order,” he added.

Talks to end the war

While the truce remains in effect, President Donald Trump has repeatedly threatened to resume the US bombardment if Iran does not accept a deal which includes reopening the Strait of Hormuz and rolling back its nuclear programme.

Iran is still mulling its response to a 14-point proposal by Washington, with Iranian frozen assets and war reparations among other main sticking points.

In a meeting with US Secretary of State Marc Rubio on Saturday, Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani pushed for all parties to respond to the ongoing mediation efforts and to reach an agreement for lasting peace.

Qatar’s prime minister also held a phone call with Iran’s Foreign Minister Abbas Araghchi, the Qatari foreign ministry reported on Sunday.

Sheikh Mohammed told Araghchi that Iran’s use of the Strait of Hormuz as a “pressure card” would only deepen the crisis in the Gulf, and said all parties in the conflict should respond to mediation efforts to end the war.

Reporting from Tehran, Al Jazeera’s Tohid Assadi said when it comes to diplomatic engagement, it seems that the US and Iran want the content of any negotiations to remain private.

Meanwhile, there is a mixture of different sentiments among Iranian citizens, he noted.

“Since the early days of the war, people have gathered to show their sense of nationalism and support for the political establishment,” he said.

“But we also know that there is a sense of frustration, especially when it comes to soaring prices and economic difficulties,” he added.

At a meeting on the reconstruction after damage caused by the war, President Masoud Pezeshkian said negotiations with the US on ending the war do not mean Iran is surrendering.

“The goal is to realise the rights of the Iranian people and defend national interests with authority,” he said.

US-Iran ceasefire holds as Tehran warns Washington against attacks on tankers and Israel kills 24 people in Lebanon.