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Despite war with the U.S. and harsh sanctions, Iran's economy endures thanks to domestic diversification, gray trade, and informal labor. But soaring inflation and a shrinking middle class mean ordinary Iranians bear the heaviest burden. The current model, welfare economists say, is an expensive way to survive — not a recipe for recovery.
Israeli forces opened fire in southern Lebanon, killing two people and wounding two, in the first deadly incident since a US-brokered ceasefire took effect. Hezbollah condemned the attack as a "blatant" violation and warned it would respond "in a similar manner" to any further breaches. The incident threatens a fragile truce that had largely held since Sunday, as new US-mediated talks are set to begin in Washington.
The US hosts a new round of Israel-Lebanon talks in Washington as Iran insists on a Lebanon ceasefire as a precondition for its bilateral talks with Washington. Israel remains adamant it won't withdraw from southern Lebanon, while Hezbollah demands a full pullout before any negotiations.
The first round of negotiations between the U.S. and Iran in Switzerland concluded with 'promising progress,' including agreement to set up a mechanism for technical talks and a high-level committee to oversee the process. Meanwhile, a ceasefire in Lebanon appears to be holding after days of deadly clashes. Technical talks are expected to continue this week, covering issues such as Israeli strikes on Lebanon and freedom of navigation through the Strait of Hormuz.
US Vice President JD Vance and an Iranian delegation led by Parliament Speaker Mohammad Bagher Ghalibaf are in Burgenstock, Switzerland, for crucial talks mediated by Qatar and Pakistan. Lebanon is the main focus as Israel escalates attacks.
President Donald Trump has defended the just-signed U.S.-Iran MOU to end the war, claiming Iran 'unconditionally surrendered' and is 'finished.' He rejected criticism from Democrats and some Republicans, while highlighting priorities such as reopening the Strait of Hormuz and lifting sanctions.
Iran’s Islamic Revolutionary Guard Corps (IRGC) says it has struck 18 key U.S. military targets in retaliation for recent violations. The attack used ballistic missiles and drones, and the IRGC warned of further action if the U.S. commits more violations. U.S. officials are assessing damage and coordinating with allies.
Iran announced missile strikes on US military bases in Kuwait, Bahrain, and Jordan in retaliation for American airstrikes inside Iran. Tensions escalate sharply as both sides exchange blows amid collapsed nuclear talks. The US warned further strikes could continue, while Iran closed the Strait of Hormuz.
One hundred days into the U.S.-Israeli military campaign against Iran, Tehran remains defiant as fierce fighting and stalled peace talks yield no results. Civilians suffer heavily from economic collapse, with inflation near 84% and food prices soaring, while the regime clings to power amid ongoing missile strikes and political uncertainty.
