The News
Israel’s imminent strike on Iran is exacerbating Tehran’s economic woes.
Iranian currency and stocks slid this week, while international airlines canceled flights, the Financial Times reported, as Israel gears up to retaliate against Iran’s missile attack earlier this month. On Tuesday, Al-Monitor reported that the US has vowed to lift arms shipment suspensions to Israel as a reward for not striking Iran’s oil facilities.
Tehran is set to increase defense spending, according to its new budget proposal, which ignores sectors “that many argue do not address the pressing needs of the population,” an anti-regime group wrote.
SIGNALS
Escalation likely to worsen Iran’s economic troubles
Many Iranians, the FT wrote, worry further escalation and Tehran’s increasingly aggressive posture toward Israel will only worsen their economic struggles. Warnings from Iran’s economy minister intertwine Iran’s economic woes with its foreign policy: Without a “shift” in the current trajectory with Israel and the lifting of international sanctions, there will be “no effective solution” for Iran’s economy, anti-regime newsroom Iran News Update wrote. However, Iran had been managing its currency to avoid large fluctuations in value, one analyst told the FT: “These new turbulences will not deter the Islamic republic” from continuing its attacks on Israel, he said. “Iran’s economy is accustomed to navigating political crises.”
A waiting game for Israeli retaliation
Leaked US intelligence documents released this week demonstrate that Israel is planning on carrying out a “greatly expanded version” of its attack on an Iranian radar site in April, which was able to launch missiles deep inside the country while avoiding detection and air defenses. The BBC said Israel’s response to Iran’s latest large-scale missile strike has likely been delayed to reduce tension before the US presidential election next month. However, Washington has reached a “quiet” agreement to lift the US embargo on certain arms and ammunition to Israel if the government refrains from targeting Iran’s oil industry and nuclear facilities, according to Al-Monitor. If Israel presses ahead anyway, the BBC noted, the region will once again be wracked with “extreme tension.”