While officially welcoming the ceasefire in Lebanon, Tehran has expressed cautious and reserved positions on the recent developments. Even as it reiterates its intention to respond to Israeli actions, Iran has stated it will take “regional developments” into account before deciding its next steps.
Meanwhile, domestic debates about Iran’s economic challenges are intensifying. Parliament Speaker Mohammad Bagher Ghalibaf acknowledged the country’s struggles with oil production and transportation to global markets, while Ali Larijani, a senior advisor to Supreme Leader Ali Khamenei, described Iran’s economic problems as “chronic” and unlikely to be resolved easily.
Iranian Foreign Minister Abbas Araghchi stated on Wednesday that Iran reserves the right to respond to Israeli airstrikes conducted last month. However, he noted that Tehran is also closely monitoring other regional developments, including the ceasefire in Lebanon. Speaking to reporters in Lisbon, Araghchi welcomed the truce between Israel and Lebanon, expressing hope it would lead to a lasting peace. The Israeli strikes on Iran on October 26 came in response to a missile attack launched by Tehran on Israel earlier that month.
In a separate address to Iranian naval commanders, Khamenei called for enhancing the combat capabilities of Iran’s armed forces to deter potential aggressors. While Khamenei did not specifically mention the Lebanon ceasefire, he emphasized that military readiness must serve as a clear warning to adversaries that any confrontation will come at a high cost.
During a parliamentary session, Ghalibaf discussed Iran’s diminishing leverage in global oil markets. According to ISNA news agency, Ghalibaf remarked: “Oil was once our tool to threaten enemies, but that time is gone. What oil can we cut off? What market do we control?”
He further noted that Iran is currently incapable of achieving the 8% economic growth rate needed, citing the high costs of extracting natural gas as a significant hurdle.
“Even if Iran could produce oil,” he added, “it faces difficulties in transporting it.” Ghalibaf emphasized that Iran’s economic challenges extend far beyond issues such as the use of fuel oil in power plants.
The parliamentary speaker urged both reformist and conservative lawmakers to support the proposed Seventh Development Plan. He also criticized legislative delays in implementing development goals, highlighting the need for reforms in income tax policies and budget allocations for media, as reported by the IRGC-affiliated Tasnim news agency.
Larijani acknowledged in a recorded 100-minute interview with Tasnim that Iran’s economy suffers from chronic issues, adding that Western sanctions alone are not to blame. Larijani briefly touched on the situation in Lebanon and Palestine but avoided addressing the fate of the “resistance” or the “unity of fronts.”
