Biden told Netanyahu US would not participate in an attack on Iran

Immediately after the Islamic Republic's recent attack on Israel commenced, the foreign exchange market witnessed an unprecedented surge, with the dollar breaching the 700,000 rials mark over the weekend.

The lower rial means more inflationary pressures in Iran, where the annual inflation rate already hovers around 50 percent for the past five years.

Amidst the chaos, state security agents have put heavy pressure on exchange brokers, threatening them with forced closures and arbitrary arrests, according to reports received by Iran International.

Local media and Telegram channels that Iranian people normally use to check open market exchange rates have been prohibited from listing currency rates and market developments.

Tehran Prosecutor's Office accused Jahan-e Sanat newspaper and an un-named economic reporter of having committed a crime "following the publication of materials aimed at the psychological security of the society and disrupting the economic atmosphere of the country after the successful and proud operation of the country's armed forces last night against the Zionist regime…," Mizan News Agency, a media outlet affiliated with the official state judiciary, reported.

Despite these restrictions, some Telegram channels persisted in reporting a downward trajectory in exchange rates, citing a selling rate of approximately 670,400 rials per dollar by Sunday afternoon. The pound, too, mirrored this trend, reaching a zenith of 870,500 rials before retracing to 840,880 rials later in the day.

Eventually, government-affiliated news agencies began acknowledging the market's downward trajectory, attributing it to the aftermath of the April 1 Israeli attack on the Islamic Republic's consular building in Damascus. On Sunday, Iran's semi-official Mehr news agency admitted that the dollar in the open market had reached new highs against the rial in the past few days.

However, discrepancies emerged between government-endorsed rates and those observed in the open market. The Iran Center for Exchange of Currency & Gold (ICE), part of the Central Bank of Iran (CBI), released figures significantly lower than official estimates. ICE announced the price of each dollar bill as 430,567 rials on Sunday, which is at least 250,000 rials lower than the rates announced even by the state news agencies.

The ramifications of the attack on Israel by the Islamic Republic extended beyond conventional markets, permeating into the realm of cryptocurrency. Following the attack announcement, Bitcoin experienced a significant eight percent decline in value, indicative of the broader impact of geopolitical unrest on digital assets.

As tensions persist and market fluctuations continue unabated, the resilience of the Iranian economy faces a stern test amidst the tumultuous geopolitical landscape.

Follow developments on Iran International's Live coverage of ongoing tensions between Iran and Israel.

The Sunday meeting followed the customary format of such gatherings, with UN Secretary-General Antonio Guterres cautioning members against exacerbating tensions through retaliatory measures against Iran, while the US and UK urged decisive actions to hold the Islamic Republic accountable for escalating the conflict to a new level.

Iran launched a swarm of explosive drones and fired missiles on Saturday in its first-ever direct attack on Israeli territory, risking a major escalation. The attack was in response to an Israeli strike on Iran's consulate in Syria on April 1 that killed top Revolutionary Guards commanders and followed months of clashes between Israel and Iran's regional allies, triggered by the war in Gaza. The bloody crisis started on October 7 when Iran-backed Islamist group Hamas invaded Israel, killing 1,400 people and taking about 240 hostages.

Guterres told member states that the UN charter bars the use of force against the territorial integrity or political independence of any state as he also condemned Iran's attack on Israel. "The Middle East is on the brink. The people of the region are confronting a real danger of a devastating full-scale conflict. Now is the time to defuse and de-escalate," Guterres told the meeting, which was called after Iran's attack.

Robert Wood, deputy US ambassador to the UN, called on the 15-member body to unequivocally condemn Iran's attack, as he said the Security Council has an obligation to not let Iran's actions go unanswered.

"In the coming days, and in consultation with other member states, the United States will explore additional measures to hold Iran accountable here at the United Nations," he said, without providing specifics. "Let me be clear: If Iran or its proxies take actions against the United States or further action against Israel, Iran will be held responsible."

The Wall Street Journal cited three Western officials as saying that Israel could soon respond to Iran’s Saturday attack, noting that the US won't take part in any such offensive operation. "We are not going to participate in any offensive operations against Iran," an official said.

Israel's war cabinet met Sunday but did not say how it would respond to the broad aerial attack from Iran overnight. Some Israeli politicians are calling for a "crushing attack."

Israel's ambassador to the United Nations, Gilad Erdan, accused Iran of violating international law at the meeting and played a video on a tablet that he said showed Israel's interception of Iranian drones above Jerusalem's Al-Aqsa mosque compound, one of Islam's holiest sites.

"Here, you can look at it," he gestured with the tablet and told the Iranian ambassador, who was also seated in the Security Council chamber. Erdan called on the Security Council to condemn Iran, reimpose sanctions and designate Iran's Revolutionary Guards a terror organization.

“Iran’s strategy has been crystal clear: arm, fund, and train terror proxies across the globe, to carry out Iran’s murderous scheme of domination. But today, the mask of Iranian deniability has been removed. No more hiding and no more bluffing. No more shirking of responsibility. Iran has attacked Israel from its own sovereign territory – publicly and proudly. The mask is off. Iran, the number-one global sponsor of terror, has exposed its true face as the destabilizer of the region and the world. And now – right now – is when the world must stop ignoring Iran’s crimes and take action.”

"The snooze button is no longer an option. The only option is to condemn Iran and utilize every means necessary to make them pay a heavy price for their horrible crimes," Erdan told the meeting.

Iran's UN ambassador, Amir Saeid Iravani, said his country's action was necessary and proportionate, and he said that while Tehran does not seek an escalation or war in the region and has no intention of engaging in conflict with the US, it reaffirms its right to defend itself.

"If the US initiates military operations against Iran, its citizens, or its security and interests, Iran will use its inherent right to respond proportionately," he said.

US Secretary of State Antony Blinken discussed Iran's attack on Israel in separate calls with Jordanian, Saudi Arabian, Egyptian and Turkish counterparts on Sunday, the State Department said.

Blinken reiterated that the US does not seek escalation and will continue to support Israel's defense.

In his call with Egyptian Foreign Minister Sameh Shoukry, he also discussed the need to increase humanitarian aid to Gaza, protect Palestinian civilians and achieve an immediate ceasefire that secures the release of all hostages, the State Department said in a series of statements.

His comments come after the successful joint defense with US, UK and Jordanian air forces against a drone and missile assault by Iran overnight on April 13-14.

In a statement released on Sunday, Gallant detailed how the attack had been fought off with the help of the United States and other allied nations.

According to him, the aggression is a critical juncture for Israel to consider more collective security measures.

"We have an opportunity to establish a strategic alliance against this grave threat by Iran which is threatening to mount nuclear explosives on these missiles, which could be an extremely grave threat," he stated.

Earlier, Gallant outlined the scale of the attack on Israel, noting that "The State of Israel was attacked with hundreds of missiles and [unmanned aerial vehicles], and the [Israel Defense Forces] thwarted this attack in an impressive manner."

The minister stressed the importance of being prepared for any possible future scenarios.

Gallant's words came in a broader response from the Israel war cabinet, comprising himself, Prime Minister Benjamin Netanyahu, and Benny Gantz, which is tasked with deciding Israel's tactical response to the Iranian threat.

Speaking to the nation on Saturday night, Netanyahu highlighted Israel's preparedness to face Iran in direct combat and noted that they were ready for “any scenario, defensively and offensively.”

"Whoever harms us, we will harm them. We will defend ourselves against any threat and will do so level-headedly and with determination," he noted.

Amir Saeid Iravani, the Permanent Representative of the Islamic Republic of Iran, defended the attack on Israel as a response to the airstrike on its Damascus consulate on April 1.

He reiterated that Tehran would use its right to respond proportionately if the US initiates military operations against Iran.