Palestinian woman arrested over espionage for Iran, Israel says

“We are not in a ceasefire, we are in a stage of war. No protocol, regulation, or agreement has been written between us and the US or Israel,” said senior Revolutionary Guards (IRGC) general Yahya Rahim Safavi.

“I think another war may happen, and after that, there may be no more wars.”

Safavi’s comments is the latest in a series of combative remarks from military leaders on both sides, with Israel’s army chief vowing readiness for further strikes and Iran’s General Staff warning of “a far stronger response” to any future attacks by US or Israel.

Safavi argued that Iran must build power at both the regional and global levels.

“The Americans and the Zionists say they create peace through power; therefore Iran must also become strong, because in the system of nature the weak are trampled,” he said.

Tehran’s leadership continues to project defiance despite the threat of renewed UN sanctions and worsening shortages of power and water at home—that has led Iran’s moderates to call for a change of course in foreign policy.

Safavi outlined what he called Iran’s strategy for deterrence.

“We must strengthen our diplomatic, media, missile, drone and cyber offensive strategy,” he said, “we, the military, do scenario-planning, we see the worst case, and we prepare a plan for it.”

Iran-Israel war

Safavi’s comments come two months after Israel launched a surprise military campaign on June 13 targeting military and nuclear sites, killing hundreds of military personnel, nuclear scientists and civilians.

Iran responded with missile strikes that killed 31 civilians and one off-duty soldier, according to official figures published by the Israeli government.

The Islamic Republic says 1,062 people were also killed by Israel during the 12-day conflict, including 786 military personnel and 276 civilians.

On June 22, the US carried out airstrikes on Iran’s key nuclear sites at Fordow, Natanz, and Isfahan.

A US brokered ceasefire came into effect on June 24, which ended the 12 day air war.

Official data published this week suggests both Iran and Israel suffered economicallyduring the 12-day war in June.

The program—titled Tehran–Tel Aviv—marked Larijani’s reemergence as Supreme Leader Ali Khamenei’s representative to the Supreme National Security Council (SNSC).

“The enemy thought they had the most defensive capability, but Iran’s rain of missiles completely left them helpless,” he said.

Larijani quoted “a regional official” as saying that Israel's prime minister Benjamin Netanyahu had told him Iran was “finished” a day into the war, but by the fourth or fifth day admitted Israel had “big problems.”

Still, Larijani cautioned against triumphalism.

“We must not become arrogant, because the enemy studies these things and finds new methods. We are doing the same and must not act with only one military method.”

Official data published this week suggests both Iran and Israel suffered economically during the 12-day war in June.

Yet military leaders on both sides have continued the war of words, with Israel’s army chief vowing readiness for further strikes and Iran’s General Staff warning of “a far stronger response” to any future attacks by Israel or the United States.

'Infiltration is serious'

Larijani also said the June clash was distinct because of Washington’s direct involvement. “It was face to face,” he told the broadcaster.

“The Americans, who always hid behind regional issues, came onto the scene themselves. Their defense secretary explicitly ordered the bombings.”

Sidelined from power in recent years, Larijani now appears tasked with restoring cohesion in the Islamic Republic’s fractured defense posture.

The broadcast sought to cement his role as both strategist and spokesman for Iran’s postwar stance—portraying the conflict as proof of Iran’s reach and resilience while acknowledging deep vulnerabilities.

“The strategy and manner of Iran’s military moves against Israel were an achievement. Of course we had weaknesses too,” Larijani said.

“The issue of the enemy’s infiltration inside Iran is serious. We had weaknesses that are painful.”

From April to June, Israel’s business sector contracted 6.2%. Private consumption dropped 4.1%, public spending fell 1%, and investment in fixed assets plunged 12.3%, signaling weakening confidence.

Exports of goods and services, excluding startups and diamonds, declined 3.5%, while imports, excluding defense purchases, rose 3.1%.

The downturn followed the June conflict with Iran, which began after Israel attacked military and nuclear sites on June 13.

Iran responded with missile strikes that forced many Israelis into shelters.

The United States joined on June 22 with airstrikes on Iran’s nuclear facilities at Fordow, Natanz, and Isfahan. A US-brokered ceasefire took effect on June 24, ending the 12-day war.

Bank of Israel Governor Amir Yaron told Bloomberg in late June that the fighting was likely to cost nearly $6 billion or 1% of GDP.

Analyst Andreas Krieg told TRT World that overall losses could reach between $11.5 billion and $17.8 billion, around 2% to 3% of Israel’s economy.

Costly for Tehran

The conflict also took a heavy toll on Iran’s economy.

Krieg estimated Iran’s direct and indirect losses at $24 billion to $35 billion, equal to 6% to 9% of its $380 billion GDP.

The conflict also dealt a heavy blow to Iran’s trade: non-oil exports in June totaled $3.4 billion, according to Iranian customs statistics—a 34% drop from a year earlier.

Iran’s digital economy was also hit.

The communications minister reported a 30% contraction and losses of 150 trillion rials (about $170 million) in one month, attributing the damage to widespread internet restrictions imposed during the fighting.

Mohammad Ayyad was convicted by a Lebanese military tribunal latein July for his role in the fatal attack on a UN convoy near the village of Al-Aqbiya, south of Beirut. He was not present at the trial, and Lebanese authorities have not disclosed his whereabouts.

“We suspect he is in Iran and it is unlikely anyone will hand him over to face a death penalty,” one diplomatic source told the newspaper. “It is not a satisfactory situation but all we can do is keep the pressure on and see if we can get justice for Seán and his family.”

Rooney, 23, from Dundalk, was killed on December 14, 2022, when a group of armed men opened fire on the peacekeepers’ vehicle as they travelled towards Beirut airport. Three other Irish soldiers were injured in the attack.

According to Sunday World, several other Lebanese men received lighter sentences over the shooting, including short jail terms, fines, or acquittals. The Beirut government has appealed the verdicts following pressure from Ireland and Rooney’s family, the paper said.

Irish Defense Minister Simon Harris said last week that Dublin continues to press for accountability. “The Government has repeatedly stressed the need for justice to be served in this case. We have raised the issue with the UN and the Lebanese authorities,” he said after meeting Rooney’s mother, Natasha.

Lebanon has not carried out an execution in more than 20 years, and Irish officials have indicated they would prefer Ayyad serve a life sentence rather than face capital punishment.

An Irish coroner’s inquest into Rooney’s death has been postponed, while an independent review of the circumstances surrounding the attack, led by barrister Michael Delaney, is underway and expected to conclude in the autumn.

“We must not allow others to destabilize the region. Instead, we should preserve stability along this path. That is why we signed an important security agreement with Iraq,” Ali Larijani, Secretary of Iran’s Supreme National Security Council, said in a televised interview about his recent visit to Baghdad and Lebanon.

The agreement includes “a mutual commitment to prevent any disruption by individuals, groups, or third countries, in such a way that no party can use the other’s territory against the other side or create breaches in security,” Larijani said.

He linked the deal to recent regional tensions, saying that “even in the past 12-day war this issue was taken into consideration; part of the war was supported from the skies of some countries," referring to nations Iran says supported Israel's attacks on Iran.

On Wednesday, however, Iraq’s National Security Advisory issued a clarification rejecting reports of a new agreement, stressing instead that a memorandum of understanding on border security had been signed.

The advisory said the agreement builds on a 2023 protocol concerning Iranian Kurdish opposition groups. It emphasized that “there is no security agreement between the two countries; rather, it is a security memorandum of understanding.”

Washington voices opposition

Iraq’s National Security Advisor Qassem al-Araji met with US Chargé d’Affaires Steven Fagin on Saturday to discuss the deal, which Washington has opposed.

In their meeting, Araji “reviewed the details of the security memorandum of understanding signed between Iraq and the Islamic Republic of Iran regarding border control, which contributes to supporting regional security and stability, preventing smuggling and infiltration,” his office said.

Washington, however, has argued the deal undermines Iraqi sovereignty. “We oppose any legislation that is inconsistent with the goals of our bilateral security assistance and partnership and runs counter to strengthening Iraq’s existing security institutions,” State Department spokesperson Tammy Bruce said Tuesday.

“We support genuine Iraqi sovereignty, not legislation that would turn Iraq into an Iranian satellite state,” she added.