Israeli Prime Minister Benjamin Netanyahu warned that Israel would respond with unprecedented force if Iran were to attack, as he addressed regional tensions during a parliamentary debate on Monday.
“If Iran makes a mistake and attacks us, we will act with a force that Iran has not yet experienced,” Netanyahu said.
“No one can predict what will happen in Iran, but whatever happens, Iran will not return to what it was,” he added.
Iran’s judiciary chief accused US President Donald Trump of responsibility for what he described as crimes linked to Iran’s nationwide protests, saying legal action would be pursued domestically and through international channels.
“The US president, the leaders of the accursed Zionist regime, and other supporters and providers of military and propaganda support to the criminals and terrorists involved in the recent events are among the offenders who, in accordance with the extent and scale of their crimes, will be pursued, tried and punished,” Gholamhossein Mohseni Ejei said in a post on X.
“We will not abandon the pursuit and prosecution of the perpetrators of the recent crimes in domestic courts and through international avenues,” he added.
US Senator Lindsey Graham welcomed the decision to rescind an invitation for Iran’s foreign minister to speak at the World Economic Forum in Davos, praising the move as a strong message against Iran’s leadership.
“I am very pleased to hear that those in charge of Davos realized having the Iranian Foreign Minister – the mouthpiece for the terrorist regime murdering its citizens with American blood on its hands – should not attend and speak at the conference,” Graham said in a post on X.
"This action by the Davos group will encourage people in Iran to continue to demand an end to their oppression," he added.
Graham said the move reflected the kind of stance he believes the international community should take toward Iran’s ruling authorities.
Iran’s internet access will return to normal by the end of the week, which in Iran falls on Friday, the country’s vice president for science, technology and the knowledge-based economy said on Monday.
Hossein Afshin said the restoration would take place gradually and that existing restrictions would soon be lifted, according to the Iranian government’s official website.
“We are trying to ensure the internet is reconnected by the end of the week,” Afshin said at a joint news conference.
“Of course, fixed IP addresses are being considered for large internet companies, and by order of the president, nationwide internet access will be restored from today to tomorrow and at the latest by the end of the week,” he added.
Police opened fire on a family, including a young child, in Hashtgerd in Iran’s Alborz province west of Tehran on January 9 during nationwide protests, wounding the child, an eyewitness told Iran International.
According to the eyewitness, a six- or seven-year-old child was wounded in the leg after being hit by pellet fire during the shooting, causing severe bleeding.
The eyewitness, citing the child’s mother, said the family had just left their home at the time of the incident and were not chanting slogans, but police fired at them as soon as they saw them.
The eyewitness also said the presence of security forces in Hashtgerd increased markedly on January 9.
The future of the Islamic Republic is unresolved, but if and when change comes, Iran’s return to global trade would carry far-reaching consequences for the region’s economy.
A deadly crackdown may have quieted Iran’s streets for now, but the state appears increasingly brittle, with no clear answer to a deepening economic crisis that is eroding living standards and confidence.
External pressures are also likely to intensify after Tehran’s crackdown on protesters, narrowing revenue channels and shrinking the government’s economic room to maneuver.
Left unresolved, those pressures are likely to generate further unrest and, in time, a political transition that seeks normalization with the world.
A normalized Iran—able to trade, borrow, insure cargoes and receive investment like other upper-middle-income economies—would likely enjoy a large upside, given how much of its economy has been operating below potential.
Its advantages are straightforward: scale, in the form of a large domestic consumer market; a relatively diversified industrial base by regional standards; deep energy and petrochemical capacity; and a geographic position that could turn the country into a natural junction linking the Persian Gulf, the Caucasus, Central Asia and Turkey.
The most immediate gains would come from energy exports unleashed from sanctions and sharply lower transaction costs. Over time, however, the larger prize would be productivity. Access to global supply chains and affordable capital, combined with Iran’s labor force, could lift output across all sectors.
None of this would be automatic. The payoff would depend on restoring basic economic credibility: stable money, predictable regulation and a solid banking system.
Turkey stands out as the clearest short-term beneficiary of such a shift in Iran. Proximity, road links and established distribution networks would allow Turkish firms to move quickly, while airlines and tourism operators would likely benefit from a surge in outbound Iranian travel.
Iraq would gain from formal payment channels and more predictable energy trade, easing pressure on the dinar and reducing transaction costs.
Pakistan’s upside would lie in infrastructure: if sanctions risk were removed, long-stalled energy links could become commercially viable, easing power constraints and lowering industrial costs.
The United Arab Emirates would likely lose some of the high margins associated with sanctions-bypass trade but gain as a platform where Iran-bound capital is raised, structured and eventually deployed.
Azerbaijan could benefit if Iran became a reliable bridge to Russia and Eurasia through freight, swaps and grid connections.
Israel could also emerge as a beneficiary. A normalized Iran would lower the region’s risk premium and potentially reduce energy costs, while Israeli firms—particularly in technology and water and agricultural solutions—could potentially compete for contracts in a large, untapped market.
The clearest losers would be producers and hubs that have quietly benefited from Iran’s isolation.
In energy markets, a sanctions-free Iran re-entering at scale would intensify competition between price and market share, leaving oil-dependent exporters such as Saudi Arabia and Kuwait more exposed to revenue volatility and fiscal trade-offs.
In gas, Qatar’s dominance in Asian LNG contracting could face pressure as investment and technology return to Iran’s side of South Pars, potentially narrowing bargaining power and affecting pricing over time.
Iran’s reintegration would also challenge business models built on being indispensable detours. Kuwait, for example, could find that costly hub ambitions become less compelling if Iraq–Iran rail and port combinations offered cheaper trade routes.
More subtly, some early beneficiaries could face second-round competition once Iran begins producing and exporting at scale.
Turkey may initially sell heavily into the Iranian market, but over time a revitalized Iranian manufacturing sector could begin displacing Turkish goods in nearby markets.
For Pakistan, cheaper Iranian energy would be an opportunity, but a fully functional Chabahar and Iran-centered transit corridors could divert trade away from Gwadar unless Pakistan integrates its infrastructure into those routes.
If Iran were to return as a normal economic actor, regional debates would shift from ideology to competition. The central question may no longer be who can contain Tehran, but who can compete with it.
In that environment, the advantage would likely accrue to states that adapt fastest, moving away from protected niches and easy rents toward productivity, technology and integration.
A reopened Iran would not simply add another participant to the regional economy; it would change the structure of the marketplace itself.