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INSIGHT

Tehran and Washington betting the other side blinks first

Behrouz Turani
Behrouz Turani

Iran International

May 19, 2026, 21:32 GMT+1
People walk by an anti-US mural in Tehran, Iran, May 18, 2026
People walk by an anti-US mural in Tehran, Iran, May 18, 2026

The competing narratives surrounding the latest US-Iran standoff have become so stark that even basic questions—who is deterring whom, who wants talks and who fears escalation—now produce entirely different answers depending on which capital is speaking.

On Monday, President Donald Trump said he had halted plans to attack Iran following requests from Qatar, Saudi Arabia, the UAE “and some others in the region.”

The same day, Iran’s state television claimed Trump had backed down from threatening military action “at least five times in recent weeks” because he feared Iran’s “firm response.”

On Tuesday, Trump again underscored the volatility of the standoff, saying the United States “may have to give them another big hit” and claiming Tehran was “begging” for a deal.

Rahman Ghahramanpour, a Middle East politics expert, told Tehran-based Khabar Online that both Tehran and Washington increasingly see the confrontation as a “competition over resilience,” with each believing renewed brinkmanship could strengthen its negotiating position.

Khabar Online journalist Mohammad Aref Moezzi described the current dynamic as a familiar “neither war nor peace” scenario: sustained pressure and confrontation without a clear decision to escalate into full conflict or pursue a comprehensive agreement.

Both sides, he argued, still believe they can force concessions without paying the cost of war.

For Iran’s leadership, the overriding objective remains survival and persuading Washington to abandon any notion of regime change.

Ghahramanpour argues that Tehran is trapped in a struggle for survival while Washington faces what he calls a “credibility trap.” The United States wants a visible strategic victory; the Islamic Republic increasingly treats simple endurance as success.

Despite striking numerous military targets in Iran, Washington has yet to achieve a major political breakthrough. In the United States, particularly amid partisan rivalries, that is often framed as a failure for Trump. In Iran, the same reality is presented as proof the Islamic Republic withstood American pressure.

He also noted that many in Israel believe Trump’s presidency may represent the best opportunity to secure full US cooperation against Iran, adding to pressure for a more decisive confrontation before political circumstances change.

The widening gap between Iranian and American perceptions has effectively frozen negotiations.

Although some hardliners in Tehran advocate pre-emptive action, the government appears unwilling to be seen as the side that starts a war.

Washington, meanwhile, continues tightening sanctions and maintaining pressure while also signaling that military action remains an option if diplomacy stalls.

Another Iranian scholar, Ali Asghar Zargar, told Fararu on Tuesday that neither side benefits from the current deadlock.

He described the standoff as a mix of attrition, geopolitical rivalry and competing political narratives in which Iran remains under heavy pressure while the United States has yet to achieve its core objectives.

Zargar also argued that Washington cannot realistically use the Strait of Hormuz as a unilateral pressure tool given the global dependence on the waterway, warning that the longer the impasse continues, the greater the risk of escalation or miscalculation.

What increasingly unites both Iranian and American analysts is the sense that the current stalemate may be unstable, and that neither side has yet found a credible path out of it.

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Iran finds a new weapon beneath Hormuz

May 19, 2026, 17:57 GMT+1
•
Negar Mojtahedi

Long viewed as merely an oil chokepoint, the Strait of Hormuz is now emerging as a digital flashpoint, after Iran floated “protection fees” for subsea fiber-optic cables crossing the waterway in a move experts warn could give Tehran new leverage.

Ebrahim Zolfaghari, spokesperson for Iran's military command center, wrote on X last week: “We will impose tolls on internet cables.”

Media outlets close to the IRGC have also said companies such as Google, Microsoft, Meta and Amazon must comply with the Islamic Republic’s laws, and that cable-owning companies must pay permit fees for cables to pass through.

Subsea cables carry the overwhelming majority of the global internet and financial traffic, connecting Europe, Asia and the Persian Gulf through a vast underwater network that powers everything from banking systems and cloud computing to government communications and energy markets.

The risk is no longer theoretical. Alcatel Submarine Networks, the world’s largest cable-laying company, has already paused subsea cable repair operations in the Persian Gulf after issuing force majeure notices tied to growing security risks in the region.

“The undersea network of undersea cables, it's not just important, it’s absolutely critical – trillions of dollars of financial transactions take place through these cables,” said Tom Sharpe, who served 27 years as a Royal Navy officer commanding four warships.

“It’s the internet, which of course if enough of that collapses can have a devastating effect," he said.

While these networks are global, experts say the Persian Gulf is uniquely vulnerable because there are fewer redundant cable routes compared to regions like the Atlantic.

“When you go to other places in the world, let’s say the [Persian] Gulf, there are far fewer, and therefore that redundancy becomes less and less, and therefore the vulnerability goes up,” Sharpe explained.

Iranian lawmakers discussed plans last week that could target submarine cables linking Persian Gulf littoral states to Europe and Asia. Iranian state-linked media have also floated proposals requiring foreign operators to comply with Iranian licensing laws and pay fees for maintenance and repair access.

The proposals appear to be part of a broader effort by Iranian hardliners to test how far Tehran can extend its authority over infrastructure crossing the Persian Gulf, even when that infrastructure is privately owned or tied to foreign governments.

Escalate, test, adjust

Sharpe believes Tehran is following a familiar escalation model — gradually testing international reactions before potentially taking more aggressive steps.

“I think, look, it seems to me at the moment we’re in the sort of inject uncertainty phase. Let’s see what the markets do. Let’s see how the companies react. Let’s see what insurers do,” Sharpe said. “They escalate. They test. They adjust.”

According to Sharpe, the strategy mirrors tactics previously employed by Russia around undersea infrastructure and later adapted by the Houthis in the Red Sea.

“They’re very good at escalation management,” he added. “They don’t go straight to the nuclear option and start just snipping cables.”

Charlie Brown, Senior Advisor at United Against Nuclear Iran, who specializes in maritime sanctions enforcement and the tracking of illicit shipping, said the issue extends far beyond internet access alone because submarine cables often cross multiple jurisdictions and are owned by consortiums involving companies and governments from around the world.

“This goes beyond merely the cable itself and the data on it,” Brown told Iran International. “These are cross-jurisdictional issues that affect many people in many different jurisdictions.”

New toll booth under the sea

Brown described the Islamic Republic’s approach as resembling a mafia-style protection racket aimed at controlling — rather than immediately destroying — critical underwater infrastructure.

“Yeah, it’s very interesting. I mean, so this ends up showing that it’s a money-making racket threatening. So it’s basically a gangster move,” Brown said.

“The IRGC is trying to extend their control to include things on the seabed that don’t belong to them,” he added.

Experts say global internet infrastructure has enough redundancy to prevent a total communications collapse, but warn the bigger risk is the normalization of payments to Tehran.

Max Meizlish, Senior Research Analyst for the Center on Economic and Financial Power at Foundation for Defense of Democracies, sees the cable issue as an extension of Iran’s broader attempts to exert control over the Strait of Hormuz.

“I think that this is just another instance of the Iranian regime putting in place essentially a shakedown in the strait,” Meizlish said.

Since the war began, he said, hardline factions within the Islamic Revolutionary Guard Corps (IRGC) have increasingly pushed to expand Tehran’s leverage over both maritime and digital chokepoints.

“We see slowly Iran extending its sphere of influence,” Meizlish said. “The IRGC hardliners want to come out of this conflict actually from a position of relative strength.”

A warning to Washington

Much of what happens next may ultimately depend on enforcement. Existing US sanctions prohibit dealings with the IRGC, meaning companies that pay such fees could expose themselves to secondary sanctions.

But if enforcement weakens, Meizlish warns, firms may gradually begin viewing payments to Tehran as simply another cost of operating in the region.

“Already it’s come out within the shipping sector,” Meizlish told Iran International. “Some ships have made these payments. We’ve seen traffic go through the Tehran toll booth.”

“If the US doesn’t step up pressure and actually actively enforce these sanctions, then some firms will determine that maybe in their risk-based approach, they can go ahead and do this,” he said.

“That would be a strategic error.”

Two years after Raisi’s crash: Iran has no sanctuary

May 19, 2026, 11:48 GMT+1
•
Arash Sohrabi

Two years after former president Ebrahim Raisi’s helicopter vanished in fog, Iran has lost far more than a president: its succession plan, regional shield, aura of safety and confidence that time was on its side.

On May 19, 2024, a helicopter carrying Raisi disappeared in the mountains of Iran’s East Azarbaijan province. The final Iranian inquiry blamed bad weather, dense fog and atmospheric conditions, not sabotage.

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Crash as metaphor

But the image was too powerful to ignore: a leadership convoy moving through poor visibility, losing sight of itself, then trying to project a state still in control.

That is the better way to read Raisi’s death – as metaphor, not conspiracy.

The crash did not change Iran because Raisi ruled Iran. He did not. Real power sat above him, with Supreme Leader Ali Khamenei, the Revolutionary Guard, the security state and the regional networks Tehran had built over decades.

Raisi mattered because he showed how continuity was supposed to look. He was loyal, hardline, severe and predictable; a figure once widely discussed as a possible successor to Khamenei.

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Raisi was not the Islamic Republic’s future. He was its rehearsal for a future that never arrived.

In May 2024, the system still seemed to have a succession plan, a regional shield and the patience to wait out its enemies. Two years later, almost every pillar that made Tehran look untouchable has been tested or broken.

Former president Ebrahim Raisi statue (file photo)
100%

No sanctuary

The countdown had already begun on October 7, 2023.

Hamas’s attack on Israel opened a war that pulled Iran’s wider network into motion: Hezbollah in Lebanon, militias in Iraq and Syria, the Houthis in Yemen. For years, this was Tehran’s doctrine of strategic depth.

After October 7, that depth became a target map.

By April 2024, Iran and Israel had moved from shadow war into direct confrontation. Then, one month later, Raisi’s helicopter fell out of the fog.

The state answered with the familiar theater of mourning: coffins, black flags, portraits, clerics and commanders. The message was continuity.

But after Raisi, the funerals began to tell another story. One by one, they marked not continuity, but exposure: a system losing the people, places and networks that had made it feel protected.

Former Supreme Leader Ali Khamenei leading a prayer at the coffin of Ebrahim Raisi and other officials killed in the crash   (May 2024)
100%
Former Supreme Leader Ali Khamenei leading the funeral prayer at the coffin of Ebrahim Raisi and other officials killed in the crash

His death forced a snap election. Masoud Pezeshkian, a reformist in tone, won the presidency after a first round marked by record-low turnout. The system gained a softer face, but not a new center of power.

Then came the first great humiliation of the post-Raisi era.

Ismail Haniyeh, Hamas’s political leader, came to Tehran for Pezeshkian’s inauguration. Hours later, he was killed in the Iranian capital.

This was not only the killing of a Hamas leader. It was a message that even the patron’s capital was no sanctuary.

That became the sentence for what followed.

In September 2024, Hezbollah’s pagers and radios exploded across Lebanon and Syria, turning the group’s own communications into weapons against it. Days later, Hassan Nasrallah was killed in Beirut.

A movement built on secrecy and underground command had been pierced from inside and struck from above.

Then Hamas leader in Gaza Yahya Sinwar was killed. Hamas remained, Hezbollah remained, the slogans remained. But the axis was bleeding leaders, territory, routes and confidence.

The deeper break came in Syria.

Bashar al-Assad’s fall in December 2024 was not just the loss of another Islamic Republic's ally. It damaged the geography of Iranian power: the route to Hezbollah, the Mediterranean opening, and the Qasem Soleimani-era claim that weak states could be turned into Iranian depth.

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By June 2025, the war had moved to Iran itself.

Israel struck Iranian nuclear and military sites during the 12-Day War. The United States then hit the most fortified parts of the nuclear program.

For years, nuclear ambiguity had been Tehran’s shield. In 2025, it became a battlefield.

Outside pressure then met the inside front.

The protests that erupted in late 2025 and early 2026 were driven by economic collapse, repression and the old demand for a different political order. By January 8 and 9, the state answered with mass violence and an internet shutdown.

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The Islamic Republic could still shoot, jail and terrify. But it could no longer persuade enough of its own people that it had a future.

Even shocks beyond the Middle East began to feel part of the same weather. The US capture of Venezuelan President Nicolás Maduro in January 2026 mattered less as an Iran story than as an atmosphere: another anti-American ruler, once protected by sovereignty and distance, suddenly exposed.

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Then, on February 28, 2026, the war reached the institution at the heart of the Islamic Republic’s power: the supreme leadership.

Ali Khamenei was killed in US-Israeli strikes. For a state built around velayat-e faqih, this was not only the death of a ruler. It was the breaking of an aura.

Mojtaba Khamenei was named Supreme Leader days later. The appointment was meant to project continuity. Instead, it made the Islamic Republic look smaller, more closed and more dynastic.

The revolution born against monarchy had passed its highest office from father to son in wartime.

The funeral that has not happened

And then came the strangest funeral of all: the one that could not settle itself.

Iran postponed Khamenei’s state funeral. Months later, even his burial remained unclear. For a Shiite revolutionary state that has always known how to turn death into power, the delay was astonishing.

The republic of funerals had lost command of its most important ritual.

The old model had four layers. At home, fear contained society. In politics, elections gave the state a civilian mask. In the region, proxies kept enemies away from Iran’s borders. At the strategic level, missiles, nuclear ambiguity and the Strait of Hormuz made the cost of attack seem unknowable.

Since Raisi’s crash, every layer has been damaged.

Fear has produced revolt. Elections have exposed emptiness more than legitimacy. Regional depth has been penetrated. Syria has fallen away. Hezbollah and Hamas have been battered. The supreme leader’s office has lost its aura of untouchability.

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Hormuz remains Iran’s strongest card. But it also shows the trap. The strait gives Tehran leverage over oil, shipping and global markets; it also keeps Iran at the center of a crisis it cannot easily end.

This is not the story of a regime that has already fallen. The Islamic Republic still has prisons, missiles, commanders and a long memory for survival.

But it is also not the story Tehran wants to tell.

Two years ago, Raisi’s death was wrapped in the language of martyrdom and continuity. The state said nothing vital had been lost.

Yet what followed revealed how little room the Islamic Republic had left for error.

The crash did not start the chain. October 7 had already started the clocks. But Raisi’s death gave the years after it their image: fog, poor visibility, a convoy losing contact, and a state insisting the road ahead was clear.

Two years later, Iran is still falling through that fog.

The question is no longer whether the Islamic Republic can survive another crisis. It has survived many.

The question is whether it can survive the loss of the things that made survival possible: distance, fear, succession, sanctuary and the belief that time was on its side.

Trump holds off planned Iran strike as Arab allies buy Tehran time

May 18, 2026, 22:27 GMT+1

US President Donald Trump said Monday he had halted a strike on Iran planned for Tuesday after Arab states including Tehran’s new foe the UAE urged him to allow more time for talks, even as reports said Tehran’s latest proposal had fallen short of US expectations.

Trump said Qatar’s emir, Saudi Crown Prince Mohammed bin Salman and UAE President Mohammed bin Zayed asked him to delay the attack, which he said had been planned for Tuesday, because they believed a deal could be reached that would be “very acceptable” to the United States, the Middle East and beyond.

“This Deal will include, importantly, NO NUCLEAR WEAPONS FOR IRAN!” Trump said in a post on Truth Social.

He said he instructed Defense Secretary Pete Hegseth, Joint Chiefs of Staff Chairman Gen. Daniel Caine and the US military not to carry out the strike, but warned that the order could be reversed if talks fail.

“I have further instructed them to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached,” Trump said.

The diplomatic push came as details emerged about Tehran’s latest proposal to Washington.

Earlier in the day, Reuters reported, citing a senior Iranian source, that Tehran’s latest proposal calls for a permanent end to the war, sanctions relief, the release of all frozen Iranian funds and the reopening of the Strait of Hormuz, while leaving nuclear talks for later stages.

The source said Washington had so far agreed only to unfreeze 25% of Iran’s funds on a phased timetable, but had shown flexibility over limits on Tehran’s nuclear work.

Reconstruction fund for Iran

Iran's Revolutionary Guards-affiliated Tasnim news agency separately reported, citing a source close to Tehran's negotiating team, that Washington had proposed establishing a reconstruction and development fund and had accepted suspending Iran’s oil sanctions during negotiations through temporary waivers issued by the US Treasury’s Office of Foreign Assets Control.

Tasnim also said major gaps remained between the two sides, particularly over the release of frozen Iranian funds and Tehran’s demand for compensation over the war.

The source said Iran rejected linking an end to the conflict to nuclear commitments and insisted Tehran would “by no means agree to ending the war in exchange for nuclear commitments.”

The claims of sanctions relief were quickly disputed in Washington. CNBC reporter Megan Cassella said a US official denied the report, saying Iranian state media claims that Washington had agreed to lift oil sanctions during talks were false.

Axios also reported, citing a senior US official and a source briefed on the issue, that Iran’s updated proposal was insufficient because it lacked detailed commitments on suspending uranium enrichment or handing over its stockpile of highly enriched uranium.

The US official cited by Axios said no sanctions relief would happen “for free” without reciprocal action by Iran, warning that talks may otherwise continue “through bombs.”

Trump later told the New York Post he was “not open” to concessions to Tehran and suggested Iran understood the risk of further US action.

“I can tell you they want to make a deal more than ever, because they know we’re—what’s going to be happening soon,” Trump said.

Iran’s president defends US talks as he lays bare economic strain

May 18, 2026, 19:38 GMT+1

Iran’s president on Monday defended negotiations with the United States as he acknowledged the economic pressure, fuel shortages and war damage facing the country, pushing back against hardliners who oppose further dialogue.

“As for those who chant that we should not negotiate — if we do not negotiate, what should we do? Fight until the end? We negotiate with dignity,” Masoud Pezeshkian said in an address to an event held in Tehran.

“It is not logical to say we will not negotiate,” he said. “We are capable of defending the nation’s rights with the people’s backing. We must speak logically and receive a logical answer.”

His comments come amid a fragile ceasefire in the six-week war between Iran and the US and Israel, with Pakistan-mediated efforts to reach a final deal unsuccessful despite exchanges of US and Iranian proposals.

Hardline figures have opposed further talks without major US concessions. Mohammad Ali Jafari, a former commander-in-chief of Iran’s Revolutionary Guards, said Monday no further negotiations should take place unless Iran’s conditions were met.

Alaeddin Boroujerdi, deputy head of parliament’s National Security Committee, said Sunday talks would be futile unless sanctions were lifted and blocked Iranian assets were released.

Adversaries exploit division

Pezeshkian tied the push for talks with the United States to a broader call for national unity, warning that Iran’s adversaries could exploit internal divisions more effectively than military attacks.

“We stand with dignity against foreigners, we negotiate, and we will defend the nation’s rights,” he said.

“We will stand against any aggression with unity and cohesion,” he added. “They cannot occupy the country with missiles and bombs, but they can with division and conflict. We must try to ensure that this unity and cohesion is not broken.”

Reports of divisions among Islamic Republic officials have emerged on multiple occasions since the war began. On March 28, reports pointed to serious disagreements between Pezeshkian and Ahmad Vahidi, the Revolutionary Guards commander who is now said to be the most powerful figure in the force.

Informed sources told Iran International at the time that the dispute stemmed from “the handling of the war and its destructive consequences for people’s livelihoods and the country’s economy.”

Three days later, Iran International received reports that Pezeshkian was frustrated at being placed in a “complete political deadlock” and that he had even been stripped of the authority to appoint replacements for government officials killed during the war.

Acknowledging damage, hardship after war

Pezeshkian said officials must be honest about the pressure Iran faces and should not claim the country has escaped harm.

“It is not the case that we have not been harmed,” he said.

He said Iran had sustained damage to energy and industrial infrastructure following Israeli-US airstrikes.

“We must take on a war footing,” he said. “They hit 230 million cubic meters of our gas; they hit our power plant, petrochemical facility and Mobarakeh Steel.”

“One cannot claim that we have no problems and that they are being destroyed,” he added.

He said Iran would not back down but must manage the country with prudence.

“One cannot say the enemy is being destroyed and we are flourishing,” he said. “They have problems and we also have problems. We will by no means bow our heads.”

The acknowledgment contrasted with Iran’s public victory narrative after the ceasefire, even as the country's economy had been battered, prices had risen and factories, power plants, railways, airports and bridges had been destroyed.

Oil exports squeezed as fuel shortfall deepens

Pezeshkian said Iran was under mounting economic pressure, with oil exports constrained.

“They closed the route and we are not exporting oil either,” he said. “We cannot export oil easily. Saying that we have not encountered any problem is one of those statements.”

He added that strikes on Iran's gasoline production facilities had deepened the country's fuel shortfall, with daily output at 100 million liters against demand of 150 million liters.

“Our gasoline production capacity has decreased. They hit it,” he said.

Reuters reported that the US naval blockade of Iranian ports had cut Iran’s oil exports by more than 80% over April 13-25 compared with the same period in March, leaving growing volumes of crude stranded on tankers.

Iran exported 1.84 million barrels per day of crude in March, before the US military began blocking shipping traffic in and out of Iranian ports.

Iran’s café culture buckles as everyday life contracts

May 16, 2026, 08:37 GMT+1
•
Maryam Sinaiee

Iran’s deepening economic crisis is pushing cafés and coffee culture toward collapse, as soaring prices and falling incomes force both businesses and customers to cut back.

Mohsen Mobarra, head of the union overseeing coffee shops in Tehran, told economic daily Donya-e-Eqtesad that café operating costs have more than doubled while customer numbers have fallen by as much as 50 percent in recent months, with up to 40 percent of cafés shutting down.

“Continuing operations does not mean profitability,” he said. “The profits of these businesses are steadily shrinking. As a result, cafés that rent their locations or lack strong financial backing are heading toward closure.”

Over the past two decades, cafés became an important part of urban life in Iran, taking root in Tehran before spreading across the country.

With affordable entertainment options limited, they emerged as some of the few accessible spaces where young Iranians could socialize, work and spend time outside the home.

Many evolved into more than places to drink coffee or eat light meals. They hosted poetry nights, small music performances, photography exhibitions and informal gatherings, becoming rare spaces for social interaction at a time when few other public spaces remained accessible.

Until a few months ago, Tehran alone had around 6,000 cafés of different sizes in operation. But the collapse in consumers’ purchasing power has hit the industry hard.

Sanaz, a 28-year-old receptionist at a private company, said she and her friends used to visit cafés several times a week. But now, with sharp increases in the costs of food, transportation and housing, even such small pleasures require careful calculation.

“I have to calculate every expense, even this simple form of entertainment, just to make it to the end of the month — assuming I don’t lose my job,” she said.

“If I lose my job, after years of financial independence, I’ll have to move back to my parents’ home in my hometown.”

The closures and downsizing have also eliminated jobs for many workers, most of them young people and women.

Shana, 26, completed professional barista training before finding work at one of the branches of the well-known Saedi Nia café chain.

In January, the chain’s branches were abruptly shut down after the owner voiced support for opposition protesters. Shortly afterward, war broke out.

“Even cafés that have survived the economic downturn are not hiring new staff anymore,” she said. “Many are actually laying off existing employees.”

“I have no hope that even by learning new skills like cooking or other work, I’ll be able to find a job. The economy keeps getting worse every day, and the job market is shrinking.”

Coffee itself is also becoming a luxury.

Tea remains Iran’s dominant traditional drink, but coffee consumption expanded rapidly in recent years. Now, however, the sharp rise in foreign currency prices and disruptions to imports have pushed coffee prices so high that many households are cutting consumption or abandoning it altogether.

Although global coffee prices have declined, the cost of coffee beans in Iran — largely imported through the United Arab Emirates before the war — has nearly doubled compared to pre-war levels.

The increase has directly affected café prices. With rents and other expenses also rising, the price of a cup of coffee in some cafés has climbed by as much as four times.

One café owner told Donya-e-Eqtesad that even cafés specializing in basic coffee drinks are seeing falling demand because many people can no longer justify going out even for coffee.

Tara, the manager of an advertising company with ten employees, said coffee has become so expensive that even buying it for office use is increasingly difficult.

“For the first time in the past twenty years, I’ve had to stop buying coffee for the office kitchen, where it was always available for employees alongside tea,” she said.

“It’s not just about coffee prices. Since last summer’s war, work has effectively been frozen. Clients have even canceled half-finished projects, and everyone knows the company is taking its last breaths.”

“If this situation continues, we’ll have no choice but to shut down.”