Iran would deliver a "painful" response to any renewed US attack, Ebrahim Azizi, chairman of parliament's National Security Committee, said.
Azizi said Tehran would act according to its national interests and military doctrine regarding the Nuclear Non-Proliferation Treaty (NPT) and use all available capabilities in any confrontation.
Iran could face an economic contraction comparable in scale to the Great Depression in the United States, economists say, as the loss of oil revenue and wartime disruption threaten to drive an ailing economy into a deeper crisis.
Their assessments follow a prediction by US Treasury Secretary Scott Bessent, who told Iran International that Iran's economy would shrink by more than 25% between March 2026 and March 2027.
Iranian-American economist Ali Dadpay told Iran International that he found Bessent's forecast plausible, particularly as Tehran attempts to finance wartime spending by expanding the money supply.
That risks accelerating inflation and weakening the rial further, he said, creating a cycle of rising prices, falling purchasing power and declining economic activity.
Mohamad Machine-Chian, an Iran International economist, offered a stark comparison.
"The United States lost about 26% of its output in the Great Depression, over four years, from 1929 to 1933. Secretary Bessent is describing a loss of Great Depression size in twelve months," Machine-Chian said.
Iran's economy contracted by 21.6% in 1980, the first year of the Iran-Iraq War, World Bank data shows.
How much worse could it get?
Even the severe sanctions of 2018 and 2019 produced a smaller cumulative contraction of approximately 12%, despite oil exports plunging from about 2.7 million barrels per day to roughly 650,000.
Economic output was already approximately 10% lower in spring 2026 than a year earlier, according to figures from Iran's Statistical Center.
For the economy to contract by more than 25% over the full year, the decline would have to accelerate considerably.
Machine-Chian estimated that even with an 8% contraction over the summer, output would have to fall far more sharply during autumn and winter for the annual decline to approach Bessent's forecast.
The disruption of oil exports is central to that outlook. Energy intelligence firm Kpler reported no new Iranian crude loadings since late August, while revenue from earlier shipments is running out.
But the damage extends beyond the oil industry. Factories depend on imported materials, transportation companies require replacement parts, and businesses need financing to sustain operations.
As supplies and revenue dwindle, manufacturing, construction and other industries face further disruption.
The cost for ordinary Iranians
The economic deterioration is already visible in the price of everyday necessities.
Food prices in September were more than double their level a year earlier, according to Iran's Statistical Center. Eggs cost three and a half times as much, rice nearly twice as much, and official bread prices in Tehran have doubled.
“The minimum wage increased 60% this year while inflation approached 90%,” Machine-Chian said. “In dollar terms, a minimum-wage worker now earns approximately $61 a month, compared with $96 a year earlier.”
He also warned about savings being eroded. With the dollar costing two and a half times as much as a year ago, money held in rials has lost approximately 60% of its value against the US currency.
Further disruption to imports could bring shortages of medicines, industrial materials and vehicle parts, potentially forcing factories to reduce production or close and putting more jobs at risk.
Dadpay described a possible future resembling aspects of the economic crises in Venezuela and Zimbabwe, where severe currency depreciation and inflation pushed people toward dollars, gold, secondhand markets and barter.
As production declines and essential goods become harder to obtain, even those who remain employed could struggle to afford basic necessities.
Sanctions policy analyst Max Meizlish expects pension payments and civilian services to come under pressure as revenues decline, while military and security personnel could continue receiving salaries.
That could allow the Islamic Republic to preserve institutions central to its political survival even as living standards deteriorate.
Political consequences
Economic devastation does not necessarily translate into political collapse, particularly if Tehran can preserve its security institutions and access to financial channels abroad.
Washington has not fully targeted the Chinese financial institutions facilitating Iranian transactions, partly because of concerns about wider economic consequences, Meizlish said.
"It's just not clear that this level of economic constraint on its own will be enough to produce some sort of measurable political change," he said.
Dadpay argued that years of economic mismanagement and decisions prioritizing the survival of the political system had left Iran particularly vulnerable to the current crisis.
"As long as Islamic Republic is in place with this mindset, with this dynamic of decision-making, this is what's going to happen," he said.
For ordinary Iranians, the consequences are already evident in collapsing purchasing power, dwindling savings and rising prices.
Whether Bessent's forecast proves accurate or not, the economic damage could outlast the confrontation that has accelerated it.
Iranian authorities have arrested a female fitness blogger after videos showing women exercising without hijab at a Tehran sports exhibition sparked criticism from hardline media.
The judiciary's Mizan news agency said the woman was arrested on charges including propaganda against the state and offending public sentiment by publishing photographs and videos from the Fitex exhibition.
An arrest warrant was also issued for another person involved in planning the exhibition, Mizan said, without identifying either individual or specifying which images or videos prompted the action.
The fifth edition of Fitex, a fitness and sports equipment exhibition, was held from October 21 to 23 at Goftogoo Park in western Tehran.
Photographs and videos circulated on social media showed female athletes performing fitness routines and acrobatic movements, some without headscarves and others exercising to music.
Under Iran's mandatory hijab laws, women are required to cover their hair in public, including at sporting and cultural events.
The footage prompted criticism from hardline media outlets and supporters of the Islamic Republic, some of whom demanded judicial action against the organizers.
Hardline media demand action
The IRGC-affiliated Tasnim news agency criticized what it called "widespread violations of social norms" at the exhibition on October 25 and urged sports authorities and other institutions to intervene.
The Student News Network, affiliated with the student branch of the Basij militia, quoted one of its reporters as saying anyone viewing the images would experience "secondhand embarrassment."
As criticism intensified, Iran's Sports Ministry issued a statement on October 25 distancing itself from the event, saying neither the ministry nor Tehran's provincial sports authorities had organized the exhibition or granted it a permit.
Tehran prosecutors subsequently opened a criminal case against the organizers and others involved, citing alleged violations of legal and Islamic regulations, and summoned them for questioning.
Mizan said online pages associated with Fitex had been blocked as part of the proceedings and that investigations were continuing.
Restrictions extend to art exhibitions
The action against Fitex comes amid wider pressure on cultural activities and women's public appearance in Iran.
On October 26, Tehran prosecutors initiated legal proceedings against the organizers of Art Fair Tehran, also citing alleged failures to comply with legal and Islamic regulations.
Organizers were summoned to the prosecutor's office, while the exhibition's ticketing website and the organizer's social media account were blocked.
Earlier this month, the US-based Center for Human Rights in Iran said authorities were intensifying their crackdown on artists, writers, musicians and other cultural figures as part of a broader campaign to silence dissent and intimidate communities.
The rights group cited a source in Iran who linked the arrests of cultural activists to authorities' fears of renewed protests, particularly in economically disadvantaged areas amid worsening living conditions.
Israeli Prime Minister Benjamin Netanyahu appeared set to remain in power after Tuesday’s election left his opponents short of the seats needed to unseat him, as he raised the prospect of renewed military action against Iran alongside the United States.
With nearly all votes counted on Wednesday, projections by Israel’s three main broadcasters gave Netanyahu’s bloc of right-wing, far-right and ultra-Orthodox parties 53 seats in the 120-seat Knesset, against 48 for the opposition led by former military chief Gadi Eisenkot.
Arab parties were projected to win a record 19 seats.
Neither bloc secured a majority, but the opposition's weaker-than-expected performance left Eisenkot with little prospect of forming a government without support from Arab parties, an arrangement many Jewish political leaders oppose.
Netanyahu is therefore likely to remain caretaker prime minister while coalition negotiations proceed or until another election is held.
President Isaac Herzog has said that Israel must avoid heading to the polls again after Tuesday’s vote.
“We need to do everything, certainly after yesterday, so as not to hold another election,” he said.
‘Once and for all’
Addressing supporters in Jerusalem early Wednesday, Netanyahu called for a “strong, right-wing national government” and highlighted Israel’s military successes, including its operations against Iran.
“Israel faces a singular historical opportunity, together with our partner President Trump, to remove the existential threat of Iran once and for all. But ulterior motives must not divert us from this sacred mission,” he said.
His remarks raised the prospect of renewed joint military action against Tehran at a time of heightened tensions and diplomatic efforts to avert another round of fighting.
Trump, who had urged Israelis to reelect Netanyahu so the two leaders could “finish the job” in Iran, praised his performance and credited his own endorsement.
“It might be winning or tie. The tie is sort of considered a win in that case because it's a big chess match,” Trump said Wednesday during a campaign stop in Texas.
Eisenkot, meanwhile, acknowledged that Netanyahu would remain in office as a caretaker but argued that the prime minister had lost public support and should retire from politics.
He also warned security and civil service officials against allowing Netanyahu to use national security for political purposes.
“Remember that you serve only the state and the interests of Israel's citizens. Stand firm in the face of any attempt to challenge you,” Eisenkot said. “Netanyahu, do not dare use Israel’s security for your political needs.”
Turnout reached 77.7%, the highest in more than two decades, with particularly strong participation among Arab voters.
Their parties' projected gains could give them an unusually influential role in determining whether an alternative government can be formed.
Iranian lawmakers are reviewing a new internet regulation bill that could expand authorities' powers to restrict online access, raising concerns over further controls after months of nationwide internet shutdowns.
The proposed Cyberspace Regulation Bill is being examined by a parliamentary committee, but its official text remains unpublished, Iranian news outlet Jamaran reported.
Parliament received the proposal on August 3, but lawmakers reviewing it have declined to disclose its provisions.
"A decision has been made not to publicize the details of the Cyberspace Regulation Bill for the time being," Rouhollah Abbaspour, spokesman for the parliamentary committee, said.
An unofficial 12-article draft circulating online resembles the controversial Internet Protection Bill, known as the Sianat plan, which stalled in the previous parliament. However, a committee member told local media that the version under review differs from the circulating text.
Lawmakers divided over restrictions
The proposal has drawn criticism within parliament, with some lawmakers questioning the need for additional controls when international internet access is already heavily restricted.
Mostafa Pourdehghan, a member of parliament's Industries and Mines Committee, criticized repeated attempts to restrict international connectivity and expand domestic alternatives, citing existing filtering, poor internet quality and rising costs.
Pourdehghan warned that further restrictions during wartime could increase public anxiety, particularly among young people, and predicted the bill would meet the same fate as the earlier so-called Protection Plan.
Lawyer warns of sweeping powers
Lawyer Kambiz Norouzi warned that the proposed legislation could give the Supreme Council of Cyberspace extensive authority while weakening government oversight.
In an editorial published by Shargh newspaper, Norouzi criticized Article 1 of the circulating draft, which designates the council as the highest authority for internet policymaking.
Article 6 would also allow internet access to be suspended or restricted on orders from judicial authorities or other competent bodies, without clearly identifying those additional authorities.
"This provision amounts to creating unlimited and unregulated power to violate fundamental freedoms and is certainly unconstitutional and illegitimate," Norouzi wrote.
Norouzi also argued that the bill would concentrate decision-making in an institution whose proceedings are largely closed to public scrutiny.
The official parliamentary text has not been published, leaving uncertainty over whether these provisions appear in the version under review.
Months of shutdowns and previous restrictions
The proposal follows months of internet disruption affecting millions of Iranians.
Authorities imposed a nationwide blackout on January 8, 2026, during anti-government protests. Connectivity was only partially restored before another near-total shutdown began on February 28 following the outbreak of war involving Iran, Israel and the United States.
The second blackout lasted 88 days, with international connectivity beginning to return on May 26.
Restrictions disrupted businesses, education and communications. Iran's Chamber of Commerce estimated direct economic losses at $30 million to $40 million daily, with indirect losses potentially doubling that figure.
The legislation follows years of attempts to expand state control over online communications.
The earlier so-called Protection Plan sought greater oversight of foreign platforms but stalled following public opposition.
In July 2025, President Masoud Pezeshkian's administration also withdrew a separate cyber censorship bill following criticism over its potential impact on free expression.
Authorities have continued developing the National Information Network, which allows selected domestic services to operate independently of international connectivity.
The Supreme Council of Cyberspace, established by former Supreme Leader Ali Khamenei in 2012, already plays a central role in internet policymaking.
For now, lawmakers remain divided over the proposal's prospects, while the refusal to release its official text has left its scope, legal implications and potential impact on internet access unclear.
Kuwait summoned Iran's ambassador on Wednesday and handed him a formal protest over a statement by the Iranian embassy that it said interfered in the country's internal affairs and undermined the independence of its judiciary.
Kuwait's Foreign Ministry said Deputy Foreign Minister Hamad Suleiman Al-Mashaan summoned Iranian Ambassador Mohammad Toutounchi over the embassy's statement issued earlier on Wednesday.
The ministry described the statement as "blatant interference in the internal affairs of the State of Kuwait" and an infringement on its sovereignty and judicial independence, in violation of international laws and norms.
Kuwait strongly rejected any interference in rulings issued by its courts and urged Iran to respect international law, the UN Charter and the 1961 Vienna Convention on Diplomatic Relations, particularly the principles of good neighborliness and noninterference in other countries' affairs.
Iran rejects accusations over assassination plot
The diplomatic dispute followed a Kuwaiti court ruling on Monday sentencing three men to death after convicting them of collaborating with Iran and Lebanon's Hezbollah and plotting to assassinate senior Kuwaiti officials, including First Deputy Prime Minister and Interior Minister Sheikh Fahad Al-Yousef Al-Sabah.
Iran's embassy in Kuwait said it "categorically rejects" the Kuwaiti government's accusation that an Iranian citizen was involved in a plot to assassinate officials or in any activity threatening Kuwait's national security.
The embassy said the individual "has not been present in Kuwait during the past 10 years."
In its statement, the embassy expressed deep regret over what it described as a continued "negative approach toward Iran," citing repeated "baseless and worn-out scenarios" involving accusations of Iranian interference in Kuwaiti affairs.
It said making such "false accusations against Iranian citizens" violated international law and the principle of good neighborliness.
Referring to the US-Israeli military attacks on Iran, the embassy said countries in the region were expected to "adopt responsible and wise policies" to prevent further escalation of tensions affecting the wider region.
Kuwait court sentences three to death
Kuwait's State Security Criminal Court sentenced the three men on Monday over charges including espionage, plotting attacks, membership in an outlawed organization and activities harmful to national interests, according to Kuwait Times.
Prosecutors accused some of the defendants of planning to use explosives to assassinate senior officials, while one was accused of attempting to smuggle explosives into Kuwait.
The court said the defendants sought to undermine national security, create instability and weaken public confidence in the authorities' ability to maintain order.
AFP, citing judicial sources, identified one of those sentenced to death as Hussein Abdallah al-Maatouq, a religious figure and secretary-general of the National Islamic Alliance.
The death sentences are not final and remain subject to review by Kuwait's Court of Appeals.
Tensions rise across Persian Gulf region
The diplomatic dispute comes amid heightened tensions between Iran and Persian Gulf countries during the ongoing US-Israeli war on Iran.
Kuwait has pursued other cases involving suspected cooperation with Iran and Hezbollah. In July, a Kuwaiti appeals court sentenced a citizen to life imprisonment after overturning an earlier 10-year prison term in a case involving alleged cooperation with Iran's Revolutionary Guards and Hezbollah.
Bahrain has also prosecuted people accused of working with Iran's Revolutionary Guards. In May, a Bahraini court sentenced nine defendants to life imprisonment and two others to three years over activities authorities linked to the Iranian force.
