Iran has stepped up its rhetoric on both military readiness and economic consequences as talks with the United States show little progress.
Officials have warned of possible conflict if diplomacy collapses, while also pointing to rising global financial and energy costs linked to ongoing tensions.
Iran’s Foreign Minister Abbas Araghchi has stated that the country remains prepared for direct military confrontation with the United States if negotiations do not lead to acceptable outcomes.
The remarks come amid intensified state messaging directed at both domestic and international audiences, reflecting growing pressure surrounding stalled diplomatic talks.
Araghchi also suggested that the broader regional fallout from the US-Israel conflict with Iran is having economic consequences beyond the Middle East.
According to Araghchi, the ongoing tensions are contributing to higher costs for American households, particularly through rising energy and inflation pressures.
He claimed that oil and gas disruptions following the conflict—along with reduced stability in global energy markets—have already impacted US inflation and borrowing conditions.
In a post on X, he argued that Americans are being forced to absorb the economic cost of what he described as a “war of choice,” warning that further pressure could affect debt, mortgage rates, and overall financial stability.
Strait of Hormuz at the center of tensions
A major flashpoint remains the Strait of Hormuz, through which roughly one-fifth of the world’s oil and gas supplies pass.
Iranian officials have indicated that the waterway’s status remains a key issue in negotiations with Washington, insisting that any agreement must recognize Iran’s position regarding control or influence over the route.
However, Gulf states and international stakeholders continue to emphasize its status as a critical global shipping corridor.
Mohammad Bagher Ghalibaf, Speaker of Iran’s Parliament, also commented on the situation, highlighting rising US debt levels and financial pressures.
He criticized recent US bond market activity and rising yields, suggesting that higher borrowing costs reflect deeper economic strain linked to geopolitical tensions.
His remarks followed a US Treasury auction and recent increases in long-term bond yields, which analysts have associated with inflation concerns and energy market uncertainty.
US financial markets and inflation concerns
Benchmark US Treasury yields recently reached their highest levels in about a year, with markets closely watching potential Federal Reserve responses.
Traders expect that ongoing global energy instability could contribute to inflationary pressure, potentially influencing interest rate decisions in the coming months.
While Iran highlights external economic effects, the country is also facing severe domestic inflation.
Official figures indicate food inflation reached around 115 percent in the first Persian calendar month ending in late April. Essential goods such as cooking oil, rice, and chicken have seen sharp price increases over the past year.
Prices for medicine, electronics, vehicles, and petrochemical products have also reportedly surged in recent weeks, adding pressure on Iranian households.
.jpg)
