Iran Shifts Focus from Lebanon War to Economic, Oil Challenges

A handout picture provided by the office of Iran's Supreme Leader Ali Khamenei shows him addressing members of the army's navy during an official gathering in Tehran on November 27, 2024. (Photo by KHAMENEI.IR / AFP)
A handout picture provided by the office of Iran's Supreme Leader Ali Khamenei shows him addressing members of the army's navy during an official gathering in Tehran on November 27, 2024. (Photo by KHAMENEI.IR / AFP)
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Iran Shifts Focus from Lebanon War to Economic, Oil Challenges

A handout picture provided by the office of Iran's Supreme Leader Ali Khamenei shows him addressing members of the army's navy during an official gathering in Tehran on November 27, 2024. (Photo by KHAMENEI.IR / AFP)
A handout picture provided by the office of Iran's Supreme Leader Ali Khamenei shows him addressing members of the army's navy during an official gathering in Tehran on November 27, 2024. (Photo by KHAMENEI.IR / AFP)

While officially welcoming the ceasefire in Lebanon, Tehran has expressed cautious and reserved positions on the recent developments. Even as it reiterates its intention to respond to Israeli actions, Iran has stated it will take “regional developments” into account before deciding its next steps.

Meanwhile, domestic debates about Iran’s economic challenges are intensifying. Parliament Speaker Mohammad Bagher Ghalibaf acknowledged the country’s struggles with oil production and transportation to global markets, while Ali Larijani, a senior advisor to Supreme Leader Ali Khamenei, described Iran’s economic problems as “chronic” and unlikely to be resolved easily.

Iranian Foreign Minister Abbas Araghchi stated on Wednesday that Iran reserves the right to respond to Israeli airstrikes conducted last month. However, he noted that Tehran is also closely monitoring other regional developments, including the ceasefire in Lebanon. Speaking to reporters in Lisbon, Araghchi welcomed the truce between Israel and Lebanon, expressing hope it would lead to a lasting peace. The Israeli strikes on Iran on October 26 came in response to a missile attack launched by Tehran on Israel earlier that month.

In a separate address to Iranian naval commanders, Khamenei called for enhancing the combat capabilities of Iran’s armed forces to deter potential aggressors. While Khamenei did not specifically mention the Lebanon ceasefire, he emphasized that military readiness must serve as a clear warning to adversaries that any confrontation will come at a high cost.

During a parliamentary session, Ghalibaf discussed Iran’s diminishing leverage in global oil markets. According to ISNA news agency, Ghalibaf remarked: “Oil was once our tool to threaten enemies, but that time is gone. What oil can we cut off? What market do we control?”

He further noted that Iran is currently incapable of achieving the 8% economic growth rate needed, citing the high costs of extracting natural gas as a significant hurdle.

“Even if Iran could produce oil,” he added, “it faces difficulties in transporting it.” Ghalibaf emphasized that Iran’s economic challenges extend far beyond issues such as the use of fuel oil in power plants.

The parliamentary speaker urged both reformist and conservative lawmakers to support the proposed Seventh Development Plan. He also criticized legislative delays in implementing development goals, highlighting the need for reforms in income tax policies and budget allocations for media, as reported by the IRGC-affiliated Tasnim news agency.

Larijani acknowledged in a recorded 100-minute interview with Tasnim that Iran’s economy suffers from chronic issues, adding that Western sanctions alone are not to blame. Larijani briefly touched on the situation in Lebanon and Palestine but avoided addressing the fate of the “resistance” or the “unity of fronts.”



US Designated South Korea a 'Sensitive' Country amid Nuclear Concerns

A supporter of impeached South Korean President Yoon Suk Yeol holds photos during a rally to oppose his impeachment in Seoul, South Korea, Saturday, March 15, 2025. The letters read "Dismiss impeachment." (AP Photo/Ahn Young-joon)
A supporter of impeached South Korean President Yoon Suk Yeol holds photos during a rally to oppose his impeachment in Seoul, South Korea, Saturday, March 15, 2025. The letters read "Dismiss impeachment." (AP Photo/Ahn Young-joon)
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US Designated South Korea a 'Sensitive' Country amid Nuclear Concerns

A supporter of impeached South Korean President Yoon Suk Yeol holds photos during a rally to oppose his impeachment in Seoul, South Korea, Saturday, March 15, 2025. The letters read "Dismiss impeachment." (AP Photo/Ahn Young-joon)
A supporter of impeached South Korean President Yoon Suk Yeol holds photos during a rally to oppose his impeachment in Seoul, South Korea, Saturday, March 15, 2025. The letters read "Dismiss impeachment." (AP Photo/Ahn Young-joon)

The US Department of Energy has designated ally South Korea a "sensitive" country, a spokesperson said on Friday, after the South Korean president briefly imposed martial law and amid talk of Seoul potentially developing nuclear weapons.
The administration of then-President Joe Biden put South Korea on the lowest tier of the Sensitive and Other Designated Countries List in January shortly before Biden left office, the DOE said in a written response to Reuters queries.
The department did not explain why the Asian nation was added to the list and did not indicate that President Donald Trump was inclined to reverse the measure. The spokesperson said Seoul faces no new restrictions on bilateral cooperation in science and technology.
The designation will go into effect on April 15, media reports said, according to Reuters.
South Korea's foreign ministry said the government was taking the matter seriously and in close communication with Washington.
"We will actively negotiate to ensure that there is no negative impact on energy, science and technology cooperation between South Korea and the United States," the ministry said in a statement.
The DOE list of sensitive countries includes China, Taiwan, Israel, Russia, Iran and North Korea, with Tehran and Pyongyang designated as "terrorist", according to a 2017 document posted on the department's website.
President Yoon Suk Yeol and then-Defense Minister Kim Yong-hyun are among officials who raised the prospect that Seoul would be forced to pursue nuclear weapons amid fears over Pyongyang's weapons program and concerns about the US alliance.
Yoon and Kim have been indicted on charges of insurrection over Yoon's six-hour declaration of martial law in December. Yoon was impeached and his presidential powers suspended while a court decides whether to remove him from office.
Yoon backed off rhetoric about a nuclear weapons program after negotiating with Biden a 2023 agreement under which Washington is to give Seoul more insight into US planning to deter and respond to a nuclear incident in the region. In return, Seoul renewed a pledge not to pursue a nuclear bomb of its own and said it would abide by the Nuclear Non-proliferation Treaty, which it has signed.
That, however, has not been enough to ease doubts over US defense commitments that have fueled calls for a South Korean nuclear arsenal.
Foreign Minister Cho Tae-yul said last month that nuclear weapons were not "off the table", though it was premature to talk about such a plan.
"Given that international situations are developing in unpredictable directions, this is a principled response that we must prepare for all possible scenarios," Cho told a parliamentary hearing.
Daryl Kimball, executive director of the nonprofit Arms Control Association, said that in light of such "provocative" statements, South Korea is a proliferation risk and the DOE was prudent to put the country on its list.
"Listing the ROK as a proliferation-sensitive country should rule out any chance of a South Korean request for US approval to enrich uranium and reprocessing spent fuel... to produce nuclear weapons," Kimball said, citing the country's formal name, the Republic of Korea.
The handling of the designation raised concerns in Seoul. Cho told parliament on Tuesday that his ministry had had no formal communication from the Biden administration and only heard about the possible designation from an informal tip-off.
Countries may appear on the Energy Department's list for reasons of national security, nuclear nonproliferation or support for terrorism, though inclusion does not necessarily indicate an adversarial relationship with the United States.
"Currently there are no new restrictions on bilateral science and technology cooperation with the ROK," the DOE said. "The Energy Department looks forward to collaborating with the ROK to advance our mutual interests."
Though the designation does not prohibit scientific or technical cooperation, visits to the listed countries and cooperation undergo an internal review beforehand, the department said.