Iran marks 100 days of conflict with US and Israel as economic crisis deepens

Iran has reached the 100-day milestone of the war initiated by the United States and Israel, with Iranian authorities maintaining a stance of defiance despite extensive damage to infrastructure and a severe economic downturn. The conflict has resulted in the assassination of former Supreme Leader Ayatollah Ali Khamenei on the first day of hostilities, leading to the succession of his son, Mojtaba Khamenei, who has remained largely out of public view since taking office. While diplomatic talks mediated by Pakistan are ongoing, no lasting peace deal has emerged, and Iran continues to disrupt energy flows through the Strait of Hormuz while facing a US blockade of its ports.

The domestic situation in Tehran reflects a society under siege, with armoured vehicles and security forces visible at all hours. Traffic has been only partially restored, and millions of jobs have been suspended or eliminated following nationwide protests and aerial bombardment. Universities and schools remain shut, with deferred exams expected to be conducted online. The parliament is largely closed due to concerns about assassination and intelligence leaks, operating only through limited or online sessions. Despite the destruction of many police stations, forces are operating from street-side desks, and the institutions of the Islamic Republic, including the Islamic Revolutionary Guard Corps (IRGC), remain in power.

Mojtaba Khamenei, who was reportedly wounded in the same strikes that killed his father and other family members, has not been seen or heard from publicly since assuming the role, except for written messages attributed to him. The authorities have yet to hold funeral processions for Ali Khamenei, who ruled for nearly 37 years. His family members were buried a week ago, along with other top commanders and officials killed on February 28. Pro-government messaging and flags of Hezbollah and other members of the Tehran-backed axis of resistance are widely featured across the city, with main squares often closed for gatherings chanting slogans against the US and Israel.

Diplomatic efforts mediated by Pakistan continue without a breakthrough. On Sunday, Iran’s Ministry of Foreign Affairs hosted Pakistan’s interior minister, who was also hosting an envoy from Lebanon, in an attempt to bridge gaps over Hezbollah and other issues with the US. The hardline Keyhan newspaper argued in an editorial that negotiations are a tactic to keep global oil prices under control, urging the disruption of Trump’s game by closing the Bab al-Mandeb Strait. Despite an interim deal to reopen the strategic waterway not materialising, the IRGC continues to deploy fast boats and small vessels to advance objectives in the strait, aiming to monetise passage and entrench control.

The economic impact has been devastating, with inflation reaching nearly 84 per cent year-on-year during the second month of the Persian calendar year, which ended on May 21. Food inflation stood at 130 per cent, with prices for solid vegetable oil up 431 per cent, eggs 342 per cent, chicken 287 per cent, and imported rice 222 per cent. The Iranian rial traded at about 1.77 million per US dollar in Tehran’s open market, near an all-time low. The stock market has risen following a controlled reopening, though experts attribute this to inflation rather than genuine growth. Meanwhile, the judiciary continues to carry out frequent executions of dissidents, and tens of thousands have been arrested under laws approved after last year’s conflict.