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As Iran’s economy plummets, its leader says Israel’s doomed

As it grapples with geopolitical losses, the Islamic Republic faces protests over religion and rallies decrying an acute financial crisis.

Iran's Supreme leader Ali Khamenei (center) is seen alongside President Masoud Pezeshkian (left), Parliament Speaker Mohammad Bagher Ghalibaf (second left), Judiciary Chief Mohsen Ejeie (second right) and Hezbollah representative in Iran Abdallah Safieddine reading the Koran during Friday prayers in Tehran, Oct. 4, 2024. Credit: Iranian Leader's Press Office—Handout.
Iran's Supreme leader Ali Khamenei (center) is seen alongside President Masoud Pezeshkian (left), Parliament Speaker Mohammad Bagher Ghalibaf (second left), Judiciary Chief Mohsen Ejeie (second right) and Hezbollah representative in Iran Abdallah Safieddine reading the Koran during Friday prayers in Tehran, Oct. 4, 2024. Credit: Iranian Leader's Press Office—Handout.

Iranian Supreme Leader Ali Khamenei on Tuesday reiterated his predictions of Israel’s demise and the triumph of its enemies.

“[The] Zionist regime imagines it’s preparing itself by way of Syria to be able to surround Hezbollah forces. However, the one that will be uprooted is Israel,” read the English-language tweet. “God willing the Palestinian and Hezbollah fighters will see the day when the malevolent Zionist enemy is trampled under their feet.”

The statement follows major geopolitical losses for the regional axis led by Iran, and coincides with internal tensions in the country as well as an economic crisis in which a 35% inflation rate has plunged the currency to historical lows against the dollar.

Last month, Khamenei called on the International Criminal Court, which issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former defense minister Yoav Gallant, to sentence the Israeli premier to death.

The rhetoric came as the Iranian regime braced for internal backlash over proposed legislation designed to deter women from defying the Islamic dress code imposed on them by the theocratic regime.

The bill, which has prompted a slew of condemnations of Iran in Western societies, prescribes fines, dismissals, lashings and imprisonment for defiant women and their supporters, and mandates the death penalty for certain modesty-related offenses.

Khamenei’s X account appeared to address this criticism on Tuesday, after the posts about Israel.

“The world’s capitalists, who started colonialism in the world, interfere on the issue of women. Their goal isn’t to promote a theoretical or philosophical view, a sense of humanitarianism, or to fulfill a civic duty. Their goal is to interfere & expand their sphere of influence,” the text read.

The proposed legislation comes in response to waves of protests in Iran that resumed in 2022 following the death in custody of Mahsa Amini after she was detained for allegedly violating the Islamic dress code.

The regime of Bashar Assad, a key Iranian ally, fell in Syria this month. Hezbollah, severely weakened by Israel, last month agreed to a ceasefire whose terms force it to leave southern Lebanon. Hamas has lost its offensive capabilities in Gaza and Iran itself lost crucial air defense capabilities in an Israel retaliatory strike on Oct. 26.

The election of Doland Trump, who is scheduled to take office on Jan. 20, is likely to exacerbate Iran’s international standing. Trump’s campaign suggested earlier this year that Iran was involved in attempts on his life.

The Iranian regime, whose currency last week hit an all-time low of 756,000 rials to the U.S. dollar, is also facing protests on economic issues. Protests by nurses, emergency personnel, retirees and public transportation drivers occurred across the Islamic Republic last month.

The protests “reflect a broader crisis as citizens face increasing economic pressures amidst rising inflation, wage stagnation, and government inaction,” according to an analysis published last month on the website of Iran International, which is critical of the regime.

Iran is grappling with a significant infrastructure deficit of $500 billion, according to the publication. Its social security fund is “on the brink of bankruptcy,” Hoshang Amiri, an analyst, recently wrote in Iran Focus, another independent news site.

Due to Iran’s inflation rate of about 35%, the rial has plunged from 690,000 rials against the dollar in early November to its current exchange rate of 756,000 for one dollar on Monday, Reuters reported.

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