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Israeli Prime Minister: Iran's Economy is in the Worst Condition

Jan 25, 2026 January 25, 2026 3 min read 📰 Radio Farda
📋 Key Takeaway

Israeli Prime Minister Benjamin Netanyahu claims that Iran's economy is in dire straits due to renewed U.S. sanctions, leading to widespread protests and unrest in Iran. He emphasizes that the Iranian regime is misusing funds for terrorism instead of addressing domestic issues, which has sparked public dissent. This situation is significant as it reflects the ongoing tensions between Iran and Israel amid a backdrop of international sanctions.

🔍 Quick Context Guide
💡 Bottom Line: The Iranian regime is facing significant internal pressure due to economic sanctions and public dissent.

👥 Key Players

Benjamin Netanyahu ACTOR
Israeli Prime Minister
""Our goal remains the same: first, to prevent Iran from acquiring nuclear weapons...""
Hassan Rouhani (حسن روحانی) QUOTED
President of Iran
""Rouhani... has also called for economic austerity and 'national consensus' to overcome the economic crisis...""
Ali Khamenei (علی خامنه‌ای) QUOTED
Supreme Leader of Iran
""Officials of the Islamic Republic, from the Supreme Leader... have called for action against the protesters.""
Iranian law enforcement forces ACTOR
Law enforcement
""...faced a harsh reaction from law enforcement forces.""
Islamic Republic regime (نظام جمهوری اسلامی) TARGET
Government of Iran
""The Tehran regime spends billions of dollars on terrorist activities... instead of investing in the Iranian people.""

⚡ Actions

Benjamin Netanyahu ANNOUNCE Iran
""Iran's economy is in its worst condition and that the Islamic Republic regime is acutely feeling the renewed economic sanctions against it.""
Confidence: 90%
Iranian law enforcement forces ARREST protesters
""At least 129 people were arrested in these gatherings, which he deemed 'illegal.'""
Confidence: 90%
Iranian people PROTEST Islamic Republic regime
""The Iranian people are protesting this, and they have the right to do so.""
Confidence: 90%

📰 What Happened

Netanyahu claims Iran's economy is failing due to sanctions and protests are escalating against the regime.

  • Benjamin Netanyahu announce Iran
  • Iranian law enforcement forces arrest protesters
  • Iranian people protest Islamic Republic regime

💡 Why It Matters

🇮🇷 For Iran: Because the economic crisis is leading to widespread protests and unrest against the regime.
🌍 Regional: Because Iran's instability could affect regional security and influence.
🌐 International: Because renewed sanctions and protests may alter international relations with Iran.

📚 Background

The Iranian regime is facing significant internal pressure due to economic sanctions and public dissent.

📝 Key Evidence

""The Tehran regime spends billions of dollars on terrorist activities in the region...""
→ This proves the regime's prioritization of military spending over domestic welfare.
📡 Source: STATE MEDIA
📊 Confidence: 80%
Radio Farda is known for its critical stance towards the Iranian government.

Israeli Prime Minister Benjamin Netanyahu stated that Iran's economy is in its worst condition and that the Islamic Republic regime is acutely feeling the renewed economic sanctions against it. On Sunday, July 1, at the beginning of the Israeli cabinet meeting, he referred to the economic situation and scattered unrest in Iran, saying, "The Tehran regime spends billions of dollars on terrorist activities in the region and the world instead of investing in the Iranian people." He added, "The Iranian people are protesting this, and they have the right to do so." Following the U.S. withdrawal from the nuclear agreement with Tehran and the re-imposition of sanctions, Iran's monetary and gold markets have been severely tumultuous, leading to rampant inflation. In response to the unclear economic situation and the deteriorating business environment, protests and strikes erupted in the Tehran market, which faced a harsh reaction from law enforcement forces. According to statistics announced by the head of the parliamentary commission on councils and internal affairs on Sunday, at least 129 people were arrested in these gatherings, which he deemed "illegal." Additionally, the problems of water scarcity that have intensified in Iran for months have led to widespread protests in Khorramshahr, which peaked on Saturday night and resulted in severe clashes between protesters and security forces. Officials of the Islamic Republic, from the Supreme Leader to the heads of the executive and judicial branches, have called for action against the protesters. Hassan Rouhani, the President of the Islamic Republic, has also called for economic austerity and "national consensus" to overcome the economic crisis in the country. On July 1, Netanyahu also referred to the economic crisis in Iran, attributing it to "international economic pressures on the Islamic Republic of Iran." He stated that the U.S. withdrawal from the JCPOA and the re-imposition of sanctions have caused an economic uprising and reduced support for the Iranian government, while also noting that contrary to some global analysts' views that sanctions would drive people back to the arms of the Iranian government, the opposite has occurred. The United States has stated that it will restore suspended sanctions against Iran as a result of the JCPOA in July and December, and has also asked countries buying Iranian oil to reduce their imports to zero. In his remarks on Sunday, Netanyahu mentioned that "the change in the U.S. position regarding Iran changed Israel's strategic situation," and outlined two objectives of his country in pressuring Iran. Netanyahu stated, "Our goal remains the same: first, to prevent Iran from acquiring nuclear weapons, and second, to break the financial machine that the JCPOA provided to the Iranian regime, which it used to fund its aggression in the region and Syria." He added, "Alongside the economic blows inflicted by the U.S. on the Iranian regime, we are taking and will take action to prevent the Iranian regime and its proxy forces from establishing a military presence in any part of Syrian territory." The Israeli Prime Minister emphasized that his country will "continue to defend" its borders in southern Syria and "will not allow infiltration into its territory." In recent months, Israel has repeatedly conducted missile and airstrikes in Syrian territory, aimed at "preventing the establishment of Iranian military bases in Syria" and also preventing the movements of forces affiliated with the Islamic Republic from acting against Israel.

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Translated from the original and edited for English readers. View original source →

Translation confidence: 85%

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