Iran’s supreme leader admits economic hardships as US sanctions campaign takes toll

Greece is set to sign a $3.6 billion agreement with Israel for a multilayered air defense network designed to counter potential threats from Iran and Turkey, according to The Jerusalem Post.

The deal, expected to be signed Monday in Tel Aviv after three years of negotiations, would become the largest defense export agreement in Israel’s history, the outlet reported.

Dubbed “Achilles Shield” in Greece, the network is expected to include Israel’s David’s Sling system for intercepting heavy rockets and ballistic missiles, mobile SPYDER systems aimed at drones and other aerial threats and the Barak MX system for defending against aircraft and missiles.

The agreement also reportedly calls for a national command-and-control center modeled after Israel’s system and incorporating artificial intelligence capabilities.

Iranian security forces killed at least 15 teachers and arrested 78 others during a sweeping crackdown over the past school year, while one educator is facing two death sentences, according to a Persian-language report reviewed in translation by Fox News Digital.

The report, issued by the research unit of Iran’s Teachers’ Movement Research Institute, documents alleged rights violations between Sept. 23, 2025, and Aug. 16, 2026. Its claims could not be independently verified by Fox News Digital.

Researchers said the 15 teachers, including three women, were killed by security forces during protests in January. The report also documented 46 summonses and judicial rulings against 30 teachers and union activists.

Those sentences totaled 40 years, one month and 16 days in prison, according to the report. It also said a Revolutionary Court upheld two death sentences against Iranian teacher Alireza Mirdasi, leaving him at risk of execution.

The authors warned their figures likely represent only the minimum number of documentable cases, citing fear of security, judicial and employment retaliation that can keep victims and families from publicizing alleged abuses.

U.S. sanctions and the blockade are increasingly squeezing Iran’s access to hard currency, but economic pain alone may not be enough to topple the Islamic Republic, a prominent Israeli Iran expert said.

“There is one thing that is undisputed. Iran has been forced in recent weeks to manage with fewer and fewer dollars,” Tel Aviv University professor Uzi Rabi told Israel’s 103FM radio, according to The Jerusalem Post.

“When it lacks hard currency, it cannot even operate its agriculture and industry,” said Rabi, who heads the university’s Moshe Dayan Center for Middle Eastern and African Studies.

Rabi called the U.S. blockade “theoretically the best thing to do” if Washington remains consistent, but cautioned against assuming severe economic distress will automatically bring down Tehran.

“Iran is a battered country,” he said, while noting the regime still has alternative channels including smuggling and cryptocurrency.

“The economic path also does not provide a 100% guarantee,” Rabi said, but argued sustained pressure could drain the regime’s “vitality and power” and create conditions that contribute to its eventual downfall.

Iranian opposition figure Reza Pahlavi on Saturday thanked 160 political prisoners and families seeking justice inside Iran after his communications team said they had backed him as a unifying figure in the effort to end the Islamic Republic.

“I am profoundly grateful from the bottom of my heart to the 160 political prisoners and the families seeking justice inside Iran who, despite the heavy costs and risks they have endured, have so courageously raised their voices,” Pahlavi wrote on X in a translated statement.

Pahlavi Communications said the signatories expressed support for Pahlavi as the “axis of solidarity and leadership for the national uprising,” while urging opposition forces to put aside internal disputes.

The group said the names of 160 signatories were withheld for security reasons and that the statement called for a “free, prosperous, secular, and democratic Iran.”

“Today more than ever we need unity within the framework of our shared principles, discipline, accountability, and focus on saving Iran,” Pahlavi said.

“This national solidarity is the powerful force that will ultimately make us victorious and free our beloved Iran.”

Iran and Oman have reached an understanding over the Strait of Hormuz, but Tehran says it will not be implemented until the U.S. fulfills commitments under the Islamabad memorandum of understanding, according to Iran International English, citing Iranian media.

“The Strait of Hormuz remains closed, and any vessel passing through the strait does so in coordination with Iran,” Iranian Deputy Foreign Minister Kazem Gharibabadi said Saturday, according to the outlet.

Gharibabadi said Tehran would continue what he called its “defensive measures” and is “prepared for any scenario.”

The Iranian official also addressed recent visits by Qatari and Pakistani officials, saying their diplomatic efforts were aimed at determining whether the parties could return to implementing commitments made under the Islamabad MoU.

The claims come as Washington and Tehran remain at odds over control of the strategic waterway, with U.S. Central Command maintaining that Iran does not control the Strait of Hormuz.

Israeli Prime Minister Benjamin Netanyahu’s office vowed Saturday to prosecute those behind violence in the West Bank villages of Qusra and Jalud, while drawing a sharp contrast with the Palestinian Authority’s response to attacks on Jews.

“Israel’s position is clear: No vigilantism. Those responsible will be apprehended and brought to justice,” the prime minister’s office wrote on X alongside a video statement.

PMO international spokesman Doron Spielman said the violence was carried out by a “small group of rioters” who do not represent the law-abiding Jewish community in Judea and Samaria.

“Their actions violate the law, they endanger both Jews and Arabs, and they interfere with the Israel Defense Forces as they carry out vital security missions,” Spielman said.

He said Israeli forces swiftly restored order, confiscated three vehicles and were directed to apprehend those responsible.

“Israel is a nation of laws. And we will not tolerate vigilantism of any kind by anyone,” Spielman said.

He then accused the Palestinian Authority of failing to condemn “thousands of murderous acts against Jews in Judea and Samaria,” adding: “That is the difference.”

The White House responded Saturday to reports that President Donald Trump will meet with U.S. oil refiners and fuel retailers next week as the administration faces pressure to bring down gasoline prices during the war with Iran.

Reuters reported Thursday, citing people familiar with the matter, that Trump is expected to convene refiners and fuel retailers next week to discuss efforts to lower prices for consumers.

Bloomberg separately reported that the meeting is planned for the afternoon of Tuesday, Sept. 1, with representatives from at least 10 fuel makers and distributors, citing people familiar with the private plans.

Asked by Fox News about the reported meeting, a White House official did not confirm the gathering.

“The Trump Administration will make a decision that is best for consumers, farmers, and energy supply chains,” the official told Fox News. “Any announcement will be made directly by the Administration at the appropriate time.”

Fox News' Sarah Tobianski contributed to this reporting.

U.S. Ambassador to Israel Mike Huckabee praised Israeli leaders Saturday for pairing condemnations of violence in the West Bank with “strong action,” while calling on Palestinian Authority officials to similarly condemn attacks against Israelis.

“Strong statements” came from Prime Minister Benjamin Netanyahu, Foreign Minister Gideon Sa’ar, the IDF and other Israeli officials, Huckabee wrote on X. “But strong action backed up their statements.”

Netanyahu earlier condemned what he called “criminal acts of violence” by a “handful of rioters” in the villages of Qusra and Jalud, saying the violence harmed law-abiding Jewish communities, interfered with IDF operations and simultaneously damaged Israel’s international standing.

The prime minister said security forces quickly intervened, confiscated three vehicles and opened an investigation, adding that he expects those responsible to be arrested and prosecuted.

“Let’s hope PA officials will join in condemning violence against Israel by Palestinians,” Huckabee wrote. “It’s wrong whoever does it!”

The State Department said Saturday that Hezbollah is “simply taking orders from Iran” and called on the terrorist group to disarm as Washington pushes for a sovereign Lebanese government free from Tehran’s influence.

“The United States stands with the Lebanese people and wants Lebanon to be a safe and sovereign country. For that to happen, Hizballah must disarm,” a State Department spokesperson said in a statement shared by the U.S. Embassy in Beirut.

The spokesperson said the Lebanese government is the “sole legitimate interlocutor” for discussions about the country’s future and urged Hezbollah to turn over its weapons to the state.

“When Hizballah decides it is ready to do so, it can talk with the Lebanese state,” the spokesperson said. “But as it stands, Hizballah so far does not want to talk to the Lebanese state, nor talk to us, nor talk to Israel, because it is simply taking orders from Iran.”

“It’s time for Hizballah to do what’s best for Lebanon and the Lebanese people,” the statement concluded.

Four young men pleaded guilty Friday to destroying four ambulances belonging to a Jewish charity in a targeted arson attack in London during the early weeks of the Iran war, according to The Times of Israel.

British nationals Hamza Iqbal, 20, Rehan Khan, 19, Judex Atshatshi, 18, and British-Pakistani Saif Ali, 18, admitted to criminal damage over the March 23 attack in Golders Green, a neighborhood with a large Jewish population.

Three of the men set fire to the Hatzola ambulances while a fourth waited in a getaway car, causing an estimated £1 million, or roughly $1.4 million, in damage, the outlet reported.

Prosecutors previously described the incident as “a premeditated and targeted attack against the Jewish community.”

An Iran-linked group known as Harakat Ashab al-Yamin al-Islamiyah, or HAYI, previously claimed responsibility for the ambulance attack, according to the report.

Defense attorneys have denied that the four defendants had terrorism connections to any group banned in the U.K.The men are expected to be sentenced in spring 2027.

The Trump administration’s expanding economic campaign against Iran is increasingly targeting financial and trade channels through Dubai, Istanbul and Baghdad rather than focusing first on Beijing, according to an analysis by Iran International English.

The outlet reported that Tehran needs hard currency it can readily spend to defend the rial, pay military and security forces and keep salaries and subsidies flowing, while much of the money Iran earns selling oil to China remains held in yuan.

That makes regional financial hubs particularly important to the regime, the report argued.

Treasury on Friday proposed cutting Banque Misr’s UAE branches off from U.S. correspondent banking, saying they processed roughly $1.8 billion for 103 companies potentially tied to Iranian shadow banking networks.

Iran International described Dubai as a crucial channel through which front companies, brokers and exchange houses help convert Iranian proceeds into usable currency and obtain imports Tehran cannot directly purchase.

The report also pointed to Turkey and Iraq as remaining pressure points for Iranian trade and access to dollars as Operation Economic Outcast intensifies.

Israel’s Shin Bet security agency confirmed Saturday that it urgently brought Prime Minister Benjamin Netanyahu’s son Yair back to Israel from Miami after determining there was a “significant threat” against him, according to The Times of Israel.

“There was a significant threat to harm Yair Netanyahu, and in light of this and after an assessment, a decision was made together with the security team to urgently rescue him and return him to Israel,” the Shin Bet told Israel’s Channel 12.

The agency did not publicly identify the source of the threat. The confirmation comes after a report earlier this week said Yair Netanyahu was targeted in an alleged Iranian assassination plot while living in Florida in December 2025.

Prime Minister Netanyahu separately told Israel’s Channel 14 that “Iran targeted one of my sons” and “tried to kill, to murder” him.

Channel 12 reported that Shin Bet agents protecting Israeli President Isaac Herzog in New York were diverted to Miami to help carry out the operation.

Former U.S. ambassador to the European Union Gordon Sondland told Fox News' "Saturday in America" that it's time for Europe "to be counted one way or the other” when it comes to whether they are on America’s side or Iran’s. 

"For years, they've been doing contortions in trying to appease us and continue to do business with Iran,” he said. “It's really despicable when you think about it.” 

“When I was ambassador between 18 and 20, and President Trump was trying to withdraw from the JCPOA, which he ultimately did, we gave the Europeans all kinds of intel and information about what the Iranians were doing on their own soil,” Sondland continued. “And then when we asked them to stop doing business with Iran -- we know, you know, a deal is a deal -- but at the end of the day, it takes money to create mischief.” 

“And the Europeans were providing that money to the Iranian regime. And they still will not break ties,” Sondland said. “So now we have the situation we're in, and I think it's time for the Europeans to be counted one way or the other. Are you part of the coalition or are you not? And if you're not part of the coalition, what you're doing indirectly is you're fighting the United States.” 

The risk of danger that ships face while transiting the Strait of Hormuz remains heightened Saturday as vessel traffic has been “significantly reduced” during the U.S.-Iran war, according to the United Kingdom Maritime Trade Organization (UKMTO). 

The U.K. agency said this week that the “threat assessment remains elevated, with SEVERE risk assessed for the Strait of Hormuz and SUBSTANTIAL across the Gulf of Oman, Gulf of Aden, and Bab el Mandeb.” 

“Despite a brief recovery in late June, vessel traffic through the Strait of Hormuz remains significantly reduced, AIS transit information suggests operators increasingly favouring the Northern route following projectile attacks, ongoing security concerns, and heightened enforcement activity,” read a report released by the UKMTO. 

Iran’s acting defense minister Brig. Gen. Majid Ebn al-Reza suggested that Iran’s military has “surprises” in store for its adversaries, a report said. 

“Everyone, and especially the enemies, should know that they will become aware of Iran’s surprises in due time,” he was quoted as saying by Iran’s Tasnim News Agency. 

“We should not talk about the surprises now, but Iranian knowledge, the Iranian youth, and the things being carried out in the defense industries will, God willing, bring good surprises,” he reportedly added. 

The claims come after President Donald Trump said earlier this week that the Iranian regime is "not paying their troops" and is "in deep trouble" following the launch of the U.S. Treasury Department's Operation Economic Outcast against Tehran.

U.S. Central Command released images Saturday showing U.S. Marines refueling an MV-22 Osprey during a stop in the Middle East.

American forces have maintained a heightened presence in the region since Operation Epic Fury was launched six months ago.

As part of the broader U.S. pressure campaign against Tehran, CENTCOM has been enforcing a blockade on vessels entering and leaving Iranian ports.

That blockade has resulted in 82 ships being redirected to ensure compliance, according to CENTCOM.

The Israel Defense Forces said Saturday that it struck a Hamas commander in Gaza who “posed an immediate threat and planned to execute terror attacks against Israeli civilians and IDF troops.” 

The strike against the Iran-backed terrorist group in Gaza comes as Israel is also defending itself from threats emanating from the Iran-backed Hezbollah terrorist group in Lebanon. 

“The terrorist who was struck was hiding within the compound of the Shuhada Al-Aqsa Hospital. This is another example of Hamas’ cynical use of humanitarian infrastructure,” the IDF said. 

“Lately, the terrorist has promoted terror plots against IDF forces and the citizens of the State of Israel and has acted to restore the organization's capabilities, while systematically violating the ceasefire. The strike was carried out with the aim of removing the threat,” it also said. 

Iranian ambassador to Germany Majid Nili said Tehran is ready to prepared in dialogue again with the U.S., a report said. 

"Despite the existing political atmosphere and pressures, the path of dialogue and engagement based on mutual respect is still being pursued," Nili told Iran’s IRNA News Agency, according to the Middle East Eye. 

The comment comes after Iranian Foreign Minister Seyed Abbas Araghchi said Friday that “putting diplomacy back on track isn't impossible” between the U.S. and Iran. 

“It hinges on U.S. understanding of one simple fact: pressure doesn't work,” Araghchi wrote on X. “The U.S. should build trust, speak respectfully, acknowledge our rights, and uphold commitments.” 

A United Arab Emirates branch of an Egyptian bank that the Treasury Department says is linked to the Iranian regime said Saturday it is reviewing the accusations with “utmost seriousness and attention.” 

The Treasury Department said Friday that “under Operation Economic Outcast, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed a rule that would revoke Banque Misr UAE’s correspondent banking access to U.S. financial institutions.”   

The Treasury described the bank as a “critical node” for Tehran’s access to American dollars.  

“Treasury estimates that between January 2024 and June 2026, Banque Misr UAE processed approximately $1.8 billion for 103 companies that are potentially part of Iranian shadow banking networks,” it said. “Because Iran is already subject to comprehensive U.S. sanctions, in order to generate revenue abroad, it relies on multi-jurisdictional shadow banking networks that provide key access to U.S. dollar correspondent banking relationships. Iran uses these shadow banking networks to launder funds, procure weapons, and bankroll its regional terrorist proxy groups.” 

Banque Misr said in a statement Saturday that it “affirms its full respect for the relevant regulatory and legal frameworks, its adherence to all applicable laws, regulations, instructions and supervisory controls, and its full and constructive cooperation with the relevant authorities.” 

“Within the framework of Banque Misr’s full respect for the applicable regulatory process, the Bank clarifies that what has been announced constitutes a Notice of Proposed Rulemaking (NPRM), which is subject to a formal period for receiving and reviewing comments before any final rule is issued,” it added. 

“The Bank is treating the NPRM and the information and assessments contained therein with the utmost seriousness and attention and is reviewing it thoroughly. The Bank will communicate with the U.S. Department of the Treasury to obtain further information and maintain ongoing cooperation, in preparation for taking the necessary legal and regulatory actions and submitting its response to the relevant authorities within the specified period,” it also said. 

The Navy of the Islamic Revolution Guards Corps (IRGC) argued Saturday that it has full control over the Strait of Hormuz, according to a report. 

“The statements by U.S. officials regarding the Strait of Hormuz being open are an obvious lie and are solely intended to control the price of oil and cover up their failures,” the IRGC Navy was quoted as saying by Iran’s Tasnim News Agency. 

“The control of the warriors of Islam over this strategic waterway is completely decisive,” the IRGC Navy reportedly added. 

U.S. Central Command, which has been enforcing a blockade of Iranian ports, told Fox News Digital earlier this week that “Iran does not control the Strait of Hormuz." 

"The strait is an international waterway that commercial vessels continue to transit with U.S. military assistance,” CENTCOM spokesperson Capt. Tim Hawkins said. 

Fox News Digital’s Morgan Phillips contributed to this post. 

Iranian President Masoud Pezeshkian said Saturday that his country does not welcome war, “but we will stand strong against any aggressor, and no power can force a nation that stands with all its might and will to surrender,” a report said. 

Pezeshkian spoke as the U.S.-Iran war passed the 6-month mark this week. 

"Despite the measures taken in the field of diplomacy and with the support of the people, the efforts of managers and statesmen, and the efforts of the commanders of the armed forces, we will not bow to any threat, as we have shown many times before,” Pezeshkian added, according to the state-run IRIB News Agency. 

Iran’s Supreme Leader Mojtaba Khamenei revealed that the country is dealing with economic problems as the U.S. Treasury Department's Operation Economic Outcast is widening, Reuters reported. The Trump administration launched its military campaign, Operation Epic Fury, against Iran on Feb. 28.

Iran’s Supreme Leader Mojtaba Khamenei said "there is the need to seriously address the chain of economic and livelihood ‌challenges, such ⁠as inflation, unemployment, management of prices and the market for goods and services," according to Reuters, as the U.S. economic campaign against Tehran is mounting. 

The Treasury Department launched Operation Economic Outcast against Iran on Monday, and on Friday, revealed it is taking action against a United Arab Emirates bank in a bid to “cut off a key financial lifeline and sanctions evasion vehicle for the Iranian regime.” 

Iranian President Masoud Pezeshkian said to state media that Iranian exports have dropped nearly 35% due to ongoing sanctions against Iran and a U.S. military blockade of Iranian ports, Reuters added. 

At least 6,000 sailors remain stranded aboard hundreds of ships in the Persian Gulf six months into the war with Iran, according to the United Nations' maritime agency.

The International Maritime Organization said Friday that 19 seafarers have been killed since the conflict began Feb. 28.

At least 70 attacks on international shipping have also been recorded in the Persian Gulf during the war, according to the agency.

The disruption comes as shipping through the Strait of Hormuz remains well below normal levels despite U.S. efforts to secure the critical waterway.

Before the war, roughly 20% of the world's traded oil and natural gas passed through the Strait of Hormuz.

Yesterday's Fox News Digital live blog offers additional coverage of the conflict with Iran.

The Associated Press contributed to this report.