On the ground in Tehran, the economic impact of the conflict is felt widely. “Everything in the country is up in the air right now. I have not worked for a long time,” said small business owner Farshad. Photographer Shervin added, “It is the first time that I have reached a point where I was late on my rent. I still don’t have any projects.”
Iran has blocked Hormuz, while the US has imposed a blockade of Iranian ports. Rubio rejected Iran’s proposed transit fees, telling Fox News, “They cannot normalise — nor can we tolerate them trying to normalise — a system in which the Iranians decide who gets to use an international waterway, and how much you have to pay them to use it.”
Meanwhile, violence continues in Lebanon despite a ceasefire between Israel and Hezbollah. Israeli strikes followed rocket attacks by the Iran-backed group. “Qassem is playing with fire,” Israeli Defense Minister Israel Katz warned.
Lebanese President Joseph Aoun said his “goal is to reach an end to the state of war with Israel,” while Israeli army chief Eyal Zamir cautioned that 2026 “was likely to be another year of fighting” on all fronts.