Iran Stance on Conflict With U.S. Tightens as Currency Crashes and Talks Stall

Tehran has declared it is prepared for either renewed diplomatic engagement or an immediate return to combat as the conflict with the United States enters its seventh month. Iranian Foreign Minister Abbas Araghchi stated Sunday that the decision now rests with President Donald Trump, asserting that Iran will firmly oppose any new aggression, even in a scenario described as a “doomsday war.”

The comment came as Trump, speaking to Axios, expressed confidence that negotiations would resume later this week despite his recent dismissal of a Tehran-backed ceasefire proposal. Trump insisted that Iranian leaders are eager to strike a peace deal because they are “losing badly,” though he acknowledged the current terms were not what he sought.

Compounding the geopolitical tension, Iran’s economy faces severe strain as the rial plummeted to an unprecedented low against the US dollar. On Monday, the free-market exchange rate exceeded 2.4 million rials per dollar. According to data from Pashizi, a local tracker, the collapse is driven by rampant inflation, which hit 61.4% annually in August, and food prices that have surged by 128% over the past year.

Meanwhile, diplomatic channels remain strained. Iranian state media reported Monday that the country’s delegation at the UN General Assembly in New York has no plans for direct negotiations with the US. Instead, Tehran intends to continue relaying its positions through Qatari mediators, with the delegation scheduled to return to Tehran on Tuesday.

In a separate development with international implications, British authorities arrested five men near RAF Fairford, a Royal Air Force base approximately 85 miles west of London that has been utilized by American bombers for strikes against Iranian missile sites. Police are investigating potential links between the suspects and Iran, alleging a plot involving three trucks to commit terrorist acts. President Trump praised the joint operation, stating that the individuals had been under surveillance for some time.

Republican Senator John Kennedy of Louisiana criticized Iran’s recent proposal to reopen the Strait of Hormuz over seven days, calling it “not a serious offer.” He warned of the economic pain caused by the partial closure of the vital shipping lane but stopped short of supporting the deployment of US ground troops into Iran.