Iran is demanding compensation for the damage caused by the attacks by the United States and Israel, estimating total direct and indirect losses at around $270 billion, while diplomatic efforts by regional countries to bring a permanent end to the conflict continue.
Tehran has signaled that it does not intend to back down in negotiations with Washington, despite the extensive financial and logistical blow it has taken from US and Israeli military operations since February 28. Iran’s ambassador to the United Nations said Tuesday that five regional countries should pay compensation, claiming their territories were used to carry out attacks against the country.
Meanwhile, Iran is considering imposing a transit fee on the Strait of Hormuz through a special protocol that would impose a tax on ships using the strategic sea route.
Government spokeswoman Fathemeh Mohajerani told Russia’s RIA Novosti agency that war damages amount to about $270 billion, without giving details on the breakdown of losses. It said the issue of compensation was discussed at last week’s talks between Tehran and Washington in Pakistan and is expected to be raised in future negotiations with the US and international mediators.
Iranian authorities are still assessing the extent of the damage to critical infrastructure, as oil and gas facilities, petrochemical plants, steel and aluminum factories were repeatedly targeted in attacks, along with military installations. It is estimated that full recovery will take years.
Damage was also recorded to bridges, ports, rail networks, universities and research centres, as well as power plants and water desalination plants. A large number of hospitals, schools and homes were severely damaged or completely destroyed.
Economic pressures and losses in the transport sector
The government spokeswoman admitted that the state’s financial capabilities are limited, noting that “current economic conditions”do not allow for compensation for citizens whose homes were damaged by the US and Israeli attacks.
The secretary general of the Iranian Airlines Association, Magsoud Asadi Samani, said 60 civilian aircraft have been put out of service, of which 20 were destroyed. According to him, Iran has about 160 passenger aircraft in service, most of them old, whose maintenance has become difficult due to a shortage of spare parts because of US sanctions.
Airlines suffered significant revenue losses during the Nowruz, the Persian New Year period in late March, with total losses exceeding 300 trillion rials, or about $190 million, in 40 days of war.
Major international airports in the country also suffered significant damage, including in Tehran, Tabriz, Urmia, and Hamadan, as attacks hit runways, control towers, and aircraft hangars.
The attitude towards negotiations and the nuclear programme
Despite the extent of the damage and the impact of the US-imposed naval blockade on Iranian ports, Tehran says it does not intend to make major concessions in talks with Washington, including on the issue of nuclear enrichment.
The spokesman for the Iranian parliament’s National Security and Foreign Policy Committee, Ebrahim Rezaei, said in a post that the recently announced ceasefire should not be extended, arguing that it would allow the US and Israel to renew their weapons stockpiles and improve their military posture.
“They must either recognize Iran’s rights, including our control of the Strait of Hormuz, or return to war, he said.
According to the SIPRI institute, Iran has allocated about $8 billion for military spending in 2024, and officials have pledged to triple the budget after exchanging missile strikes with Israel in October of that year. At the same time, the country faces fiscal pressures due to internal mismanagement, corruption, and years of US sanctions.
Financial hit from internet outage
The near-total disruption of internet access for more than 90 million citizens has further strained the economy, and the situation remains in effect for a seventh week.
The government has attributed responsibility for the measure to the Supreme National Security Council. The head of the Iranian Chamber of Commerce committee, Afshin Kolahi, said the shutdown is causing daily losses of up to $80 million.
Meanwhile, a plan to create a multi-level internet access system is being promoted. According to the Information and Communications Ministry, selected businesses will have access to the global internet, while the rest of the population will be limited to a domestic network.
Telecom companies are offering “Internet Pro” service to specific users deemed eligible by the authorities, providing less filtered access at a higher cost. At the same time, a parallel market is developing for the sale of VPN services and other technical means of connecting to the external internet.
The situation in the digital environment has sparked strong citizen reactions, with freedom of internet access as a key demand, while the ongoing financial burden is intensifying pressure on the Iranian government.
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