Iran supreme leader Khamenei calls for economic battle to 'disappoint and defeat' enemies

Iran's Supreme Leader Ayatollah Mojtaba Khamenei urged his people on Friday to wage economic battle and "disappoint" the country's enemies, as the war with the United States and Israel and years of sanctions continue to take a heavy toll. His statement came the same day Trump rejected Iran's latest peace proposal, saying he was "not satisfied" with what Tehran was offering.

What is Khamenei calling for in his economic battle statement?

Khamenei said Iran must "disappoint and defeat" its enemies in the economic and cultural sphere, just as it had proven its military strength on the battlefield. He called for prioritizing domestically manufactured goods and urged business owners to avoid laying off workers where possible. The statement was a written address that did not elaborate on specific economic policies.

How badly is Iran's economy affected by the war and sanctions?

Iran's economic situation has deteriorated sharply since the war began on February 28. The Iranian rial fell to a record low against the dollar this week, according to currency trackers, while inflation surpassed 50 percent in recent weeks, according to the national statistics center. A labor official said 191,000 people had filed for unemployment after losing their jobs due to the direct impacts of the war.

The U.S. military's blockade of Iranian ports has disrupted oil shipments, compounding the damage from years of international sanctions already in place before the conflict began. The U.S. military said the blockade had stopped Iran from exporting $6 billion worth of oil. Ordinary Iranians have described struggling to pay rent and buy food as prices continue to rise.

What did Trump say about Iran's new peace proposal on Friday?

Trump told reporters Friday he was "not satisfied" with a new Iranian negotiating proposal delivered to mediator Pakistan on Thursday evening. He blamed the stalled talks on "tremendous discord" within Iran's leadership, while acknowledging multiple factions appeared willing to reach a deal. When asked about next steps, Trump said the options were either striking Iran or pursuing a deal, adding he would prefer not to take military action "on a human basis."

Why have US-Iran peace talks stalled?

Only one round of direct talks has taken place since the ceasefire took hold on April 8, and it failed to produce results. Iran has maintained its hold on the Strait of Hormuz, cutting off significant volumes of oil, gas and fertilizer from global markets. The U.S. has responded with a counter blockade on Iranian ports, and the two sides have not yet agreed on a framework for resuming substantive negotiations.