From looming war to currency crash: Iran ends 2025 on edge
Amid threats of war and an economy on the verge of collapse, the Islamic Republic is closing the year juggling deterrence needs and internal crises.
TEHRAN — Iran's 2025 is ending in the same crises it started the year with. The Islamic Republic remains under mounting regional pressure, strategic uncertainties and acute economic distress, struggling to project strength abroad while containing vulnerabilities at home.
The most consequential challenge came not from inflation, but from the expanding confrontation with Israel that repeatedly brought Iran to the brink of ruin in 2025.
Speculation over a renewed Israel-Iran confrontation intensified in the final weeks of 2025. Fars News reported a nationwide missile exercise on Dec. 22 that was corroborated by footage from multiple locations shared on social media, before the state television station issued denials without explanation.
The episode reflected a broader pattern this year: heightened military readiness and strategic ambiguity. Israeli rhetoric toward Iran has sharpened steadily, while Iranian media outlets have openly debated the country's preparedness to deter or absorb a direct strike.
