Iran's Internet Shutdown and US-Iran Tensions Escalate: A Global Economy at Risk

"The world has witnessed Iran's tolerance and peace-seeking nature. What is currently taking place under the title of a naval blockade is the extension of military operations against a nation that is merely paying the price for its steadfastness and independence. The continuation of this unjust approach is intolerable," Iranian President Masoud Pezeshkian wrote on X. " They're either going to agree to no nuclear weapons or they're not, and if they're not, they're in big trouble—BIG—even bigger than they are right now," the White House Rapid Response handle quoted Trump as saying. https://twitter.com/RapidResponse47/status/2049948389727490540 Iran's 90 million people have been cut off from the internet for most of 2026 --- one of the world's longest and strictest national shutdowns. According to an AP report, this has been devastating an online economy that had long defied government restrictions and international sanctions. From fashion to fitness, to advertising and retailers, many have seen their incomes evaporate. It adds to mass job losses from strikes on key industries and an ongoing US blockade. Before January, Iranians could access the internet, but authorities blocked a large amount of content. Now all access to the global web has been shut down. Some workarounds exist, but they have become enormously expensive, out of reach for most Iranians. The internet cutoff costs the economy an estimated $30-40 million daily, with indirect losses likely twice that much, a member of Iran’s Chamber of Commerce, Afshin Kolahi, told a local newspaper. About 10 million people have jobs that depend on internet connectivity, according to the communications minister, Sattar Hashemi. According to reports, a senior Democrat told a Capitol Hill hearing on Thursday that Secretary of War Pete Hegseth had failed to give Donald Trump an accurate picture of the war on Iran while resorting to “dangerously exaggerated” statements to create an inaccurate picture of a US military triumph. “American families are bearing the cost of a war they wanted nothing to do with and have gained nothing from and yet, Secretary Hegseth, you declared victory a month ago. The problem with your statements, Mr Secretary, is they are dangerously exaggerated. Iran’s hard line regime remains in place. It still retains stockpiles of enriched uranium, and its nuclear program remains viable. I am concerned that you have been telling the President what he wants to hear instead of what he needs to hear," the Guardian quoted Reed as saying. According to a Fox News report, the commander of the US Central Command has briefed President Donald Trump on potential "final blow" strike options against Iran. Admiral Brad Cooper reportedly presented the possible options during a briefing in the Situation Room --- outlining a "short and powerful wave of strikes" should the president decide to resume combat operations. The assessed targets reportedly include "remaining military assets, leadership and infrastructure" in Iran. Fox News reported that the Pentagon is also considering deploying advanced weapons systems, including a new hypersonic missile known as 'Dark Eagle'. This system is capable of striking targets up to 3,218 kilometers away, potentially targeting remaining ballistic missile launchers. Geopolitical tensions remained in focus after Iran said on Thursday it would respond with "long and painful strikes" on U.S. positions if Washington renewed attacks, reiterating its claim to ⁠the Strait of Hormuz. FIFA President Gianni Infantino has said that Iran will "of course" take part in the upcoming FIFA World Cup and play their fixtures in the USA, and it is his responsibility to "bring people together". Due to ongoing tensions between the USA and Iran due to the killing of the latter's Supreme Leader Ayatollah Ali Khamenei, Iran has called for its fixtures to be relocated outside USA. As per the current schedule, their matches are slated to be held in Los Angeles and Seattle, starting with a clash against NZ on June 15 at California's SoFi Stadium. The decision to take part in the global football extravaganza remains uncertain, with Iranian Sports Minister Ahmad Donyamali confirming that a final decision will depend on evolving security and political conditions in the ongoing tensions between the US and Iran. Comments from US president Donald Trump also intensified the situation after he expressed reservations about the team's safety, suggesting it might not be appropriate for Iran to play in the United States. Many Republicans who have been uneasy with President Donald Trump's war in Iran emphasized that there would be a May 1 deadline for Congress to intervene. But the date is now set to pass with no action from GOP lawmakers who continue to defer to the White House. Under the War Powers Resolution of 1973, Congress must declare war or authorize the use of force within 60 days — a deadline that falls on Friday — or within 90 days if the president asks for an extension. But Congress made no attempt at enforcing that requirement, leaving town for a week on Thursday after the Senate rejected a Democratic attempt to halt the war for a sixth time. The Trump administration has shown no interest in seeking congressional approval at all. It is arguing that the deadlines set by the law don't apply because the war in Iran effectively ended when a ceasefire began in early April. "The consequences of the Middle East crisis grow dramatically worse with each passing hour. The curtailment of navigational rights & freedoms in the area of the Strait of Hormuz disrupts energy, transport, manufacturing & food markets & strangles the global economy Now is the time for dialogue, for solutions that pull us back from the brink & for measures that can open a pathway to peace," UN Secretary General António Guterres wrote on X. India's largest state-run refiner Indian Oil Corporation has raised the prices of liquefied petroleum gas used by industries and jet fuel ⁠for foreign ​airlines from Friday, the company said in a statement. The price ​of ​a 19-kilogram commercial ⁠LPG cylinder for industrial clients was hiked ‌by Rs 993. Prices of household LPG, primarily used as ⁠cooking ⁠fuel, were left unchanged. Jet fuel prices ⁠for ‌domestic airlines ​were also not revised, ‌the company said. US President Donald Trump has hinted at a potential withdrawal of American military personnel from Italy and Spain --- launching into a scathing critique of both nations regarding their positions on the persisting conflict with Iran. "Yeah, probably, I probably will. Why shouldn't I? Italy has not been of any help to us and Spain has been horrible, absolutely horrible," he said while addressing the media at the Oval Office. US Democratic Senator Richard Blumenthal told CNN during an interview that he had formed an “impression from some of the briefings” and other sources that “an imminent military strike is very much on the table”. He added that this prospect was “deeply disturbing” because it could “well involve American sons and daughters in harm’s way” and lead to “potential massive casualties”. According to an Axios report, US President Donald Trump has received a briefing on new plans of strikes on Iran by the CENTCOM. Two US officials told Axios that the briefing by CENTCOM Commander Brad Cooper and Chairperson of the Joint Chiefs lasted for around 45 minutes. Earlier on Wednesday, Axios reported that the new possible military operations indicate US's willingness to exert a final blow to Iran amid the fragile ceasefire. The briefing reportedly pertains to a plan prepared by the CENTCOM a "short and powerful" wave of strikes on Iran likely including infrastructure targets to break the ice as the ceasefire has reached a stalemate". Another plan is to 'take over' the Strait of Hormuz and open it to commercial shipping. The final aspect of the plan is a special forces operation to secure Iran's stockpile of highly enriched uranium. According to an NBC News report, Iran is utilising the ceasefire to retrieve weapons previously hidden or buried under the rubble of strikes. The government of Iran has reportedly intensified efforts to excavate missiles and other munitions that were hidden underground or buried in rubble after US and Israeli air strikes. Iran’s supreme leader defiantly vowed on Thursday to protect the Islamic Republic’s nuclear and missile capabilities. According to a statement read by a state television anchor, Ayatollah Mojtaba Khamenei has said that the only place Americans belonged in the Persian Gulf is “at the bottom of its waters” and that a “new chapter” was being written in the region’s history. Khamenei has not been seen in public since taking over as supreme leader following the killing of his father in the war’s opening airstrikes. "Despite a military operation, I don't call it a war...Iran is dying to make a deal...Their Navy is gone, their Air Force is gone, and every ounce of any form of equipment practically is gone. Their drone factories are about 82% down... They want to make a deal... We obliterated that nuclear capacity of theirs. And so they didn't get the nuclear bomb," US President Donald Trump told reporters. The Trump administration is arguing that the war in Iran has already ended because of the ceasefire that began in early April, an interpretation that would allow the White House to avoid the need to seek congressional approval. The statement furthers an argument laid out by Defense Secretary Pete Hegseth during testimony in the Senate earlier Thursday, when he said the ceasefire effectively paused the war. Under that rationale, the administration has not yet met the requirement mandated by a 1973 law to seek formal approval from Congress for military action that extends beyond 60 days. US President Donald Trump has voiced fresh frustration over efforts in Congress to limit his war powers. On Thursday, he criticised lawmakers after the Senate rejected a move aimed at putting checks on his authority. At the same time, Trump was expected to be briefed by Pentagon officials on updated military options regarding Iran, keeping the possibility of further action on the table. Responding to a question on rising fuel costs, US President Donald Trump said the focus remains on preventing Iran from getting nuclear weapons. “We’re not going to have a nuclear weapon in the hands of Iran.” He added that fuel prices will fall once the conflict ends: “The gas will go down. As soon as the war is over, it’ll drop like a rock. There’s so much of it — it’s all over the place, sitting across the oceans of the world.” On Iran, US President Donald J Trump says, "Despite a military operation, I don't call it a war..., Iran is dying to make a deal... Their Navy is gone, their Air Force is gone, and every ounce of any form of equipment practically is gone. Their drone factories are about 82% down... They want to make a deal... We obliterated that nuclear capacity of theirs. And so they didn't get the nuclear bomb..." #watch | On Iran, US President Donald J Trump says, "Despite a military operation, I don't call it a war..., Iran is dying to make a deal... Their Navy is gone, their Air Force is gone, and every ounce of any form of equipment practically is gone. Their drone factories are about… pic.twitter.com/0spO9sgrjK Israeli defence minister Israel Katz said Israel may have to “act again” against Iran to ensure it “does not once again become a threat to Israel.” He said US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu are coordinating efforts to achieve the campaign’s objectives, adding Israel is providing “the necessary support.” Chinese foreign minister Wang Yi said China and the US should prepare for “important high-level exchanges” during a call with Marco Rubio. Wang warned the Taiwan issue remains “the biggest point of risk” in relations, saying it concerns China’s “core interests” and urging US to “keep its promises and make the right choices.” Israeli Defence Ministry said Israel received 6,500 tons of military equipment, including air and ground munitions, over the past 24 hours. The supplies arrived on two ships and multiple cargo planes before being distributed to military bases across the country, according to Al Jazeera report. Israel Katz said the deliveries ensure the military has “all the means required” to “return to operating at full force against our enemies at any time and in any place required.” Israel’s defence minister on Thursday said his country may soon have to “act again” against Iran, to ensure the Islamic republic “does not once again become a threat to Israel”. “US President Donald Trump, in coordination with Israeli Prime Minister Benjamin Netanyahu, is leading the efforts to achieve the campaign’s objectives, to ensure that Iran does not once again become a threat to Israel, the United States and the free world in the future,” Israel Katz said during a military ceremony, according to a statement from his office. A US naval blockade of Iranian ports has sharply reduced Tehran’s oil exports, leaving growing volumes of crude stranded on tankers as onshore storage nears capacity, according to Reuters. Shipping data and analysts cited by the report say dozens of tankers carrying tens of millions of barrels are now idling at sea, raising fears Iran may eventually be forced to cut production. Pakistan has opened six overland transit routes to Iran to ease mounting trade disruptions caused by the Strait of Hormuz blockade and restrictions on Iranian ports. The S&P 500 and Nasdaq were on track for their biggest monthly gains since 2020, as strong corporate earnings helped calm investors despite a major oil supply shock linked to the Iran conflict. “I think there’s this big tug of war, but the earnings side is winning so far,” said Angelo Kourkafas of Edward Jones, while warning prolonged tensions could pressure growth. Markets remained volatile as Brent crude stayed elevated near $110 a barrel and investors weighed the risk of further US military action against Iran. UN Secretary-General Antonio Guterres said disruptions in the Strait of Hormuz are “strangling the global economy,” warning the fallout could persist even in the “best-case scenario.” Even if restrictions ended immediately, “supply chains will take months to recover,” he said, prolonging weaker economic growth and higher prices worldwide. US President Donald J Trump said Germany’s chancellor should spend more time working to end the Ukraine-Russia war and “fixing his own broken Country.” Shares of Meta Platforms fell nearly 10% following its latest earnings report, as investors reacted to weaker guidance and rising spending concerns. Meanwhile, Google parent Alphabet surged after strong results boosted confidence in its advertising and AI businesses.