Tehran is entering 2026 carrying hard strategic lessons after an auspicious year, from the shock of a direct war with Israel to the erosion of its regional militia network, experts say.
At home, the collapse of nuclear diplomacy and the return of sanctions sent the rial to historic lows, compounding economic pressure and leading to protests. The vast country of more than 90 million is also beset by drought and power cuts.
President Masoud Pezeshkian has recently sought to explain the myriad obstacles Iran is now facing, saying the country is effectively in a full-scale war with the US, Europe and Israel, while warning of internal divisions.
Yet within Iran’s official discourse, 2025 was by no means a year of defeat but one of resilience and rebuilding. While it has shown keenness in talks with Washington, it has also been flexing its muscles, confidently declaring it is prepared for a renewed confrontation with Israel.
In central Tehran, a newly unveiled mural reads “We are ready, are you ready?” in Far
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