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A law professor worries Israel could become the next Hungary
(JTA) — Israel’s new governing coalition has been called the “most right-wing” in the nation’s history. That’s heartening to supporters who want the country to get tough on crime and secure Jewish rights to live in the West Bank, and dismaying to critics who see a government bent on denying rights to Israel’s minorities and undermining any hope for a peaceful solution to the Israeli-Palestinian conflict.
While the far-right politics of new government ministers Bezalel Smotrich and Itamar Ben Gvir have drawn much of the world’s attention, a series of proposed changes to Israel’s judicial system has also been raising hopes and alarms. On Wednesday, new Justice Minister Yariv Levin announced an overhaul that would limit the authority of the High Court of Justice, Israel’s Supreme Court. It would put more politicians on the selection committee that picks judges, restrict the High Court’s ability to strike down laws and government decisions and enact an “override clause” enabling the Knesset to rewrite court decisions with a simple majority.
Levin and his supporters on the right justify these changes as a way to restore balance to a system that he says puts too much control in the hands of (lately) left-leaning judges: “We go to the polls, vote, elect, and time after time, people we didn’t elect choose for us. Many sectors of the public look to the judicial system and do not find their voices heard,” he asserted. “That is not democracy.”
Critics of the changes call them a power grab, one that will hand more leverage to the haredi Orthodox parties, remove checks on the settlement movement and limit civil society groups’ ability to litigate on behalf of Israeli minorities.
To help me make sense of the claims on both sides, I turned to Tom Ginsburg of the University of Chicago, where he is the Leo Spitz Distinguished Service Professor of International Law and co-directs the Comparative Constitutions Project, which gathers and analyzes the constitutions of all independent nation-states. He’s also a Jew who has transformed a former synagogue on the South Side of Chicago into a cutting-edge arts space, and says what’s happening with Israel’s new governing coalition “raises my complicated relationship with the country.”
We spoke on Friday. Our conversation has been edited for length and clarity.
Jewish Telegraphic Agency: You have written about law in Israel, which lacks a constitution but relies on a series of “basic laws” to define its fundamental institutions. You’ve written that the Israeli judiciary had become “extremely powerful” — maybe too powerful — in imbuing the basic laws with a constitutional character, but worry that the current reforms will politicize the court in ways that will undermine Israeli democracy.
Tom Ginsburg: The proposed reforms were a campaign promise of certain elements of this coalition who have had longstanding grievances against the Israeli judiciary. The Israeli judiciary over the last decades has indeed become extremely powerful and important in writing or rewriting a constitution for Israel, promoting human rights and serving as a check and balance in a unicameral parliamentary system where the legislature can do anything it wants as a formal matter. A lot of people have had problems with that at the level of theory and practice. So there have been some reforms, and the court has, in my view, cut back on its activism in recent decades and in some sense has been more responsive to the center of the country. But there’s longstanding grievances from the political right, and that’s the context of these proposals.
A lot of the concerns about the new government in Israel are coming from the American Jewish left. But in an American context, the American Jewish left also has a big problem with the United States Supreme Court, because they see it as being too activist on the right. So in some ways isn’t the new Israeli government looking to do what American Jewish liberals dream of doing in this country?
Isn’t that funny? But the context is really different. The basic point is that judicial independence is a really good thing. Judicial accountability is a really good thing. And if you study high courts around the world, as I do, you see that there’s kind of a calibration, a balancing of institutional factors which lead towards more independence or more accountability and sometimes things switch around over time.
Israeli Justice Minister Yariv Levin holds a press conference at the Knesset, the Israeli parliament in Jerusalem, Jan. 4, 2023. (Olivier Fitoussi/Flash90)
You mean “accountability” in the sense that courts should be accountable to the public.
Right. The Israeli promoters of these plans are pointing to the United States, in particular, for the proposals for more political involvement in the appointment process. On the other hand, in the United States once you’re appointed politically, you’re serving for life. There’s literally no check on your power. And so maybe some people think we have too much independence. If these proposals go through in Israel, there will be a front-end politicization of the court [in terms of the selection commission], but also back-end checks on the court [with the override clause that would allow a simple majority to reinstate laws struck down by the Supreme Court]. So in some sense, it moves the pendulum very far away from independence and very much towards accountability to the point of possible politicization.
And accountability in that case is too much of a good thing.
Again, you don’t want courts that can just make up rules. They should be responsive to society. On the other hand, you don’t want judges who are so responsive to society that there’s no protection for the basic rights of unpopular minorities.
What makes Israel either unique or different from some of the other countries you study, and certainly the United States? Part of it, I would guess, is the fact that it does not have a constitution. Is that a useful distinction?
They couldn’t agree on a single written constitution at the outset of the country, but they have built one through what you might call a “common law method”: norms and practices over time as well as the system of “basic laws,” which are passed by an absolute majority of the Knesset, where a majority of 61 votes can change any of those. But while they’re not formally entrenched, they have a kind of political status because of that term: basic law.
By the way, the Germans are in the same boat. The German constitution is called the Basic Law. And it was always meant to be a provisional constitution until they got together and reunified.
If you don’t have a written constitution, what’s the source of the legitimacy of judicial power? What is to prevent a Knesset from just passing literally any law, including ones that violate all kinds of rights, or installing a dictator? It has been political norms. And because Israel has relied on political norms, that means that this current conflict is going to have extremely high stakes for Israeli governance for many decades to come.
Can you give me a couple of examples? What are the high stakes in terms of democratic governance?
First of all, let me just say in principle that I don’t oppose reforms to make the judiciary more independent or accountable in any particular country. But then you obviously have to look at the local context. What’s a little worrying about this particular example is that several members of this coalition are themselves about to be subject to judicial proceedings.
Including the prime minister, Benjamin Netanyahu.
Right. And for example, they need to change the rules so that [Shas Party chairman] Aryeh Deri can sit in the cabinet despite his prior convictions. That indicates to me that maybe this isn’t a good-faith argument about the proper structure of the Israeli, uncodified constitution, but instead a mechanism of expediency.
Any one of these reforms might look okay, and you can find other countries that have done them. The combination, however, renders the judiciary extremely weak. Right now, it’s a multi-stakeholder commission that nominates and appoints judges in Israel, and the new coalition wants to propose that the commission be made up of a majority of politicians. We know that when you change the appointments mechanism to put more politicians on those committees, the more politicized they become.
Think about the United States process of appointing our Supreme Court judges: It’s highly politicized, and obviously the legitimacy of the court has taken a big hit in recent years. In Israel, you’d have politicized appointments under these reforms, but then you also have the ability of the Knesset to override any particular ruling that it wanted. Again, you can find countries which have that. It’s called the “new commonwealth model” of constitutionalism, in which courts don’t have the final say on constitutional matters, and the legislature can overrule them on particular rulings. But I think the combination is very dangerous because you could have a situation where the Knesset — which currently has a role in protecting human rights — can pick out and override specific cases, which really to me goes against the idea of the rule of law.
You mentioned other countries. Are there other countries where these kinds of changes were enacted and we saw how the experiment turned out?
The two most prominent recently are Hungary and Poland, which are not necessarily countries that you want to compare yourself to.
Certainly not if you are Israel.
Right. There’s so much irony here. When the new Polish government came in in 2015, they immediately manipulated the appointment system for the Constitutional Court and appointed their own majority, which then allowed them to pass legislation which probably would have been ruled unconstitutional. They basically set up a system where they were going to replace lower judges and so they were going to grow themselves into a majority of the court. And that’s led to controversy and rulings outside the mainstream that have led to protests, while the European Union is withholding funds and such from Poland because of this manipulation of the court.
In Hungary, Victor Orban was a really radical leader, and when he had a bare majority to change the constitution he wiped out all the previous jurisprudence of the Constitutional Court. I don’t think the Israeli government would do that. But still there is this kind of worrying sense that they’re able to manipulate interpretation of law for their own particular political interest.
Another thing I want to raise is the potential for a constitutional crisis now. Suppose they pass these laws and the Israeli Supreme Court says, “Well, wait a minute, that interferes with our common law rules that we are bound by, going back to the British Mandate.” It conflicts with the basic law and they invoke what legal scholars call the “doctrine of unconstitutional constitutional amendments,” which is basically saying that an amendment goes against the core of our democratic system and violates, for example, Israel’s character as a Jewish and democratic society. Israel has never done this, but it is a kind of tool that one sees deployed around the world in these crises. And if that happened, then I think you would have a full constitutional crisis on your hands in Israel.
Supreme Court President Aharon Barak speaks with Prime Minister Benjamin Netanyahu during a ceremony in the Supreme Court marking 50 years of law, Sept. 15, 1998. (Avi Ohayon)
What does a constitutional crisis look like?
Suppose you have sitting justices in Israel who say, “You know, this Knesset law violates the basic law and therefore it’s invalid.” And then, would the Knesset try to impeach those judges? Would they cut the budget of the judiciary? Would they back down?
When you compare Israel’s judicial system to other countries’ over the years, how does it stack up? Is it up there among the very strong systems or is it known for flaws that might have maybe hobbled its effectiveness?
It’s always been seen around the world as a very strong judiciary. Under the leadership of Aharon Barak [president of Israel’s Supreme Court from 1995 to 2006] it became extremely activist. And this provoked backlash in Israeli politics. That led to a kind of recalibration of the court where it is still doing its traditional role of defending fundamental rights and ensuring the integrity of the political process, but it’s not making up norms left and right, in the way that it used to. This is my perception. But it’s certainly seen as one of the leading courts around the world, its decisions are cited by others, and because of the quality of the judges and the complex issues that Israel faces it’s seen as a strong court and an effective court and to me a balanced court.
But, you know, I’m not in Israel, and ultimately, they’re going to figure out the question how balanced it is or where it’s going to go. I do worry that an unchecked majoritarian system, especially with a pure proportional representation model like Israel, has the potential for the capture of government by some minorities to wield power against other minorities. And that’s a problem for democracies — to some degree, that’s a problem we face in the United States.
How correctable are these reforms? I am thinking of someone who says, “These are democratically elected representatives who now want to change a system. If you want to change the system, elect your own majority.” Is the ship of state like this really hard to turn around once you go in a certain direction?
This is an area in which I think Israel and the United States have a lot of similarities. For several decades now, the judiciary has been a major issue for those on the political right. They thought the Warren Court was too left-leaning and they started the Federalist Society to create a whole cadre of people to staff the courts. They’ve done that and now the federal courts are certainly much more conservative than the country probably. But the left didn’t really have a theory of judicial power in the United States. And I think that’s kind of true in Israel: It’s a big issue for the political right, but the political left, besides just being not very cohesive at the moment, isn’t able to articulate what’s good about having an independent judiciary. It is correctable in theory, but that would require the rule of law to become a politically salient issue, which it generally isn’t in that many countries.
How do you relate to what is happening in Israel as a Jew, and not just a legal scholar?
That’s a great question, because it really raises my complicated relationship with the country. You know, I find it to be a very interesting democracy. I like going to Israel because it’s a society in which there’s a lot of argument, a lot of good court cases and a lot of good legal scholars. On one level, I connect with my colleagues and friends there who seem very demoralized about this current moment. And I honestly worry about whether this society will remain a Jewish and democratic one with the current coalition.
The rule of law is a part of democracy. You need the rule of law in order to have democracy function. And I know others would respond and say, “Oh, you’re just being hysterical.” And, “This isn’t Sweden, it’s the Middle East.” But the ethno-nationalist direction of the country bothers me as a Jew, and I hope that the court remains there to prevent it from deepening further.
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Three simple rules for navigating a new season of protest against Israel
Spring. The season of graduations and protests.
A tenured professor and faculty chair at my alma mater, the University of Michigan, recently used the commencement stage to denounce Israel’s war in Gaza — remarks that drew applause from some as others experienced them as alienating and unwelcome. At New York’s Park East Synagogue, a group of masked, hate- spewing demonstrators waving Hezbollah flags while protesting the “Great Israeli Real Estate Event.”
If the settings of these incidents differ, one underlying question they raise remains the same: What are the ethics of protest? At what point does dissent deepen democratic life and moral accountability, and when does it begin to fray the trust, dignity and shared sense of belonging upon which a society depends?
While these tensions may be hard to resolve, I’d like to put forward three guiding principles for how best to engage on the subject of free expression in such a hot-zone climate.
Protest is essential
Protest is foundational to what it means to be both a Jew and an American.
Look to Abraham standing before God at Sodom and Gomorrah; Moses standing before Pharaoh; the prophets calling kings and nations to conscience; and Esther risking all for her people. All of their examples show that to be a Jew is to take note of the gap between the world as it is and as it ought to be, and then to summon the moral courage, communal will, and spiritual audacity to help close that gap.
Jews understand that to protest is a religious act. That’s why rabbis so often quote Abraham Joshua Heschel’s famous reflection after marching alongside Martin Luther King Jr. in Selma in 1965: “I felt my legs were praying.”
And as the United States turns 250 years old, it’s worth remembering that our country began with a protest movement. Since then, many of our country’s finest moments have emerged from moral protest — including the labor movement, the fight for women’s suffrage, and the Civil Rights Movement.
As Jews and as Americans, we are heirs to two traditions of protest.
So is self-interrogation
Where we draw the lines around acceptable protest says as much about us as it does about the protest itself.
A prime example of this: During my 25-plus years as a rabbi, no congregant has ever told me that the pulpit is no place for politics — so long as they agree with my politics.
I had little difficulty admiring the activist Greta Thunberg when she sailed across the Atlantic to raise awareness about climate change. I found it much more challenging to view her kindly when she joined a flotilla protesting Israel’s war in Gaza.
Similarly, the faculty speaker at Michigan’s commencement sounded pretty good when championing the university’s first Jewish faculty member and a curriculum more attentive to Black American history. It was only when he condemned Israel that many listeners, myself included, recoiled at his remarks.
None of us are the neutral arbiters of protest ethics we may imagine ourselves to be. Progressives who passionately defend buffer zones around abortion clinics but not around houses of worship should ask why one form of vulnerability warrants protection and another does not. Student activists who champion on-campus encampments protesting Israel’s actions in Gaza, but would never tolerate a white nationalist rally on campus, should ask where principle ends and preference begins. Conservatives who invoke the First Amendment to defend provocative speech they favor, yet denounce positions they dislike as treasonous or un-American, should examine where principle gives way to ideology. And activists who mobilize when civilians die in Gaza but remain deafeningly silent when tens of thousands of Iranians are murdered by their own regime must interrogate what moral framework governs that selective outrage.
Where we draw the lines — whom we applaud, what we excuse and what we denounce — reveals not only our principles, but also our loyalties, fears and tribal attachments. Moral seriousness requires the humility to examine ourselves before we protest — to check ourselves before we express ourselves.
Just because you can, doesn’t mean you should
As Jews, we believe in buffer zones — not just the kind debated at City Hall. The rabbis believed in moral buffer zones, a principle they referred to as living “lifnim mishurat hadin” — “beyond the strict line of the law.”
Rabbinic tradition in part explains the semi-somber period between Passover and Shavuot, in which we currently find ourselves, using precisely this idea. When 24,000 of Rabbi Akiva’s students died in one day, the Talmud teaches, they perished because they followed the letter of the law but failed to go beyond it and treat one another with respect — “kavod zeh lazeh.” They failed to embody the deeper demand of leadership: to live not merely according to what one is allowed to do, but by what one ought to do.
What might that mean for us today?
The answer: just because you have the legal right to express yourself doesn’t mean you should.
The Michigan commencement speaker may have been within his rights to voice his objections to Israel. But his decision to do so in that setting reflected a breathtaking failure of leadership, reminding us there is no direct correlation between tenure and wisdom, expertise and judgment. Like a teacher who hijacks a classroom to air political grievances under the guise of education, the speaker demonstrated an astonishing lack of discernment by alienating a sizable portion of the very students and families he was there to honor and congratulate.
Regarding the protests outside Park East Synagogue, the letter of the law may protect those who wave the flags of a terrorist organization, chant antisemitic slogans, or proclaim that the Jewish state itself should cease to exist. That such speech is protected does not mean it is right. It is, instead, intimidation masquerading as activism.
I was also deeply troubled by the response of New York Mayor Zohran Mamdani, who prefaced his condemnation of the protests by first denouncing the event itself. The mayor should have simply said: no house of worship should be targeted or intimidated, full stop.
To imply that the nature of the event somehow mitigated the harassment outside was not only irresponsible, offering moral cover for behavior that crossed the line from protest into menace, but also a troubling form of moral equivocation that shifted responsibility onto those being targeted — if not outright victim blaming. A peaceful protest calling for Palestinian self-determination alongside Jewish self-determination? As a liberal Zionist, that sounds like my kind of protest! But in an age in which there is a direct line between anti-Israel rhetoric and antisemitic violence, our mayor must do more than merely follow the letter of the law. True leadership begins where the letter of the law ends.
The issue is not whether dissent is permitted, but whether we are not losing the capacity for kavod zeh lazeh.
As the secular prophet of our time, Bruce Springsteen, has been reminding audiences across the country on his current tour: “America, from the beginning, was born out of disagreement. It was built on argument, on disagreement. We can argue about what course we thought the country should take while recognizing our common humanity, our dignity and, yes, our unity.”
Whatever our differences, the challenge before us is whether we can disagree without severing the ties that bind us — as Americans, Jews and human beings.
The post Three simple rules for navigating a new season of protest against Israel appeared first on The Forward.
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Alleging conflicts, California judge boots Jewish DA from trying Stanford pro-Palestinian protesters
(JTA) — This story originally appeared in J. The Jewish News of Northern California.
Jewish groups in the Bay Area are protesting a judge’s removal of a local Jewish district attorney from a case involving pro-Palestinian protesters accused of vandalizing Stanford University’s president’s office.
The district attorney, Jeff Rosen, was disqualified from retrying a felony case against five protesters after the judge ruled that Rosen had crossed a legal line when suggesting in a campaign message that the protest was antisemitic.
“Rosen is allowed to take a strong stance against crime in the community, against antisemitism. But caution and care need to be taken when utilizing active litigation in campaign communication,” Judge Kelley Paul said from the bench.
The judge said Rosen had erred when publicly labeling the incident antisemitic when it was not charged as a hate crime.
“This case is not a hate crime,” Paul said. “The characterization of the prosecution as a fight against antisemitism runs afoul of case law.”
In an email to J. The Jewish News of Northern California, Rosen’s office wrote that while it “disagrees with the judge’s ruling, we respect it.”
In a joint statement, the Jewish Community Relations Council Bay Area and Jewish Silicon Valley wrote that they are “deeply troubled” by Paul’s decision and that the case “must proceed.”
“This decision uniquely targets minority prosecutors, suggesting they are incapable of pursuing justice in cases perceived to be impacting their own communities,” the statement says, adding that it “risks reinforcing longstanding antisemitic prejudices and invites future defendants to weaponize a prosecutor’s identity against them.”
The five protesters face felony vandalism and conspiracy counts stemming from a June 2024 protest in which 13 people broke into Stanford’s executive offices and caused an estimated $300,000 in damages. A jury deadlocked in February, splitting 9-3 on the vandalism count and 8-4 on conspiracy. Rosen quickly announced his plan to retry them.
The disqualification motion was filed by deputy public defender Avi Singh, who argued that Rosen had compromised his office’s neutrality by featuring the prosecution on a campaign fundraising page titled “DA Rosen Fighting Anti-Semitism,” alongside a donation button.
Singh argued that the fundraising campaign falsely implied that the defendants were antisemitic. None was charged with a hate crime.
Rosen, who has spoken publicly about his commitment to fighting antisemitism and supporting Israel, has denied any conflict of interest.
In her decision, Paul pointed to Rosen’s remarks in a March 2025 speech he gave for the San Jose Hillel, about a month before his office filed charges against the protesters. A video of the speech is linked on the “Fighting Anti-Semitism” page on his campaign website.
In the speech, Rosen equated antisemitism and “anti-Americanism,” a phrase that Deputy District Attorney Robert Baker also used to describe the conduct of the protesters during the trial’s closing arguments. Paul ruled that the similarities in the language disqualified the entire DA’s office from the case, not just Rosen.
In their own statement, the local Jewish groups suggested Rosen was being disqualified because he is Jewish.
“Generations of American Jews in positions of public trust have all too often been treated as suspect or inherently conflicted,” JCRC Bay Area and Jewish Silicon Valley said. “This decision risks reinforcing longstanding antisemitic prejudices and invites future defendants to weaponize a prosecutor’s identity against them, casting any public opposition to hate as grounds for disqualification.”
Rosen’s challenger in his June primary election, former prosecutor Daniel Chung, has turned the ruling into a campaign video. Chung called Rosen’s pursuit of the Stanford case “overzealous” and “a waste of time and money.”
“This is a humiliating loss for DA Rosen and his entire office,” Chung said in an Instagram video. “For years, millions of dollars have been spent trying to prosecute Stanford student protesters with felony charges.” Rosen’s actions, Chung said, “jeopardized the due process of the defendants” and “exemplifies the undermining of integrity, competence and compassion under DA Rosen for the last 16 years.”
The ruling hands the case to California’s attorney general, which will decide whether to retry the defendants — German Gonzalez, Maya Burke, Taylor McCann, Hunter Taylor-Black and Amy Zhai — or drop the charges.
The post Alleging conflicts, California judge boots Jewish DA from trying Stanford pro-Palestinian protesters appeared first on The Forward.
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Iran’s Deepening Water Crisis Threatens 35 Million as Economy Buckles Under US Pressure, Mounting Domestic Strain
People walk on a street near a mural featuring an image of the late Supreme Leader of Iran, Ayatollah Ali Khamenei, in Tehran, Iran, May 6, 2026. Photo: Majid Asgaripour/WANA (West Asia News Agency) via REUTERS
As talks with the United States over a possible deal to end the war remain uncertain, Iran’s economy is under mounting strain, with prolonged water shortages, pressure on energy infrastructure, and slowing industrial output deepening what authorities describe as an “economic war.”
With Iran entering the summer months amid a deepening water and electricity crisis, government officials estimate that around 35 million people will face water shortages, intensifying concerns over deteriorating living conditions, mounting economic strain, and daily hardship across the country.
On Monday, Issa Bozorgzadeh, a spokesman for the country’s water industry, reported that rainfall has fallen “below normal” levels across 11 provinces, warning that Tehran is among the worst affected as it enters its sixth consecutive year of drought.
Now, Iranian authorities are urging citizens to cut consumption and adopt stricter usage habits, pointing to deep structural failures in the water and power sectors as public frustration rises over supply disruptions, mismanagement, and declining living standards.
Officials have also announced planned summer power outages, warning that the deepening energy crisis could lead to factory shutdowns, reduced industrial output, rising unemployment, and higher prices.
On Sunday, Arash Najafi, head of the Energy Commission of Iran’s Chamber of Commerce, noted that household, commercial, and office blackouts are likely to continue daily throughout the summer, while the industrial sector will continue to be targeted for power cuts” or “will continue to bear the brunt of power cuts.
Given the damage to several petrochemical facilities in Israeli and US strikes and their reliance on electricity from the national grid, Najafi said most available power would now be directed toward keeping these complexes operational around the clock.
“The Islamic Republic will be forced to impose electricity consumption restrictions for about 120 days, and given the lack of effective means for people to significantly reduce usage, this will result in widespread blackouts,” the Iranian official said in a statement.
Amid growing public frustration over the ongoing crisis, Majid Doustali, a member of Iran’s parliamentary planning and budget committee, called on citizens to cut back on electricity, water, and fuel consumption as part of the country’s resistance efforts in what he described as an “economic war.”
“Every effort by the public to save resources represents a direct challenge to the enemy’s economic conspiracy,” Doustali said.
Even as the crisis continues to weigh heavily on the Iranian people, a nationwide internet blackout remains in place, having exceeded 1,728 hours as of Monday, after authorities imposed the shutdown more than two months ago, effectively isolating millions of Iranians from independent reporting on the war and access to global news.
Across much of the country, unstable internet forces many people to rely on illegal black-market virtual private networks (VPNs) — tools that bypass government censorship — to stay connected beyond Iran’s borders, with access costing millions, and users risking imprisonment and national security charges.
According to a CNN estimate, Iranians have spent roughly $1.8 billion on internet access over the past two months.
Soaring costs and crumbling infrastructure have also forced businesses to cut jobs on a massive scale, leaving many workers unemployed and intensifying social and economic pressures across the country, The New York Times reported.
Dozens of major companies have reportedly laid off hundreds of employees across multiple industries, with the industrial sector alone potentially putting up to 3.5 million workers at risk, as the country’s economy reels from the impact of a US naval blockade on Iranian ports that began in mid-April.
The US blockade has prevented the regime from exporting energy through the Strait of Hormuz — a critical global energy chokepoint through which about one-fifth of the world’s oil supply passes.
With companies sharply reducing or freezing production amid shutdowns and mass layoffs, the private sector downturn is further threatening the regime by reducing tax revenues, which the government has come to rely on heavily amid mounting sanctions and trade restrictions.
Iran’s new supreme leader, Ayatollah Mojtaba Khamenei, has attempted to contain the fallout by urging companies to avoid layoffs “to the extent possible.”
But the regime’s internet shutdown alone has cost businesses and companies an estimated $80 million in daily losses, The New York Times reported.
As the Iranian currency continues to plunge and inflation peaks near 60 percent, senior official Gholamhossein Mohammadi said the war has already cost around one million jobs, alongside “the direct and indirect unemployment of two million people.”
Meanwhile, Iran’s energy sector is also under severe strain, with exports falling sharply, storage capacity nearing its limits, and infrastructure under growing pressure.
According to data from commodity analytics firm Kpler, Iran could exhaust its oil storage capacity within 25 to 30 days if the crisis continues, prompting cuts in output at several oil fields to ease pressure.
Amid an export collapse exceeding 70 percent, the government now faces a critical decision between shutting wells to manage storage constraints or risking long-term damage to key oil fields.
Even though Kpler’s report estimates Tehran may not feel the full revenue hit for another three to four months due to payment delays and pre-existing sales flows, the regime is expected to face a heavy blow, with losses potentially reaching $200–250 million per day.
With domestic tensions rising and the internal economic crisis worsening, Iranian officials are increasingly wary that renewed protests could erupt in the coming days, further destabilizing an already volatile situation.
