Iran warns of 'devastating' economic fallout from any new Israeli attack

Iranian Foreign Minister Abbas Araghchi. File | Photo Credit: Reuters Iran on Wednesday (October 28, 2026) warned of a devastating economic impact from any new Israeli-led attack, as the votes were counted in an Israeli election that could determine the future of the regional war.Under Israeli Prime Minister Benjamin Netanyahu, who has vowed to topple Iran's government, the two countries have directly fought a war for the first time in their history after decades of enmity.Tuesday's (October 27) pivotal election gave Israelis a chance to offer a verdict on Netanyahu's right-wing government, amid mounting U.S. and Israeli threats of renewed attacks against Iran following their launch of the war in February."Devastating impact on int'l markets of any Israel-instigated military misadventure in Persian Gulf region remains major concern for both gas suppliers and consumers," Iranian Foreign Minister Abbas Araghchi said in a post on X, referring to recent discussions at the Gas Exporting Countries Forum summit in Moscow.Since the war erupted, it has severely disrupted energy shipments from Gulf countries after Iran began blockading the Strait of Hormuz, through which around a fifth of the world's oil and liquefied natural gas used to travel.Iran has restricted passage and regularly attacks vessels that attempt to cross without its authorisation.In retaliation, the United States has been maintaining a naval blockade of Iranian ports, seeking to squeeze the country's economy.On Wednesday (October 28), the Wall Street Journal reported that Washington had told several Gulf Arab countries to prepare for a possible "short, intense military campaign" against Iran after the U.S. midterm elections on November 3.But the newspaper, citing people briefed on the conversations, said President Donald Trump had not made a final decision.'Existential threat'Mr. Netanyahu, vying to form a coalition government after the closely contested polls, has said Israel has an opportunity to eliminate the "existential threat" posed by Iran.His main electoral rival, Gadi Eisenkot, a former military chief, has warned Israel's security top brass that they must serve the national interests and not the political needs of Mr. Netanyahu."Mr. Netanyahu, don't you dare use Israel's security for your political needs," Eisenkot said.On Sunday (October 25), Israel's Channel 12 reported that Mr. Netanyahu and Israeli military chief Lieutenant General Eyal Zamir had clashed over an order for unspecified military action that defence officials feared could trigger renewed fighting with Iran.Mr. Netanyahu denied the report.As the votes were counted on Wednesday (October 27) in the election, no clear winner had emerged between Netanyahu's bloc and an Opposition camp led by Eisenkot.Tehran has said the outcome of the polls "makes no difference".On Sunday, Mr. Araghchi said a resumption of war with the U.S. and Israel would also not change Iran's positions."They have already done so twice and have seen the results. If they want to try again, they know they will achieve no different outcome from those of the past," he said.Iran's military, meanwhile, has warned it would retaliate more widely against any new attack, with security chief Mohsen Rezaei saying it could strike U.S.-related infrastructure including data centres and other artificial intelligence targets.Tehran has dismissed Mr. Netanyahu's threats to topple the Iranian government, calling them "empty" and "a sign of desperation". Published - October 28, 2026 11:17 pm IST