US levies sanctions over Iran-backed oil smuggling to Yemen's Houthis

“Unfortunately, we will probably see rationing in most parts of the country soon,” Reza Sepahvand, a member of Iran’s parliamentary energy committee was quoted as saying by the Iranian outlet Tejarat News

“In some cities, this has already started,” he added.

Iranians have increasingly complained of water outages in the capital which began last week.

Reports to Iran International's submissions line indicate worsening water quality and intermittent cuts not only in Tehran but also in West Azarbaijan, Razavi Khorasan and Khuzestan provinces.

Sepahvand said the crisis is the result of long-standing failures to locate water-intensive industries in appropriate areas.

“Industries like steel and petrochemicals should have been built along the Persian Gulf, but instead they were placed in the heart of the desert,” he said. “This has led to expensive and incomplete water transfer projects.”

Sepahvand added that the situation has been worsened by climate change and reduced rainfall.

In a cabinet meeting on Sunday, Iran's President Masoud Pezeshkian cited a dire report from the energy ministry and warned that the water crisis was more severe than acknowledged.

“The water crisis is more serious than what is being discussed today, and if we do not take urgent action now, we will face a situation in the future for which no remedy can be found,” Pezeshkian was quoted as saying by state media.

Iran's government declared a public holiday for Wednesday in Tehran Province due to ongoing extreme heat and the need to conserve water and electricity, spokesperson Fatemeh Mohajerani announced.

Earlier on Tuesday, local media citing a spokesman from the Tehran Water and Wastewater Company reported that drinking water could be distributed in hygienic plastic pouches in case of supply cuts.

However, the company later denied it had any such plans.

The outlet said Araghchi’s acknowledgment that the US strikes caused “serious damage” to nuclear facilities and led to a halt in enrichment signaled weakness.

“Our facilities have been damaged – seriously damaged,” Araghchi said. “The extent of which is now under evaluation … enrichment has currently ceased.”

Fars called the remarks exaggerated and warned that such statements could be viewed as a sign of excessive flexibility, encouraging the West to increase pressure on Iran.

The agency linked the remarks to a recent comment by US President Donald Trump, who said, “If necessary, we will strike again.”

Araghchi downplays fatwa targeting Trump

Fars also criticized Araghchi for dismissing a clerical fatwa calling for the killing of Trump as a move by “radical groups.” The decree, issued by two senior Iranian clerics, has drawn support from others and sparked online fundraising.

Fox News anchor Bret Baier asked Araghchi directly about the fundraising activity. In response, Araghchi distanced the government from the fatwa, a stance Fars said signaled weakness and undermined Iran’s unified position against what it called foreign aggression.

In the same interview, Araghchi also addressed the slogan “Death to America,” saying it is aimed at US foreign policy, not the American people. “It means death to US foreign policy, not death to the people,” he said.

A statement from Iran’s parliament last week said the slogan means “death to Trump” and “those who rule America,” directly targeting US leaders.

Iran denies seeking Israel’s destruction

The interview also drew attention for Araghchi’s comments about Iran’s position on Israel. When asked about threats from Iran-backed groups to wipe Israel off the map, he said: “That is up to them… but this has never been Iran’s policy to wipe out Israel from the map.”

Fars did not directly reference that part of the exchange, but the remarks contrast with statements made by Supreme Leader Ali Khamenei and other Iranian officials over the years expressing support for Israel’s elimination.

Despite affirming Iran’s right to nuclear enrichment, Iran's top diplomat failed to maintain the right balance between diplomacy and deterrence, Fars said.

The interview aired ahead of renewed nuclear talks with Britain, France and Germany, as Tehran faces threats of a UN snapback mechanism and possible reimposition of international sanctions.

"We have presented 1,062 martyrs in this war, including 102 women and 38 children," Fatemeh Mohajerani said in her weekly press briefing. She added that five paramedics, five nurses, and seven emergency responders were also among the casualties.

The civilian toll also included 34 students and five educators. “A number of university professors and academic staff were also martyred,” she said, though she did not provide a specific figure.

Tehran province reported the highest number of fatalities, with 265 people killed.

The government also outlined significant damage to civilian infrastructure. Thirty-six schools across 16 provinces were damaged, along with 219 industrial units ranging from large factories to small production sites.

“Seven hospitals and 11 ambulances were hit, and approximately 8,000 residential units were damaged,” Mohajerani said.Damage was also reported to the homes of 22 university professors.

"Despite the destruction, the reconstruction process has begun," she said, adding that during the conflict, 230 schools were used as shelters and 56 were designated for displaced people.

Mohajerani also said, “The attack on Evin Prison constitutes a war crime according to international institutions.”

The numbers announced by Iran match those accounted for by rights group HRANA. In its post-war report, the group said the conflict resulted in 5,665 casualties, including 1,190 deaths and 4,475 injured, both military and civilian.

Evin Prison attack led to inmate escape, 27 remain at large

Iran’s judiciary confirmed on Tuesday that 75 inmates escaped during last month’s Israeli strike on Tehran’s Evin Prison, and 27 remain unaccounted for.

Judiciary spokesman Asghar Jahangir said most of the escapees were low-risk detainees held on minor charges or under light detention orders. “So far, 48 inmates have either returned voluntarily or been arrested,” he said.

Jahangir stressed that “there are no spies or inmates with security-related or major charges among those who escaped.” He added that the identities of those still at large are known, and they will be arrested if they do not turn themselves in.

On June 23, Israel launched multiple missiles at Tehran’s Evin Prison, calling the facility a “tool of repression.” Long seen as a symbol of Iran’s political crackdown, the prison was rocked by explosions that destroyed key areas, including several wards, the infirmary, and the visitation hall, causing immediate and devastating losses.

Among the dead were two prison officials, Ruhollah Tavasoli and Vahid Heydarpour, as well as Evin’s chief prosecutor, Ali Ghanaatkar. Numerous detainees, medical staff, visiting family members — including a young child — and a bystander were also killed.

A judiciary spokesman said on June 29 that 71 people had been confirmed dead, though authorities have yet to release a full list of victims.

"Roughly 10 million Iranians earn a living directly or indirectly through the digital economy," said Sattar Hashemi during a session of the Iranian parliament on Tuesday. "During the war, employment in this sector fell by 30%."

Hashemi added that every two days of the conflict inflicted about 10 trillion rials in damage to Iran’s digital economy, totaling 150 trillion rials over the month. "This figure is equivalent to the annual budget of some ministries," he said, blaming the deliberate disruption of internet access.

Hashemi distanced his ministry from the decisions behind the internet restrictions. "These limitations were imposed by relevant authorities and intelligence and security agencies," he said, referring to measures officially justified as “necessary for national security.”

The restrictions, however, have triggered sharp backlash from civil society and digital rights activists, especially amid revelations about an emerging "class-based internet" system that appears to provide full, uncensored access for government insiders while heavily filtering usage for the general public.

Cyberattacks compound digital crisis

Compounding the crisis were over 20,000 cyberattacks during the war, many of which, according to Hashemi, were successfully mitigated. “These attacks coincided with field operations by the enemy and aimed to shut down online services and disrupt public access,” he told parliament.

The banking sector was hit particularly hard. Bank Sepah’s online platforms, including mobile services, went dark, paralyzing payroll functions for military personnel. Bank Pasargad and Bank Melli also reported widespread outages, although some official media denied the extent.

Hacktivist groups like “Predatory Sparrow” and “Tapandegan” claimed responsibility for multiple attacks.

On July 3, Tapandegan claimed to have hacked Bank Mellat, leaking data from over 32 million accounts. On July 18, nationwide disruptions hit payment terminals across Iran, compounding financial chaos.

The Wall Street Journal reported that Israeli-aligned cyber operatives wiped $90 million in crypto assets tied to the Islamic Revolutionary Guard Corps (IRGC), targeting Bank Sepah and Iran's top crypto exchange, Nobitex.

The hack disabled military salaries and ignited public panic, leading to a 12% drop in the rial and a temporary halt to trading on the Tehran Stock Exchange.

Iran ranks among the world’s most restricted digital environments. Freedom House listed the country as the third most repressive globally in terms of internet censorship.

"The country’s digital future cannot be built on filtered networks and unequal access," said lawmaker Salman Es’haghi, calling for full transparency on which individuals or institutions benefit from unrestricted internet access. "People deserve to know who is exempt from the restrictions they endure every day."

"The JCPOA has not been implemented for seven years, and the European countries halted their obligations after the United States withdrew from the deal," said Kazem Gharibabadi, Iran’s deputy foreign minister for legal and international affairs, in remarks to state news agency IRNA from New York on Tuesday.

"Did they themselves fulfill their commitments under the JCPOA that they now expect the Islamic Republic of Iran to do so?"

Gharibabadi's comments come ahead of a scheduled meeting on Friday in Istanbul between Iranian officials and representatives of the European E3—France, Germany, and the United Kingdom—to discuss recent diplomatic tensions and European statements regarding the activation of the so-called “snapback” mechanism.

The snapback would restore UN sanctions lifted under the Joint Comprehensive Plan of Action (JCPOA), from which the US unilaterally withdrew in 2018.

'Snapback will complicate nuclear standoff'

Gharibabadi said that reimposing international sanctions on Iran would make the situation over its nuclear program more complex.

“Any move to activate the snapback mechanism and revive terminated Security Council resolutions has no legal basis and will only complicate the situation further,” Gharibabadi said. “The responsibility will lie with the Western parties.”

Speaking about the upcoming Istanbul meeting, Gharibabadi said, “We will discuss diplomatic matters and the snapback mechanism. Of course, we will present our positions. Our goal is to explore what joint solutions we can reach to manage the current situation.”

He described the European effort to reinstate UN sanctions as “an entirely illegal action” with “no legal basis whatsoever.”

According to Gharibabadi, the meeting was arranged following outreach by the foreign ministers of the E3 countries and the High Representative of the European Union for Foreign Affairs Kaja Kalla to Iran’s Foreign Minister Abbas Araghchi.

Iran criticizes UN Security Council

Separately, on Monday in New York, Gharibabadi addressed representatives from UN member states at a closed-door briefing, where he accused the United States and Israel of violating Iran’s sovereignty and threatening global peace.

"Iran has been subjected to aggression by two regimes that possess nuclear weapons. Yet, the United States and its allies have blocked efforts to pass a resolution condemning these acts in the Security Council and the IAEA Board of Governors," Gharibabadi said.

“If the Security Council is unable to fulfill its responsibilities, then which body is accountable for maintaining international peace and security?”

Gharibabadi concluded with a warning about the future of the global non-proliferation regime.

“Does this dangerous silence not send a message to countries like Iran that if you are not a member of the Non-Proliferation Treaty, not only will you not be held accountable, but you may also benefit from immunity and privileges?”

The JCPOA, signed in 2015, offered Iran sanctions relief in exchange for limits on its nuclear program. The US withdrawal under former President Donald Trump in 2018 triggered a gradual unraveling of the deal, with Iran scaling back its commitments and European parties failing to deliver promised economic benefits.