Israeli Prime Minister Benjamin Netanyahu predicted the imminent downfall of the Iranian regime on Sunday, asserting that this shift will bring significant changes to the Middle East. He stated that Israel is determined to achieve the regime’s collapse through continuous operations.

Speaking during a government toast preceding Rosh Hashanah, Netanyahu indicated that Israel’s current strength is at its zenith while its adversaries are at their weakest. He attributed the removal of atomic bombs and ballistic missiles from above Israel to combined efforts with the United States.

Strategic Posture and Threats

Netanyahu claimed that Israel has completed "80-90% of the work" related to neutralizing the threat from Iran’s nuclear program, based on an earlier interview with i24 News. He emphasized the need to finish the remaining work, describing Iran as "the head of the octopus."

The Prime Minister stated that Israeli pilots are ready to strike Iran at any time. Although he acknowledged that Iran or other enemies pose no immediate threats, he warned they could "suffer a blow they don’t even imagine" if they attack Israel.

Iran’s Economic Strain

Iran’s economy is under severe strain six months into its war with the U.S. and Israel. The crisis is primarily driven by a near-total oil export blockade imposed by the U.S. military. President Donald Trump described this pressure as "economic D-Day," aiming to force Tehran into concessions.

Iranian sources told Reuters that limited foreign-currency reserves and reduced access to U.S. dollars are worsening the country’s cash-flow crisis. Meanwhile, Iran’s Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would respond more aggressively to any attacks on its interests or security.

Iran has warned of a faster and more painful military response to any further US attacks as sanctions and an oil blockade intensify pressure on its economy. Renewed tensions around the Strait of Hormuz have pushed Brent crude prices above $96.

Market Reaction

US equity futures traded lower late in the day as oil prices rose. Dow futures fell 147 points, or 0.28%, to 53,293.00. S&P 500 futures slipped 2 points, or 0.03%, to 7,720.00. Nasdaq 100 futures rose 37 points, or 0.13%, to 29,602.25 as of around 10:49 pm EDT.

In commodities, WTI crude oil rose 0.59% to $92.02 per barrel. Brent crude advanced 0.53% to $96.79 per barrel. Natural gas futures fell 1.78% to $2.922 per MMBtu. The US dollar index stood at 99.196, up 0.04% as of around 8:30 am IST.

Asian markets traded higher. South Korea’s KOSPI rose 3.11% to 6,895.43. Japan’s Nikkei 225 climbed 2.21% to 66,460.11.

Escalating Tensions

Iranian Parliament Speaker Mohammad Baqer Qalibaf said Sunday that Tehran would respond more aggressively to any attack on its interests and security. He stated that any attack would receive a faster, heavier and more painful response.

The warning followed renewed hostilities after a period of relative calm. US Central Command said it struck three Iranian tankers Saturday after Iran’s Islamic Revolutionary Guard Corps launched ballistic missiles at two US Navy ships. Iran also plans to establish a restricted zone outside the Strait of Hormuz, with vessels entering the area potentially facing sanctions.

Economic Pressure

Washington’s sanctions and blockade are disrupting oil exports and contributing to inflation, currency volatility and unemployment in Iran. Economy Minister Ali Madanizadeh said Tehran would pursue domestic reforms rather than change course due to US pressure.

President Donald Trump is reportedly weighing a declaration that the Iran war is over while maintaining that continued economic pressure could push Tehran to dismantle its nuclear program or contribute to the collapse of the regime. Vice President JD Vance suggested China may be willing to support US efforts to economically isolate Iran despite policy differences between Washington and Beijing.