TEHRAN — Iranian President Masoud Pezeshkian on Monday said his country was in a "full-scale war" with the United States and that Tehran should accept the repercussions of the conflict.

 

"The reality is that today the Islamic Republic of Iran is engaged in a full-scale war," Pezeshkian said, adding that "we must be realistic and accept the natural consequences of this resistance," he said, according to a presidency statement.

 

"The most important battlefield today is the economy and the livelihoods of the people," said the Iranian president in a meeting in Tehran with judicial officials.

 

"If economic pressures cause social discontent to form and this discontent spreads, the enormous social capital that the people have created in support of the state may be damaged."

 

In June, inflation in Iran accelerated sharply due to the war, reaching peaks of nearly 90 per cent year-on-year.

 

Figures for July are not yet available.

 

In late December, a protest movement initially sparked by the high cost of living rapidly transformed into widespread anti-government demonstrations that peaked on January 8 and 9.

 

Iranian authorities reported more than 3,000 deaths, attributing the violence to "terrorist acts" orchestrated by the United States and Israel.

 

Foreign-based NGOs, however, put the death toll much higher.

 

US strikes hit several locations in Iran's southern port city of Bushehr, home to the country's only civilian nuclear plant, state media reported Monday.

 

“A few minutes ago, several locations in Bushehr city were hit by American enemy's projectiles," said Bushehr governor Mohammad Mozaffari, as quoted by official state news agency IRNA.

 

Iran said on Monday that diplomatic exchanges with the United States via mediators were ongoing despite US military strikes on the country.

 

“We have been informed by mediators, we have received messages -- without going into details -- but the main point is that the diplomatic apparatus has been active in recent days and ideas have been conveyed to us by certain mediators," said Iranian foreign ministry spokesman Esmaeil Baghaei at a press conference in Tehran attended by AFP.

 

Bahrain and Kuwait reported intercepting Iranian attacks on Monday, as the United States and Iran traded the latest strikes in more than a week of escalation.

 

A shaky US-Iran ceasefire has all but collapsed as Iran began attacking vessels using an Omani route in the Strait of Hormuz to force them to use its waters.

 

In response, the US has attacked Iran, which has responded with strikes on the Gulf and other Arab countries.Bahrain said its air defences "intercepted and destroyed a number of Iranian aerial aggressions", while Kuwait's military reported a "heinous Iranian aggression".

 

AFP correspondents in the Bahraini capital Manama heard explosions as sirens blared.

 

The US embassy in the island kingdom said it "has information to suggest that Iran may seek to target unspecified locations in central Manama".

 

“We urge all Americans to remain vigilant, follow local authorities' instructions, and review the latest guidance" from the embassy, it said on its website.

 

Bahrain has accused Iran of targeting civilians, while Kuwait has reported Iranian attacks on water and electricity plants as well as oil facilities.