Iran issued a warning on Wednesday about the potential economic consequences of a new Israeli-led military strike, as Israel counted votes from a highly consequential election that could influence the trajectory of the ongoing regional conflict.

Under Prime Minister Benjamin Netanyahu’s leadership, Israel and Iran have engaged in direct hostilities for the first time despite decades of adversarial relations. The recent election provided Israeli voters an opportunity to evaluate Netanyahu’s right-wing administration amid rising tensions and threats from both Israel and the United States of further military actions against Iran following the outbreak of war earlier this year.

Iranian Foreign Minister Abbas Araghchi underscored the possible disruption to global energy markets in the event of additional Israeli military action targeting the Arabian Gulf region. Speaking on social media, Araghchi highlighted concerns shared by both energy producers and consumers at the recent Gas Exporting Countries Forum summit in Moscow. The conflict, which erupted in February, has already imposed significant obstacles on energy shipments from Gulf states, particularly as Iran has moved to blockade the strategic Strait of Hormuz.

In parallel with the heightened tensions, diplomatic efforts continue. A senior official indicated that Qatari mediators recently presented Tehran with a new draft agreement aimed at ending the conflict involving the United States and Israel. However, an Iranian government spokesperson characterized the proposals as “unacceptable” and denied that they amounted to a formal offer.

An external official involved in the negotiations confirmed that a peace plan had been submitted to Tehran on Sunday and was under consideration, with a response anticipated by the end of the week. The details of the draft remain undisclosed, and the persistence of conflicting accounts highlights ongoing uncertainty over the prospects for a diplomatic resolution to the eight-month-long war.