In this photograph released on Wednesday, Jan. 7, 2026, by the official website of the Iranian Army, Iran's army chief Maj. Gen. Amir Hatami speaks to military academy students, in Tehran, Iran. (Masoud Nazari Mehrabi/Iranian Army via AP)2026-01-07T10:34:21Z DUBAI, United Arab Emirates (AP) Irans army chief threatened preemptive military action Wednesday over the rhetoric targeting the Islamic Republic, likely referring to U.S. President Donald Trumps warning that if Tehran violently kills peaceful protesters, America will come to their rescue.The comments by Maj. Gen. Amir Hatami come as Iran tries to respond to what it sees as a dual threat posed by Israel and the United States, as well as the protests sparked by its economic woes that have grown into a direct challenge to its theocracy. Seeking to halt the anger, Irans government began Wednesday paying the equivalent of $7 a month to subsidize rising costs for dinner-table essentials like rice, meat and pastas. Shopkeepers warn prices for items as basic as cooking oil likely will triple under pressure from the collapse of Irans rial currency and the end of a preferential subsidized dollar-rial exchange rate for importers and manufacturers likely fueling further popular anger. More than a week of protests in Iran reflects not only worsening economic conditions, but longstanding anger at government repression and regime policies that have led to Irans global isolation, the New York-based Soufan Center think tank said. Army chiefs threatHatami spoke to military academy students. He took over as commander-in-chief of the Irans army, known by the Farsi word Artesh, after Israel killed a slew of the countrys top military commanders in Junes 12-day war. He is the first regular military officer in decades to hold a position long controlled by Irans paramilitary Revolutionary Guard. The Islamic Republic considers the intensification of such rhetoric against the Iranian nation as a threat and will not leave its continuation without a response, Hatami said, according to the state-run IRNA news agency. He added, I can say with confidence that today the readiness of Irans armed forces is far greater than before the war. If the enemy commits an error, it will face a more decisive response, and we will cut off the hand of any aggressor. Iranian officials including Supreme Leader Ayatollah Ali Khamenei have been responding to Trumps comments, which took on more significance after the U.S. military raid that seized Venezuelan President Nicols Maduro, a longtime ally of Tehran, over the weekend. But theres been no immediate public sign of Iran preparing for an attack in the region.New subsidy payment beginsIranian state television reported on the start of a new subsidy of the equivalent of $7, put into the bank accounts of heads of households across the country. More than 71 million people will receive the benefit, which is 10 million Iranian rials, it reported. The rial now trades at over 1.4 million to $1 and continues to depreciate. The subsidy is more than double than the 4.5 million rial people previously received. But already, Iranian media report sharp rises in the cost of basic goods, including cooking oil, poultry and cheese, placing additional strain on households already burdened by international sanctions targeting the country and inflation.Irans vice president in charge of executive affairs, Mohammad Jafar Ghaempanah, told reporters Wednesday that the country was in a full-fledged economic war. He called for economic surgery to eliminate rentier policies and corruption within the country. Protests began Dec. 28 Iran has faced rounds of nationwide protests in recent years. As sanctions tightened and Iran struggled after the June war with Israel, its rial currency sharply fell in December. Protests began soon after on Dec. 28. They reached their 11th day on Wednesday and did not appear to be stopping. The U.S.-based Human Rights Activists News Agency offered the latest death toll of 36 for the demonstrations. It said 30 protesters, four children and two members of Irans security forces have been killed. Demonstrations have reached over 280 locations in 27 of Irans 31 provinces.The group, which relies on an activist network inside of Iran for its reporting, has been accurate in past unrest. JON GAMBRELL Gambrell is the news director for the Gulf and Iran for The Associated Press. He has reported from each of the Gulf Cooperation Council countries, Iran and other locations across the world since joining the AP in 2006. twitter instagram mailto