Iran's political transition following Supreme Leader Ali Khamenei's death in U.S.-Israeli strikes earlier in 2026 has centered on constitutional succession, with Mojtaba Khamenei appointed via the Assembly of Experts and new military leadership installed, including IRGC command shifts. Ongoing economic protests, earlier crackdowns, and factional tensions between hardliners and pragmatists have raised questions about internal power consolidation, though no verified coup attempt has occurred and the process followed formal channels. Recent military directives emphasize immediate responses to threats, while indirect talks with the U.S. via mediators continue ahead of American midterms amid risks of renewed strikes. These developments shape trader assessments of stability risks and institutional control.