The United States on Tuesday criticized Iran’s leadership over the ongoing nationwide water crisis, which have affected millions across the country, blaming it on mismanagement, corruption and neglect.
"Days without water in the scorching heat of July. There's no access to water for drinking, bathing, washing or cooling homes," the US State Department said in a post on its Persian X account, referring to the ongoing water crisis in Iran.
"The people of Iran continue to suffer the real consequences of the regime's greed, corruption, and mismanagement of water resources," the State Department said in the post accompanied by an image captioned, "Iranian people deserve better than this."
Officials in Tehran blame drought and public overuse for Iran’s worst water shortage in living memory.
Despite a UN “red warning” 25 years ago, Iran expanded hydropower rather than wastewater treatment. 80% of untreated wastewater is dumped into rivers, deserts and underground wells, contaminating key water sources.
Amid an unprecedented heatwave in Iran, many natural and engineered water reservoirs across the country particularly in Tehran, Alborz and Fars provinces are nearly depleted.
In the capital Tehran, officials have attempted to curb consumption through emergency measures, including repeated water and electricity outages and temporary office closures on certain days.
The Islamic Revolutionary Guard Corps (IRGC) has built over 60 dams in recent decades. More than half are now empty, with hydropower generation operating at just one-third of its nominal capacity.
“The nuclear issue, uranium enrichment, and human rights are just excuses,” Khamenei said during a ceremony marking the 40th day after the deaths of Iranian military commanders and scientists killed during a recent 12-day conflict with Israel.
“Their real problem is Iran’s religion, knowledge, and national unity under the banner of Islam and the Quran.”
US President Donald Trump on Sunday expressed surprise at Tehran’s continued insistence on uranium enrichment despite last month’s American airstrikes on its nuclear facilities, vowing renewed strikes if Iran restarts nuclear work.
Speaking at the Imam Khomeini Hosseiniyeh at his residence in Tehran on Tuesday, Khamenei addressed families of the deceased and government officials.
“The world has now seen the full capability of the Islamic Republic up close,” he said. “These events are not new for us. For 46 years, we have resisted coups, wars, political unrest, and all types of plots.”
Khamenei added that Iran would not abandon its twin foundations of “religion and knowledge” despite mounting international pressure.
“With God’s help, we will continue to take great strides in strengthening our faith and deepening our scientific achievements,” he said. “To the dismay of our enemies, we will elevate Iran to the height of progress and pride.”
Iran’s nuclear program has long been a flashpoint in its relations with the West, with the US and European powers accusing Tehran of seeking to develop nuclear weapons. Iran denies the accusation, saying its nuclear activities are for peaceful purposes.
According to Mohammad Allahdad, deputy director of power generation, transmission and distribution of Iran’s power company, Tavanir, crypto mining operations are responsible for consuming nearly 2,000 megawatts (MW) of electricity — roughly the output of two Bushehr nuclear reactors.
“While this represents around 5% of total electricity consumption, it accounts for up to 20% of the current power deficit,” Allahdad said on Monday, calling the figure significant and alarming.
During a recent internet outage linked to the conflict with Israel, power consumption nationwide dropped by 2,400 MW, which Tavanir attributes to the shutdown of over 900,000 crypto mining devices operating illegally -- further validating the scale of their impact.
Allahdad’s remarks come amid growing concerns over blackouts, infrastructure strain, and public discontent during the country’s sweltering summer months when electricity demand peaks. Amid blistering summer temperatures, electricity demand from air conditioners, agriculture, and industrial production surges.
Allahdad stressed that using power for crypto mining during high demand days is “not only illegal and unethical, but also harmful,” adding that it risks voltage drops, fuse failures, damage to household appliances, and even fire hazards.
“Crypto mining devices produce intense heat,” he said. “We’ve had multiple reports from fire departments about fires linked to mining rigs, some of which spread to neighboring homes.”
Illegal farms hidden in plain sight
Authorities say abandoned homes, empty shops, warehouses, and industrial buildings are often repurposed for clandestine mining operations. These facilities frequently feature high electricity usage and surveillance cameras, which serve as red flags for investigators.
“Identifying these operations is challenging,” Allahdad said, “especially in large industrial areas. That’s why public cooperation has been crucial.”
To support enforcement efforts, Tavanir launched a public reporting line. Citizens who report illegal operations can receive rewards of up to 200 million tomans (about $2,300).
One bitcoin equals 440 homes
According to Hadi Sefidmou, head of Iran’s Crypto Mining Oversight and Regulation Initiative, producing a single Bitcoin with older mining devices can consume up to 1 million kilowatt-hours (kWh) — equivalent to the annual power use of 440 Iranian households. Even newer miners with better efficiency still consume significant amounts, with average power usage per unit ranging between 2 to 3.5 kW.
Given that each device operates 24/7, each illegal miner consumes as much power as 12 households, Sefidmou said.
Crackdowns accelerate
As enforcement intensifies, seizures of mining equipment have surged since last year. Over 250,000 illegal devices have been seized across Tehran, Khorasan Razavi, Isfahan, Fars, Kerman, and East Azarbaijan, with most units hidden in abandoned homes, rural farms, industrial ruins, and suburban villas.
Just this week, 108 mining rigs were confiscated in the southern city of Ahvaz, discovered in an abandoned factory in the village of Khabineh, according to Mohammad Forati, CEO of Ahvaz Power Distribution Company. Forati said the operation had caused voltage drops across the area, prompting citizen complaints.
Mahmoud Mahmoudi, managing director of the Markazi Province Power Distribution Company, said on Tuesday that 445 cryptocurrency mining devices have been identified and confiscated in the province since the beginning of the current year (March 21).
Another recent case in Alborz province saw 26 crypto farms shut down from March to June alone, with 168 unauthorized devices confiscated. In another incident last week, power company staff in Alborz intercepted a vehicle transporting 26 miners.
Iran’s subsidized electricity remains among the cheapest in the world.
“With electricity consumption hitting new records — above 70,000 MW — we cannot afford to ignore this,” said Mostafa Rajabi Mashhadi, CEO of Tavanir. “Every illegal miner we unplug helps preserve power for citizens.”
