Iranian media on July 31 prominently featured new U.S. sanctions targeting Iran's oil and shipping, which Tehran condemned. Early reports also detailed Foreign Minister Araghchi's demands for U.S. reparations for the '12-day war' and rejection of any agreement requiring a complete halt to enrichment for future nuclear talks. This hardline stance escalated throughout the day with Western sources reporting Iran's preparations to withdraw from the NPT. Concurrently, a joint statement by the U.S. and thirteen European nations condemned Iran's alleged threatening intelligence activities abroad. The U.S. later dismissed Iran's reparations demand as "ridiculous" and announced new sanctions on Iran's drone program. Domestically, the severe water and electricity crisis remained a persistent concern, with reports detailing fuel oil burning becoming official policy amidst energy shortages.