Iran faces a dilemma after Israeli strikes on Saturday. Retaliating risks further escalation at a time when its economy is struggling and its military vulnerability is clear. However, not retaliating risks looking weak to allies and more aggressive voices at home. Iran is already in the middle of a regional war, with its proxies weakened by Israeli military response. The country faces economic problems and domestic dissent, making it wary of an extended and costly war with Israel. The nuclear program is another dilemma, as pressure mounts to advance it and go for a bomb, but Iran also faces opposition from the US and other countries. Iran's ultimate calculation remains uncertain, but both Iran and Israel are eager to restore the deterrence effect with retaliatory strikes. However, these attacks can easily spill over into wider violence and escalate the conflict. Iran may choose to heed advice to call an end to retaliations and focus on diplomatic outreach.