Iran invested all its resources into proxies waging wars for it. Them being smashed means Iran is ruined on all those war investments. With economy in shambles and expansionist war failed, it's hardly "least damaged".
This is untrue on multiple levels. Iran invested most of its resources on its own military - the proxies are extremely cheap - and Iran's most powerful Iraqi proxies are fine, while the Houthis actually came out of this stronger.