Inflation reaches 66 percent in Iran amid deepening economic crisis
Following sanctions and port blockades, inflation rose to 66 percent while foreign trade decreased by 35 percent. Citizens struggling with the cost of living are stockpiling basic foodstuffs as new protests are expected.
As a result of harsh US sanctions and port blockades, the Iranian economy has entered a major deadlock, with annual inflation rising to 66 percent and foreign trade volume declining by 35 percent.
Sanctions and Trade Loss
Official reports indicated that the country's foreign trade volume declined by 35 percent following the severe sanctions implemented by the US and the blockade targeting Iranian ports. The Washington administration recently included the Egypt-based Banque Misr, which has commercial relations with Tehran, on its sanctions list.
Assessments by the Administration
Iranian President Masoud Pezeshkian acknowledged that the negative impacts of the sanctions on the country's economy cannot be ignored, stating that the country is under wartime conditions. Supreme Leader Mojtaba Khamenei, on the other hand, advocated for adopting a resistance economy model and focusing on domestic production to overcome the problems.
Cost of Living Struggles and Protest Concerns
While Iranian Minister of Labor Ahmed Meydari stated that the country is facing an economic war, the Ministry of Foreign Affairs described US policies as state terrorism. Concerns that the increasing cost of living could trigger a new wave of public protests are growing by the day.
Public Panic over Food Stockpiling
Fearing that economic conditions will worsen further, Iranian citizens have begun stockpiling basic food products in their homes. Marzieh, a teacher in the city of Bandar Abbas, stated that salaries run out at the beginning of the month and people are hoarding staple items such as rice.