Deep Crisis in Iran's Economy Under the Shadow of US Sanctions and War
Iranian leaders stated that U.S. sanctions and the war have reduced foreign trade by one-third and pushed inflation to 66%.
Facing a severe deadlock in the sixth month of the war under increasing U.S. economic sanctions and a naval blockade, Iran's economy has seen annual inflation reach the 66% level.
Economic Burden and Statements by Leaders
Iranian leaders have officially acknowledged the devastating impacts of the ongoing war with the United States and intensified sanctions on the country's economy.
Foreign Trade and Inflation Figures
According to statements in state media, Iran's foreign trade has dropped by approximately 35% due to U.S. sanctions and the naval blockade imposed on ports.
Amid this economic contraction and pressure environment, annual consumer inflation in the country climbed to 66% as of last month.
Tehran's Strategy and Diplomatic Contacts
The Tehran administration announced that while resisting U.S. pressure, it will maintain diplomacy, wants the temporary agreement signed in June to be revived, and will preserve its control over the Strait of Hormuz.
Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani met with Iranian leaders in Tehran to discuss diplomatic efforts and the status of ship transits in the Strait of Hormuz.
Washington's New Financial Sanctions
The administration of U.S. President Donald Trump has intensified efforts to financially penalize Iran with moves described as an economic D-Day.
The Washington administration sanctioned Egypt-based Banque Misr for doing business with Tehran, while also targeting a Hong Kong-based entity and an individual linked to Iran's Bank Melli.