Iran Faces Growing Economic Strain as U.S. Sanctions and War Hit Trade
Iran: Iranian leaders acknowledged the economic toll of the war with the U.S., with the government prioritising inflation, employment, market management, domestic production and reducing dollar dependence, while President Masoud Pezeshkian said foreign trade had fallen nearly 35% due to U.S. sanctions and a naval blockade. Annual inflation reached 66%, although Iran sold about 90 million barrels of oil during the June memorandum of understanding, which provided temporary sanctions relief. Despite negotiations remaining at an impasse six months after the U.S. and Israel launched the war, Tehran vowed to pursue both diplomacy and defence, while maintaining control over the Strait of Hormuz, which previously carried 20% of global oil and LNG. Qatar and Pakistan have sought to revive diplomacy, with Qatar urging a return to open shipping through the strait, while Iran reiterated that vessels require Iranian permission to pass.
Source: Reuters
