US Siege Exacerbates Iran's Crises... Regime Acknowledges Losses from the War

Iranian leaders have acknowledged the economic losses resulting from the war with the United States. In a new message, Supreme Leader Mojtaba Khamenei urged the government to address these challenges. Meanwhile, President Masoud Pezeshkian stated that foreign trade had shrunk by about a third due to U.S. sanctions and the naval blockade imposed by Washington on Iran.

Khamenei’s message followed remarks by Pezeshkian and Central Bank Governor Abdolnaser Hemmati, who acknowledged the impact of the U.S. naval blockade, citing halted oil sales and difficulties in importing gasoline. The message addressed economic pressures, highlighting inflation, unemployment, and price and market management as among the key living-cost challenges facing the government.

Khamenei described the economic problems as “dark spots” on the face of Iran’s economy, calling for “resistance economy” policies to become the cornerstone of economic policy and for what he termed the “gradual displacement of the dollar” from its current role in the economy. He acknowledged that U.S. measures “during and after the war” had not been without impact on the current situation.

Tehran pledged to withstand U.S. pressures, continue its diplomatic track, and maintain what it described as its control over the Strait of Hormuz, the strategic waterway that gives Iran leverage due to its ability to disrupt global energy markets through it. In a statement broadcast by state media, the government said that addressing economic pressures stemming from sanctions and the war remains a top priority, including curbing inflation, directing investments toward domestic production, and gradually reducing reliance on the dollar.