War and Sanctions Deepen Iran's Crisis

Iran is facing mounting economic pressures due to the fallout from the war and U.S. sanctions, as the rial’s value declines, import costs rise, and the cost-of-living crisis worsens. These developments come as the government struggles to maintain revenue flows amid restrictions on oil exports and a tightening naval blockade on Iranian ports.
The crisis has also impacted vital sectors, with growing complaints about inadequate salaries and delayed pension payments. In a sign of the severity of the situation, Iranian officials have acknowledged the deterioration of economic conditions, warning that the country is undergoing one of its most difficult phases. The continuation of the war and external pressures further complicate Tehran’s options, as it seeks to ease international sanctions and restore economic stability.
While Washington asserts its control over the strait, Iran’s Islamic Revolutionary Guard Corps (IRGC) has escalated its rhetoric, announcing the imposition of navigation rules in coordination with the Sultanate of Oman and threatening to target non-compliant vessels. Alongside this field escalation, attention is turning to a diplomatic initiative led by Pakistan with United Nations support to revive peace talks between Tehran and Washington, amid intensifying economic pressures on Iran.
In this context, the IRGC claimed that U.S. forces withdrew to a distance exceeding 1,000 kilometers from the Iranian border, and that U.S. ships were absent, for the first time, from the waters of the Gulf, the Strait of Hormuz, the Sea of Oman, and the northern Indian Ocean. Ali Fadavi, one of the IRGC’s commanders, stated in remarks to state television that this withdrawal was not a U.S. choice but resulted from what he described as the strength of the IRGC’s ground forces. He added that the United States failed to achieve any of its stated war objectives, affirming that the Strait of Hormuz has been under Iranian control for several months.
In a related development, Fadavi said that Tehran, in cooperation with Muscat, has established new navigation rules in the strait and begun implementing them, despite Washington’s attempts to influence the situation in the region. He noted that ship captains are forced to use the southern part of the strait due to insurance obligations and financial requirements, but warned that vessels taking this route could face “measures” from the Iranian armed forces at any moment.