Iran’s President Acknowledges Impact of US Sanctions as Economic Pressure Mounts

Iranian President Masoud Pezeshkian has acknowledged that US sanctions are taking a significant toll on the country’s economy, days after declaring that the latest measures imposed by Washington would not achieve their intended effect.

Speaking during an interview with Iranian state television late Friday, Pezeshkian rejected claims that sanctions had no impact, saying the country was operating under conditions comparable to wartime.

“Some say sanctions have no effect at all; to those people, I really don’t know what to say,” Pezeshkian said.

He added: “We are in a war situation, and we must accept these wartime conditions.”

Imports and exports decline

Pezeshkian said Iran’s imports and exports had declined by between 25 and 35 percent in recent months, attributing the deterioration to US pressure and what he described as a naval blockade of Iranian ports.

The economic pressure has raised concerns over Iran’s ability to maintain supplies of essential commodities, including fuel.

Iranian Vice President Mohammad Jafar Ghaempanah said earlier in the week that the US blockade had prevented the country from importing enough petrol to compensate for a shortfall in domestic production.

Petrol prices under review

Against that backdrop, Pezeshkian said Iran should consider increasing petrol prices under the country’s tiered fuel-pricing system.

He proposed raising the price of the third-tier petrol quota from 5,000 tomans to 10,000 tomans.

Iran has historically maintained heavily subsidised fuel prices, making petrol pricing a politically sensitive issue. The country is one of the world's major oil producers and has some of the lowest fuel prices globally.

Any substantial increase could therefore place additional pressure on households already affected by economic difficulties.

US intensifies economic pressure

The latest developments follow new measures announced by the administration of US President Donald Trump.

US Treasury Secretary Scott Bessent said Washington was pursuing what he described as the “economic asphyxiation” of Iran and warned countries and businesses against circumventing American sanctions.

The current sanctions regime largely stems from Trump's decision in 2018 to withdraw the United States from the international nuclear agreement with Iran and reimpose extensive economic restrictions on Tehran.

Pezeshkian shifts tone

Pezeshkian's latest remarks represent a notable shift from comments he made earlier in the week.

On Wednesday, the Iranian president insisted that the latest US sanctions would not succeed in forcing Tehran to change course.

“We will stand firm against economic pressures, as we have done so far and will continue to do,” he said at the time.

His acknowledgement of the sanctions' economic impact nevertheless signals the scale of pressure facing Iran as restrictions affect trade, fuel supplies and other areas of the economy.

The Iranian government now faces the challenge of maintaining domestic economic stability while resisting increasing pressure from Washington.