US-Israel-Iran War Live News: Iran is facing growing economic pressure as the US expands sanctions and the ongoing war disrupts trade, shipping and fuel supplies.
President Masoud Pezeshkian has now acknowledged and admitted that the measures are affecting the country, with Iran’s imports and exports falling sharply in recent months.
The admission comes as Tehran weighs difficult economic decisions, including a possible increase in petrol prices, while continuing to resist Washington’s pressure.Â
US-Israel-Iran War Live News: Pezeshkian Admits US Sanctions Are Hurting Iran’s Economy
Iran’s economic crisis has become harder for Tehran to dismiss as President Masoud Pezeshkian acknowledged that US sanctions and the naval blockade are hurting trade, fuel supplies and the wider economy. Pezeshkian said Iran’s exports and imports have fallen by between 25% and 35% in recent months.
The admission comes days after Tehran insisted that Washington’s latest sanctions would fail to achieve their objectives. Meanwhile, the US has expanded its sanctions campaign to target Iran’s financial and oil revenues and pressure countries and companies that continue doing business with Tehran.
The economic pressure is now creating difficult choices for the Iranian government, including whether to increase heavily subsidised fuel prices while inflation continues to squeeze households.
US-Israel-Iran War Live News: Iran Trade Falls 35%
Pezeshkian said Iran’s foreign trade has dropped sharply since the conflict intensified, blaming US sanctions and the blockade of Iranian ports.
The president said exports and imports had fallen by between 25% and 35%. Reuters reported that Iran’s annual inflation had also reached 66% in July, adding to the pressure on households and businesses.
The trade decline affects both sides of Iran’s economy. Lower exports reduce the flow of foreign currency, while restrictions on imports make it harder to maintain supplies of fuel and other goods.
US-Israel-Iran War Live News: Sanctions & Blockade Add Pressure
The US has intensified its economic campaign against Tehran as the war enters its sixth month.
US Treasury Secretary Scott Bessent announced a sweeping sanctions strategy targeting Iran’s financial connections, oil revenues and other sources of income. Washington has also warned foreign companies and countries that continuing significant business with Iran could expose them to secondary sanctions.
The campaign is already affecting Iran’s ability to conduct international trade. The US has expanded restrictions to entities outside Iran, including organisations linked to Iranian financial and oil networks.
US-Israel-Iran War Live News: Why Is Tehran Considering Higher Fuel Prices?
Iran is now considering another increase in petrol prices as the government struggles with fuel supplies and the cost of subsidies.
The government had already signalled before the latest sanctions that it was preparing the public for higher fuel prices. Iran provides heavily subsidised petrol to its population, making the subsidy increasingly expensive during the economic crisis.
Pezeshkian has suggested raising the price under the country’s third-tier fuel quota. “We should raise the price of the third-tier quota… For example, from 5,000 tomans to 10,000 tomans,” he said.
The move could help the government manage fuel demand and reduce the financial burden of subsidies. However, higher petrol prices could also push up transportation costs and add to inflation at a time when households are already facing severe price pressures.
US-Israel-Iran War Live News: Washington Intensifies Economic Pressure
Washington is moving beyond traditional sanctions by attempting to make international companies choose between doing business with Iran and retaining access to the US financial system.
Bessent said the administration wants to cut Iran off from its major economic lifelines, including oil revenue and financial connections.
The US has also targeted banks and other institutions accused of supporting Iranian trade. The latest measures have increased concerns among financial institutions in countries that maintain commercial links with Tehran.
The pressure campaign is designed to make sanctions harder for Iran to bypass through overseas businesses, banks and trading networks.
US-Israel-Iran War Live News: From ‘No Effect’ to Economic Warning
Pezeshkian’s latest comments mark a significant change in tone. Earlier, the Iranian president said the new US sanctions would not accomplish their objectives and insisted that Tehran would continue resisting Washington’s pressure.
But he has now acknowledged the economic impact directly. “Some say sanctions have no effect at all; to those people, I really don’t know what to say,” Pezeshkian told Iranian state television.
“We are in a war situation, and we must accept these wartime conditions,” he added. The comments show that Tehran recognises the economic consequences even as it continues to reject US demands.
Iranian leaders have also stressed that diplomacy remains an option while maintaining that the country will defend itself and protect its interests.
US-Israel-Iran War Live News: Inflation & Cost of Living Major Concerns
Inflation has emerged as one of the biggest domestic challenges for Iran. Annual inflation reached 66% in July, according to Reuters, as the war and sanctions compounded existing economic problems.
The government is now under pressure to control prices, maintain employment, support domestic production and keep essential goods available.
Higher fuel prices could make that task even harder. Petrol affects transportation and logistics across the economy, meaning an increase could eventually feed into the prices of food and other everyday products.
Iran’s leadership has therefore placed economic stability alongside the military and diplomatic response to the conflict.
US-Israel-Iran War Live News: What’s Next?
Iran now faces a difficult economic balancing act as Washington expands sanctions while the war continues. Tehran must protect fuel supplies, control inflation and keep trade moving while dealing with restrictions on shipping and international finance.
At the same time, diplomatic efforts continue. Qatar and Pakistan have been involved in attempts to revive dialogue between Iran and the US, while the Strait of Hormuz remains a major point of contention between the two sides.
For now, Pezeshkian’s admission confirms that US economic pressure is having a measurable effect on Iran. The key question is whether Tehran can absorb the growing costs without allowing inflation, fuel shortages and falling trade to trigger a deeper economic crisis.
