Iran Faces Economic Collapse Amid New U.S. Sanction Threats

Iran is experiencing a severe economic crisis characterized by hyperinflation and infrastructure damage following six months of conflict that began with U.S. and Israeli attacks on February 28. Masoud Pezeshkian, President of Iran, acknowledged that national problems have multiplied while income has fallen, specifically noting the destruction of factories and the inability to sell oil.

Citizens face food price increases of up to 400 percent and general inflation exceeding 80 percent, with the rial falling to 1.88 million against the U.S. dollar. While Agriculture Minister Gholamreza Nouri-Ghezeljeh claims food security remains intact due to 85 percent domestic production, Vice President Mohammad-Reza Aref described the inflation as painful. Unemployment reached a four-year high of 9.1 percent in June.

The crisis is expected to deepen as U.S. President Donald Trump vowed to hit Iran hard economically. Treasury Secretary Scott Bessent stated that Washington would impose unprecedented measures as early as next week. These pressures follow Iran's effective closure of the Strait of Hormuz during the ongoing conflict.

To prevent nationwide unrest and protect the legitimacy of the Islamic Republic, the Iranian government appointed Hossein Taeb to lead the Basij paramilitary group. The state has increased arrests and executions of journalists and activists, while the National Council of Resistance of Iran reports the use of internet throttling and new security laws to suppress the public.