Pezeshkian Proposes Gasoline Price Hike Amid U.S. Blockade

Iranian President Masoud Pezeshkian proposed doubling the third-tier gasoline quota price from 5,000 to 10,000 tomans per liter to offset a severe economic downturn. In a state television interview on August 29, 2026, Pezeshkian admitted that U.S. sanctions and a naval blockade of southern ports have reduced imports and exports by 25% to 35%, characterizing the current state as a "war situation."

Severe fuel shortages have led to long queues at gas stations in Tehran, Isfahan, Mashhad, and Bandar Abbas. The crisis is driven by the U.S. blockade and strikes from the ongoing U.S.-Israeli war that damaged domestic refineries. While Pezeshkian urged citizens to reduce consumption, the government remains wary that reducing subsidies could trigger mass civil unrest similar to the 2019 protests. Parliament Speaker Mohammad-Bagher Ghalibaf argued that raising prices would be a mistake.

The economic pressure follows the "Economic D-Day" plan unveiled by U.S. Treasury Secretary Scott Bessent, which aims for the "economic asphyxiation" of Iran. The United States has implemented additional sanctions to pressure Tehran into loosening control over the Strait of Hormuz. President Donald Trump reaffirmed that the U.S. is not currently engaged in talks with Tehran.