U.S. Blockade and Sanctions Drive Iranian Medicine Price Spikes

Medication prices in Iran have soared, with some treatments more than tripling in cost, as a U.S. naval blockade and intensified sanctions squeeze the pharmaceutical industry. Seven months into a war involving the United States and Israel, the country faces an economic crisis marked by record-low currency values and high unemployment.

While the Iranian government produces 80% of its medicines domestically, the industry relies heavily on imported raw materials. The U.S. blockade of ports since June has forced importers to use expensive air routes, which are further hindered by sanctions on Iranian airlines and financial caution from international banks. Additionally, airstrikes have damaged over 40 pharmaceutical factories.

Mehdi Pirsalehi, head of the government agency that sets drug prices, has amended prices for 2,000 types of medicines to address the crisis. While hospitals remain relatively supplied, pharmacies face severe shortages and are owed approximately $270 million by insurance companies. Essential drugs for kidney dialysis and psychiatric care are increasingly unavailable, and flu vaccine prices have nearly doubled. Some Iranian medicines are also being smuggled into Afghanistan, Pakistan, and Iraq for higher prices.