Iran's Economy Reels Under Sanctions, War, and Blockade
Iran's economy is in crisis due to a combination of factors including US sanctions, war, and a naval blockade. The country's annual inflation rate has reached 66%, while foreign trade has fallen by 35%. President Masoud Pezeshkian attributed the decline in foreign trade to US sanctions and the naval blockade.
The rial's collapse has intensified the pressure on Iran's economy, making imported goods more expensive. The informal exchange rate reached a record 2.02 million rials per dollar on August 24, compared to an official Central Bank rate of about 1.5 million rials.
The World Bank says disruptions to imports of essential goods are adding inflationary pressure and increasing food-security risks. Conflict and sanctions have severely disrupted economic activity in Iran, which holds the world's fourth-largest proven crude oil reserves.