Trump's Iran Sanctions Bite: Oil Flows Again as Regime Weakens
President Donald Trump's strategy against Iran has been successful in weakening the country's economy and military power. The Iranian Revolutionary Guard Corps (IRGC) is struggling to maintain its finances, regional network, and leverage due to US sanctions.
The Strait of Hormuz, a critical shipping route, has seen oil shipments return to pre-war levels, while Iran's domestic situation continues to deteriorate. The country's rial has plummeted from 958,000 to the dollar in 2025 to around 2.2 million in September 2026.
Inflation is nearing 70%, food prices have more than doubled, and unemployment is above 9%. Youth unemployment stands at a staggering 20.1%.
The IRGC's financial lifelines are being squeezed by Washington's targeting of oil exports, shadow fleets, exchange houses, front companies, and foreign buyers willing to take sanctioned Iranian crude. China, which buys around 90% of Iran's oil exports, is under pressure to comply with US sanctions.