US Sanctions Squeeze Iran's Economy, Fueling Regional Tensions

The United States' campaign to squeeze Iran's economy through sanctions is putting increasing pressure on Tehran. Washington has targeted Iran's oil exports and tightened economic measures in an effort to force concessions from the Iranian government.

Iran has managed to circumvent U.S. sanctions for decades, but the latest measures are making it difficult and expensive to use alternative trading networks and informal financial channels. The country's main source of revenue, crude oil exports, have been severely restricted, with loadings falling to around 260,000 barrels per day from approximately 1.7 million barrels per day a year earlier.

The U.S. blockade has caused intermediaries to withdraw or demand higher premiums, making it challenging for Tehran to sell its stored crude oil supplies. Iran's economy was already struggling before the latest escalation, and months of fighting have added substantial costs for repairing damaged infrastructure and industry.