Iran's Economy Crumbles Under US Pressure

Iran's economy is facing severe pressure as a result of US sanctions and blockade. The country's clerical rulers have been unable to bypass sanctions for decades, but the latest US moves have left them in an increasingly sensitive position.

The US campaign to throttle Iran's economy by blockading its oil exports and stopping sanctions evasion has been growing more difficult to withstand, according to three senior Iranian sources. The effort to stop Iran accessing international financing networks in other countries it has long used to keep its economy functioning poses a real and urgent threat, the sources said.

Tehran's main source of revenue, oil exports, have been entirely cut off by the US blockade. Adding to Iran's problems, the economy was already deep in crisis before the conflict, with a cratering currency and spiralling inflation. The rial has fallen to record lows over recent days, from around 1 million rials to the dollar a year ago to over 2.2 million rials now.

The war is also entering a new phase, with each side trying to influence the other's politics. Iran hopes the threat of inflation will deter the U.S. administration before midterm elections in November, while Washington aims to push Iranians to revolt, a senior Iranian official said.