Iran Reports Economic Decline Amid Intensified US Sanctions

President Masoud Pezeshkian acknowledged on August 29, 2026, that Iran's foreign trade has slumped by nearly 35 percent due to US sanctions and a naval blockade of its ports.

Annual inflation reached 66 percent last month, prompting the government to prioritize job creation and price management while maintaining control over the strategic Strait of Hormuz.

Despite the economic strain, Iran reported selling 90 million barrels of oil during a brief June memorandum with Washington, while military officials pledged to maintain their missile and drone capabilities.