Iran's economy is approaching collapse under a reimposed US naval blockade that has severed oil exports and driven inflation to roughly 88 percent year-on-year, with food prices surging past 128 percent.
President Masoud Pezeshkian said state revenues have fallen sharply after wartime strikes destroyed factories, eliminating tax income and forcing the government to subsidise damaged industries instead. Oil sales have stopped entirely, and shipping costs on the China route have quadrupled to $12,000 per container via land detours, adding an estimated $18 billion in annual transport costs. The administration is considering significant petrol price increases as fiscal pressure mounts.
US President Donald Trump vowed to strike Iran's economy hard, while Foreign Minister Abbas Araghchi said Qatar and Pakistan are relaying messages but insisted no negotiations are underway. The blockade follows the US-Israeli military campaign that began on 28 February.