Iran's 53.7% Inflation Amid War, US Blockade

TEHRAN, Iran -- Iran's control of the Strait of Hormuz continues to disrupt global energy supplies and drive up prices worldwide, but severe domestic economic pressures from an ongoing war and a U.S. naval blockade are straining the country's ability to sustain the conflict.

Iranians face spiraling inflation, with the official statistics center reporting 53.7 percent annual inflation in mid-April and food prices up 115 percent from the previous year. The rial has lost more than half its value over the past year, reaching a record low of 1.9 million to the dollar by late last month. The International Monetary Fund forecasts a 6 percentage point contraction in Iran's economy over the next year. These woes stem from U.S. and Israeli strikes on key industries, mass job losses, business closures and a months-long government internet shutdown.

The hardships have eroded living standards, with grocery prices surging since the war began around February. Surveys of Tehran stores showed chicken and lamb up 45 percent, rice 31 percent and eggs 60 percent. Taxi driver Hossein Farmani, 56, waited for fares under a Tehran overpass and noted tea and milk prices rising over 50 percent. "If...