Iran's Economy Strains Under US Sanctions and War

Iran is grappling with a deepening economic crisis as its six-month conflict with the United States intensifies, with the country's supreme leader urging the government to address severe hardship while the president reports foreign trade has plummeted by 35 percent. The economic strain stems from a tightening U.S. sanctions campaign and a naval blockade of Iranian ports, even as diplomatic efforts to end the war continue and tensions persist over control of the strategic Strait of Hormuz. Supreme Leader Ayatollah Mojtaba Khamenei, who has not appeared publicly since being injured in a February 28 attack that killed his father and predecessor, Ali Khamenei, has called on authorities to tackle the worsening conditions. A statement attributed to him emphasized the need to "seriously address the chain of economic and livelihood challenges, such as inflation, unemployment, management of prices and the market for goods and services." This appeal comes as Iran's annual inflation rate reached 66 percent last month, adding to the financial difficulties faced by households.