Iran President Admits US Sanctions Are Hurting Economy as Pressure Mounts

Iranian President Masoud Pezeshkian has acknowledged that US sanctions are damaging the country's economy, a notable change in tone from his earlier insistence that American economic pressure would not achieve its intended effect.

Speaking to Iranian state television late Friday, Pezeshkian rejected the idea that sanctions were having no impact, saying Iran was facing wartime conditions and would have to adapt to them. His remarks came as the economic pressure on Tehran intensifies amid the ongoing conflict with the United States and a tightening US campaign to restrict Iran's access to international trade and finance.

The Iranian president said the country's exports and imports had fallen by between 25% and 35% in recent months, attributing the decline to US sanctions and what Iranian officials describe as a naval blockade affecting the country's ports. Reuters separately reported that Pezeshkian put the contraction in foreign trade at about 35%.

The admission represents a departure from the more defiant messaging that has characterized much of Tehran's response to Washington's sanctions. Just days earlier, Pezeshkian had maintained that the measures would not achieve their objectives. His latest comments instead acknowledge that the restrictions are having tangible consequences for trade and economic activity.

The pressure has been accompanied by worsening economic conditions inside Iran. Reuters reported that inflation has risen sharply, while the country's economy is shrinking and foreign trade has weakened. Iran's supreme leader, Ayatollah Mojtaba Khamenei, has also called on the government to address inflation, unemployment, prices and instability in the market for goods and services.

Washington has made clear that the economic pressure is deliberate. US Treasury Secretary Scott Bessent recently outlined an intensified campaign to isolate Iran financially, warning countries and institutions that continue facilitating Iranian trade that they could face consequences. The latest measures build on a sanctions regime that has been in place since the United States withdrew from the 2015 nuclear agreement during Donald Trump's first presidency.

For Tehran, the challenge is compounded by the disruption to oil exports and other international trade. Pezeshkian said Iran had managed to sell around 90 million barrels of oil during a short-lived memorandum of understanding with Washington in June, when restrictions on oil sales were temporarily eased. That arrangement has since broken down, leaving Iran facing renewed pressure on one of its most important sources of foreign revenue.

The economic crisis is unfolding alongside a military confrontation that has now lasted six months. Iranian officials continue to reject what they regard as unacceptable US demands and insist that the country will defend itself, while Pezeshkian and other officials have simultaneously signalled an interest in diplomacy.

That balancing act is becoming increasingly difficult. Iran's leadership is trying to maintain its military posture while preventing economic deterioration from creating an even deeper domestic crisis. The president has suggested measures including raising petrol prices to reflect the country's reduced trade capacity, a move that could itself prove politically sensitive at a time when households are already facing rising costs.

The economic strain is also being felt beyond Iran's borders. The Strait of Hormuz remains a major point of tension because it is one of the world's most important routes for oil and gas shipments. Any prolonged disruption or uncertainty around the waterway could affect global energy markets, while Gulf states and international businesses are already looking for ways to reduce their exposure to the conflict.

Pezeshkian's admission does not mean Tehran is conceding to Washington. Iranian officials continue to insist that the country will resist US pressure and maintain its ability to defend its interests. But acknowledging the economic consequences gives a clearer picture of the choices facing Iran as the confrontation continues: sustain a costly standoff and absorb deeper economic pain, or pursue diplomacy in the hope of securing some relief.

The broader significance is that Iran's economic resilience is now becoming a central part of the wider confrontation with the United States. For months, Tehran has sought to project the message that sanctions cannot force it to change course. Pezeshkian's latest comments suggest that, whatever Iran's political and military resolve, the economic costs are becoming too significant to dismiss. As Washington tightens the pressure and diplomacy remains uncertain, the question is no longer simply whether sanctions are hurting Iran, but how much economic damage Tehran can absorb while continuing its confrontation with the United States.