Iran president reverses course, admits US sanctions are hurting economy

Iran’s President Masoud Pezeshkian has admitted that US sanctions are hurting the country’s economy, reversing his earlier dismissal of their impact, according to a report by Vanguard.

Speaking to state TV, Pezeshkian said Iran was in a “war situation” and acknowledged exports and imports had fallen 25 to 35 percent amid a US naval blockade. He proposed raising subsidised petrol prices to offset the trade decline. The reversal follows US Treasury Secretary Scott Bessent’s plan for Iran’s “economic asphyxiation,” part of sanctions in place since Trump withdrew from Iran’s nuclear deal in 2018.