Iranian official says economy strained as U.S. naval blockade deepens

Iran's vice president, Mohammad Reza Pezeshkian, told state media that the country faces high inflation, rising food prices and significant job losses, but said the population remains supportive of the government. He noted that inflation has exceeded 80% and that a labor ministry official estimates more than one million jobs have disappeared since May.

Pezeshkian said the U.S. naval blockade has halted most oil exports and prevented essential imports, including refined gasoline, leading to fuel shortages and long queues at stations. He warned that further pressure on citizens could push them over a breaking point, adding, "People are on the edge now; if I put more pressure on them, they might fall off the edge. We have to be careful that no one falls off."

He estimated that Iran's overall trade has fallen by 25%-35%, with imports dropping more sharply than exports. Data from trade-monitoring firm Kpler shows August crude export loadings are down more than 80% from a year earlier. The U.S. Central Command reported that since the blockade was reinstated, American forces have redirected 82 commercial vessels, disabled three and boarded two to enforce compliance.

Pezeshkian rejected claims that sanctions are ineffective, stating, "Saying that sanctions have no effect is not consistent with these facts."

U.S. military actions have also reduced Iran's ability to disrupt shipping through the Strait of Hormuz. Recent operations cleared sea mines and degraded Iranian radar and surveillance systems, allowing a significant portion of regional oil—estimated at 15-16 million barrels per day—to continue flowing, according to industry sources. Analysts said Iran's recent escalation in July backfired, restoring the U.S. blockade and limiting Tehran's leverage over the strategic waterway.