Iran’s leaders acknowledge economic toll of war, pledge diplomacy, defence
Iranian leadership has acknowledged that U.S. sanctions and a naval blockade have caused a 35 percent decline in foreign trade. The government is now prioritizing economic stabilization, including inflation control and job creation, while maintaining a defiant stance on diplomacy.
Why it matters
The economic strain on Iran highlights the real-world impact of the ongoing U.S.-Iran conflict on regional stability and global oil markets.
Iran’s president said sanctions and the US naval blockade had caused exports and imports to slump by nearly 35 percent.
x whatsapp-stroke copylink google Add Al Jazeera on Google info People shop for produce at the historic Tajrish bazaar in northern Tehran [AFP] By Al Jazeera Staff and Reuters Published On 29 Aug 2026 29 Aug 2026 Iran’s leaders have acknowledged the mounting economic damage of six months of war with the United States , with the president saying foreign trade has shrunk by more than a third under US sanctions and a naval blockade.
The admissions came on Saturday as Tehran signalled it would not back down, pledging to withstand US pressure , pursue diplomacy and maintain what it says is control over the Strait of Hormuz.
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