War weighs on Iran’s economy as U.S. intensifies sanctions
Iranian leaders are acknowledging the economic toll of war with the U.S., but Tehran has vowed to withstand U.S. pressure.
A man walks past an anti-U.S. billboard at Enghelab Square in central Tehran on Aug. 3. | AFP-JIJI
REUTERS
Aug 30, 2026
DUBAI/CAIRO – Iranian leaders are acknowledging the economic toll of war with the U.S., with the supreme leader urging the government to address the hardship and the president saying foreign trade has shrunk by a third due to the American sanctions and blockade.
Yet Tehran signaled no retreat on Saturday, vowing to withstand U.S. pressure, pursue diplomacy and maintain what it said was control over the Strait of Hormuz, the strategic waterway giving Iran leverage through its ability to disrupt global energy markets.
The government said in a statement on state media that addressing economic pressures caused by sanctions and war was a central focus, including curbing inflation, managing markets, creating jobs, directing investment toward domestic production and gradually reducing dependence on the dollar.
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