Iran’s economy is spiraling, with the rial hitting new record lows against the dollar. A U.S. naval blockade has brought oil exports to a standstill, marking the first time since 1979 that no oil was loaded at export terminals. This has left Tehran in a bind, as it can’t import goods by sea and land routes are jammed. Inflation is nearing 90%, GDP is set to shrink by 5.4%, and unemployment is rising, leading to energy rationing. Even Supreme Leader Mojtaba Khamenei has voiced worries about social cohesion. The currency’s plunge, from 1.5 million rials per dollar at the year’s start to over 2.5 million now, echoes a previous collapse that sparked protests. With oil supplies dwindling and payments delayed, the regime’s main revenue source is drying up. U.S. sanctions are further tightening the noose, blocking access to funds abroad. President Masoud Pezeshkian laments that Iran can’t retrieve its own money from China. Meanwhile, U.S. officials like Marco Rubio argue the economic pressure is crucial to curb Iran’s threats.
