War weighs on Iran’s economy as U.S. intensifies sanctions

Iranian leaders have acknowledged the severe economic toll of ongoing conflict and intensified sanctions by the United States. President Masoud Pezeshkian reported that American sanctions and blockades have caused foreign trade to shrink by a third, prompting Supreme Leader Ayatollah Ali Khamenei to urge the government to address domestic hardship.

Despite these mounting economic pressures, Tehran signaled a firm stance, vowing on Saturday to withstand the U.S. pressure and refusing to retreat.