Iran Admits Heavy Economic Toll from US War, Vows Continued Defense and Diplomacy

Iranian leadership has formally acknowledged the severe economic fallout resulting from six months of conflict with the United States. President Masoud Pezeshkian revealed that foreign trade has decreased by more than 35 percent due to ongoing US sanctions and a strict naval blockade.

Speaking on Saturday, Tehran officials emphasized a dual approach of maintaining defense capabilities and pursuing diplomacy. The government highlighted that addressing domestic financial hardships—including soaring inflation, job creation, and decreasing reliance on the US dollar—is now a primary objective. President Pezeshkian noted that despite trade restrictions, Iran successfully sold approximately 90 million barrels of oil during a temporary Memorandum of Understanding signed with Washington in June.

Meanwhile, Supreme Leader Ayatollah Mojtaba Khamenei issued a written statement urging authorities to combat pressing economic challenges such as inflation, unemployment, and market instability. With annual inflation reaching 66 percent last month, citizens in Tehran reported that the ongoing war has drastically disrupted daily life and driven up the cost of living.

On the diplomatic and military fronts, the government described defence and diplomacy as inseparable tools for safeguarding national sovereignty. Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani traveled to Tehran to meet with Iranian leaders regarding open shipping lanes in the Strait of Hormuz, talks that Foreign Minister Abbas Araghchi characterized as creative. Concurrently, military officials maintained a firm stance, with army commander-in-chief Amir Hatami and Acting Defence Minister Majid Ibn Reza asserting that Iran's military readiness and strategic capabilities remain intact.