Iran acknowledges economic consequences of the war

US sanctions policy under pressure

The background to the decision is the concern that harsh sanctions against China and India — major purchasers of Iranian raw materials — could destabilize global energy markets and supply chains. According to this, the US government is trying to maintain pressure on Tehran without endangering its own economy and the global economy.

In Iranian media, Pezeshkian's statement was perceived as an unusually open act of self-criticism regarding the country's own economic situation. Until now, the government in Tehran had largely played down the effects of the war and the sanctions.

Economic experts point out that the Iranian economy has already been suffering for years under a dense network of international sanctions. The war has now significantly worsened the situation, as investment has declined and inflation rates have risen.

Domestic political tensions in Tehran

According to sources close to the president, the political leadership in Tehran is under growing domestic political pressure. Calls for a swift end to the military confrontations and a resumption of diplomatic negotiations are growing louder.

International observers interpret the acknowledgment as a signal addressed to Washington. Tehran wants to show that it is ready to negotiate an end to the sanctions, provided the economic hardship of its own population is alleviated.

In recent months, the US had expanded its sanctions mechanisms while at the same time keeping channels of dialogue open. The balance between pressure and diplomacy remains a central element of the US strategy toward Tehran.

Outlook on possible negotiations

It remains unclear so far whether the Iranian leadership will propose concrete steps toward de-escalation. The coming days are expected to show whether Pezeshkian's words will translate into diplomatic initiatives or whether the economic situation will continue to be politically instrumentalized.

Ayatollah Mojtaba Khamenei had most recently emphasized the resilience of the Iranian economy against external pressure. The discrepancy between this line and Pezeshkian's current admissions is interpreted in Tehran as an indication of an internal strategic shift.