The U.S.'s all-out economic pressure, including long-term maritime blockades and secondary boycotts, is pushing Iran's economy to the brink of collapse, Reuters reported on the 4th, local time.

The livelihoods of ordinary citizens are on the verge of collapse as the value of the currency plummets to record lows day after day and inflation soars close to 70%.

Recently, the value of the Iranian rial has surpassed 2.2 million rials per U.S. dollar.

This is less than half compared to a year ago, when it stood at 1 million rials per dollar.

Inflation is also devastating.

The 12-month average inflation rate stands at 69.9%, and the price growth rate for basic necessities such as food, beverages, and tobacco is nearing double that figure.

The average monthly salary of workers is around $125 (approx. 170,000 won), which falls short of even one-third of the basic household living expenses estimated by the government ($450 per month).

With the job market freezing up as well, the official unemployment rate jumped to 9.1% this spring, and the number of employed people plummeted by about 450,000 compared to the same period last year.

Mahnaz, a 34-year-old employee at a private company in Tehran, told Reuters, "We are getting poorer every day."

An office worker in Tehran told Reuters, "We are getting poorer every day."

A humanitarian crisis that goes beyond soaring table food prices is also severe.

Although pharmaceuticals and food are exempt from sanctions, over-compliance by global banks fearing U.S. sanctions has led them to avoid payments altogether. As a result, even the import of essential medicines for cancer patients has effectively been cut off, compounding the suffering of the public.

This economic hardship stems from a tight U.S. sanctions net that has cut off Iran's access to the U.S. dollar.

With secondary boycotts targeting third-country companies as well, channels for importing essential goods and settling crude oil sales revenues have been blocked.

Iran's leadership, which in the past bypassed sanctions through shell companies, unregistered oil tankers, and smuggling, has also hit a limit.

This is because fees required for illegal circumventions have soared, making it difficult even to maintain the sanctions-evasion network.

According to commodity analytics firm Kpler, Iran's crude oil shipments this month plunged to 260,000 barrels per day, about 15% of the 1.7 million barrels per day recorded a year ago.

Only minimal exports are taking place via trucks, trains, or small vessels in the Caspian Sea.

To make matters worse, the United Arab Emirates (UAE), a core trade hub, completely suspended commercial and financial transactions with Iran last month.

Iranian President Masoud Pezeshkian also admitted that overall trade volume has decreased by about 25% to 35% due to hits to the import sector.

A trader in Tehran said, "With the UAE route blocked, we have to route through other countries, which makes deliveries delayed and import unit costs much higher."

Iran's leadership is on high alert, concerned that economic collapse could lead to a public explosion.

This comes while aftershocks remain from large-scale anti-government protests that claimed thousands of lives in January.

A high-ranking Iranian source conveyed the internal sense of crisis, stating, "Despite domestic crude production, gasoline inventories, which must rely on imports due to a lack of refining facilities, have only two months left."

The United States seeks to induce internal uprisings in Iran through economic pressure and secure an advantageous position in future negotiations.

However, Iran is maintaining a hardline stance of resistance, targeting the inflation burden on the U.S. administration ahead of the November midterm elections.

Behind Iran's ability to endure amidst the U.S. sanctions network are China and Russia.

It is putting out immediate fires by selling crude oil at cheap prices to small Chinese refineries that are not subject to Western sanctions, and is actively utilizing Russia—with which it has grown closer since the war in Ukraine—as a route to bypass sanctions, thereby catching its breath.

Recently, the U.S. and Iran escalated tensions by exchanging strikes targeting U.S. military bases in the Gulf coastal region and Arab nations.

While Iran claims it still controls the Strait of Hormuz, international energy logistics continue to flow through alternative routes and other means, prompting analysis that Iran's military pressure card is gradually losing its strength.

Ali Ansari, a professor at the University of St Andrews in the UK, predicted, "Amid severe economic pressure, Iran is also losing its control over the Strait of Hormuz. In the end, they will have no choice but to choose negotiations."
 
(Photo: AP, Yonhap News)