Reuters reported on September 4 (local time) that comprehensive economic pressure from the United States, including a long-term maritime blockade and secondary boycotts (sanctions on third parties), is pushing Iran's economy to the brink of collapse.

Everyday economic conditions are on the verge of collapse, with the value of the currency plunging to record lows day after day and inflation surging by nearly 70%.

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

This is less than half the level compared to a year ago, when it was 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 essential goods such as food, beverages, and tobacco is close to double that.

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).

As the labor market has frozen, 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.

A humanitarian crisis beyond soaring dining table prices is also severe.

Although pharmaceuticals and food are exempt from sanctions, global banks—fearing U.S. sanctions—are avoiding payments altogether. As a result, the import of essential medicines, including those for cancer patients, has effectively been cut off, compounding public suffering.

This economic distress stems from a tight network of U.S. sanctions that has fundamentally blocked Iran's access to the U.S. dollar.

With secondary boycotts activated against third-country companies as well, import channels for essential goods and settlement channels for crude oil sales have been blocked.

The Iranian leadership, which in the past bypassed sanctions using shell companies, unregistered oil tankers, and smuggling, has also hit a wall.

This is because commissions (premiums) required for illegal circumvention 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 plummeted to 260,000 barrels per day, about 15% of the 1.7 million barrels per day recorded a year ago.

Only minuscule amounts of 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 bypass other countries, which delays deliveries and makes import unit prices much more expensive."

The possibility that economic collapse could lead to a public uprising is considered the Iranian leadership's greatest source of anxiety.

A senior Iranian source conveyed internal a sense of crisis, saying, "Despite domestic oil production, gasoline reserves—which must rely on imports due to a shortage of refining facilities—have only two months left."

The United States is attempting to incite internal uprisings in Iran through economic pressure and secure an advantageous footing in future negotiations.

However, Iran is maintaining a hardline stance against resistance, eyeing the U.S. administration's inflation burden ahead of the midterm elections in November.

Analyses suggest that China and Russia are behind Iran's ability to endure amidst the U.S. sanctions network.

Iran is extinguishing immediate fires by dumping crude oil at low prices onto small Chinese refineries that are not subject to Western sanctions, while actively utilizing Russia—with which it has grown closer since the Ukraine war—as a route to bypass sanctions, thus catching its breath.

Recently, the United States and Iran escalated tensions by exchanging mutual strikes targeting U.S. military bases in the Persian Gulf 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, leading to analyses that Iran's military pressure card is gradually losing its leverage.

Ali Ansari, a professor at the University of St Andrews in the UK, predicted, "Under severe economic pressure, Iran is also losing its control over the Strait of Hormuz, and in the end, they will have no choice but to choose negotiations."