Iran's economy groans under war and US sanctions
After six months of war with the US and Israel, Iran's foreign trade has fallen by about 35 percent and annual inflation reached 66 percent last month, according to President Masoud Pezeshkian. The government has made countering the economic effects of sanctions and war a priority, including curbing inflation and reducing dollar dependence. Meanwhile, the US is intensifying financial pressure, urging countries to cut trade ties with Iran, though it has avoided direct sanctions on China and India. Oil sales provided temporary relief during a brief truce, but the end of that arrangement has renewed pressure.
Why it matters: This illustrates the theme of economic statecraft, showing how sanctions and conflict reshape a state's economic priorities and external trade relations.