War weighs on Iran’s economy as US intensifies sanctions
Iranian leaders acknowledged the economic toll of war with the US, with the supreme leader urging the government to address hardship and the president saying foreign trade has shrunk by a third due to American sanctions and blockade. Tehran signalled no retreat, vowing to withstand US pressure, pursue diplomacy, and maintain control over the Strait of Hormuz. The US imposed sanctions on Egypt’s Banque Misr and an entity in Hong Kong linked to Iran’s Bank Melli, while annual inflation hit 66 per cent in July.
Why it matters: This illustrates the theme of economic statecraft, as sanctions and war compound Iran's economic pressures, affecting global energy markets and international trade.