Iran admits economic losses after six months of war, pledges diplomacy and defense
Theo Al Jazeera English
Iranian President says exports and imports fell nearly 35% due to U.S. sanctions and naval blockade, while officials acknowledge severe economic damage after six months of war. Tehran pledges diplomacy and defense, insists on control of the Strait of Hormuz.
Iran's leadership has acknowledged increasingly severe economic damage after six months of war with the United States, as the president said foreign trade had contracted by more than a third due to Washington's sanctions and naval blockade.
The statement came on Saturday as Tehran signaled it would not yield, pledging to withstand U.S. pressure, pursue diplomacy, and retain control over the Strait of Hormuz.
The Iranian government said managing the economic fallout is now a central focus, including curbing inflation, creating jobs, and gradually reducing reliance on the dollar.
President Masoud Pezeshkian told state media that exports and imports had fallen nearly 35% due to sanctions and the blockade of Iranian ports. He said Tehran still sold about 90 million barrels of oil during the brief period of the Memorandum of Understanding (MoU) signed with Washington in June, when oil sales were temporarily permitted.
Supreme Leader Ayatollah Mojtaba Khamenei, who has not appeared publicly since the U.S. and Israel launched the war on February 28 with an attack that killed his father, Ayatollah Ali Khamenei, has urged the government to address the difficulties.
“The chain of economic and livelihood challenges—such as inflation, unemployment, price management, and the goods and services market—must be seriously addressed,” a written statement attributed to Khamenei said.
Annual inflation reached 66% last month, and Tehran residents say the war has upended daily life. Maryam, a Tehran woman, said: “Before the war, I did not work. Since the war, I had to find a job to help my family. Everything has become so expensive.” Omid, a food business owner, said trade had stalled while rents rose: “We can barely afford to pay our workers.”
Diplomacy and defense
In a statement on Saturday, the Iranian government described diplomacy and defense as “two complementary, coordinated, and inseparable wings” to protect national interests and territorial integrity, adding it would pursue both in a balanced manner.
Al Jazeera's Sinem Koseoglu in Tehran said the government is pushing a message of unity. President Pezeshkian has called for dialogue and less confrontational ties with neighboring countries, while the supreme leader appeals for internal unity and social cohesion.
Qatari Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani met Iranian leaders in Tehran on Thursday, stressing the importance of resuming shipping through the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi described the talks as “constructive.”
Meanwhile, Iran's military struck a defiant tone, with army Commander-in-Chief Amir Hatami telling Fars news agency that although the “enemy” had tried to destroy Iran's drone and missile capabilities, its arsenal was still being fired “with maximum intensity until the very last moment.”
On Friday, acting Defense Minister Majid Ibn Reza said Iran had “surprises” in store: “People, especially the enemy, should know that they will realize Iran's surprises at the appropriate time,” Tasnim news agency reported.
