Iran Warns of More Sanctions, Inflation as Economic Pressure Mounts

TEHRAN, IRAN — WEB DESK: Iran could face additional sanctions, economic pressure and higher inflation in the coming period, First Vice President Mohammad Reza Aref has warned, accusing the United States and Israel of pursuing what he described as an “economic war” against Tehran following recent military tensions.

Speaking at a meeting of Iran’s market regulation headquarters, Aref said the government needed to prepare for mounting economic challenges and ensure that essential goods remained available to the public.

According to Iranian media reports, Aref argued that Iran’s adversaries had shifted their strategy towards greater economic pressure after failing, in his assessment, to achieve their objectives through military means.

Aref accuses US, Israel of ‘economic war’

Aref accused Washington and Israel of attempting to weaken Iran’s economy and exploit inflation and economic hardship to fuel public dissatisfaction.

He warned that additional sanctions and other forms of economic pressure could emerge in the coming days.

The description of the measures as an “economic war” reflects the Iranian government’s position and was not presented by Aref as a formally declared policy by Washington or Israel.

Iranian officials have frequently characterised Western sanctions, particularly restrictions targeting the country’s energy and financial sectors, as a form of economic warfare.

Government focuses on prices and essential supplies

Aref stressed the need for the government to maintain stability in domestic markets despite external pressure.

He called for continued efforts to regulate markets and ensure that essential commodities remain available to Iranian consumers.

Inflation has long been a major economic concern for Iranian households, affecting food, housing and other everyday expenses.

Additional restrictions on trade or financial transactions could add further pressure depending on their scale, implementation and impact on Iran’s access to international markets.

Aref said Iran remained committed to international law but would not compromise what Tehran considers its legitimate national rights and interests.

Sanctions weigh on Iranian economy

Iran has faced extensive US sanctions affecting oil exports, banking, shipping and other sectors.

Iranian authorities argue that the restrictions have constrained trade and government revenues while contributing to pressure on the national currency and domestic prices.

The country’s economic challenges, however, also reflect a broader combination of factors, including domestic fiscal and monetary conditions, structural weaknesses and geopolitical uncertainty.

The prospect of additional sanctions has therefore renewed concerns about inflation and the purchasing power of Iranian households.

Oil revenue remains critical

Energy exports remain particularly important to Iran’s economy.

Restrictions affecting crude sales and access to international payment systems can influence government revenue and foreign-currency availability, while geopolitical tensions can simultaneously create volatility across international energy markets.

The latest economic warning comes as relations between Iran, the United States and Israel remain highly strained following recent military confrontation.

At the same time, prospects for renewed diplomacy between Tehran and Washington remain uncertain.

Iranian Foreign Minister Abbas Araghchi has said no decision has yet been taken on resuming negotiations with the United States, although third countries continue to facilitate exchanges of messages.

Tehran prepares for further pressure

Aref’s comments suggest Iranian authorities are preparing for the possibility that economic pressure could intensify even without an immediate expansion of military confrontation.

His remarks also highlight the domestic challenge facing Tehran: protecting supplies of essential goods and containing price pressures while navigating sanctions and regional instability.

Whether inflation rises further will depend on several factors, including the scope of any new sanctions, exchange-rate movements, oil revenues, government economic policy and the trajectory of Iran’s confrontation with the United States and Israel.

For now, Tehran is publicly signalling that it expects economic pressure to remain a central element of the wider geopolitical confrontation.