Iran Foreign Trade Drops 35 Percent as War, Sanctions Drag On

Iran’s foreign trade has dropped nearly 35 percent, and the country’s leaders are now speaking openly about the pain this is causing at home. President Masoud Pezeshkian shared this number with state media, blaming tight US sanctions and a naval blockade around Iranian ports.

This comes at a hard moment for Iran. The war with the United States has now lasted six months, and talks between the two sides have stalled. Prices for everyday goods keep climbing, and many families are feeling the squeeze.

Supreme Leader Ayatollah Mojtaba Khamenei broke his long public silence to address the crisis. He has not appeared in public since the attack that killed his father, former Supreme Leader Ali Khamenei, back in February. In a written message, he called on officials to act fast on rising prices, joblessness, and market troubles.

Inflation in Iran reached 66 percent last month alone. That kind of number touches nearly everyone, from shopkeepers to families buying food. It also shows why Iran’s leaders can no longer avoid talking about the economy, even while some officials keep threatening the US with military action.

Despite the losses, Pezeshkian pointed to one bright spot. During a short window in June, when the US briefly eased its rules under a signed agreement, Iran managed to sell roughly 90 million barrels of oil. That deal did not last, but it gave Iran some breathing room before things tightened again.

Washington, meanwhile, has been pushing harder. The Trump administration calls its latest push an “economic D-Day,” warning nations to stop trading with Iran or risk their own penalties. So far, the US has held back from targeting bigger partners like China and India, likely due to the wider economic fallout that could follow.

Smaller players have already felt the pressure. The US placed sanctions on Egypt’s Banque Misr for its dealings with Tehran, a move that could block the bank’s UAE branch from handling US dollar transactions. Egyptian officials say they are in talks with US counterparts and stress the action only touches specific dollar dealings.

The US Treasury also sanctioned a Hong Kong-based entity and a person tied to Iran’s Bank Melli. These steps add another layer to an already long list of penalties aimed at cutting off Iran’s money flow.

Away from the sanctions fight, some are trying to bring peace back to the table. Qatar’s Prime Minister visited Tehran this past week, urging both sides to reopen shipping through the Strait of Hormuz like before the war. Iran’s Foreign Minister called the meeting “creative,” though no deal has been announced.

The Strait remains a major flashpoint. The US says its forces cleared mines that Iran had placed there, and President Trump insists the waterway is open. Iran’s naval forces reject that claim, saying ships still need their permission to pass.

Recent shipping numbers back up the tension. Only seven vessels crossed the Strait on Thursday, a sharp fall from 17 the day before and well under the recent 10-day average of 15 ships. Until trust returns between both sides, that number may stay low, and so may Iran’s trade.