Iran has denounced fresh American economic sanctions as state terrorism and crimes against humanity, while its leadership expresses concern about domestic instability as the country grapples with 66% annual inflation amid an ongoing conflict.
Iran's government launched a sharp rebuke of newly imposed United States economic sanctions on Friday, characterizing the measures as violations of international law that threaten the welfare of millions of civilians. The Trump administration has described its financial pressure campaign as an "economic D-Day" aimed at punishing Tehran. The sanctions coincide with mounting economic hardship within Iran, where annual inflation reached 66% last month, compounding difficulties already created by six months of regional conflict.
Supreme Leader Ayatollah Mojtaba Khamenei, in a written statement, issued directives to government officials to avoid actions that could fracture national unity, acknowledging widespread anxiety about potential civil unrest triggered by economic deterioration. He called for urgent attention to inflation, unemployment, and market instability. President Masoud Pezeshkian separately told state media that foreign trade had contracted by approximately 35% due to American sanctions and a naval blockade of Iranian ports.
The United States has expanded its pressure campaign beyond Iran itself, targeting its trading partners. Egypt's Banque Misr faced sanctions for conducting business with Tehran, potentially restricting its dollar transactions through the United Arab Emirates. Treasury officials also sanctioned entities linked to Iran's Bank Melli and a Hong Kong-based operation. Meanwhile, the critical issue of the Strait of Hormuz—through which one-fifth of global oil supplies previously flowed—remains deadlocked. Shipping data showed only seven vessels transited the waterway on Thursday, down sharply from recent averages, as Iran's Islamic Revolutionary Guard Corps maintains restrictions despite American assertions that the strait remains open.
Diplomatic efforts have intensified alongside the economic pressure. Qatar's Prime Minister held talks with Iranian leadership on Thursday regarding restoration of pre-war shipping access, with Iran's Foreign Minister describing the discussions as "creative." However, Iran has signaled it will attach conditions to any reopening, historically including removal of sanctions and compensation.
