Iran's president admits sanctions impacting economy

TEHRAN

Motorcyclists ride past a billboard depicting U.S. President Donald Trump inside a catering container in downtown Tehran, Iran, Saturday, Aug. 29, 2026. (AP Photo)

Iran's President Masoud Pezeshkian has admitted that U.S. sanctions on his country are hurting its economy, despite just days ago insisting they would achieve nothing.

"Some say sanctions have no effect at all; to those people, I really don't know what to say," Pezeshkian told state TV in an interview late on Aug. 29

"We are in a war situation, and we must accept these wartime conditions," he added.

On Aug. 24, U.S. Treasury Secretary Scott Bessent laid out plans for the "economic asphyxiation" of Iran, warning of dire consequences for countries that do not join the American campaign.

Pezeshkian said that Iran's exports and imports had fallen by 25 to 35 percent in recent months as the U.S. maintains a naval blockade of Iranian ports.

The president said the price of petrol should be increased in Iran to account for the fall in trade.

Iran, a major oil producer with some of the world's cheapest fuel, has for years heavily subsidised petrol, making any changes to pricing politically sensitive.

Vice President Mohammad Jafar Ghaempanah said on Aug. 26 that the U.S. blockade had prevented his country from importing enough petrol to cover a shortfall in domestic production.

But Pezeshkian said that same day that the latest U.S. sanctions "will not achieve anything".

"We will stand firm against economic pressures, as we have done so far and will continue to do," Pezeshkian told state media.