Iran’s President Masoud Pezeshkian has acknowledged that U.S. sanctions are negatively impacting the country’s economy, despite having recently downplayed their effect. Speaking on state television, Pezeshkian said that while some claim sanctions have no impact, the reality reflects a different situation, likening Iran’s circumstances to wartime conditions that must be endured.

The comments come amid intensified efforts by the U.S. government to increase pressure on Tehran. On Monday, U.S. Treasury Secretary Scott Bessent outlined plans aimed at the “economic asphyxiation” of Iran, warning of severe repercussions for countries that fail to participate in the sanctions campaign. These measures build upon a sanctions framework established after the United States withdrew in 2018 from an international agreement limiting Iran’s nuclear program.

Pezeshkian reported a significant reduction in Iran’s trade activity in recent months, with exports and imports declining by 25 to 35 percent. He attributed some of the economic difficulties to a U.S. naval blockade of Iranian ports, which has disrupted maritime commerce. In response to the declining trade volume and its fiscal effects, the president suggested increasing the price of petrol within Iran, proposing to double the cost of the third-tier quota from 5,000 to 10,000 tomans. This quota system governs variable consumption rates for gasoline pricing among consumers.

Meanwhile, Vice President Mohammad Jafar Ghaempanah indicated that the U.S. blockade has hindered Iran’s ability to import sufficient petrol to compensate for a domestic shortfall in production. Despite these admissions, Pezeshkian maintained that the latest sanctions are unlikely to achieve their intended objectives.

Separately, Egypt’s Banque Misr announced that it is reviewing a recent U.S. Treasury notification restricting U.S. dollar correspondent banking services linked to its branch in the United Arab Emirates. According to the bank’s statement, its UAE branch continues to operate and provide services in line with current regulations. The U.S. Treasury has reportedly moved to block Banque Misr’s UAE branches from conducting dollar transactions related to Iranian dealings as part of the broader sanctions campaign.

The ongoing sanctions and their economic effects highlight the escalating tension between the U.S. and Iran, with Tehran grappling with both domestic economic challenges and international financial restrictions that affect key sectors such as trade and energy imports.