Iranian leaders are acknowledging the severe economic toll of the war with the United States. The president reported that foreign trade has shrunk by nearly 35 percent, noting that sanctions and a US naval blockade have caused exports and imports to slump.
Financial pressure has further mounted as annual inflation hit 66 percent in July. This spike in inflation has created concern among the leadership that continued financial pain could spark unrest at home.
In response to the crisis, the supreme leader has called on the government to address the hardship. He has also urged the country to reduce its reliance on the U.S. dollar.