Iran’s president says country faces ‘many problems’ as US ramps up sanctions
Iran's President Masoud Pezeshkian has publicly acknowledged that the country faces "many problems," including inflation and unemployment, as the United States prepares to intensify economic sanctions it describes as unprecedented in severity. The admission is notable given Iran's history of mass protests over economic hardship, including unrest at the end of last year that authorities say killed more than 3,000 people, and comes as Tehran adopts an increasingly hardline stance in its confrontation with Washington.
The US Treasury secretary, Scott Bessent, is expected to announce what he has called "the toughest sanctions in history" on Iran, a move Tehran's foreign ministry has condemned as an unlawful assertion of "extraterritorial sovereignty." Meanwhile, Mohsen Rezaei, the newly appointed hardline head of Iran's supreme national security council, has warned neighbouring states against joining the US pressure campaign, threatening to target their interests and disrupt Gulf oil-shipping routes. The tensions follow the collapse of a June ceasefire after conflict that began in February, leaving Iran in control of the strait of Hormuz, a route that previously carried a fifth of the world's oil, while Washington has urged allies including China, which has criticised the sanctions approach, to help isolate Iran's economy.
- Iran's president admits to "many problems" amid tightening US sanctions
- US Treasury poised to unveil what it calls historically tough sanctions
- New Iranian security chief threatens neighbours and Gulf oil routes
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Iran has been under heavy US economic sanctions for years, and the two countries have been locked in a wider standoff that turned into direct military conflict earlier this year. That conflict ended with a ceasefire in June, but it has since broken down, and Iran now controls the strait of Hormuz, a narrow waterway through which a large share of the world's oil normally passes.
President Masoud Pezeshkian leads Iran's government, though ultimate authority rests with the country's clerical leadership and security bodies, including the newly appointed head of its supreme national security council. Iran has a recent history of large protests driven by economic hardship, including unrest late last year in which the authorities say thousands died, making public admissions of economic strain politically sensitive.
Washington, represented by Treasury Secretary Scott Bessent, wants to tighten sanctions further to pressure Tehran, and is seeking cooperation from other countries, including China, which has objected to this approach. The dispute matters beyond the two countries directly involved because of Iran's position on Gulf oil routes and its ties with neighbouring states, meaning further escalation could affect regional stability and global energy markets.
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