Iran acknowledges economic difficulties as further US sanctions loom

Iranian President Masoud Pezeshkian has acknowledged difficulties within the country as Washington plans to tighten sanctions on Tehran.

The government is committed to reducing inflation, Pezeshkian said in a speech, according to a statement on the president’s official website.

He also spoke of “major imbalances in water, electricity, gas, fuel, the environment and the banking sector,” which his government had “inherited.”

Pezeshkian said Iran had faced a combination of war, sanctions, political pressure and assassinations since his administration took office.

In his speech, Pezeshkian also appeared to address the latest threat from US President Donald Trump, who – almost six months after the start of the military conflict – had threatened Iran with an economic war.

According to the statement, Pezeshkian said Iran was facing “an all-out economic, military and security war,” noting that enemies had openly threatened to impose unprecedented sanctions on the country.

Pezeshkian said the country would withstand the pressure as the people stood united and were resilient.

Meanwhile, Iranian Parliament Speaker Mohammad Bagher Ghalibaf warned the US of a boomerang effect.

He shared a cartoon on X that insinuated that the economic war announced by Washington would end up hitting the US itself.

Trump announced on Wednesday that he intended to increase pressure on Iran, describing it as an “economic D-Day” for the country.

He also threatened supporters of Tehran with drastic measures but initially gave no details of his plans.

US Treasury Secretary Scott Bessent is due to brief journalists on Monday about the initiative, having described the planned measures as “the toughest sanctions in history.”

Iranian state media had responded calmly to Trump’s announcement. The US had been trying for years to cut off all financial and economic ties with Iran, the Tasnim news agency wrote. Iran had, however, “learned to circumvent these restrictions and has become very adept at doing so.”

Foreign Minister Abbas Araghchi made similar remarks, saying economic warfare was a recurring pattern and part of Washington’s long-standing intimidation tactics. Iran had learned to deal with it, he added.