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Iran Economic On Brink Of Collapse? US Sanctions And Blockade Take Heavy Toll On Domestic Trade
Posted
August 21, 2026
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11:57Now PlayingTehran’s sprawling Grand Bazaar was packed with shoppers hoping to find more affordable staples than at the country’s grocery stores, where rice is 60% and beef is 150% more expensive than before the war. Unemployment is soaring and those with jobs are working more hours for money worth half as much as a year ago, putting food, medicine and everything else - except for heavily subsidized gasoline - further out of reach.
Nearly six months into the war with the United States and Israel, the Iranian economy is taking a beating under the force of sanctions and a naval blockade that is making it extremely difficult for the country to export oil, its most valuable product. Since the war began, Iran has been attacking oil-rich neighbors and U.S. bases in the region, and disrupting shipping in the Strait of Hormuz, its biggest strategic advantage. Iran is trying to use this retaliatory pressure - which is driving up energy prices globally - to bring the war to an end on the best terms possible.
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