Iran's economy in tatters as war hits oil revenues and industry, president says

Iran's economy is suffering under the weight of its conflict with the United States and Israel, President Masoud Pezeshkian said Saturday. Declining oil revenues and damage to industrial facilities have exacerbated economic difficulties, he stated.

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Our revenues have declined. We used to sell oil, but now we cannot sell it.

Pezeshkian explained that rising prices stem from increased costs and diminished government income, largely due to a sharp drop in oil sales. "Our revenues have declined. We used to sell oil, but now we cannot sell it," he said. He also noted that disrupted trade routes have made imported goods more expensive, as products now enter Iran through alternative, costlier channels.

The president further detailed how damage to industrial facilities during the conflict has weakened the economy and reduced tax revenues. "They targeted and destroyed a large number of factories," Pezeshkian said. He added that the government can no longer collect taxes from these damaged factories and must instead provide financial support for their recovery.

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They targeted and destroyed a large number of factories.

"Our problems have multiplied many times over, while our revenues have also declined," he concluded. Regional tensions escalated on February 28 with coordinated attacks by Israel and the United States on Iranian military, nuclear, and energy infrastructure, prompting retaliatory strikes from Tehran. While active hostilities ended on June 18 following a memorandum of understanding mediated by Pakistan and Qatar, subsequent negotiations stalled over disagreements concerning maritime security and freedom of navigation in the Strait of Hormuz.

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Our problems have multiplied many times over, while our revenues have also declined.