Iran's economy is going through a deep crisis. The impact of the war and the US-led blockade hits all fronts
.The deterioration is no longer temporary. Analysts warn that the recovery could take more than a decade
.The rial plummets and inflation soars
The Iranian currency fell to historic levels. The rial is around 1.32 million per dollar
.Depreciation exceeds 60% in a few months. The government responded by issuing higher-denominated banknotes
.Inflation also accelerated.
Food recorded increases of more than 100% year-on-year.Commodities such as bread, oils and cereals show extreme increases.
The blockade of Hormuz suffocates the economy
The Strait of Hormuz was key to Iranian trade. More than 90% of its exports were dependent on that route
.The lockdown drastically reduced revenues. A drop of up to 70% in exports is estimated.
This directly impacts the ability to import essential goods.
The siege also affects the global energy market, given that nearly 20% of the world's oil circulates through this route.
Sanctions and international pressure
The United States reinforced its sanctions strategy. The objective is to limit the funding of the regime.
The threat of sanctions against banks that operate with Iran deepens isolation.
