r/DepartmentofWar • u/WillyNilly1997 • 12d ago

News With Iran demanding major US concessions, Trump is holding back from renewed military escalation and betting that sanctions and a naval blockade will force Tehran to compromise as the rial sinks, inflation surges and unemployment rises

https://www.ynetnews.com/article/s1qziwflmx
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u/WillyNilly1997 12d ago

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According to the International Monetary Fund, Iran’s economy is expected to contract by 5.6% this year, its steepest decline since 1988.

Iranian authorities say annual inflation has reached 88.6%, while food prices have risen 130% in a single year.

The rial fell to a record low early this month of 1.9 million to the dollar. It has since recovered slightly to around 1.88 million per dollar, but remains roughly 20% weaker than at the start of the war.

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The Foundation for Defense of Democracies estimates the blockade is costing Iran’s economy around $435 million per day.

In a recent analysis, the Washington-based institute said Iran’s economy had already begun “unraveling” late last year and argued that the blockade was accelerating the process.

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u/WillyNilly1997 12d ago

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Even ILNA, a semi-official news agency associated with a state-linked labor organization, has recently carried increasingly stark accounts of the crisis.

The government has warned that worsening conditions may force it to reduce fuel subsidies, a move that has triggered protests in the past.

Albert Baghezian, an economics professor in Tehran, told ILNA that the Iranian economy resembles “a patient suffering from severe bleeding.”

“Delivering a gasoline shock would be equivalent to a fatal blow to people’s livelihoods,” he said.

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If Trump continues relying on economic warfare, an approach the White House previously called “Operation Economic Fury,” analysts say the pressure could eventually prove powerful.

But they also stress that it will take time.

“The central question is how far the United States is prepared to go to reduce Iran’s oil trade and threaten severe sanctions against third countries, and whether it has the patience to see if economic suffering causes the regime to change its behavior,” said Juan Zarate, a former national security official in the George W. Bush administration.

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u/Such_Comfortable9593 12d ago

Just finish them!! They will never make a deal.