Iranian President Masoud Pezeshkian announced on Saturday that the country's economic conditions have significantly worsened following conflict with the United States and Israel. He attributed this deterioration to declining oil revenues and damage sustained by industrial facilities. Pezeshkian clarified that the
continuous rise in prices is due to increasing costs and a reduction in state revenues, stemming from decreased oil sales. He noted that imported products previously reached Iran via more direct routes, whereas today their entry occurs through various indirect
pathways, substantially raising their final cost. The Iranian President emphasized the sharp decline in state revenues, stating: "Our revenues have shrunk; we used to sell oil, but now we are unable to do so." He pointed out that damage inflicted upon
the nation's industrial installations has exacerbated the economic situation, adding: "They targeted and destroyed a large number of factories." Pezeshkian affirmed this situation has also negatively impacted tax revenues, explaining: "We are no longer able to collect taxes from factories, and
not only that, but we must also provide financial support to them to ensure their continued operation." The Iranian President summarized the extent of the economic challenges facing the country by saying: "Our problems have multiplied manifold, while our revenues
have also decreased." This statement comes amidst a historical context that saw the commencement of a conflict by the United States and Israel against Iran on February 28. Tehran responded by targeting American and Israeli interests in the region before a
temporary truce was reached. On June 18, Washington and Tehran signed a memorandum of understanding concerning freedom of navigation, yet it faltered due to disagreements over the security of the Strait of Hormuz. Between July 8 and 24 last year,
the United States resumed its attacks on Iran, and Tehran retaliated by targeting "American military facilities and equipment" in Arab countries, prior to talks resuming regarding safe passages for vessels in the Strait of Hormuz. On July 14 last year,
the United States re-imposed a naval blockade on Iran, under directive of then-President Donald Trump.
