Iran’s President Admits U.S. Pressure Is Working – Iranian President Masoud Pezeshkian has spent weeks hinting that Iran may be on the brink of economic problems that could warrant a return to negotiations with the United States, and in recent remarks, he went even further, warning that Iran is feeling the impact of American pressure. And that might just mean the war in the Middle East could soon really be over.
Iran Is Feeling the Heat
Tennessee Army National Guard Soldiers with Alpha Battery, 1-181st Field Artillery Regiment conduct a training exercise using the M142 High Mobility Artillery Rocket System (HIMARS) at Camp Shelby, Mississippi, June 9. The unit’s annual training enhances battalion readiness, focuses on mission-essential tasks and ensures Soldiers are proficient in critical skills. (U.S. Army National Guard photo by Sgt. Grayson Cavaliere)
HIMARS Rocket. Image Credit: Creative Commons.
Speaking during a televised interview with Iranian state media late last week, the Iranian president acknowledged the scale of the domestic crisis and said national unity is the only thing that has allowed the government to survive.
“We have many problems,” Pezeshkian said. “There’s inflation, economic issues, employment, and many other problems, but the people are with us.”
He then offered a fairly clear warning about the limits of Iranian military power, noting that economic and political pressures could undermine national cohesion.
“We may have many things; we may even have missiles and bombs, but they are of no use,” Pezeshkian said.
The comments may not be welcomed by hardliners within the regime, and they come at a difficult time for Tehran. Six months after the U.S. and Israel began the war, Washington is now pursuing a strategy of total economic isolation, pushing Tehran to return to the negotiating table or simply announce that the Strait of Hormuz is open and its nuclear program is over.
The U.S. is looking to impose secondary sanctions on all individuals, entities, and countries that continue to work with Tehran, and the regime now faces immense pressure that it cannot immediately circumvent.
Iran’s Economy Is In Trouble
Pezeshkian offered an honest assessment of Iran’s economic situation, describing how imports and exports have fallen by nearly 35% as a result of U.S. sanctions and the naval blockade. Annual inflation also reached 66% in July, putting extreme pressure on Iranian households just to purchase necessities.
The situation has deteriorated since then, too, with Reuters reporting on September 3 that the rial had fallen below 2.2 million to the dollar, compared to around 1 million a year ago. Iran’s official 12-month average inflation rate had also reached 69.9%, with employment also falling by around 450,000 compared to last year.
And then there’s the matter of oil — the country’s best driver of overseas revenue.
Kpler data cited by Reuters on Thursday showed Iranian crude loadings at only around 260,000 barrels per day. A year earlier, Iran was exporting approximately 1.7 million barrels per day. That means Tehran is losing access to one of its most important sources of foreign currency precisely as sanctions make obtaining dollars and paying for imported goods more difficult.
Pezeshkian Admits Sanctions Are Working
Pezeshkian also appeared to challenge hardliners within Iran who argue that American sanctions can simply be endured.
“What do these statistics mean? Then some people say that sanctions have no effect at all! I really don’t know what to tell these people,” Pezeshkian said. “I just want to say this, saying that sanctions have no effect is not consistent with these facts.”
His comments come after other officials suggested that Iran would fight for as long as 20 generations, even in the face of American aggression and sanctions, to ensure the survival of the regime.
Washington is pushing some of the hardest sanctions ever implemented on a foreign state, with Treasury Secretary Scott Bessent launching Operation Economic Outcast on August 24. The operation will expand sanctions to foreign banks, companies, entities, individuals, and other intermediaries that continue facilitating Iranian business or transactions. Treasury said that entities continuing to help Tehran launder money or evade sanctions now risk being cut off from the U.S. financial system entirely — even if it, as Bessent himself said, carries the risk of “blowing up” the global financial system.
Days later, Treasury began to take action. On August 28, the Financial Crimes Enforcement Network proposed cutting the UAE operations of Egypt’s Banque Misr off from U.S. correspondent banking, alleging that the operation processed approximately $1.8 billion for 103 companies potentially connected to Iranian shadow-banking networks between January 2024 and June 2026. Treasury simultaneously sanctioned the manager of Bank Melli’s Dubai branch and a Hong Kong company accused of helping Iran move money.
More Sanctions Are Coming
If Pezeshkian is worried now, he’s got more to think about. Bessent told Reuters on September 2 that Washington expects to sanction another bank this week and another the following week as Operation Economic Outcast gradually comes into effect.
He said future targets might also include airlines, shipping companies, digital asset companies, and a number of other entities that enable Iranian commerce.
Reuters also reported on Thursday that three senior Iranian sources said Tehran is now struggling to obtain foreign currency and essential imports. One source said that Iran also has only around two months’ worth of gasoline supplies remaining.
About the Author: Jack Buckby
Jack Buckby is a British researcher and analyst specializing in defense and national security, based in New York. His work focuses on military capability, procurement, and strategic competition, producing and editing analysis for policy and defense audiences. He brings extensive editorial experience, with a career output spanning over 1,000 articles at National Security Journal, and has previously authored books and papers on extremism and deradicalization.
