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US Sanctions Suffocate Tehran: Poverty Rises Inside the Daily Struggles of Iranians

Iran faces rapid economic deterioration as US sanctions expand to new sectors, worsening inflation and poverty while isolating the Islamic Republic.

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US Sanctions Suffocate Tehran: Poverty Rises Inside the Daily Struggles of Iranians
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Iran is facing a rapid deterioration in its economic and social conditions, with the United States tightening its sanctions to include new sectors, from airlines to the automotive industry and rail transport, at a time when the burdens of inflation and poverty are worsening for the population, and the Islamic Republic's isolation from its external environment is increasing, according to the French newspaper "Le Figaro".

US Treasury Secretary Scott Bessent announced, at the end of last August, the outlines of a new campaign targeting the Iranian economy under the name "Operation Economic Pariah," confirming that Washington wants to send a clear message that "no one is immune from US sanctions," which he described as the harshest in history.

In light of the war raging around the Strait of Hormuz, which enjoys great strategic importance, pressure on Tehran is increasing day by day. After rounds of punitive measures targeting Iran since last summer, sanctions extended to major car manufacturing companies, the national railway company, as well as a motorcycle manufacturer.

On September 23, Washington also targeted airlines operating flights from and to Iran, a step that threatens further complications in the lives of Iranians, who already face difficult living conditions.

Suspended Flights and Growing Isolation
An Iranian businessman named Mehdi told the French newspaper that he arrived in Istanbul days ago on an "Iran Air" flight, stating that his plane remained on the tarmac for more than four hours amid fears that it would not be allowed to take off.

Mehdi says that a crew member pointed out after landing that every flight now requires multiple negotiations, given the reluctance of host countries to allow Iranian planes to land on their territory, fearing exposure to US sanctions.

At Tehran International Airport, travelers spoke of repeated flight cancellations, while one female traveler expressed fear that a day might come when departure boards are empty of any announcements.

Since late September/October, round-trip flights to Iran operated by "Turkish Airlines," "Pegasus," and "AJet" have disappeared from their booking systems. Despite no official statements explaining the reasons for the cancellation, the "Middle East Eye" website quoted a source familiar with the matter saying that flights were suspended due to new sanctions imposed by the US Treasury Department.

While air flights to China, Iran's ally, continue so far, flights to Baghdad and Najaf in Iraq, as well as flights heading to the United Arab Emirates and the Sultanate of Oman, have been officially suspended. Restrictions have also been imposed on crossing certain airspace zones.

Last month, an aircraft belonging to the Iranian company "Farsh Airlines," traveling from Tehran to Dushanbe, the capital of Tajikistan, was forced to return after Turkmenistan refused to allow it to cross its airspace.

Mina, an Iranian student who intended to travel to Turkey in two weeks to take the English language "TOEFL" test, says that the new restrictions make the future more ambiguous. She adds that organizing the test in Iran was recently suspended by a decision from the US Treasury Department, expressing her fears that flights to Istanbul and Ankara will be canceled before her travel date. Mina says: "Every day our horizons become darker."

The student realizes that she is in better circumstances than many in a country suffering from unemployment and inflation, where a worker's salary no longer suffices to cover the rent of a modest apartment for a month.

Inflation Exceeds 88% and Poverty Approaches Half the Population
Economist Thierry Coville, a researcher at the Institute for International and Strategic Relations specializing in Iranian affairs, says that economic and social indicators show a clear deterioration.

According to figures published by the Statistical Center of Iran, annual inflation reached 88.6% in June, recording a record level. Food items were among the most affected sectors, as the increase in bread and grain prices exceeded 100%, while the rise in meat and poultry prices approached 200% year-on-year, according to official data.

Coville points out that the poverty rate, which rose by 31% in 2024, jumped significantly in 2026 to reach 41%.

The researcher believes that US sanctions play a key role in exacerbating the crisis, although the Iranian economy also suffers from internal imbalances related to corruption, nepotism, and the opacity of activities of religious institutions and companies linked to the Revolutionary Guard.

Coville says that the evolution of indicators since 2018 reveals a clear link between the US withdrawal from the nuclear deal, by decision of President Donald Trump, and the slowdown in Iranian economic growth.

He explains that China has become, since that year, the main buyer of most Iranian oil, while average inflation rose to about 40%, after falling below 10% following the signing of the nuclear deal in 2015.

These developments, according to the analysis provided by the researcher, indicate that the impact of tightening sanctions is not limited to state revenues and foreign trade, but extends to household purchasing power and the costs of food, housing, and transportation.

Washington Bets on Economic Pressure
Bessent does not hide that the goal of US measures goes beyond imposing restrictions on specific sectors, as he spoke in one of his recent interventions about seeking the "collapse of the Iranian regime."

According to "Le Figaro"'s analysis, Washington is betting on increased economic pressure after the wars that erupted in June 2025 and then late February did not lead to the fall of the Iranian regime, in an attempt to push the country toward a new wave of protests.

This comes in the wake of protests witnessed in Iran at the beginning of last January that ended in a bloodbath, while recent demonstrations on the campus of Allameh Tabataba'i University reflect the continuation of latent anger within society.

But the Iranian regime still possesses multiple tools to contain pressures, including providing financial aid to the poorest segments, tightening security and repressive measures, exerting pressure on dissenting voices, alongside intensifying death sentences against protesters, according to what the report stated.

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