Iran Admits Deepening Crises and Warns Nations Backing US Sanctions

According to state television broadcasts, Iranian President Masoud Pezeshkian acknowledged that citizens face severe economic hardships amid rising inflation, unemployment, and new US sanctions.

Economic Strains and Comprehensive Conflict Under US Pressure

President Pezeshkian stated in a televised address that society currently confronts numerous problems, noting that his administration attempts to mitigate these issues where possible, according to state media. The remarks followed Washington’s pledge to engineer an economic collapse of the Iranian system through targeted penalties aimed at increasing the isolation of the country’s economy.

According to Pezeshkian, policies enacted by US President Donald Trump have forced the nation into a comprehensive economic, military, and security war. Trump previously announced the imposition of severe economic restrictions on Iran. Pezeshkian maintained that his administration focuses on combating inflation, livelihood struggles, and joblessness to secure a dignified future for citizens.

Accumulated economic pressures—including surging prices, volatile exchange rates, and diminishing purchasing power—have historically triggered widespread unrest. In late December 2025, demonstrations over the cost of living escalated into anti-government protests, peaking on January 8 and 9, 2026. Iranian authorities reported that over 3,000 individuals died during the unrest, attributing the violence to US and Israeli orchestration. Conversely, human rights organizations operating outside Iran stated that authorities executed an indiscriminate crackdown resulting in thousands of deaths.

Tehran Threatens Retaliation Over International Sanctions Compliance

Head of the Supreme National Security Council Mohsen Rezaei warned that any nation joining the American sanctions campaign will be treated as an enemy. Speaking on state television, he demanded that foreign governments stay out of what he termed an economic war initiated by the United States.

Rezaei threatened that Iran would damage the interests of countries failing to distance themselves from Washington’s initiative. He also suggested that Tehran could target American oil and economic assets within the region, noting that past military responses concentrated strictly on military bases rather than economic targets. While Washington urged governments like Beijing to participate in isolating Iran’s economy, China criticized the push, asserting that sanctions will not resolve the Middle East conflict.

In contrast, the United Arab Emirates suspended all commercial and financial transactions with Iran until further notice, according to announcements made on Tuesday, August 18. The UAE serves as one of Tehran’s primary commercial partners.

Judicial Crackdowns and Executions Amid Ongoing Unrest

Judicial authorities executed Majid Adineh after convicting him of working for hostile groups during the January anti-government protests, according to the judiciary’s Mizan Online website on Sunday, August 23. The judiciary stated that Adineh carried out field operations for hostile groups, committed arson, and conspired against internal security.

Authorities arrested Adineh and another suspect on January 9 in Alborz province west of Tehran. Security forces reportedly recovered a pistol, ammunition, two stun guns, tear gas canisters, a rechargeable power saw, and a container of gasoline from the suspects. The Revolutionary Court in Karaj sentenced Adineh to death and ordered the confiscation of his property, a ruling subsequently upheld by the Supreme Court.

Executions have surged since the outbreak of hostilities on February 28, 2026, following US and Israeli strikes against the country. Amnesty International ranks Iran second globally behind China in carrying out capital punishment.

Diplomatic Mediation and Long-Term Military Strategy

Pakistani Army Chief Asim Munir will travel to Tehran on Monday to continue Islamabad’s diplomatic efforts aimed at fostering regional peace and security, according to Foreign Ministry spokesperson Esmail Baghaei. Pakistan acts as a mediator in negotiations between Iran and the United States to end the war.

Dillon stated that Iran prepared for decades to sustain a war with the United States, including scenarios involving the loss of top leadership. Dillon noted that Tehran maintained a capability for a war of attrition despite severe losses, utilizing a military doctrine that distributes forces across 31 independent commands capable of operating autonomously if central leadership falls.

Dillon added that Iran’s mountainous terrain complicates potential ground operations, while naval capabilities focus on defending the Strait of Hormuz through fast boats, sea mines, torpedoes, coastal artillery, missiles, and drones instead of attempting to match American air and naval fleets.

Frequently Asked Questions

Why did President Pezeshkian state that Iran faces severe economic problems?

President Pezeshkian acknowledged widespread economic hardship driven by inflation, unemployment, and new US sanctions intended to isolate the Iranian economy.

How is Iran responding to countries that join US sanctions?

According to Supreme National Security Council head Mohsen Rezaei, Iran considers any nation joining the American sanctions campaign an enemy and threatens to retaliate against foreign economic interests.

What diplomatic efforts are underway to address the conflict?

Pakistani Army Chief Asim Munir scheduled a visit to Tehran to pursue diplomatic mediation between Iran and the United States, according to the Iranian Foreign Ministry.

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