The United States is shifting the focus of its pressure on Iran to financial and trade channels. The new set of measures would not only target government sources of revenue, but would also include common private channels such as digital assets, gold and shipping, with external attention to their ripple effects on the economic and social stability of Iran.
Digital assets and gold are named
The United States Treasury Secretary, Scott Becent, stated that Washington would extend secondary sanctions to businesses and countries that were in contact with Iran and warned that countries assisting Iran might be excluded from the United States dollar financial system.
He also named five key Iranian “lifelines”, including digital assets, technology, gold, aviation and shipping. Among them, digital assets and gold were seen as both a conduit for sanctions evasion and a tool for many Iranians to hedge against inflation and devaluation of their currencies.
Inflation and unemployment continue to worsen
Reports indicate that inflation has exceeded 80 per cent in Iran, with some food prices increasing by 100 per cent. After a sharp fall last year, which triggered national protests, the currency further depreciated by about 30 per cent this year.
In April this year, the International Monetary Fund projected that the Iranian economy would shrink by 6.1 per cent in 2026. Iranian labor officials estimate that by the end of May more than 1 million jobs had been lost. Fuel shortages and queuing of gas stations also continued.
There's been a new round of protests.
As the cost of living rises, new protests have occurred in many parts of Iran. It was mentioned that oil and gas workers in Asaluye had protested this week that they should not suffer a cost-of-living crisis while maintaining energy production.
Previously, groups of steel workers, petrochemical workers and teachers had also expressed their dissatisfaction over layoffs and unpaid salaries. According to analysts, the Iranian Government does not necessarily adjust its position quickly because of popular pressure, but economic pressure and social discontent continue to accumulate.