Iran’s economic crisis deepens as oil blockade and sanctions squeeze regime, prompting senior officials to warn of Tehran’s possible collapse.By World Israel News StaffIran is facing a worsening economic crisis as US pressure on its oil exports, disruptions to shipping through the Strait of Hormuz, and rising food prices fuel growing concern inside the regime over renewed public unrest.The Wall Street Journal reported Wednesday night that a US maritime blockade and targeted military strikes have sharply reduced Iran’s oil income, weakened the local currency and left Tehran with dwindling access to foreign currency reserves, prompting Iran’s president to issue a dire warning regarding the regime’s future.The report cited estimates by the firm Capital Economics which said that Iran’s accessible foreign currency reserves are now sufficient to cover only about three months of imports.The economic pressure has spread into daily life. Food prices have surged, the rial has continued to lose value, internet service has been disrupted and more than a million Iranians have reportedly been pushed out of work.A Tehran artist quoted in the report described the pace of inflation through the price of a common household food item.“In March, I bought about a pound of Lighvan cheese — a popular staple in many Iranian households — for 450,000 toman. Now, the same thing costs 800,000 toman,” she said. “Everyone’s worry is how much they will have to pay tomorrow for things they bought today.”The Guardian reported this week that the partial lifting of internet restrictions in Iran exposed widespread anger over food prices, with sharp annual increases in staples including vegetable oil, chicken and rice. It said food inflation has reached between 140% and 200%, while overall inflation has risen to about 70%.President Masoud Pezeshkian has publicly acknowledged the pressure.Speaking to members of the Tehran Chamber of Commerce, he warned that the country’s main struggle is now economic.“The main war is in the economic field. If you fail, the country will fail,” Pezeshkian said, according to the Journal.Iranian officials have also urged the public to cut consumption of fuel, electricity and water as the government seeks to manage shortages and infrastructure strain.Behnam Bakhshi, a spokesman for Tehran’s provincial water company, said “all executive bodies, organizations and public institutions — governmental and non-governmental — are required to install water-saving equipment and manage consumption.”Government spokeswoman Fatemeh Mohajerani said the administration was considering an urgent increase in subsidy vouchers for low-income Iranians and urged citizens “to trust the government and its efforts to preserve purchasing power.”The crisis has intensified scrutiny of Iran’s oil-smuggling network, often described as its “shadow fleet.”The Wall Street Journal said the network includes roughly 1,500 aging tankers with hidden ownership structures, weak or nonexistent insurance and flags of convenience used to move sanctioned Iranian oil to buyers, especially in China.The report said a key transfer zone is the Eastern Outer Port Limits off Malaysia, where tankers conduct ship-to-ship transfers outside territorial waters. According to the report, suspected covert oil transfers in the area rose from 280 in 2023 to 679 in 2025.In such operations, tankers often turn off navigation systems, obscure names and identification numbers and transfer large quantities of crude to other vessels before the cargo is sent onward to private Chinese refineries.Reuters has also reported that Washington continues to target companies and individuals accused of helping move Iranian oil to China. In May, the US Treasury announced sanctions on networks it said used shell companies, shipping firms and “shadow fleet” tankers to arrange Iranian oil sales.Treasury Secretary Scott Bessent said the administration would continue trying to deprive Tehran of funds used for weapons, its nuclear program and regional proxies.“Treasury will continue to cut the Iranian regime off from the financial networks it uses to carry out terrorist acts and to destabilize the global economy,” Bessent said.Iran brought in about $31 billion from China over the past year, accounting for about 90% of its oil exports and roughly 45% of the regime’s budget.Vortexa estimates that about 90 million barrels of Iranian oil are currently held in floating storage at sea.The post Iran’s president warns regime ‘will fail’ if economic crisis continues appeared first on World Israel News.