US naval blockade strains Iran’s already fragile economy
The US naval blockade is straining Iran's already fragile economy, with year-on-year food inflation reaching nearly 125% and the currency continuing to lose value. The blockade is affecting not only oil exports but also the country's non-oil energy foreign trade, with three major ports channeling around $20 billion in exports annually.
The US naval blockade is putting pressure on Iran's economy, which is already fragile due to decades of US sanctions, structural corruption, and domestic mismanagement. Iran's economy saw an average annual decline of 0.6% in per-capita GDP between 2011 and 2020, with inflation hovering around 40%. The blockade is affecting the country's oil exports, with 1.6 million barrels exported daily before the restrictions. The non-oil energy foreign trade is also being impacted, with $20 billion in exports annually through three major ports. The situation is worsening, with the currency losing value and the country remaining heavily dependent on imports. The poverty line for a family of four was estimated at around $520 per month last year, while the average salary for a skilled worker was roughly $227.
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