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New US sanctions will hit ordinary Iranians hard as crashing economy stirs fresh protests
Fortune • • nation
Key Points:
- The U.S. plans to expand secondary sanctions targeting entities and countries engaging with Iran, threatening removal from the dollar-based financial system for those aiding Iran, focusing on digital assets, technology, gold, aviation, and shipping.
- Critics argue these sectors are vital lifelines for ordinary Iranians, helping them protect savings, stay connected globally, and access essential goods like food and medicine, rather than solely supporting the regime.
- Iran's economy is suffering severely due to U.S. sanctions and a naval blockade, with inflation over 80%, currency devaluation, job losses, and a projected 6.1% economic contraction this year according to the IMF.
- The blockade has caused shortages of refined fuels despite Iran being a major oil producer, leading to long gas station lines and government reluctance to raise prices amid fears of public unrest.
- Protests by workers and unions have emerged amid economic hardship, though the regime remains resistant to negotiations with the U.S. and appears prepared to endure prolonged economic suffering despite internal pressures.
