Iranian President Masoud Pezeshkian says the country's trade has fallen 25% to 35% under U.S. sanctions and a naval blockade, with imports hit harder than exports. Supreme Leader Mojtaba Khamenei is now urging Iran to gradually reduce its reliance on the U.S. dollar as Washington tightens a new sanctions campaign and crude exports collapse.
Iranian trade has dropped sharply under U.S. pressure, and the country's leadership is responding by pushing to cut the U.S. dollar's role in the economy. President Masoud Pezeshkian said imports and exports have fallen between 25% and 35%, with imports down more than exports, in an interview with state TV late Friday.
Pezeshkian pushed back on claims that sanctions carry no weight, saying such claims are not consistent with the facts, according to a Google translation of the transcript.
Khamenei calls for reduced dollar reliance
Supreme Leader Mojtaba Khamenei called for greater economic self-reliance in a written message the same day. According to a post on X: "gradually phasing out the US dollar from playing a pivotal role", tying the shift to boosting domestic production and what he termed a Resistance Economy.
Washington tightens sanctions campaign
The dollar comments come as U.S. Treasury Secretary Scott Bessent launched "Operation Economic Outcast" on Monday, a campaign meant to sever Iran's economic ties worldwide. Treasury has since proposed cutting off the UAE unit of Egyptian bank Banque Misr from correspondent banking access to U.S. institutions.
Treasury said Banque Misr UAE processed about $1.8 billion over two years for 103 companies it links to Iran's shadow banking network. The bank said it is cooperating with authorities and that the action is limited to its UAE branch, which continues serving customers.
Crude exports plunge under blockade
Iran's crude oil exports are down sharply. Tehran loaded about 260,000 barrels per day for export so far this month, down more than 80% from 1.7 million bpd in August 2025, according to trade intelligence firm Kpler. Loadings are also down about 70% from 893,000 bpd in July.
President Trump reimposed the naval blockade on July 14 after Iran attacked oil tankers transiting the Strait of Hormuz. U.S. Central Command said that as of Aug. 28 it has redirected 82 commercial vessels, disabled three and boarded two to ensure compliance. Kpler's Matt Smith described the blockade as very effective, saying it has walloped Iran's crude export loadings.
Iran's Ministry of Petroleum disputes that the squeeze is decisive. It said it has transferred $7.5 billion in oil-sale proceeds to the central bank over four months, enough to cover foreign currency needs through early January 2027, and that reserves can meet its 2026-2027 budget while bypassing the blockade.
Friday marked six months since the U.S. and Israel launched major combat operations in Iran, a conflict that analysts say now has no end in sight.
Source: CNBC
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