Iranians Brace for Economic Impact of New U.N. Sanctions

TEHRAN — Iran is bracing for a severe economic downturn following the recent imposition of new United Nations sanctions, which analysts predict will significantly deepen the country’s existing financial woes and impact the daily lives of its citizens. The measures, activated through a “snapback” mechanism, target key sectors of Iran’s economy, including banking, energy, and shipping.

The U.N. Security Council’s decision to reimpose all previous sanctions, lifted under the 2015 nuclear deal (Joint Comprehensive Plan of Action, or JCPOA), comes after claims of Iran’s non-compliance with international obligations. The move effectively isolates Iran from the global financial system and restricts its ability to export oil, a crucial source of revenue.

Economic Fallout Anticipated

Economists and government officials are predicting a sharp increase in inflation, a further depreciation of the national currency, the rial, and a contraction of economic activity. The immediate effect is expected to be felt across various industries, from large state-owned enterprises to small businesses and individual households.

“The snapback sanctions will undeniably exacerbate Iran’s economic challenges,” stated Dr. Hamid Farsi, an economics professor at Tehran University. “Access to international markets will be severely curtailed, impacting essential imports and rendering oil exports far more difficult. We are looking at a period of intense pressure on the rial and a significant rise in the cost of living.”

The energy sector, traditionally the backbone of Iran’s economy, is expected to suffer the most. With restrictions on selling crude oil and natural gas, the government’s ability to fund public services and development projects will be severely hampered. International companies that had cautiously re-engaged with Iran following the JCPOA are now expected to withdraw, fearing secondary sanctions from the United States, which had advocated for the snapback.

Official Responses and Citizen Concerns

Iranian officials have condemned the new sanctions as unjust and unlawful, vowing to find ways to mitigate their impact. President Ebrahim Raisi, in a televised address, called for national resilience and self-sufficiency.

“These cruel sanctions are designed to break the will of our proud nation, but they will fail,” President Raisi declared. “We have overcome greater adversities, and we will emerge stronger through reliance on our domestic capabilities and the unwavering spirit of our people.”

However, the mood on the streets of Tehran and other major cities is one of apprehension. Many citizens are already grappling with high inflation, unemployment, and limited economic opportunities. The prospect of renewed, comprehensive international sanctions has fueled anxieties about the future.

“Every time there are new sanctions, it’s the ordinary people who suffer the most,” remarked Zahra Ahmadi, a retired teacher in Isfahan. “Prices for food and medicine become unaffordable, and jobs disappear. We just hope that this time, somehow, things will not get worse than they already are.”

The reimposition of U.N. sanctions marks a significant escalation in the international pressure on Iran, with far-reaching consequences for its economic stability and regional standing. The coming months are expected to test the resilience of both the Iranian government and its population as they navigate the renewed isolation.

Source: Read the original article here.

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