TEHRAN — Iran’s economic problems have worsened significantly since the start of the war with the United States and Israel, with declining oil revenues and damage to factories putting further pressure on state finances, President Masoud Pezeshkian said Saturday.In remarks carried by Iranian media, Pezeshkian attributed rising prices to higher costs and falling government revenues, particularly from declining oil sales.“Our revenues have declined. We used to sell oil, but now we cannot sell it,” Pezeshkian said.He said imported goods that previously reached Iran through more direct routes were now entering the country through alternative channels, increasing transportation and other costs and ultimately pushing up prices.Pezeshkian said damage inflicted on Iran’s industrial facilities during the war with the US and Israel had further aggravated the country’s economic difficulties.“They targeted and destroyed a large number of factories,” he said.The destruction has also affected government tax revenues, according to the president, with damaged businesses requiring financial assistance rather than contributing revenue to the state.“We can no longer collect taxes from factories. Not only that, but we also have to provide them with funds so they can continue operating,” Pezeshkian said.“Our problems have multiplied many times over, while our revenues have also declined,” he added.Regional tensions escalated on Feb. 28 when Israel and the US launched coordinated attacks on Iran targeting military, nuclear and energy infrastructure. Tehran responded with missile and drone attacks against Israeli and across the region.Iran and the US signed a memorandum of understanding on June 18 through Pakistani and Qatari mediation, ending active hostilities and opening negotiations toward a final agreement.The talks later stalled amid disagreements over maritime security and freedom of navigation through the Strait of Hormuz, a critical route for Gulf oil and gas exports.
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