Iranian officials warn of economic collapse as US sanctions and naval blockade tighten

Iran's leadership is showing sharp divisions as moderate officials push back against hardliners' military-first approach, citing the crumbling economy. The US naval blockade has halted oil exports and frozen foreign reserves, while the UAE's new embargo cuts off a vital trade lifeline. Officials warn the country cannot endure without economic relief, with some calling for an end to the conflict.

The economic strain is quantified by the IMF's projection of a 6.1% contraction this year, the worst in decades, while inflation exceeds 80% and staple food prices have doubled. The central bank governor confirmed the blockade halts oil exports and freezes foreign reserves, and the UAE's new embargo compounds the isolation, forcing industries to tap fuel reserves due to import limitations.

Political friction is evident as moderate figures like the parliamentary speaker and president publicly argue for peace, citing hunger and lack of financial circulation, while the supreme leader has elevated hardliners favoring offensive military postures. Over a million jobs have been lost since late May, and the currency has depreciated another 30% this year, following prior collapse-triggered protests.