US imposes new sanctions targeting Iran's oil shadow fleet

“For decades, the Iranian people have faced grave challenges, including unjust economic sanctions and terrorism, which have had many devastating impacts on their social and economic rights,” Foreign Minister Abbas Araghchi said in a speech on Monday.

Araghchi, however, did not acknowledge that sanctions against Iran include those for human rights violations, which have targeted both individuals and entities across government sectors from the IRGC to the prison services. Other sanctions have been for Iran's support of Russia's war on Ukraine and its ongoing nuclear program.

The number of people executed in Iran rose from 834 to 901 in 2024, including 31 women, the UN Human Rights Office said in January. The figures have reached record highs since 2022.

While Araghchi said Tehran is committed to improving human rights and cited achievements in education, healthcare, and women's rights, Iran has restricted women's freedoms, including the violent enforcement of hijab laws.

Iran has frequently used violence to suppress demonstrations, including the 2022 protests following the death of Mahsa Amini in morality police custody. Iranian forces killed hundreds of protesters, and arrested thousands more.

Iran's top diplomat also warned against the “politicized use of human rights” as a tool for pressure saying, “Human rights may not be used as a leverage of political and economic pressure or interference in the internal affairs of countries.”

The Islamic Republic has been accused of detaining foreign nationals and dual nationals on vague charges as a means of gaining leverage in diplomatic negotiations—a practice rights groups describe as 'hostage diplomacy'.

“Without easing sanctions through productive negotiations, reducing inflation seems unlikely,” Ghodratollah Emamverdi told Etemad newspaper on Monday. He cautioned that if monthly inflation reaches 50%, Iran could face hyperinflation. Currently, monthly inflation is at four percent, while annual inflation is estimated to be over 40%.

On Sunday, the only government agency reporting inflation figures announced an annual rate of 35%. However, labor groups and analysts contend that the government downplays negative economic news, suggesting the real inflation rate is much higher.

Emamverdi noted that although Iran’s inflation rate has not yet reached the critical 50% threshold, continued sanctions and internal political tensions could push the economy into hyperinflation.

Majid-Reza Hariri, former head of Iran’s chamber of commerce, criticized the presidential administration’s inability to address the current crisis, saying the government is effectively paralyzed.

“We either have a government or we don’t, and I personally believe we are facing a state of no government. If the government cannot solve economic problems, no one is forced to be president or minister,” Hariri said. He added that everyone in the current administration was aware of the situation by mid-2024 but still chose to run for office or accept ministerial positions.

President Masoud Pezeshkian has argued that Iran’s complex and deep-seated economic problems are too vast for his administration to resolve, implicitly pointing to the impact of sanctions. Following Supreme Leader Ali Khamenei’s ban on negotiations with the United States in early February, Pezeshkian expressed his support for the decision, aligning himself with Iran’s ultimate political authority. As the new Iranian year approaches on March 20, the government faces the challenge of setting pay raises for millions of workers, including those in government and quasi-public enterprises. Workers are demanding wage increases of up to 70% to keep pace with soaring inflation.

The Iranian rial has lost more than 50% of its value in the past six months, driving expectations of even higher inflation. Currently, the minimum wage stands at about $120 per month, while semi-official estimates indicate that at least $400 per month is needed to support a family of three.

The government is considering a wage increase of less than 50%, which would still leave workers struggling to afford basic necessities. However, even a smaller pay hike could further fuel inflation.

Speaking to state-run ISNA, economic expert Vahid Shaghaghi pointed to the influence of the US which has, under President Donald Trump's second term, renewed its 'maximum pressure' policy on Iran.

“The maximum pressure policy has resumed, and the US has gained additional experience from the previous campaign under Trump. The puzzle of sanctions is being completed, and in Trump’s new executive order, non-oil exports are also targeted,” he said.

Shaghaghi called for a coordinated response, urging the government and institutions to form a national and governmental consensus to counter the impact of such measures. “In an economic war, issues should not be perceived simplistically,” he added.

The rial’s steep decline has fueled inflation expectations, which have risen sharply since late December, when the dollar was still around 760,000 rials. Market concerns have intensified following Supreme Leader Ali Khamenei’s recent speech rejecting negotiations with the United States.

With the Iranian New Year (March 20) approaching, demand for imported goods—requiring foreign currency—is likely to push rates even higher. The price of gold has surged alongside the dollar, as Iranians seek refuge in hard assets.

For millions of Iranians, the continued currency collapse has eroded purchasing power.

Over the past five years, wages have failed to keep pace with surging costs, with the average worker’s monthly income now equivalent to just $125—far below the estimated $500 needed to cover basic living expenses, forcing at least one third of the nation below the poverty line.

In the reports, people highlight the increasing pressure on their livelihoods, complaining about the lack of response to their protests and the absence of effective measures to control prices.

One viewer, sharing a video, said that they had purchased only a few kilograms of potatoes, onions, and tomatoes, and the cost of these three items had reached 7,000,000 rials, approximately one-seventeenth of the average monthly Iranian salary.

The simultaneous surge in prices and worsening economic hardship, along with leaked reports of the Islamic Republic's financial aid to its supporters in Lebanon, has drawn significant attention from Iranian citizens.

One Iran International viewer, referring to the high food prices, said in a video: "The Iranian government gives money to the Lebanese, but does not care about its own people."

On Tuesday, Ali Khamenei, the Supreme Leader of the Islamic Republic, met in Tehran with leaders of Palestinian Islamic Jihad, who visited Tehran seeking financial assistance. Meanwhile, Hezbollah in Lebanon has been opening new branches of interest-free loan funds to distribute financial aid from the Islamic Republic.

Tehran has recently allocated more than $10,000 to each war-affected family in Lebanon to help cover rent and household expenses. This aid is distributed among Shiite Lebanese who are supporters of Hezbollah.

Naim Qassem, the newly appointed Secretary-General of Hezbollah, described the funds as a "gift from the Islamic Republic."

Inflation in Iran has reached an uncontrollable level, with the Iranian Statistics Center announcing that the country’s annual inflation rate for the 12 months leading up to February 2025 stands at 32%.

The Iranian currency, rial, has depreciated by more than 50% since September fueling annual inflation, which has hovered around 40% in the past five years.

Citizens hold the Islamic Republic and its policies responsible for their economic hardship and the rising cost of food and medicine.

Even Islamic Republic officials have acknowledged their inability to resolve the current crises.

President Masoud Pezeshkian referring to shortages in various sectors—including energy, which the government labels as imbalances—said:

"Do you think I have a magic box? No. Six months ago, I was walking in Parliament, and now I am the President."

Speaking at a meeting with officials in western Tehran on Thursday, Pezeshkian added:

"Everywhere we look, there is an imbalance—in water, electricity, gas, money, land, schools, and hospital beds. Demand is unlimited, and our capacity is limited."

Meanwhile, on Friday, Mohammad Jamalian, a member of Parliament’s Health Committee, said:

"Currently, 350 to 400 types of medicine are in short supply, and in the best-case scenario, such shortages will worsen within the next one to two months."

Iran’s Deputy Foreign Minister Kazem Gharibabadi announced on X that Mahdi Kiasati, who was jailed in the Netherlands at the US's request over alleged sanctions violations, will be returning to Iran within hours following the Dutch decision to reject his extradition. No further details were given.

At the same time, Dutch Foreign Minister Caspar Veldkamp held a phone conversation with Iranian Foreign Minister Abbas Araghchi, covering Tehran’s nuclear program and the ongoing territorial dispute over Abu Musa, Greater Tunb, and Lesser Tunb islands between Iran and United Arab Emirates.

"Spoke with Iranian Foreign Minister Araghchi about developments in the Middle East. Also highlighted Iran’s nuclear program and the window of opportunity for a new nuclear deal," Veldkamp wrote on X.

He also said that the Netherlands supports a peaceful resolution of the islands dispute through bilateral engagement based on international law.

The status of the islands has been a longstanding source of tension between Iran and the UAE. The islands have been under Iranian control since 1971, when Tehran took possession following the withdrawal of British forces from the Persian Gulf.

Iran insists the islands have always been an integral part of its territory, while the UAE claims that they were historically under the jurisdiction of the Qasimi sheikhs and that their claim transferred to the UAE upon its formation in 1971.

The conversation also addressed Iran’s nuclear program, with Veldkamp stressing the “window of opportunity” for a new nuclear deal. The Netherlands, alongside other European nations, has supported efforts to revive negotiations after the Trump administration’s 2018 withdrawal from the Joint Comprehensive Plan of Action (JCPOA) and its “maximum pressure” campaign of sanctions against Iran.

Since the US exit, Iran has gradually scaled back its compliance with the JCPOA, enriching uranium beyond agreed limits and restricting international inspections.

The call between Veldkamp and Araghchi comes as European nations continue to emphasize diplomacy amid growing tensions over Iran’s nuclear program.

Earlier this month, a German Foreign Office spokesperson reaffirmed that Germany, France, and the UK had held preliminary talks with Iran on its nuclear activities and regional issues. While Washington escalates its "maximum pressure" campaign, European allies remain committed to diplomatic engagement—keeping communication channels open despite Tehran’s hardened stance against negotiations with the US.