Iran's economic problems have worsened since the start of the war with the US and Israel, due to declining oil revenues and the destruction of factories, President Masoud Pezeshkian said Saturday.
In remarks carried by Iranian media, Pezeshkian attributed rising prices to higher costs and falling state revenues resulting from a decline in oil sales.
He said imported goods previously reached Iran through more direct routes but now enter the country through alternative channels, driving up their final cost.
"Our revenues have declined. We used to sell oil, but now we cannot sell it," he said.
Pezeshkian said damage to the country's industrial facilities during the war with the US and Israel had further aggravated the economic situation.
"They targeted and destroyed a large number of factories," he said.
The damage has also affected tax revenues, he added.
"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," the president 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 on Israeli and US targets across the region.
On June 18, Iran and the US signed a memorandum of understanding through Pakistani and Qatari mediation, ending active hostilities and launching negotiations toward a final agreement. The talks later stalled over disputes over maritime security and freedom of navigation through the Strait of Hormuz, a critical export route for Gulf oil and gas.
