Iranian Families Struggle to Afford Basics as Sanctions Bite, But Iranian Regime Says US Will Be Forced to Lift Sanctions, Leave Region

TEHRAN, (AP) Aug 21:  Tehran's grocery stores are well-stocked, but many families can barely afford the basics. Unemployment is soaring, and those with jobs are working more hours for money worth half as much as a year ago — putting food, medicine and everything else, except for heavily subsidized gasoline, further out of reach.

"We have virtually given up on many things," said Ahmad Karimi, 52, a taxi driver and father of two who has been working 15-hour days to make ends meet. "We're cutting out fruit, we're cutting out protein, we've given up leisure, we even work on weekends."

Nearly six months into the war with the United States and Israel, the Iranian economy is taking a beating under the force of sanctions and a naval blockade that is making it extremely difficult for the country to export oil, its most valuable product. Whether this intensifying economic pressure will translate anytime soon into military or political concessions from Iran remains to be seen — but some experts are skeptical.

Since the war began, Iran has been attacking oil-rich neighbors and U.S. bases in the region, and disrupting shipping in the Strait of Hormuz, its biggest strategic advantage. Iran is trying to use this retaliatory pressure — which is driving up energy prices globally — to bring the war to an end on the best terms possible. It is pressing for sanctions relief and seeking enough control over the strait to demand payment from ships passing through to deliver energy and other goods.

The Trump administration — which is stuck fighting over a waterway in a war that was launched to curb Iran's nuclear program — is now promising to deliver even tougher sanctions to try to squeeze the Islamic Republic into submission. But experts say U.S. President Donald Trump may be underestimating how long Iran can hold out.

Iran has been subject to Western sanctions for years and has become adept at partially circumventing them. It has expanded domestic production, used informal cross-border trade networks, bought restricted goods through third countries, and used a shadow fleet to transport its oil.

"Iran's resistance capacity not only avoids collapse, it also prevents the economic pain from translating into the political pressure and changes that the U.S. expects," said Hadi Kahalzadeh, an expert on Iran's economy at Brandeis University.

Iran's parliament's national security committee chairman said Friday that the United States does not understand diplomacy and would ultimately be forced to lift sanctions, release Iran's frozen assets, and end what he called maritime piracy.

"The US has proven it does not understand the language of diplomacy," Ebrahim Azizi wrote on X. "History, however, will show that the language of strength will compel it not only to take these steps, but also to apologize to the great Iranian nation and leave the region forever."

Iran's foreign minister said Friday that President Donald Trump's "Economic D-Day" campaign against Tehran was bound to fail and that Iran had seen similar U.S. pressure campaigns before.

"14 years ago: 'Most crippling sanctions in history.' Failed. 8 years ago: 'Maximum pressure.' Failed. 5 months ago: 'Unconditional surrender.' Failed. Today: 'Most crushing economic operation ever.' Bound to fail," Foreign Minister Araghchi wrote on X.

He shared a 2012 post from former President Barack Obama quoting then-Vice President Joe Biden as saying sanctions on Iran were "the most crippling sanctions in the history of sanctions."

"We have seen this movie before. Same bull. Different bullies," Araghchi added.