Iran Trade Plummets as Khamenei Calls for End to US Dollar Reliance

Iranian trade has plummeted significantly amid a tightening web of international sanctions and an active naval blockade, according to statements from top government and political figures.

As the economic squeeze intensifies, Iranian President Masoud Pezeshkian acknowledged the severe downturn in commercial activity during an interview with state television. Simultaneously, Supreme Leader Mojtaba Khamenei issued directives emphasizing economic self-reliance, highlighting an urgent need to diminish the central role of foreign currencies in domestic markets.

Sanctions and Maritime Restrictions Constrain Trade

Iranian trade volumes have contracted between 25% and 35%, according to President Pezeshkian, who spoke during a late Friday interview with state TV referenced via a Tasnim News transcript. Pezeshkian noted that while exports have dropped, import volumes have fallen even faster, upending domestic supply chains and forcing officials to abandon claims that external economic penalties lack impact.

https://x.com/MKhamenei_ir/status/2093409566247584251

“We have had a decrease of between 25% and 35%. Our exports have decreased, but imports have decreased more,” Pezeshkian said, adding that “saying that sanctions have no effect is not consistent with these facts.”

This economic contraction coincides with an aggressive enforcement campaign led by the United States. On Monday, U.S. Treasury Secretary Scott Bessent launched “Operation Economic Outcast,” an expansive sanctions initiative designed to sever Iran’s remaining global commercial channels. As part of this push, the U.S. Treasury Department proposed revoking the correspondent banking access of Egyptian bank Banque Misr’s UAE operations, alleging the branch processed roughly $1.8 billion over a two-year period for 103 companies linked to an Iranian shadow banking network. Banque Misr stated Saturday that it is cooperating with relevant authorities while continuing to serve customers at its UAE branch.

Photo: osoulmisrmagazine.com

At sea, the U.S. Navy and coalition forces have severely restricted maritime petroleum flows. President Donald Trump reimposed a naval blockade on July 14 in retaliation for Iranian attacks on commercial oil tankers transiting the Strait of Hormuz. According to data released Thursday by trade intelligence firm Kpler, Iranian crude oil loadings for export plunged in August. Tehran has loaded roughly 260,000 barrels per day (bpd) for export so far this month, marking a drop of more than 80% from the 1.7 million bpd recorded in August 2025, and down roughly 70% from 893,000 bpd the previous month.

U.S. Central Command reported Saturday that as of August 28, its naval forces had redirected 82 commercial vessels, disabled three, and boarded two to ensure compliance with the blockade. Matt Smith, director of commodity research at Kpler, described the blockade as very effective, noting that it has walloped export loadings and likely prevents tankers from successfully clearing the maritime barrier. Rapidan Energy President Bob McNally noted that the Trump administration believes these measures will eventually exhaust Iran’s financial reserves and force a capitulation.

Tehran Pushes for Dollar Independence and Economic Self-Reliance

Responding to the mounting external pressures, Supreme Leader Mojtaba Khamenei released a written message on Friday calling for a structural pivot in the nation’s financial planning. Writing on X, the Supreme Leader emphasized the necessity of boosting domestic production and shielding the economy from external shocks.

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“Equally vital is giving special attention to economic growth, boosting production, gradually phasing out the US dollar from playing a pivotal role, and ultimately, making Resistance Economy the central focus,” Mojtaba Khamenei stated.

Despite the severe decline in exports and maritime restrictions, Iran’s Ministry of Petroleum asserted via a Telegram post that the country maintains sufficient oil reserves for sale to satisfy its 2026-2027 budget requirements while bypassing blockades. The ministry reported transferring $7.5 billion in oil sales proceeds to the central bank over a four-month period, which it claims will cover foreign currency expenditures through early January 2027.

Financial observers note that Friday also marked six months since the U.S. and Israel launched major combat operations in the region, keeping regional tensions elevated as commercial and diplomatic channels remain severely constrained.