Iran Says It Has Two-Year Economic Plan to Withstand New US Sanctions

Iran has drawn up a two-year economic plan to withstand US sanctions and is fully prepared for any new measures, Economy and Finance Minister Seyed Ali Madanizadeh said on Aug. 24.

In an interview with state television, Madanizadeh sharply criticized Washington, saying the US had sought through military action to deny the very existence of the Islamic Republic of Iran. He said the government had prepared long ago to confront US sanctions.

Madanizadeh acknowledged that the war had dealt a heavy blow to Iran's steel and petrochemical industries. Still, he said the government had worked at full speed to offset the economic losses by quickly restarting damaged facilities and beginning reconstruction projects.

He described a maritime blockade as an economic sanction no different from military war and expressed confidence that global financial flows are not large enough to cut off the arteries of Iran's economy.

On inflation, Madanizadeh cited the central bank governor as saying the monthly inflation rate had fallen to about half the previous month's level. He said the same trend is continuing this month.

He added that easing inflation does not mean prices are falling, but rather that the pace of increases is slowing. The government is managing that through monetary, foreign-exchange and banking policies, he said.

Madanizadeh also said taxes account for half of government revenue, adding that more than 90% of last year's tax obligations were fulfilled despite wartime conditions.

To preserve jobs, the government implemented a working-capital support program worth about 80 trillion toman, or about $1.23 billion, which he said helped prevent roughly 600,000 people from losing their jobs.

He said household support and improving living standards remain the government's top priorities, adding that assistance for a broad range of social groups will be expanded in the second half of the year.

Earlier, US Treasury Secretary Scott Bessent told a press conference that Washington was launching "Operation Economic Outcast" to shut down every option available to the Iranian regime.

The US will impose secondary sanctions on other countries that conduct Iran-related transactions involving digital assets, technology, gold, aviation and shipping. Washington also imposed fresh sanctions on more than 60 entities, individuals and vessels around the world that it said had helped the Iranian regime obtain nuclear and missile technology, carry out cyber operations and generate oil revenue.

Go Jeong-sam, Hankyung.com reporter, jsk@hankyung.com