US Sanctions and Blockade Strain Iran's Economy, Oil Exports

In early September 2026, the US intensified its economic pressure on Iran, with sanctions and a naval blockade aimed at halting Iranian oil exports. The measures have begun to bite: Iran's currency, the rial, has fallen to record lows, and the country reportedly has only about two months of gasoline reserves. Iran claims it has found ways to bypass the blockade, but US Treasury Secretary Bessent has suggested that oil prices could drop to as low as $40 a barrel in a post-war scenario, which would further strain Iran's revenues.

The pressure has also extended to Turkey, where the US sanctioned a Turkish bank and two subsidiaries for their alleged role in facilitating Iranian oil trade. Meanwhile, US fuel prices have risen sharply, adding to domestic pain as the conflict continues. Critics note that the economic campaign, which President Trump had touted as an 'economic D-Day' for Iran, has not produced the quick collapse some expected, and instead has contributed to volatility in bond markets.