Sanctions batter Iran’s economy

Islam Mohamed

US Treasury Secretary Steven Mnuchin has stated that Washington will increase economic pressure on Tehran, adding more pressures on the Iranian economy.

The US has been imposing sanctions on Iran since President Donald Trump decided to withdraw the United States from the Iran nuclear deal in 2018.

The sanctions will target the Central Bank of Iran, Iran’s National Development Fund and other firms that financially support terrorist groups. The United States has accused the Central Bank of Iran of providing the Revolutionary Guards and Hezbollah with billions of dollars.

The IMF said Iran would fix its budget only if oil reaches as high as $195 per barrel. The IMF forecast Iran’s budget deficit to reach 4.5% this year and 5.1% in 2020.

The IMF said earlier that Iran’s economy would decline by 9.5% this year.

Researcher Mohamed Alaa Eddin, an expert on Iranian affairs, said Iran has taken the blow of the sanctions with everything going from “bad to worse”.

“Iran’s economy is suffering severely. However, it is trying to keep calm and pretend that no harm is done as much as possible,” Alaa Eddin told THE REFERENCE, citing that Tehran is trying to enhance its negotiating position with the US administration.