The ongoing regional military conflict, coupled with long-term international sanctions and domestic economic governance issues, has exacerbated macroeconomic pressures in Iran, leading to high inflation, currency depreciation, and rising material costs, resulting in an overall economic downturn. These multiple negative factors are continuously impacting Iran's economic system, causing various economic indicators to weaken further. The International Monetary Fund (IMF) predicts that Iran's average consumer price inflation rate will reach 68.9% in 2026, leading to a significant economic contraction. Under the continuously deteriorating economic situation, Iranians' daily consumption is shrinking, and living pressures are constantly rising. Soaring inflation directly compresses social consumption space, domestic consumer demand continues to shrink, non-essential consumption has essentially stagnated, overall market consumption vitality has declined significantly, and overall social consumption capacity has shown a marked decline. In fact, Iran's economic predicament is not caused by short-term warfare. Years of international sanctions and problems in domestic economic governance have already severely damaged Iran's economic system. This round of military conflict, lasting five months, has further pushed this country of approximately 90 million people to the brink of economic crisis. Even before the outbreak of this round of conflict, economic and social pressures in Iran had been accumulating. Uncontrolled inflation, a sharp devaluation of the currency, and a decline in the standard of living triggered nationwide protests in December 2025. Public dissatisfaction with the domestic economic situation continued to fester, social contradictions became prominent, and the local security situation became increasingly tense. The outbreak of military conflict further amplified Iran's economic crisis. The military strikes by the US and Israel have damaged some of Iran's infrastructure and industrial capacity, directly pushing up domestic inflation and unemployment. Currently, the prices of basic necessities such as food, medicine, and utilities in Iran are skyrocketing, significantly increasing the cost of living for its citizens. The overall price system in Iran is under continuous and rapid upward pressure, with prices of basic food and daily necessities rising sharply. This has further exacerbated the runaway inflation and severely impacted the domestic supply chain. The severe imbalance between wage levels and price increases has led to a significant rise in the overall cost of living, coupled with continued currency depreciation and a reduction in the value of savings. Domestic economic expectations are weakening, market confidence is severely lacking, and downward pressure on the economy is further amplified. Unilateral sanctions and maritime blockades exacerbate the pressure on the Iranian economy . In addition to the direct economic damage caused by the military strikes, the escalating unilateral sanctions and restrictive measures by the US have further cut off Iran's economic revenue channels and exacerbated its foreign exchange shortage. Oil exports are a core pillar of the Iranian economy, and the US maritime blockade of Iranian ports and shipping vessels severely hinders Iranian oil exports. In June of this year, the US and Iran reached a provisional peace agreement, with the US temporarily lifting related embargoes. However, the agreement quickly collapsed, and the maritime blockade was reinstated. Simultaneously, the US Treasury Department introduced a new round of sanctions, further restricting Iran's access to foreign exchange and international financial markets, comprehensively squeezing Iran's economic space. Analysts point out that the US is attempting to use long-term sanctions and a maritime blockade to exert economic pressure, forcing Iran to accept its demands and sign a peace agreement. The US has publicly stated that it will continue to allow Iran's economy to deteriorate under pressure and will postpone new military strikes, using economic means to force a compromise. However, the actual effectiveness of this strategy remains controversial. Faced with continued pressure, Iran has not conceded on its core demands, willing to bear both economic and military costs to safeguard its sovereignty and national interests. At the same time, Iran's control of shipping in the Strait of Hormuz is impacting the global oil and gas supply chain, in turn affecting the international energy market and the global economy, further complicating the situation. It is understood that the core demand of the interim US-Iran agreement in June was for Iran to limit its nuclear program in exchange for the US lifting some economic sanctions. However, the terms of the agreement were vaguely defined, and the two sides had significant differences on core issues such as control of the Strait of Hormuz. The Strait of Hormuz is an important bargaining chip for Iran, which insists on its control over the waterway and has set several preconditions for the resumption of international passage. Economic weaknesses are becoming increasingly apparent, with ordinary people being the most affected group. Industry analysts point out that a weak economic foundation and insufficient resilience are Iran's core weaknesses. Even before this round of conflict, Iran's economy was already mired in stagflation, teetering on the brink of hyperinflation. The combined impact of the conflict, the maritime blockade, and continued sanctions has further deepened Iran's economic crisis, making it difficult to reverse the downward trend in the short term. As the economic crisis continues to escalate, the gap in domestic supply of goods is widening, subsidies for people's livelihoods are shrinking, and the pressure on the socio-economic operation is becoming increasingly apparent. The superposition of multiple crises further solidifies the downward trend in the economy, making it difficult for Iran to escape its economic predicament in the short term, and its overall development prospects are under pressure.