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

Iran has drawn up a two-year economic plan to respond to 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 tried to deny the very existence of the Islamic Republic through military action. The government had prepared for US sanctions long ago and is ready for additional restrictions, he added.

Madanizadeh acknowledged that the war had heavily damaged Iran's steel and petrochemical industries. He said the government moved quickly to restart affected facilities and begin reconstruction projects to offset the economic losses.

He described a maritime blockade as an economic sanction no different from military warfare. He also expressed confidence that global financial flows are not large enough to sever what he called the arteries of Iran's economy.

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

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

Taxes account for half of government revenue, according to Madanizadeh. More than 90% of tax payment obligations were met last year despite wartime conditions, he said.

To preserve employment, the government rolled out a working-capital support program worth about 80 trillion tomans, or about $1.2 billion. He said the measure prevented roughly 600,000 people from losing their jobs.

Madanizadeh said support for households and improving living standards remain the government's top priorities. Starting in the second half of the year, the government plans to expand support across society, he said.

Earlier, US Treasury Secretary Scott Bessent told a press conference that "today we are launching Operation Economic Outcast" to block every option available to the Iranian regime.

The US plans to impose secondary sanctions on other countries that trade with Iran in digital assets, technology, gold, aviation and shipping. Washington also newly designated more than 60 entities, individuals and vessels around the world that it said help 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