Iran counters US sanctions with inflation controls, food vouchers
16:43, 26/10/2026, Monday
AA
File photo
Government spokeswoman Fatemeh Mohajerani said Tehran is expanding its Kalabarg electronic food voucher program and tightening inflation controls to offset crushing Western sanctions, as Washington's naval blockade and Operation Economic Outcast have driven Iranian oil exports to zero and the economy toward a projected 6.1% contraction.
Subsidy Expansion
Iranian government spokeswoman Fatemeh Mohajerani on Monday outlined measures to ease economic pressure from Western sanctions, saying Tehran will tighten inflation controls and expand food voucher allowances for households struggling with rising prices. Speaking to state-run IRNA, Mohajerani said inflation stems from broader macroeconomic conditions and cannot be resolved through short-term fixes. “We are trying to counter the economic pressure imposed on us by the West and the US by controlling the pace of inflation on the one hand and taking measures to improve people’s livelihoods, including increasing food voucher allowances, on the other,” she said, adding that the Kalabarg electronic voucher program would be expanded to cover more essential items.
US Sanctions Intensify
The announcement comes as Washington intensifies its economic pressure campaign against Tehran. The US launched Operation Economic Outcast in August, targeting Iran’s oil exports, financial transactions and access to international markets — and restored its naval blockade against vessels traveling to and from Iranian ports in July.
The restrictions have effectively halted Iranian oil trade, with Central Bank Governor Abdolnaser Hemmati reporting in August that exports had fallen to zero amid the ongoing conflict.
Economic Outlook
The International Monetary Fund projected in August that Iran’s economy would contract by 6.1% in 2026, with average annual inflation reaching 68.9%. The economic downturn has been compounded by the military conflict between Iran and the US, which began in February, and continuing disagreements over sanctions relief and security arrangements in the strategic Strait of Hormuz.
