Iran’s President Masoud Pezeshkian on Friday issued a rare admission, describing that after six months of war initiated by the United States and Israel, the country’s economy is feeling significant pain.

The statement came days after on Monday US Treasury Secretary Scott Bessent unveiled Trump’s “Economic D-Day” plan against Iran, noting that while military operations have ceased, a far-reaching and sustained economic warfare campaign is in full effect.

“Some say sanctions have no effect at all; to those people, I really don’t know what to say,” Pezeshkian told state TV in an interview late on Friday. “We are in a war situation, and we must accept these wartime conditions.”

He appeared to be pushing back against some Iranian hardline officials who have asserted that the sanctions basically have not impacted the government or population whatsoever.

As evidence of the early and ongoing impact, lines at gas stations have gotten longer and more frustrating for consumers of late. Pezeshkian openly acknowledged this, and indicated for the first time the country is raising gasoline prices:

The president said the price of petrol should be increased in Iran to account for the fall in trade. “We should raise the price of the third-tier quota… For example, from 5,000 tomans to 10,000 tomans,” he added.

That quota refers to one of several consumption rates that determine the price an Iranian consumer is charged. Iran, a major oil producer with some of the world’s cheapest fuel, has for years heavily subsidized petrol, making any changes to pricing politically sensitive.

This represents a 100 percent increase from the current 5,000 tomans ($0.025) per liter, and comes as a result of the ongoing US naval blockade, which has prevented regular imports from covering the shortfall of domestic production, amid an overall import fall of 25 to 35 percent. But clearly some shipments are still getting in.

However, in what was perhaps Pezeshkian’s more long view, wishful, and also defiant assessment – days prior to the Friday comment, he had asserted that latest US sanctions “will not achieve anything.”

“We will stand firm against economic pressures, as we have done so far and will continue to do,“ Pezeshkian told state media.

Meanwhile, President Trump had reaffirmed there are currently no talks happening with Tehran. “We’re not looking to meet or anything,” he said Thursday.

Curiously, other Iranian sources have been painting a picture which downplays potential petrol shortages, saying instead that gas station delays are but the result of a sudden surge in demand…

⚡️⭕️ Iran: National Iranian Oil Refining and Distribution Company reports no gasoline shortage; recent 10% demand increase and storage damage in Tehran caused supply delays and queues. (IRIB News) pic.twitter.com/9C0scnCFO0

— Middle East Observer (@ME_Observer_) August 29, 2026

Last week, a top Iranian official in charge of domestic energy supply said the gasoline market had a daily deficit of 14-15 million liters due to record demand, damage incurred in the war and “changes in the national budget’s priorities.”

“We have to do something to bring consumption down to domestic production levels,” Esmaeil Saqab Esfahani, head of the Energy Optimization and Strategic Management Organization, had stated, according to the semi-official Iranian Students’ News Agency.