Factbox-What's included in the new US sanctions campaign to pressure Iran's economy?

Iran is grappling with a growing gasoline shortage as U.S. restrictions on imports limit its fuel supply, heightening concerns of unrest, according to Bloomberg. Long lines formed at gas stations in Tehran on August 23 as citizens rushed to fill their tanks before they were almost empty. A senior official in charge of domestic energy supplies revealed that the gasoline market is experiencing a daily deficit of 14 million to 15 million liters due to record demand, war damage, and budgetary changes.

The gasoline price issue is particularly sensitive in oil-rich Iran, where subsidies keep fuel costs among the cheapest globally. The prospect of price hikes could reignite public anger, especially as the country faces soaring inflation and a deepening currency crisis. Iranian officials have been warning citizens for months that price increases may be necessary after Israeli and U.S. strikes on fuel storage sites and other energy facilities exacerbated existing supply-demand imbalances.

In response to the shortage, Iran is considering three approaches: allocating a fixed 121 million liters of fuel per day, permitting sales above that limit at higher prices, or distributing fuel quotas to individuals instead of vehicles. The country previously employed a tiered quota system, where each vehicle received a monthly gasoline allowance at subsidized rates, with the first 60 liters costing 15,000 rials ($0.008) per liter, the next 50 liters costing 30,000 rials, and any additional amount at 50,000 rials per liter.

However, the government abruptly halted a pilot program in Kerman that would have raised the overall quota but imposed a much higher price for excess fuel, citing poor management and raised concerns about potential nationwide price increases. U.S. Treasury Secretary Scott Bessent announced plans to impose severe sanctions on Iran, warning that countries continuing trade with Iran would face economic retaliation, labeling this strategy as the "largest coordinated economic isolation in the history of the world."