War weighs on Iran's economy as US intensifies sanctions

Iran's economy is feeling the strain of war with the United States. The country's supreme leader has called on the government to address the hardship, while the president reported that foreign trade has shrunk 35% due to American sanctions and blockade, according to Al-Monitor.

Annual inflation in Iran hit 66% in July, triggering concern among the leadership that more financial pain could spark unrest at home, as reported by the Japan Times. The US has intensified its campaign to squeeze Iran's economy, with new sanctions targeting entities in various countries, including China.

The US Treasury Department announced sanctions on a Hong Kong company, Kameng Trading Ltd, for allegedly helping launder funds for a sanctioned Iranian exchange house. The company was incorporated in July 2024 and has its registered office in New Mandarin Plaza in Tsim Sha Tsui, according to Hong Kong's Companies Registry. The US Treasury Secretary stated that the goal is to sever every economic lifeline Tehran has left.

Brief written by urgent.news from Al-Monitor, The Vibes, Japan Times, South China Morning Post, Reuters Business via SCMP — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.