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Sanctions and a blockage of Iran's oil exports are intensifying the country's economic turmoil, as oil prices approach $100 per barrel amid heightened tensions in the Middle East. Brent crude, the global benchmark, rose to $97 per barrel on Thursday before dipping to $95.50, as the disruption to Iranian oil supplies fueled concerns about global crude availability. Washington has escalated its efforts to isolate Iran financially and prevent the nation from circumventing sanctions.

Three Iranian officials told Reuters that Tehran is struggling to cope with the latest measures, which are making it difficult to acquire foreign currency and import essential goods. The pressure has significantly impacted Iran's oil exports, with crude loadings falling to around 260,000 barrels per day this month, down from approximately 1.7 million bpd a year earlier.

This has raised concerns about the impact of sanctions on global oil markets, especially as the conflict has disrupted energy supplies and shipping through the Strait of Hormuz.

Despite some oil still flowing through the strategic waterway, the US blockade of Iranian oil exports has effectively severed Tehran's main source of revenue. Iran's economic woes have been exacerbated by a sharp drop in its currency and surging inflation. The rial has plummeted from around one million rials to the dollar a year ago to over 2.2 million rials currently.

The country's inflation rate stands at 69.9 percent annually, while food, beverage, and tobacco prices have risen nearly twice as fast. Iran's trade has declined by between 25 and 35 percent, with imports more heavily affected than exports, according to Iranian President Masoud Pezeshkian.

The UAE has also halted all commercial exchanges and financial dealings with Iran, effective immediately. Meanwhile, Iran's domestic fuel situation is becoming increasingly precarious, with the country reportedly having only about two months' supply of petrol left, which it must import due to limited refining capacity. The deteriorating economic conditions are placing severe strain on Iranian households, with average monthly salaries estimated at $125 compared to basic household spending requirements of roughly $450.

The economic squeeze coincides with intensified fighting between Iran and the United States, raising fears of further disruptions to oil supplies and shipping.