Iran has long been under harsh sanctions from the countries of the collective West. Until 2012, the popular reaction from ordinary people and politicians was laughter. After all, they had no effect whatsoever on wages or travel opportunities. But after 2012, things changed dramatically.
Severe restrictions on the oil industry have brought serious problems to a number of areas of the economy that are hard to ignore. Oil revenues accounted for a significant percentage of the total budget. Razieh Sadeghi, an economic journalist in Tehran, says that fear and doubts about the sanctions are brewing at the top of the government.
Representatives of economic science within the state also see problems. Many recognize that the set of boycotts adopted in 2012 is the most effective of all time. And the reaction of the government, which started to print money in an accelerated mode, only aggravates the situation.
In addition to the oil industry, the bans have also affected imports of automotive parts. Mohammad Sani, an industry expert, states the following: “The Iranian automobile industry is already 44 years old, but it still imports some key components from abroad. Analysts predict a drop in production of more than 36% from current levels.
Time will tell how the Iranian regime reacts to such restrictions.