--- title: "US Sanctions Impact Iran's Economy" url: https://noti.group/us-sanctions-impact-iran-s-economy/ language: en publisher: "Noti Group" section: "World News" published: 2026-10-20T12:29:58.000Z updated: 2026-10-20T13:48:47.035Z id: 2b848b25-4f10-48a1-b858-d4b1ae495424 source: "Al Jazeera https://www.aljazeera.com/news/2026/10/20/iran-denies-collapse-is-close-as-us-claims-irgc-running-out-of-money?traffic_source=rss" attribution: "Link to https://noti.group/us-sanctions-impact-iran-s-economy/ and name Noti Group when you quote or summarize this story." --- # US Sanctions Impact Iran's Economy The US has imposed significant financial challenges on Iran due to its ongoing war efforts and naval blockade of southern ports. Iran has dismissed claims that it is on the brink of financial collapse due to US sanctions, but acknowledged that the ongoing war has created significant financial challenges for the country. The US Central Command chief, Brad Cooper, recently stated that a combination of military attacks and a naval blockade of Iran's southern ports have severely impacted the country's economy. This assertion comes as part of the US's efforts to strangle Iran's oil exports, which have been effectively blocked by American forces. According to Admiral Cooper, the US has successfully prevented at least $25 billion in Iranian crude exports from reaching the global market. Additionally, the US has helped freeze approximately $350 million in cryptocurrency assets belonging to the Iranian Revolutionary Guard Corps (IRGC). This financial strain is reportedly affecting not only the IRGC but also Iran's regional allies, including militia groups that are struggling to pay their soldiers due to the economic constraints. Some of these groups have even resorted to withholding payments from their troops in order to channel funds back to the IRGC. The situation has been described by analysts as a significant blow to Iran's military and its ability to support its regional proxies, which have been weakened financially over the past few years due to US pressure. Iran's financial support for its regional allies has been severely impacted by US pressure, but it appears some groups have found ways to adapt and maintain their funding streams. The IRGC Quds Force has long provided military aid to allied groups in the region, including money, weapons, components, training, and manufacturing expertise. This assistance has enabled these groups to develop local production capabilities for various arms systems, according to UN experts and US officials. Regional groups have also diversified their financial resources by tapping into businesses such as oil exports, as well as donations and local funding sources. Some Iraqi militias have even been integrated into the country's official security forces, receiving government funding through the Popular Mobilisation Forces. Iraqi commercial networks have been selling Iranian commodities, with proceeds distributed through intermediaries and exchange houses, according to US claims. This has put some allied groups in a relatively stronger financial position compared to others like Hezbollah and the Houthis. This complex web of financial support involves the flow of money between Iraq and Iran, as well as between various regional groups. Some Iraqi militiamen and government officials are allegedly being paid late, while also sending funding overseas to support these same groups. The US Treasury has revealed a significant flow of funds from Iran's Quds Force to Hezbollah, with substantial transfers taking place in both directions. This information comes as part of a broader picture of financial transactions between Tehran and its allies. According to reports, Hezbollah received $200m from Iran in September, a figure cited by unnamed sources earlier this month. The US State Department had previously dismissed similar claims as attempts by the group to present a more favorable image. Iran's economy has been battered in recent years due to war, domestic mismanagement, and sanctions, resulting in severe economic consequences for its citizens. The country is facing runaway inflation, low-paying jobs, a depreciating currency, and isolation from the global community, affecting over 90 million people. The World Bank has projected a significant contraction of Iran's economy in the fiscal year 2026-27, with a decline of 7.7 percent expected. Despite these dire predictions, Iranian authorities remain confident that their economy will withstand the pressure. Central Bank chief Abdolnaser Hemmati has emphasized his country's resilience in the face of economic challenges. He dismissed claims that Iran's economy is on the brink of collapse as an "illusion". Iran's president has announced a new plan to manage fuel consumption and reduce imports, which would have otherwise cost the country $12 billion. This move is seen as an effort to mitigate the economic pressure imposed by US sanctions, which have restricted Iran's ability to import essential goods. Experts say that despite the financial strain, Tehran will continue to prioritize its regional allies, including military groups supported by the Revolutionary Guard Corps (IRGC). Economists warn that the US strategy of using economic pressure to weaken Iran is unlikely to succeed. --- Source: [Al Jazeera](https://www.aljazeera.com/news/2026/10/20/iran-denies-collapse-is-close-as-us-claims-irgc-running-out-of-money?traffic_source=rss) Published by Noti Group: https://noti.group/us-sanctions-impact-iran-s-economy/