Iran says it can endure US sanctions but expects a difficult year

Iranian officials have asserted that the country can endure the renewed wave of United States sanctions targeting its oil exports, banking sector and key industries, but they cautioned that 2024 will present significant economic challenges. The statement came after Washington announced a series of measures aimed at curbing Tehran’s nuclear program and limiting its ability to finance regional activities, including restrictions on secondary sanctions for firms dealing with Iranian entities and renewed pressure on the country's sovereign wealth fund. Iran’s Ministry of Economic Affairs and Finance highlighted its existing stockpiles of foreign currency, diversified trade partnerships and a policy of self‑reliance as buffers against the anticipated impact.

Despite the expressed confidence, the authorities warned that the sanctions would likely tighten credit availability, raise import costs and strain public finances, potentially slowing growth and increasing inflation. Analysts noted that the combined effect of reduced oil revenues and limited access to international financial markets could force the government to prioritize essential imports and adjust fiscal plans. The government has indicated it will seek to mitigate the effects through domestic production initiatives and by strengthening ties with non‑Western allies, while monitoring the evolving sanctions landscape throughout the year.