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Queues after new sanctions
Long queues formed at petrol stations across Tehran on Tuesday after the United States announced fresh sanctions aimed at pressuring Iran six months into a war that has ground to a military stalemate.
“15 million liters short of its total daily petrol demand of 135 million liters”
The Energy Optimization Organization (EOO) said Iran was facing a "critical" shortfall, with Iran currently 15 million liters short of its total daily petrol demand of 135 million liters, according to the Financial Times (FT).
U.S. Treasury Secretary Scott Bessent said Washington was pursuing the "economic asphyxiation" of Iran, adding that the objective is "to sever every economic lifeline that sustains this tyrannical regime".
A petrol station attendant in Tehran told the Financial Times that people were rushing to fill up "even before their tanks are empty because they worry that the war might start over again or that prices will rise."
The U.S. naval blockade, in place since July 14, has severely curtailed Iran's ability to secure petrol imports, on which the country has long relied to make up shortfalls despite being a major crude exporter.
Officials, residents, and prices
Residents in Tehran said they feared the economic pressure could compound hardships from the war, with property agent Mehdi Yazdian, 55, saying, "Naturally, sanctions affect people's lives."
Yazdian added, "People are being hurt, both those who are financially well-off and those who are financially weak," and he called on authorities to control prices.
English teacher Kia Farahani, 45, said she worried the economic strain could reignite unrest similar to protests that peaked in January, which authorities met with a crackdown that foreign rights groups said killed thousands of people.
The Middle East Eye account said Iranian authorities had largely shrugged off Washington’s threats, while residents expressed concern that the latest measures could further affect fuel supplies and the wider economy.
The National Iranian Oil Products Distribution Company (NIOPDC) said the fuel supply chain remains stable and attributed shortages and long lines to rumors that triggered panic buying, as well as delivery delays.
Sanctions campaign and fuel policy
The sanctions described by the U.S. Treasury Department expanded secondary sanctions targeting Iran's digital assets, technology, gold, aviation and shipping sectors, along with new sanctions against 60 individuals, companies and vessels it said aid Iran in oil revenue generation, weapons procurement and cyber operations.
“new sanctions against 60 individuals, companies and vessels”
The Treasury Department also announced expanded secondary sanctions targeting Iran’s digital assets, technology, gold, aviation and shipping sectors, and Bessent said countries that did not support the campaign would "share in the isolation" of Iran.
Iranian President Masoud Pezeshkian said this month that selling petrol below market price places immense pressure on government resources needed for food subsidies and worker support, asking, "Who said the government should buy petrol at 1.3 million rials per liter and then sell it for 15,000 rials?"
The Türkiye Today report said the shortage has been worsened by a subsidy system that provides Iran's 90 million residents with some of the world's cheapest petrol, priced between 15,000 and 50,000 rials per liter, according to the Financial Times (FT).
The National Iranian Oil Products Distribution Company said the issue "should be resolved within the next few days," while the NIOPDC's Tehran region director said damage to the capital's petroleum storage and distribution infrastructure during the war had created some distribution constraints.