The Iranian government has announced a sharp increase in fuel prices amid the severe economic crisis that has gripped the country since the start of the war, DPA reported, quoted by BTA.
As of tomorrow, September 8, the price of a liter of gasoline on the free market will double from 50,000 rials (3.6 cents) to 100,000 rials, Keramat Weiss-Karami, chairman of the state-owned oil distribution company, said on state television.
However, the prices of subsidized gasoline will remain unchanged, he added.
Fuel in Iran is among the cheapest in the world. Iranians fill up the first 110 liters using a fuel subsidy card at a price of just over 1 US cent per liter. Once this quota is exhausted, the usual price of 100,000 rials per liter applies.
Despite the low prices measured by Western standards, the increase will have significant consequences in Iran given the country's significantly lower incomes, as it affects transportation costs, energy prices and inflation.
In late August, fears of fuel shortages led to long lines at gas stations. In the metropolis of Tehran, with its millions of inhabitants, drivers waited in front of gas stations even all night, DPA recalls.
The government acknowledged the problems resulting from the war that the United States and Israel launched against the country in late February. President Masoud Pezeshkian has called on his government and the population to observe austerity measures.
During the worst US-Israeli attacks in March and early April, energy facilities in Iran were also bombed, including parts of the oil and gas industry and fuel storage facilities. According to government data, some of the damaged infrastructure has already been restored.
Iran again condemned today the expanded US sanctions aimed at isolating the Iranian economy, describing them as an act of “gross lawlessness” and expressed confidence that many countries would not join the pressure campaign, Reuters reported.
Nearly six months into the conflict, which the United States has struggled to end, Treasury Secretary Scott Besant unveiled the new measures on Thursday but stopped short of imposing the most severe possible restrictions.
While he said that countries that continue to trade with Iran risk being excluded from the dollar-based financial system, Besant did not give a deadline or specify which countries might be affected, saying they would be given time to comply with the new requirements.
There have been signs of a possible resumption of mediation efforts to end the war, which began with US and Israeli strikes on Iran and led to the suspension of most shipping through the Strait of Hormuz, which previously carried about a fifth of the world's oil and liquefied natural gas supplies. gas.
Iran and Oman said today they had discussed a proposal for a “joint temporary shipping corridor“ through the strait, as well as a plan to demine it.
US President Donald Trump reiterated his previous claims that all mines in the strait had been removed or detonated, adding that Iran had been warned that any ship or vessel that laid new mines would be destroyed.
Iran's Foreign Ministry described the latest US sanctions as a threat to international law and the UN Charter, saying that "the issue is no longer limited to Iran alone."
"No decent country that values its sovereignty and national interests will accept such gross lawlessness and systematic harassment as the norm," the statement said.
The US Treasury Department announced new sanctions against 60 individuals, entities and vessels, but the list did not include any of the Chinese financial institutions suspected of facilitating the trade in Iranian oil.
For several years, China has been the largest buyer of Iranian oil. However, the US blockade of Iranian ports has cut off these oil supplies to China since Washington resumed it in mid-July.
Trump said he expects to host Chinese President Xi Jinping next month, and the US is seeking to avoid possible restrictions on Chinese exports of critical minerals.
China said on Monday that its cooperation with Iran is within the framework of international law and should not be subject to external interference.
Iranian Economy Minister Ali Madanizadeh said neither China nor Russia had "accepted" the US measures, predicting that other countries would oppose them.
There have been no major US or Iranian strikes in weeks, but a spokesman for Iran's Revolutionary Guards has vowed heavy strikes against US interests and key energy routes if Iran's infrastructure is threatened.
Oil prices fell for a second day as traders did not expect sanctions to have a significant impact, although market participants remained cautious about Iran's continued ability to disrupt shipping.
An oil tanker was hit by an unidentified projectile on Monday and disabled about 9 nautical miles (17 km) northeast of Ash Shishah in Oman, located at the entrance to the Strait of Hormuz, the UK's Merchant Marine Operations Office (MMO) said.
Tehran and Washington signed an interim agreement in June aimed at ending the war, but it quickly began to unravel, with Iran resuming attacks on vessels that have severely limited energy exports from the Persian Gulf.
Pakistan, acting as a mediator, has made “significant progress“ in recent talks with Tehran focused on preventing further escalation and restoring shipping through the Strait of Hormuz, the Pakistani military said.