Donald Trump's strategy towards Iran, it is claimed, relies on inflicting economic pain, which is currently intensifying. Iranian economic indicators show a deepening crisis across multiple sectors, as highlighted by some official news sources.
}} , 3.On Sunday, US President Donald Trump emphasized that inflicting economic damage on Iran is part of Washington's strategy. He stated: 'We are only holding partial negotiations with Iran. We are simply watching Iran with its huge inflation and the fact that they have no money.'
The state of the Iranian economy suggests that these calculations may be correct. According to the Iranian Labor News Agency (ILNA), workers are constantly in debt to everyone and everything.
Hosseyn, a 35-year-old resident of Tehran, told the agency that he is now forced to use credit applications for both daily commutes and buying small amounts of food. President Masoud Pezeshkian has repeatedly warned about the social consequences of Iran's economic collapse, and even state media acknowledges the risk of renewed social discontent.
The state news agency IRNA reported last month that while inflation, unemployment, declining purchasing power, and a sense of inequality persist, 'social discontent will continue to reproduce.'
According to official statistics, incomes clearly do not keep pace with inflation. Over the past 12 months, food prices have risen by almost 130%, while the wages of low-paid workers have increased by less than half.
The government recently warned that it might increase pressure by reducing gasoline subsidies, which would trigger a new wave of inflation and potentially lead to rising unemployment. In the past, increases in gasoline prices have caused protests.
Albert Baghzian, a professor of economics at Tehran University, told ILNA: 'Our current economy is like a patient suffering from severe bleeding.' He added that 'introducing a shock to gasoline prices is akin to delivering a fatal blow to livelihoods.'
The International Monetary Fund forecasts that Iran's economy will contract by 6% this year, mainly due to lost production volume and physical damage caused by the conflict. At the national economic level, this figure represents a massive destruction of welfare and livelihoods.
Analysts believe that even a swift resolution of the conflict with the United States will take months to reflect in an improvement in the economic situation. According to estimates by the Eurasia Group analytical center, Tehran could receive 'up to $20 billion in frozen assets, $8 billion annually from the US oil sales license, and $5–10 billion per year from Strait of Hormuz fees.'
However, Eurasia added that 'each source of income carries a serious risk that Washington could close it, as was done before.'
Meanwhile, the cost of survival continues to rise for millions of Iranians as the war drags on. ILNA reported this month that 'buying food and medicine on installment is no longer a sign of prosperity, but an alarming signal of a serious crisis.'
Essentially, people are postponing their financial problems. One 29-year-old freelance editor in Tehran told ILNA that he uses dozens of microcredit applications because 'it is impossible to pay everything at once.'
Other workers told ILNA that 40% of their salary goes to rent, and another 40% goes to repaying loan payments. ILNA also noted that the use of credit applications is growing among students facing 'uncertain employment prospects (and) unstable income.' Users of these applications face fines and charges if they fail to meet repayment deadlines. Hosseyn told ILNA: 'These fines accumulate. The fear of having no money and falling behind on payments is truly tormenting.'
Many Iranians work on temporary contracts or find unstable employment, making them even less likely to repay debts on time. Many lack health insurance, and any health problem can destroy their income, according to workers interviewed by ILNA.
Rent inflation has also forced thousands of people to move to cheaper housing on the outskirts of cities. According to official data, the cost of housing construction has doubled in the last year, which is reflected in the rental market. Some local authorities have tried to limit rent growth in Tehran province to 27%, but such restrictions are often ignored.
Another semi-official source, ISNA, reported: 'Rent continues to rise, construction costs have sharply increased, purchasing power has weakened, and housing transactions remain in decline.'
Union groups claim that the government has forgotten about them amidst the war. Hassan Ezzati, head of the Baneh Construction Workers' Union, stated: 'Iranian workers, especially builders, have been forgotten and left defenseless against the whims of fate.' He added that 'their efforts are focused on one thing and only one: survival.'
Ezzati calculated that half of the construction workforce in Baneh, near Tehran, lacks health insurance. Some desperately needed money and took up colbari work—smuggling across Iran's borders, sometimes through minefields from the decade-long Iran-Iraq War in the 1980s.
Perhaps the Trump administration views economic desperation as a more likely tool to coerce Iran into compromise than missiles and bombs. While negotiations in the Strait of Hormuz drag on, the White House apparently believes that time—and Iran's deteriorating economy—is on its side.
US Treasury Secretary Scott Bessent stated last week that Iran's influence in the Strait of Hormuz will weaken over time as other countries build pipelines to avoid this choke point.
Israel's ultra-right Finance Minister, Bezalel Smotrich, argued that destroying Iran's economy offers the most effective path to regime change. The US possesses enormous economic influence over Iran through sanctions and the ability to block or restrict the release of its frozen foreign assets.
Eurasia concluded: 'Revenue from the deal would ease fiscal pressure but would not fully resolve the deep economic grievances of the public, so political control would still remain in the hands of power.'
The approved budget for 2026 already reduces real spending by 38%. There is one striking point: oil exports. The budget for this year planned export revenue of 1.77 million barrels per day (bpd) at a price of $55 per barrel. Exports averaged 1.6 million barrels per day, but at prices around $80. However, this positive trend may not last long, as the US naval blockade is exerting pressure. According to shipping data, oil has not been exported from the island of Harg since late July.
The irony does not escape labor activist Hassan Ezzati. He told ILNA: 'In a country rich in both surface and underground natural resources, the history of workers' lives is an endless chronicle of suffering.'
Kyiv information services estimate that the targeted drone attack campaign against Wildberries has affected at least 14 of the company's distribution centers. According to these sources, the action destroyed the business model of Russia's largest e-commerce platform, which annually traded products equivalent to 3% of the national Gross Domestic Product (GDP).
Through the Telegram social network, information services revealed that Wildberries suffered a loss of at least 20% of its storage capacity in just a few weeks, accumulating losses exceeding 100 billion rubles, with more severe projections indicating double this amount. Furthermore, Kyiv calculates that Wildberries' total financing needs have already reached 1.3 trillion rubles, which corresponds to approximately 13.6 billion euros.
Ukrainian President Volodymyr Zelensky justified the attacks on Wildberries since mid-July, alleging that the Russian company stores military supplies and components for drones. In another update, Zelensky reported that Ukrainian forces recovered 26 localities in the Zaporizhzhia region, located in the south of the country, as well as in adjacent areas such as Dnipro and Donetsk, as part of an offensive launched last January.
The Ukrainian leader stated on social media, after a meeting with military commanders, that this military operation enabled the liberation of 745 square kilometers of territory. Zelensky also mentioned that the army attacked what was described as 'the last great bastion of the Russian fleet in the Black Sea,' located at the naval base of Novorossiysk, in the Krasnodar region, where there is a relevant international oil terminal, as well as grain storage and export facilities.
Russian authorities reported that the attacks resulted in two fatalities. The governor of Krasnodar, Veniamin Kondratiev, detailed that Russian air defenses managed to repel 'a massive attack of hundreds of drones' during the night, an event that 'unfortunately caused deaths and injuries,' including an 8-year-old in Novorossiysk.
Zelensky, for his part, posted on social media, praising the success of the attacks, and confirmed impacts on air defense positions, docks, and port infrastructure. He highlighted the use of Palianitsia drones and Neptune missiles at facilities more than 300 kilometers from the front line. The Ukrainian president warned that 'the occupation fleet and all supporting infrastructure will not be safe as long as the Russian aggression continues,' but reaffirmed that 'all reasonable diplomatic proposals remain on the table' to seek a quick end to the war.
In recent months, aerial attacks have intensified on both sides of the front line, leading to an increase in the number of civilian casualties. Advanced drones developed by Kyiv since the Russian invasion, which occurred more than four years ago, have been repeatedly targeted against the Russian fleet in the Black Sea, covering warships and oil tankers.
Ukrainian authorities believe that Russian President Vladimir Putin remains determined to continue the invasion of Ukraine, despite the accumulation of casualties and the absence of significant territorial gains, coupled with a struggling economy focused on the war effort. However, Zelensky reported on social media, citing Ukrainian intelligence sources, that Putin plans 'an additional rapid mobilization of several hundred thousand Russians by the end of the year.'
Reports also recently indicated that Russia is expanding the production of ballistic missiles and jet drones, both considered difficult to neutralize by Ukrainian air defenses. Simultaneously, Ukraine seeks to increase its military production through agreements with partner nations, given that both sides remain far from a negotiated solution, despite mediation attempts by the United States.
In Crimea, illegally annexed since 2014, air defenses shot down 115 Ukrainian drones over Sevastopol during the night, according to the local governor, who added damage to 10 residential buildings and 25 private houses. In Ukraine, Russian bombings hit several regions the previous night, resulting in the death of two people and injuries to others in drone attacks in the Kherson region, in the south of the country.
According to the Ukrainian Air Force, Russia launched missiles and 138 drones last night, of which 112 were intercepted or shot down. Russia also claims land advances in the Donetsk province, in eastern Ukraine, an area it has tried to fully occupy since the start of the large-scale invasion in February 2022, when it already controlled parts of the region.
The Deputy Minister of Investments, Industry and Trade of Uzbekistan, Ilzat Kasimov, held a meeting on August 12, 2026, with leaders of major Chinese companies. The purpose of the meeting was to discuss prospects for implementing joint investment projects, according to the ministry's press service.
Representatives of organizations such as Sichuan Hebang Investment Group, China Feihe Limited, YEMA Group, Zhejiang ZHINK Group, and Beijing Century Beijing Furniture took part in the meeting. These companies operate in the fields of mineral extraction, chemical processing, agriculture, animal husbandry, production of dairy and food products, PET materials, textiles, and furniture manufacturing.
Chinese companies were presented with information about Uzbekistan's investment potential. The main focus of the discussion participants was on opportunities for joint ventures in the development of deposits, deep processing of mineral raw materials, and chemical production.
The possibility of establishing powder milk and other dairy product production facilities in Uzbekistan was discussed separately. At the end of the meeting, the parties reached an agreement to continue joint work on potential projects. Detailed elaboration of these initiatives will be carried out jointly with relevant ministries and agencies before practical implementation begins.
The National Agency for Advanced Projects (NAPP) has published a draft amendment to the internal regulations for crypto asset service providers. These changes introduce stricter requirements for employees, managers, and anti-money laundering procedures.
According to the draft, employees responsible for organizing and implementing internal control must hold positions as deputy heads. Previously, these functions could be performed by members of the management staff.
A new crypto asset service provider is obliged to appoint a responsible employee and provide their personal data to NAPP within one month of receiving a license.
Simultaneously, it is proposed to tighten requirements for crypto service managers. They must not be residents of countries that do not participate in international cooperation against money laundering. Companies registered in such jurisdictions will also be excluded from the list of potential service founders.
The proposed criteria for appointing, training, and qualifying employees include requirements regarding qualifications and business reputation. Furthermore, providers must possess an understanding of the client's business, as well as its ownership and management structure.
The draft provides for the involvement of a third party for client identification and verification within the scope of due diligence. A specialized organization confirming the authenticity of personal data is proposed as such a third party.
Special requirements are established for providers with controlled or affiliated structures conducting operations with funds or other assets. In such cases, internal rules must be developed using a group approach.
Specifically, the rules must define the procedure for exchanging information to manage risks of criminal income laundering, ensure consistency of compliance, audit, and anti-money laundering functions at the group level, and allow for obtaining necessary information about clients, accounts, and transactions from branches and subsidiaries. Proper confidentiality of the received information must be guaranteed.
The amendments also clarify the procedure for transmitting reports on suspicious transactions. Crypto services are required to send such notifications to the Department for Combating Economic Crimes under the Prosecutor General's Office through secure communication channels.
Proposed secure channels include electronic data transmission systems with cryptographic protection, including encryption, secure email addresses, and a personal account in a special system. To connect to the personal account, the organization must submit a request to NAPP with detailed information about the company and the responsible employee.
If a transaction is suspended or assets are frozen due to the client being included in a list of persons involved or suspected of terrorism, the responsible employee must immediately notify the client. Moreover, the employee must explain the procedure for resuming the transaction.
Public discussions on the draft amendments will continue until August 22.
