Iran’s Oil Revenue Falls as War Damages Industrial Facilities

Iranian President Masoud Pezeshkian has said the country’s economic difficulties have intensified since the outbreak of the war with the United States and Israel. He attributed the growing pressure to declining oil revenues, damage to industrial facilities and disruptions to trade and supply routes.

According to Anadolu, Pezeshkian said in remarks carried by Iranian media that rising costs combined with falling government revenues were among the main reasons behind increasing prices in the country. He said Iran’s oil sales have declined, reducing the government’s financial resources, while imported goods are now reaching the country through alternative and more costly routes, driving up their final prices.

The Iranian president also pointed to extensive damage to industrial infrastructure during the war as another major factor behind the economic crisis. He said numerous factories and industrial facilities were damaged or destroyed, affecting production and reducing tax revenues for the government.

Pezeshkian explained that when factories stop operating, the government loses tax income while simultaneously being required to provide financial assistance to some affected industries so they can resume operations. He described the situation as a double financial burden, with government revenues declining while expenditures continue to rise.

He said Iran’s economic challenges have multiplied compared with the past, while the country’s overall income has fallen significantly.

Pezeshkian’s remarks come as Iran continues to face pressure on oil exports, industrial production, trade and government finances following the conflict. Disrupted supply routes and damage to industrial facilities have further complicated economic activity.

The decline in oil revenues remains a major concern for Iran, where oil exports are an important source of government income. Economists warn that prolonged disruption to oil exports could place further strain on the country’s finances and deepen its economic difficulties.