Iran Faces Fuel Shortages and Economic Chaos Amid US Sanctions and Currency Collapse

Massive queues have formed at fuel stations across Tehran as Iran grapples with severe fuel shortages triggered by intensified US sanctions. Due to high demand, fuel stations have imposed a 20-liter limit per vehicle, forcing drivers to return repeatedly. The shortages began immediately after the US administration announced new sanctions, with some drivers rushing to fill tanks out of fear of further price hikes or renewed conflict. Videos circulating on social media show drivers waiting for long periods only to find stations closed before their turn.

Iran, a major crude oil exporter, relies heavily on imported gasoline to meet domestic demand. However, the US maritime blockade, effective since July 14, has severely disrupted Iran's fuel supply. Iranian officials estimate a daily shortfall of about 15 million liters from the total demand of 135 million liters. This crisis follows a series of Israeli and US airstrikes that damaged Iran's refining capacity early in the conflict.

US Treasury Secretary Scott Bessant recently announced expanded secondary sanctions targeting Iran's trade partners to tighten the economic squeeze. Despite this, Iranian authorities insist they can withstand the pressure and reject US demands to reopen the strategic Strait of Hormuz shipping route. Both sides accuse each other of violating a June agreement intended to gradually reopen the strait and pave the way for peace talks.

Iranian President Masoud Pezhkian warned that selling gasoline below market prices exerts enormous financial strain on government resources, which also fund food subsidies and worker support. Fuel prices in Iran are among the world's lowest, ranging from 15,000 to 50,000 rials per liter (approximately $0.0075). The government is considering reducing fuel quotas but has not finalized pricing decisions. The Iranian rial recently plunged to a record low of 2 million rials per US dollar amid soaring inflation nearing 90% annually and food inflation around 130%.

Energy analyst Morteza Bahrozifar described fuel prices as an "inflation barometer" that could trigger severe economic shocks. He recommended short-term supply measures alongside improvements in public transport, local vehicle manufacturing, and refining capacity. He cautioned that raising fuel prices now could provoke significant social and economic unrest, as the population is already under immense pressure.

Meanwhile, former US President Donald Trump condemned Iran's crackdown on protesters and called the situation a "massive humanitarian crisis" that must be stopped immediately.