Iran’s central bank governor pushed back Wednesday against claims that the country’s economy is nearing collapse, arguing that the situation has been overstated. Speaking at an International Monetary Fund gathering in Bangkok, he defended Iran’s economic position as US maritime restrictions continue to threaten its oil income and government finances.

The confrontation has intensified since Washington restored restrictions on Iranian ports in July. On August 24, the US launched a campaign called “Operation Economic Outcast,” seeking to further isolate Iran from international trade and financial networks.

The impact on oil shipments has been severe. Energy intelligence company Vortexa reported that Iran’s seaborne crude exports fell to zero during the second week of September. Shipments had averaged approximately 230,000 barrels daily over a 14-day period at the start of the month, and the reported halt continued through October 5.

Currency Slide and Inflation Add to Economic Strain

Washington expanded its pressure campaign in September by targeting additional Iranian airlines, adding to the difficulties facing the country’s international commerce and transportation links.

Iran’s currency has also come under significant pressure. Exchange-rate figures published by Bonbast indicate that the rial has depreciated by almost 35% against the dollar since July, highlighting the financial challenges facing households and businesses.

Central bank governor Hemmati outlined several priorities for monetary authorities, including controlling rising prices, preventing inflation expectations from worsening, protecting the financial system and keeping banking and payment services functioning. He also emphasized the need to obtain foreign currency to purchase medicines and other essential supplies from abroad.

Official figures from Iran’s Statistical Center put annual inflation at 73.6% in September, underscoring the severity of the country’s cost-of-living pressures.

Iranian authorities have also moved to support the rial through the banking system. In late September, the central bank introduced a plan to sell up to $2 billion in foreign currency through state-owned banks.

The competing assessments highlight the challenge facing Tehran: officials are seeking to project confidence in the economy while declining oil exports, currency depreciation and exceptionally high inflation place mounting pressure on the country.