Iran’s defiance in the face of the US “economic war” designed to strangle its economy is “most importantly” based on “resorting to bartering, smuggling and back-room deals”, according to a September 25 news feature by Reuters.

Iranian officials, business people and analysts were cited as saying that to circumvent US banking and financial sanctions, Iran’s rulers have built up a network of traders, companies, exchange offices and money collectors in different countries. 

“America cannot isolate Iran,” one senior Iranian official was quoted as saying. “If they succeed in ending our oil sales, which they cannot, we will export textiles, food, petrochemicals, vegetables, you just name it.”

Ali Vaez, Iran project director at the International Crisis Group, was reported as observing that although the Iranian economy was in dire straits, it was far from being overwhelmed, saying: “Iran is quite experienced in living under economic duress ... In the past few years, its non-oil exports have grown significantly and so has their trade with neighbouring countries like Iraq and Afghanistan. Iran can also smuggle oil and generate some revenue.”

Although food and medicine are exempt from the US sanctions—aimed at forcing Iran to accept stricter limits on its nuclear programme and restrictions on its ballistic missile programme and agree to stop backing various militias in Middle East conflict zones—the lack of access to the global financial system caused by the ultra-heavy measures has caused a humanitarian crisis in the country, with shortages of specialised medicine one big concern.

Despite the defiance, ordinary Iranians are struggling in the sanctions-hit economy. “It is easy for officials to talk about resisting America’s pressure. They don’t have to be worried about the rent or increasing prices of goods,” Ali Kamali, a 63-year-old retired teacher in Tehran, told Reuters. “Prices are going up every day.”

Chuck Freilich, senior fellow at the Belfer Center for Science and International Affairs, told the news agency that Iran was on a perilous path. “Iran doesn’t have many other sources of income, beyond oil, so their economy is in a tailspin ... They do have considerable budgetary reserves ... to get them past the next few months, but the situation is not tenable,” he said.