Iran Resorts To Raising Gas Prices As U.S. Turns Up Economic Pressure

Iran is raising gas prices for its heaviest users as the country continues to grapple with economic uncertainty caused by the ongoing war.

The Associated Press reported that Iran was hiking gas prices for the second time since December. People who buy 110 liters (29 gallons) of gas a month will now pay 100,000 rials, or about 7 cents per liter. That is about twice as much as they had been paying.

Gas price increases can be a sensitive topic in the country, considering an increase in 2019 caused protests that led to a violent crackdown by the government. At least 300 people were killed then.

Iran still has among the world's lowest gas prices, but rising costs could add more pressure to the country's ongoing economic woes. The rial continues to fall in value and on Monday was trading at 2.22 million rials for every U.S. dollar.

In December of last year, Iran saw massive nationwide protests related to economic conditions in the country. The protests were largely driven by economic factors such as the continuing depreciation of the rial. The protest culminated in the second week of January when the regime severed internet access and launched a brutal crackdown. Estimates of protesters killed by the regime in January have fluctuated between 7,000 and more than 36,000. The killings reportedly happened over the course of a few days.

The U.S. is continuing to try to up the economic pressure on Iran. The Treasury Department this week sanctioned 36 entities involved with Iran's aviation sector, including Iranian airlines.

"Under Operation Economic Outcast, we promised severe consequences for those providing financial lifelines to the Iranian regime," said Treasury Secretary Scott Bessent. "Today, we followed through on that promise with sanctions on companies that continue to support Mahan Air. Let this be a warning to anyone doing business with Iran's remaining airlines, all of which we sanctioned today: You are at risk of being cut off from the global financial system."

The U.S. has said that it will work to economically isolate Iran.

"Treasury has mapped the networks, facilitators, and financial channels that Iran uses to smuggle oil, evade sanctions, and fund terror. Working with partners across the U.S. government, the European Union, United Kingdom, Gulf partners, and others, Treasury is targeting any source of the regime's illicit revenue," the U.S. Treasury Department said in a statement.