How have international sanctions affected Iran's economy?

International sanctions have significantly hampered Iran’s economic growth by isolating the country from the global community. These measures, particularly those led by the United States, have restricted Iran’s access to high technology, impeded foreign investment, and targeted its vital petroleum and natural gas industries.123

The Iran and Libya Sanctions Act of 1996 and subsequent UN Security Council resolutions have aimed to curb Iranian activities, including its nuclear program. Because of these sanctions, Iran faces difficulty selling its oil through conventional channels, leading the country to develop a "shadow" export process using unregulated tankers. In some instances, trading partners like China have bypassed traditional financial barriers by funding infrastructure projects in exchange for oil.425

Despite these efforts to maintain exports, the economy remains burdened by high inflation, significant unemployment, and a persistent inability to attract the foreign capital necessary to modernize its infrastructure and provide opportunities for its young, educated workforce.13