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    "parsed_content": "China\u2019s EconomyCutthroat CompetitionAging Workers StruggleProperty DownturnStrategic DefiancePersonal Debt CrisisAdvertisementSKIP ADVERTISEMENTSupported bySKIP ADVERTISEMENTIranians Brace for Economic Impact of New U.N. SanctionsAlready suffering a 40 percent inflation rate and critical shortages of power and water, many in Iran expect conditions to get worse.Listen to this article \u00b7 8:37 min Learn moreShare full articleA view of Tehran, Iran\u2019s capital. Like many Iranian cities, it is struggling with shortages of electricity and water.Credit...Nanna Heitmann for The New York TimesBy Farnaz FassihiFarnaz Fassihi has lived and worked in Iran, has covered the country for three decades and was a war correspondent in the Middle East for 15 years.Published Sept. 27, 2025Updated Sept. 28, 2025, 9:20 a.m. ETIran\u2019s economic situation, already dire with water and power shortages, staggering budget deficits and a devalued currency, is now expected to deteriorate even further.On Saturday, the United Nations Security Council reimposed harsh sanctions on Iran over its nuclear program, after the failure of a diplomatic marathon on the sidelines of the General Assembly.The U.N. sanctions are more sweeping than the current American sanctions against Iran. They stem from a dispute between Europe and Tehran over adherence to the 2015 nuclear accord with world powers, and Iran\u2019s decision to bar international inspectors from its nuclear sites after strikes by Israel and the United States in June.Secretary of State Marco Rubio confirmed that the U.N. sanctions had gone into effect. He said in a statement that the decision to restore the restrictions sent a clear message: \u201cThe world will not acquiesce to threats and half measures \u2014 and Tehran will be held to account.\u201dAdvertisementSKIP ADVERTISEMENTThe new sanctions freeze assets and ban travel for a range of Iranian entities and individuals, and authorize countries to stop and inspect cargo traveling from Iran by air and sea on Iranian government vessels, including oil tankers.The sanctions prohibit Iran from enriching uranium at any level, launching ballistic missiles with nuclear warhead capability and transferring technical knowledge of its ballistic missiles. They also reinstate an arms embargo.Iran\u2019s president, Masoud Pezeshkian, called the sanctions \u201cunjust and illegal.\u201d\u201cThey want to topple us,\u201d he said in a briefing with reporters on Friday in New York. \u201cIf you were in our place, what would you do?\u201dIran has not said how or whether it would retaliate.Mr. Pezeshkian said a decision would be made after he returned to Iran and conferred with other officials. On Saturday, Iran\u2019s Foreign Ministry recalled its ambassadors to Britain, France and Germany to Tehran for consultations.Mohammad Bagher Ghalibaf, Iran\u2019s speaker of Parliament and a hard-liner close to the supreme leader, said on Sunday that Iran still had the right to enrich uranium under international law.AdvertisementSKIP ADVERTISEMENTHard-line factions in Iran have called for retaliation by withdrawing from the Nuclear Nonproliferation Treaty, a move that would raise alarm because it would remove guardrails on Iran\u2019s treaty obligations. Mr. Pezeshkian, a moderate, dismissed such talk, saying it was not an option.Want to stay updated on what\u2019s happening in China, Iran and Russia? Sign up for Your Places: Global Update, and we\u2019ll send our latest coverage to your inbox.The sanctions hit Iran at a particularly difficult time.The country is still reeling from a 12-day war with Israel in June, which drew in the United States when it struck three of Iran\u2019s nuclear sites.The Iranian government has also been grappling with an acute energy and water crisis, leading to mandatory cuts in power and water supplies in many cities.Naysan Rafati, senior Iran analyst for the International Crisis Group, said the U.N. sanctions \u201ccompound the already significant strain on Iran\u2019s economy.\u201dImageA banner in Tehran with a quote from Iran\u2019s supreme leader, Ayatollah Ali Khamenei: \u201cIf they commit any acts of evil, they will definitely get a harder blow back.\u201dCredit...Arash Khamooshi for The New York TimesThe 2015 deal to curb Iran\u2019s nuclear program relieved the country from U.N. Security Council sanctions passed from 2006 to 2010. The nuclear deal allowed those sanctions to be reimposed, using the so-called snapback mechanism, if Iran violated the terms of the deal by the end of October 2025.AdvertisementSKIP ADVERTISEMENTIf the deadline passed with no action, the provision would automatically expire and the sanctions would lapse.But in August, Britain, France and Germany triggered the mechanism and moved the deadline up to Sept. 28.Europe accused Tehran of violating the 2015 agreement by enriching uranium up to 60 percent from 3.5 percent and accumulating a stockpile of 400 kilograms of highly enriched uranium, which could allow Iran to build several nuclear bombs if it chose to weaponize its program. Iran was also accused of violating it by not allowing international inspectors after the airstrikes.Iranian officials maintain their nuclear program is for peaceful purposes. They say they accelerated uranium enrichment only because the United States unilaterally exited the nuclear accord in 2018 under President Trump, who called it \u201ca horrible one-sided deal,\u201d even though Iran was in full compliance.AdvertisementSKIP ADVERTISEMENTTo comply with U.S. sanctions, the Europeans ended trade with Iran. Iranian officials say that by doing so, European powers effectively violated their end of the deal.In a letter to the U.N. secretary general, Iran\u2019s foreign minister, Abbas Araghchi, said the argument by the three European powers was \u201clegally flawed\u201d and had demanded \u201carrangements beyond its scope.\u201d He called the invocation of snapback sanctions a \u201cclear abuse of process.\u201d\u201cAttempts to revive terminated resolutions are not only legally baseless but also politically and morally unjustified,\u201d he wrote.Mr. Pezeshkian reiterated that Iran did not plan to pursue a nuclear weapon and expressed surprise that the world did not believe it. The Europeans also criticized Tehran\u2019s decision after the June war to suspend cooperation with the International Atomic Energy Agency by denying its inspectors access to Iran\u2019s nuclear sites.AdvertisementSKIP ADVERTISEMENTMr. Araghchi argued in his letter that European statements at the time of the U.S. and Israeli strikes had \u201cjustified military attacks against Iran\u2019s IAEA-safeguarded facilities.\u201dImageA satellite image of the Fordo nuclear facility in Iran after it was struck in a United States attack in June.Credit...Maxar Technologies, via Associated PressEurope had laid out three conditions for Iran to avoid the new sanctions: to provide immediate access for the outside inspectors; to give the location of the 400-kilogram stockpile of highly enriched uranium; and to open direct nuclear negotiations with the United States.Mr. Pezeshkian said in a briefing and in comments to Iranian news media on Saturday that Iran had conceded to negotiations and to giving access to inspectors.But he said the United States had demanded that Iran turn out all of its 400-kilogram stockpile in exchange for a three-month suspension of snapback sanctions, a condition that Mr. Pezeshkian called unreasonable.AdvertisementSKIP ADVERTISEMENTRussia and China, Iran\u2019s two main allies and permanent members of the Security Council, tried on Friday to delay the sanctions by six months. But the measure was defeated, with nine countries opposed, including Britain, France and the United States.ImageOn Friday, members of the United Nations Security Council voted against a resolution by Russia and China to delay by six months the reimposition of sanctions on Iran.Credit...Eduardo Munoz\/ReutersRussia and China have already said they do not consider the snapback measure legitimate and are likely to soften the effects of the sanctions by continuing to trade with Iran. Russia and Iran have close military ties, with Iran selling Russia drones it uses in the war in Ukraine.China is the main client for Iran\u2019s oil sales, helping the government stay economically afloat.Some Iranian political figures downplayed the impact of the snapback sanctions, saying the country was already managing under the current sanctions and would find ways to cope with the new ones. They placed blame on the West, saying that Europe and Washington were never seriously interested in reaching a new agreement.\u201cThe only way is to become strong to a level that erases the idea of Iran surrendering to the enemy,\u201d said Mahdi Mohammadi, a conservative senior adviser to the head of Iran\u2019s Parliament said in a social media post.AdvertisementSKIP ADVERTISEMENTNevertheless, Iran\u2019s economy has tanked in recent years, suffering not just from the American sanctions but from chronic mismanagement and corruption as well.On Saturday, the rial dropped 4 percent against the dollar in the black market, which is the commonly accepted rate and the marker for inflation.ImageA market in Darband, one of Tehran\u2019s oldest neighborhoods. Iranians are struggling to cope with inflation running at 40 percent annually and a plunging currency.Credit...Nanna Heitmann for The New York TimesFor ordinary Iranians, the news hit hard.They were already struggling with more than 40 percent inflation, rising unemployment and uncertainty about the direction of the country. Many fear a return to war with Israel and the United States.Mehdi Bostanchi, the head of Iran\u2019s Council of Industries, said in an interview from Tehran that businesses and industries were bracing for a decline in demand and expected more hurdles in procuring goods from abroad and more restrictions on insurance, banking and shipping.\u201cThe greatest pressure will be on small and medium-size enterprises, he said, \u201cwhich account for over 90 percent of Iran\u2019s industrial units and about half of industrial employment.\u201dLeily Nikounazar contributed reporting from Belgium, and Edward Wong from Washington.A correction was made on\u00a0Sept. 27, 2025:\u00a0An earlier version of this article misstated when sanctions were set to be reimposed on Iran. They were set to take effect on Saturday, not Sunday.When we learn of a mistake, we acknowledge it with a correction. If you spot an error, please let us know at nytnews@nytimes.com.Learn moreFarnaz Fassihi is the United Nations bureau chief for The Times, leading coverage of the organization. She also covers Iran and has written about conflict in the Middle East for 15 years.A version of this article appears in print on Sept. 28, 2025, Section A, Page 13 of the New York edition with the headline: Iran, Its Economy Already Struggling, Braces for New U.N. Sanctions . Order Reprints | Today\u2019s Paper | SubscribeSee more on: International Atomic Energy AgencyShare full articleRelated ContentAdvertisementSKIP ADVERTISEMENT",
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    "ai_headline": "Iranians Brace for Economic Impact of New U.N. Sanctions",
    "ai_simplified_title": "U.N. Sanctions Impact Iran's Economy Amid Crisis",
    "ai_excerpt": "Iran faces worsening economic conditions as new U.N. sanctions are imposed amid existing crises.",
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