The Iranian government seeking to reduce the severe financial pressure on its populace from the United States’s siege and sanctions on the country. President Masoud Pezeshkian recently discussed measures with several cabinet members to ameliorate the economic effects of the US-Israeli war on Iran, including the depreciation of the Iranian lira and the cost-of-living crisis.

“The enemy’s plan in recent months has been to cut off the country’s vital arteries with the aim of pressuring the noble people of Iran,” Pezeshkian said on social media, Though full details of the government response are not known, the scope of the meeting and Pezeshkian’s subsequent comments give some insights into these policies. Here’s what we know. How are Iranians faring as the war drags on?

Iran’s economic situation has deteriorated sharply since the war started on February 28, with US and Israeli strikes killing top Iranian political and military figures.

US-Israeli bombing since then has inflicted an estimated $270bn in damages on the country The situation worsened further after the US launched Operation Economic Outcast in late August, seeking to totally isolate the country from international trade.

Iran’s gross domestic product (GDP) has contracted by 10 percent with the collapse in energy exports due to the US naval blockade. The Iranian rial has in turn sunk to record lows.

Iran has made the lifting of the blockade a key demand in negotiations with the US about reopening of the Strait of Hormuz Maryam Ashrafi from the Bourse and Bazaar Foundation, a London-based think tank, told Al Jazeera that the economic situation has deteriorated for Iranian consumers, particularly in higher food prices.

In turn, Iranians are “increasingly turn[ing] to cheaper, inferior goods”. Shortages of raw materials used in the production of some staples, such as margarine, have also affected prices. Imports of wheat and grains have also declined due to the US naval blockade on Iran’s southern ports.

“Large bulk carriers serving … [these] can carry upwards of 80,000 tonnes of agricultural commodities,” she told al Jazeera.

Some ships using the alternative route of the Caspian Sea ports, which are not under the embargo, have loads of only 7,200 tonnes, she said. Trucks using land routes are limited to about 20 tonnes per vehicle. Increases in the price of packaging has also left businesses facing supply chain disruptions.

Insurance costs have also increased, even as war-related losses are generally not covered by insurers.

While medicines are not sanctioned, the raw materials used by Iran’s pharmaceutical industry are “increasingly difficult and expensive” to find, she said.

The disruptions to air travel caused by US sanctions on Iranian airlines have added to fears of medicine shortages in the country.

People buy at a pharmacy in Tehran [File: Majid Asgaripour/WANA] What does Iran plan to do?

At Saturday’s meeting, Iran’s Plan and Budget Organisation presented a seven-point package to deal with the crisis, but the details have not been revealed.

Iran’s semi-official news agency Tasnim reported that the proposal aimed to “help the country overcome the challenges ahead in a more orderly and less costly manner”.

Pezeshkian responded to the meeting the following day by ordering the formation of a committee to coordinate the new economic arrangement.

The committee includes the central bank governor Abdolnaser Hemmati, Interior Minister Eskandar Momeni and the conservative mayor of Tehran Alireza Zakani.

The goal of the committee is to help stabilise prices across the country, state broadcaster IRNA reported.

People walk in a local market in Tehran, Iran, September 26, 2026 [Majid Asgaripour/WANA] Pezeshkian told MPs on Monday that economic policy should be focused on helping the most vulnerable groups in the country, including female-led households. He said energy efficiency would be one of the main ways of tackling the country’s current woes.

“We are working to ensure that under no circumstances are electricity and energy supplies to producers and businesses cut off,” he said.

He called for the implementation of “car-free Tuesdays”, during which people would avoid using their vehicles to conserve energy.

Despite being a major oil and gas producer, Iran has suffered from shortages of petrol and experienced power cuts since the start of the war. Pezeshkian also urged state employees to adopt the car-free days to encourage wider engagement.

Vehicles drive along a busy road during the evening peak hour in Tehran on October 4, 2026 [Atta Kenare/AFP] Are these measures enough?

Saeed Laylaz, an economist who previously advised the Iranian government, said that Pezeshkian should have acted sooner.

When there were signs that war was imminent, the government should have prepared for a reduction in resources and disruptions to imports and exports, he said.

While Pezeshkian’s response was delayed, Laylaz believes that tackling the price of basic commodities – the target of the new measures – would be beneficial for the country.

“That said … we have enough basic commodities in stock, and even if the embargo continues, we will not face a problem in securing them, because we have suitable routes, sufficient resources, and trading partners who can help us,” he added.