Iran’s inflation rate climbed to 77.2% in May as stalled negotiations with the United States threaten to keep the country’s oil-dependent economy under pressure from the Strait of Hormuz blockade.
By yourNEWS Media Newsroom
Iran is facing its highest inflation level in eight decades as talks with the United States over extending a ceasefire remain stalled and the country’s oil-dependent economy continues to suffer under a blockade affecting the Strait of Hormuz.
Iranian news agencies reported that Tehran has stopped communicating with mediators about prolonging the ceasefire with the United States and Israel, according to the Associated Press.
President Donald Trump said Monday that he does not “care” whether negotiations with Iran are over, saying the talks had taken too much time.
The breakdown leaves Iran facing continued economic pressure from the U.S. blockade on the Strait of Hormuz, a key waterway for Iranian petroleum exports and a route that carries about 20% of the world’s crude oil supply.
Iran’s central bank reported that annual inflation reached 77.2% in May, the highest level since World War II. The figure was 8.5 percentage points higher than April’s rate.
Prices for several essential goods and services rose even faster. Medicine, taxi fares, tobacco and communication fees increased 113.8% over the past year, according to the country’s central bank.
The inflation spike comes after years of economic instability that has fueled unrest inside Iran. Rising food prices contributed to nationwide protests in 2017 and 2018, when more than 20 people were killed and hundreds were arrested. In 2019, gasoline price increases sparked protests in which 300 people were killed.
Iran also saw renewed unrest at the start of this year as the country’s currency continued to lose value.
Experts told the Associated Press that the latest inflation surge could trigger additional protests this summer.
The economic strain is now unfolding alongside stalled diplomacy, the continuing Strait of Hormuz blockade and uncertainty over whether Tehran and Washington will resume negotiations.