WarSclerotic

Iran’s Supreme Leader Ayatollah Ali Khamenei has ordered officials to urgently find solutions to ease the economic crisis in his country spurred by recently restored U.S. sanctions, the semi-official Fars news agency reported on Thursday.

The U.S. reintroduced steps against Iran’s currency trade, metals and auto sectors in August after withdrawing from the international 2015 deal that lifted sanctions in exchange for limits on Iran’s nuclear program. U.S. curbs on Iran’s oil exports are set to come into force in November.

Compounded by rising inflation, growing unemployment, a currency slump and state corruption, Iran’s economy has been deteriorating. The International Monetary Fund predicts it will shrink 1.5% this year and 3.6% in 2019, before recovering slowly.

“There are no problems in the country that we cannot resolve,” Fars quoted Khamenei as telling officials on Wednesday.

“Officials should find solutions to overcome the existing economic hardship and to disappoint the enemy by resolving it. With unity we can overcome all crises,” he said.

Khamenei also said Iran could resist the pressure of U.S. sanctions by relying on its own natural and human resources.

“We need extraordinary efforts to find solutions for those domestic economic challenges and to confront cruel American sanctions. Serious decisions should be made,” state TV quoted him as saying.

The re-imposition of sanctions on Iran’s oil industry, the backbone of the country’s economy, will likely make matters worse.

Iranian President Hassan Rouhani championed the 2015 nuclear deal but has been lambasted by his anti-Western hard-line rivals for failing to bring economic prosperity to Iran in the years since.

“The soaring prices and the drop of purchasing power of those lower-income Iranians have put pressure on them,” Khamenei said.

The cost of living has soared in Iran in the past months and economic grievances have led to sporadic demonstrations against profiteering and corruption, with many protesters chanting anti-government slogans.

Iranian officials have accused arch-foes the United States and Israel, as well as regional rival Saudi Arabia and government opponents living in exile, of fomenting unrest and waging an economic war to destabilize Iran.

Three people were sentenced to death last month in a drive against financial crime after Khamenei called for “swift and just” legal action to confront the “economic war” by foreign enemies.