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Source: https://www.israelhayom.com/2026/03/29/regime-feels-economic-squeeze-as-talks-to-end-war-stall/
Iran Regime Feels Economic Squeeze as Talks to End War Stall
(Israel Hayom) Danny Zaken - Even if the Iran war were to end now, the regime has been badly battered and is on the verge of collapse. A senior political-security official said the current pattern of sustained attrition is pushing Iran toward the limits of its economic and military capacity. A regional diplomatic source added that there is a significant gap between reports about the diplomatic contacts and the reality on the ground. Iran's oil exports have fallen from more than 2 million barrels a day to about 1.2 million, and revenues have dropped accordingly. The regime is facing a severe cash shortage. Many public-sector employees have not been paid, banking services have been disrupted, and cash machines have run dry. Inflation has soared to about 120% a year, and the local currency has lost much of its value. President Masoud Pezeshkian has even warned that the economy could collapse within weeks. A large share of Iranian assets abroad is held in China, but Iran is struggling to access it. Assets worth tens of billions of dollars are also being held in the UAE and were frozen after Iranian strikes on civilian and oil facilities in the Emirates. Anwar Gargash, diplomatic adviser to the UAE president, made clear that any future agreement must include compensation from Iran "for damage to infrastructure and civilians."