WASHINGTON — U.S. and Western pressure on Iran is squeezing its economy, feeding the inflation and joblessness that have swelled under its controversial president, Mahmoud Ahmadinejad. Trade figures and other data have begun to reflect deepening economic isolation taking place as a result of U.S.-led efforts to penalize Tehran for what the United States alleges is the pursuit of nuclear weapons and sponsorship of terrorist groups.For example, Iran's imports from Germany fell 14% in the first eight months of 2006, the German-Iranian Chamber of Commerce says. European Union countries account for 40% of Iran's imports, and Germany is Iran's largest European supplier, providing machinery, steel and electrical equipment, along with other goods. German government export credits, used to finance trade, also fell by a third last year and are expected to drop again this year, said Ulrich Sante, a spokesman at the German Embassy in Washington.
| Unemployment was 11.5% in the year ending in March, 1.2% higher than the previous year, according to the Iran Statistical Center. Food prices rose by a third from March to August, the cost of housing went up 14%, and the cost of medical care increased more than 18%. |
The United Nations Security Council imposed sanctions on Iran in December after Tehran failed to suspend uranium enrichment. The sanctions block exports that can be used in Iran's nuclear and missile programs and freeze assets of officials linked to those programs.
Separately, the Bush administration has cut off two Iranian banks from access to the U.S. financial system and dollar-based transactions on grounds that terrorists and weapons programs used accounts at those banks.
| Good, and we should do as much of that as we can get away with. |