Iranian President Masoud Pezeshkian said on Saturday that the country’s economic problems had worsened as the war disrupted oil sales, damaged factories and raised the cost of imported goods.

“We used to sell oil, but now we cannot sell it,” Pezeshkian said at a recent meeting with political activists and party leaders, according to Iranian media.

He linked rising prices to higher import costs and falling government revenues. Goods that previously entered Iran through more direct shipping routes now take longer and more costly routes, increasing their final prices, he said.

Pezeshkian also said damage to industrial facilities had further weakened government finances. “They targeted and destroyed a number of factories,” he said, adding that the government could no longer collect taxes from some of the affected businesses and instead had to provide financial support to keep them operating.

“Our problems have multiplied many times over, while our revenues have also declined,” he said.

The comments come as Iran faces severe disruption to its trade and energy flows. Shipping through the Strait of Hormuz, a major route for global oil and gas shipments, has fallen sharply during the conflict. On Friday, only two vessels were recorded passing through the waterway, with no crude oil shipments visible, compared with more than 130 vessels a day before the war, according to shipping analysis cited by Reuters.

The United States has threatened to maintain a naval blockade of Iran indefinitely and impose further economic measures, while Tehran has restricted shipping through the strait and demanded conditions for the resumption of normal traffic.

Oil prices have also risen as the confrontation continues. Brent crude was trading at about $88.50 a barrel on Friday, after gaining on concerns over further disruption to Middle Eastern supplies.

The conflict began on 28 February with US and Israeli strikes on Iran, followed by Iranian missile and drone attacks against US and Israeli targets in the region. A tentative arrangement reached in June later broke down, with Iranian and US officials disagreeing over the terms and status of the negotiations.

Pezeshkian’s remarks provide a rare public assessment from Iran’s president of the economic pressure caused by the conflict, particularly the impact on oil revenues, industrial production and government tax receipts.