The recent memorandum of understanding (MOU) between the US and Iran has set a 60-day negotiation period for a final agreement, offering significant incentives, including a potential $300bn investment package, if Iran cooperates.
However, the war has already taken a devastating toll on Iran's economy, with inflation rates reaching 84% year-on-year and food-price inflation at 131%. The blockade has affected imports, with 3,000 containers stacked up in Pakistani ports since mid-April, and grain shipments to Bandar Imam Khomeini falling by 40%.
Poor Iranians are struggling to afford basic necessities, with up to 2 million people losing their jobs, and the number of applications for a single vacancy doubling to 360 on JobVision, a hiring site.
The regime's self-inflicted harm, including cutting off internet access during protests, has also contributed to the economic damage, but American and Israeli attacks on factories, refineries, and energy facilities have caused the most significant harm.
The MOU is expected to lift the blockade and offer sanctions relief, but the total bill for repairing energy facilities alone could cost up to $19bn, with the total cost estimated at around $144bn, roughly half of Iran's GDP.
