Iran's Pezeshkian Calls for Unity Amid U.S. Economic Pressure

Iranian President Masoud Pezeshkian has called for national unity to withstand escalating economic pressure from the United States. Speaking on Friday, Pezeshkian asserted that the sanctions regime would not force his government into making drastic policy changes that could further destabilize the country. The president indicated that adversaries aim to exploit the situation to create internal division and unrest, referencing past protests in 2019 and 2020 linked to economic grievances.

Pezeshkian acknowledged that the public is nearing a breaking point, suggesting that additional pressure could be detrimental. Despite this, his administration plans to double the fuel quota price for private vehicles and reduce monthly quotas in the coming weeks. This adjustment, while seemingly minor, could indirectly impact logistics costs and contribute to existing inflation, which already strains Iranian households. Iran's national currency hit a new low against the U.S. dollar on Saturday, trading at over 2.25 million rials per dollar.

Separately, judiciary chief Gholam-Hossein Mohseni-Ejei warned of strict prosecution for actions deemed detrimental to national security. Iran's Supreme Court recently confirmed a lengthy prison sentence for businessman Sadegh Saedinia on such grounds. Parliament Speaker Mohammad Bagher Ghalibaf identified the "street" or social sphere as a key "battlefield" alongside military operations, diplomatic talks, and economic services.

The ongoing military confrontations between Iran and the U.S. have been a significant factor in Iran's economic decline. The U.S. military conducted strikes on an oil tanker near Kharg Island on Saturday, following earlier attacks on southern Iran and shipping in the Strait of Hormuz. Washington's naval blockade also prevents Iranian tankers from leaving the country's southern shores, aiming to curtail crude exports.

## Catalyst Analysis: U.S. Sanctions and Geopolitical Tensions - The U.S. has implemented its most stringent sanctions regime against Iran, dubbed "Economic D-Day," with the stated aim of severing economic lifelines to the regime and the IRGC. - Iran's currency has reached new lows, and military confrontations with the U.S. continue, impacting oil exports and potentially global energy markets.

## Impact on $XLE+WL ### Winners, Losers & Uncertainty - Uncertainty surrounding Iran's oil exports and potential supply disruptions could lead to volatility in global energy markets, impacting energy sector ETFs such as $XLE+WL. - The effectiveness of U.S. sanctions in altering Iran's policy or creating internal instability remains a key point of observation for geopolitical and economic analysts.

## Risk Watch — legal/timeline; no fake EPS tables - The long-term impact of U.S. sanctions on Iran's economy and its potential spillover effects on regional and global markets are subject to geopolitical developments.

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