A fuel shortage caused by US sanctions has triggered long queues at petrol stations across Tehran, with drivers growing increasingly anxious. This situation highlights the mounting economic strain that the ongoing conflict is placing on Iran.

As citizens rushed to stock up on fuel, the Trump administration unveiled another round of so-called "economic warfare" measures targeting Tehran. Iran's Energy Efficiency Organization, the state body managing the country's fuel resources, warned that the nation is confronting a "critical" shortfall in gasoline supply.

A service station worker in the capital, who chose to remain anonymous, said: "People are rushing to fill up even before their tanks run dry, worried that fighting could flare up again or that fuel prices might climb." The worker noted that each vehicle is limited to a 20-litre purchase, forcing drivers to make repeated trips to the pump.

Iran, despite being a major crude exporter, has long relied on gasoline imports to bridge its domestic supply gap. However, the US maritime blockade imposed since July 14 has severely weakened the country's ability to secure fuel. Additionally, strikes by American and Israeli forces in the early stages of the conflict, which began in February, destroyed parts of Iran's refining capacity.

Iran's Energy Efficiency Organization stated that the country's total daily gasoline demand stands at 135 million litres, with the current shortfall reaching 15 million litres.

US Treasury Secretary Scott Bessent said on Monday that Washington is broadening secondary sanctions against Iran's trading partners, aiming to tighten the economic and financial stranglehold on Tehran.

Iranian authorities maintain that the nation can withstand US pressure and have rejected Trump's demand to reopen the Strait of Hormuz. Both sides accuse each other of undermining the June agreement, which was designed to gradually reopen that vital waterway and lay the groundwork for eventual settlement talks. Iran's leadership has indicated that Washington must pay a higher price before they agree to end the conflict.

Imports via the northern route have also faced significant disruption, partly due to the Ukraine war and the extensive damage to Russian refining facilities.

Iranian officials say the fuel shortage is worsened by the subsidy system, which provides some of the world's cheapest gasoline to the nation's 90 million people. Motorists pay just 15,000 to 50,000 rials (around $0.0075) per litre.

The Iranian government has been drawing on strategic reserves for months. Officials state that the current pricing and quota mechanism is no longer sustainable given the supply disruptions caused by the conflict and rampant hyperinflation.

President Masoud Pezeshkian said this month that selling gasoline below market rates places a heavy burden on state finances, which are also needed to fund food subsidies and public relief efforts.

"Why should the government buy gasoline at 1.3 million rials per litre and sell it for just 15,000 rials?" he asked.

Mohsen Haji-Mirzaei, the president's chief of staff, said on Monday that the government plans to cut fuel quotas, though final pricing has yet to be determined.

"Any fuel price adjustment policy will bring social, economic, and security uncertainties," he added, confirming that quotas will be reduced. "Consumption beyond the quota may come at a higher price."

Raising fuel prices, however, is a highly sensitive matter at a time when purchasing power has hit record lows. In recent days, the rial has fallen to a new low of 2 million to the US dollar, with year-on-year inflation nearing 90 per cent and food inflation around 130 per cent.

A pilot price increase for gasoline in Kerman province this month was scrapped just hours after implementation. Any mention of price hikes revives memories of 2019, when an overnight increase in fuel prices triggered bloody protests across major Iranian cities.

Morteza Behrouzifar, a Tehran-based energy analyst, said gasoline prices act as an "inflation barometer," and any hasty adjustment could deliver a severe shock to the economy.

Behrouzifar advised that the government should continue short-term supply assurance measures while making substantial improvements to public transport, the domestic automotive industry, and refining operations.

"People are already under tremendous strain. If the government now relies on price increases to resolve the fuel issue, it could trigger unpredictable social and economic consequences."