Massive lines at gas stations across Iran were spotted on Tuesday after the United States announced “Operation Economic Outcast,” an escalated campaign of economic sanctions and physical isolation against the regime in Tehran.
Al Arabiya spoke to Tehran residents who were apprehensive about the impact of the new sanctions, although some repeated the regime’s mantra about the “resilience” of Iranians as they contemplated gas shortages, soaring unemployment, and astronomical inflation rates.
The Iranians quoted by Al Arabiya notably used their real names, suggesting their contacts with the press were approved by the regime.
“Naturally, sanctions affect people’s lives. People are being hurt, both those who are financially well-off and those who are financially weak. Yes, these sanctions are having an effect, but naturally, our people are resilient. These sanctions have been in place for 47 years,” said a realtor named Mehdi Yazdian.
“I personally am not afraid of war at all because this is our land, but I think that this war will be more economic and will cause people to feel a lot of pressure, and now maybe there will be protests again,” said an English teacher named Kia Farahani.
The regime remained defiant, with Economy Minister Ali Mandanizadeh claiming its planners had long anticipated the dramatic escalation of sanctions outlined by Bessent on Tuesday.
“We’ve been waiting for these plans for a long time, and the government is and was ready and has a two-year plan to manage these events,” said Madanizadeh.
Drivers queue at a petrol station to refuel in Tehran, on August 25, 2026, as U.S. Treasury Secretary Scott Bessent laid out plans for the “economic asphyxiation” of Iran, expanding Washington’s secondary sanctions threats. (Getty)
Tehran-based economist Saeed Laylaz appeared to lose an argument with himself while talking to Al Arabiya, beginning with a confident declaration that the U.S. “has nothing that it can do that had not been done before,” but then wondering if the regime was truly prepared to handle another stiff blow to its faltering economy.
“I have doubts about the internal governance of the Iranian economy and whether the government is fully capable or prepared to deal with Iran’s internal issues, including, for example, fighting corruption, fighting bank imbalances, fighting inflation, timely financial, monetary and economic policies,” he said.
The National on Tuesday saw “signs of panic-buying in Tehran,” while government spokespersons struggled to reassure the public that “no decision has been made so far” to increase gas prices – although there could be some uncomfortable “structural reforms” to come.
Gasoline prices in Iran are controlled by the government and kept artificially low through subsidies, a practice that predates the 1979 Islamic revolution.
A price hike in 2019 caused massive nationwide protests, which the regime quelled by murdering over 300 people. Less dramatic price revisions in December 2025 inflamed public anger and led to the January 2026 uprising, which the regime suppressed by killing tens of thousands of its own people.
“Reports from the capital say several stations have closed or experienced disruptions, particularly in eastern and southern Tehran. Videos and images circulating online show lines of cars stretching around filling stations, while some motorists reportedly face lengthy waits to refuel,” The National said.
“Similar disruptions have been reported in other cities, including Kerman and Mashhad. The shortages come despite a sharp rise in gasoline distribution in Tehran,” it added.
“In Iran the immediate picture is one of rising demand colliding with an increasingly strained distribution network, with motorists lining up for hours and some stations running dry in Tehran even as more gasoline is being pushed into the capital,” The National concluded.
Iranian officials said Monday saw the largest distribution of gasoline so far this year in the capital city of Tehran, with over 26 million liters sent out to pumping stations.
President Masoud Pezeshkian’s office claimed no price increases in subsidized fuels were planned, but there could be tighter quotas at the pump and price increases for non-subsidized fuel. Iran’s fuel pricing scheme has three “tiers,” with lower subsidies for personal use and luxury vehicles.
Pezeshkian noted on Friday that the subsidies required to give Iranian consumers some of the cheapest fuel in the world are enormous. The lowest public price tier is less than one cent for a liter of fuel, but the government pays about 65 cents to refine and deliver each liter.
London-based dissident news site Iran International said on Tuesday the true picture is much bleaker than regime officials claim, with widespread fuel shortages already spreading across the country, and gas stations abruptly shutting down without explanation.
“Images, videos and accounts posted widely on Persian-language social media showed closed stations and lines of cars at others still operating, with shortages reported in several parts of the capital, including central and northern Tehran,” Iran International reported.
“Social media reports on Monday described people visiting several stations before finding gasoline, waiting for hours in the summer heat and arriving at pumps only to find supplies exhausted,” the report said.
“The closures have also fueled speculation that restricting supply may itself be emerging as a way of forcing down consumption without announcing a politically dangerous price increase,” it added.
“Gas stations are crowded, GPS doesn’t work and you can’t work for Snapp. Fares have gone up, but there are no drivers to accept the trip. We’re left without money and without gasoline,” an unnamed Tehran resident said. Snapp is an Iranian ride-sharing service.
On Wednesday, Iran International quoted “informed sources” who said Iran’s strategic fuel reserves have hit the “red alert” level, and could be completely exhausted “within several weeks.”
The shortage could spark another power struggle between Pezeskhian’s civilian government and the powerful Islamic Revolutionary Guard Corps (IRGC). Pezeshkian is worried about another public uprising and wants to keep tapping the strategic reserve to keep consumer prices down, while the IRGC wants to keep the reserve for military use.
A resident of the city of Mashhad told Iran International that rumors are growing among the uneasy public that the widespread gas shortages reported on Tuesday were deliberately caused by the government, to soften up public resistance to a price increase.
“When they want to raise the price of cooking oil, they say there isn’t any. When they want to raise the price of rice, they say there isn’t any. But after the price goes up, everything is available. Now it’s gasoline’s turn,” the resident said.
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