Iran leader quotes US State Department saying sanctions failed

Tehran: 'Maximum pressure' sanctions by the United States have clearly failed, Iran's Supreme Leader Sayed Ali Khamenei declared Sunday, quoting the US State Department.

Calling sanctions an "economic assault" Iran leader said that it caused some hardship for the people "but production did not buckle and the spokesman of America's foreign ministry a few days ago frankly and explicitly announced that the maximum pressure policy has turned into a humiliating defeat for America."

State Department spokesman Ned Price in his press briefing on January 25 said, "The maximum pressure campaign was an abject failure," adding that former president Donald Trump's policy did not change Iran's behavior.

Iran's economy went into a tailspin in 2018, when Trump withdrew from the 2015 nuclear agreement and imposed tough sanctions. Inflation skyrocketed and government budget deficits soared. The sanctions have reportedly also impacted Iran's allies in the region like in Iraq, Syria, Lebanon and Yemen.

"The goal of the enemies in this war has been the collapse of the Iranian economy; that was their intention. Now, the collapse of the economy was, of course, a prelude in order to set the people against the Islamic Republic by destroying the Iranian economy and to carry out their malicious political intentions in this way,"  Ayatollah told a gathering of managers of Iran's industrial and economic sectors in Tehran.

Ayatollah Khamenei reiterated his ideology of self-reliance and called for "economic jihad" in defiance of sanctions, although he admitted that Iran's economy performed very poorly in the last decade. At the same time, he claimed victory against US sanctions, that he said were meant to foment dissatisfaction among the people.

In his speech Khamenei expressed disappointment at low GDP growth, lack of investments, a fast-growing liquidity problem leading to inflation and other serious problems the country faces. He emphasized however, that these difficulties are not just due to sanctions but also an outcome of "wrong decisions or lack of effort."

He then mentioned a series of problems facing Iran's domestic production sector, such as low quality of products, highlighting the auto industry which has been blamed for high fatalities in road accidents recently. Nevertheless, he reiterated that self-reliance should be the motto.

Ayatollah Khamenei reiterated his oft-repeated line that officials should not tie the country's economy to the results of negotiations currently underway in Vienna to remove US sanctions on Iran.

"I always repeat that you should not condition the country's economy and economic activities. Do not pause over something that is not in our hands," the Leader said in his remarks directed at state officials.

Ayatollah Khamenei described production as struggle in the path of Allah, which is known as the principle of jihad in Islam.

"The resistance of the producers against the attack on the economy and the enemy's efforts to prevent the sale of oil and gas and cut foreign exchange resources and against its plans to block Iran's foreign trade are in fact jihad and one of the greatest acts of worship."