Iran's economic strain has intensified during the war with the United States and Israel, with President Masoud Pezeshkian saying weaker oil sales, higher import costs, damage to factories and a U.S. naval blockade of southern ports have squeezed state finances. He said disrupted trade routes have raised the cost of imported goods, destroyed industrial facilities have reduced production and tax receipts, and the government is having to fund affected businesses to keep them operating. Separate data from the Statistical Center of Iran showed year-on-year inflation at about 88% at the end of July, food inflation above 128%, youth unemployment at 23.4% in the spring, overall unemployment at 9.1% and labour participation at 40%, underscoring a worsening cost-of-living crisis. Active fighting ended with a June 18 memorandum of understanding brokered through Pakistani and Qatari mediation, but no final agreement has been reached and talks over shipping and maritime security in the Strait of Hormuz are continuing through mediators including Oman.