Iranian President Masoud Pezeshkian said Tehran is facing a "full-scale economic, military and security war" and is working to overcome mounting domestic pressures, while moderate officials continue to favor negotiations and hard-liners advocate a more offensive military posture. Inflation has exceeded 80%, some food prices have doubled, the currency has lost 30% of its value this year and the International Monetary Fund expects the economy to contract 6.1%. Iran and the United States reached a June memorandum through Pakistani and Qatari mediation that ended hostilities begun in February and envisaged a final agreement, but talks have stalled over implementation and navigation through the Strait of Hormuz. U.S. President Donald Trump has threatened unprecedented sanctions, including secondary sanctions, as Iran faces blocked oil exports, frozen foreign-exchange reserves and a new United Arab Emirates embargo on trade and financial transactions.