Iran’s gross domestic product (GDP) contracted 10.1% year-on-year from March 21 to June 20, the first quarter of the Persian calendar, during the opening months of the US-Israel war on Iran that began February 28. The oil and gas sector recorded the sharpest decline, contracting 26.4%, while GDP excluding oil fell 4.6%. Industry and mining declined 14.7%, services 4.8% and manufacturing 2.5%; agriculture grew 2.3%. The downturn comes as Iran faces 69.9% 12-month average inflation, food, beverage and tobacco price increases at nearly twice that rate, 9.1% unemployment and a rial that weakened from about one million per dollar a year earlier to more than 2.2 million in early September. Iranian crude and condensate loadings fell from about 2 million barrels per day in March to roughly 740,000 bpd in July and 220,000-255,000 bpd in August. TankerTrackers.com said 29 tankers carrying 36.11 million barrels were trapped in the Strait of Hormuz, while Vortexa estimated Iranian crude afloat declined from 135 million barrels at the end of July to 107 million by late August. President Masoud Pezeshkian said total trade had fallen 25% to 35% by September 6. Tehran has linked an end to the war to the release of frozen funds and an end to the naval blockade, while diplomatic efforts involving Qatar and Pakistan continue. Analysts said the economic pressure is damaging Iran but that the outcome depends on whether Tehran can withstand falling activity better than the United States can absorb higher energy costs.