Pension funds in Iran are suffering significant losses as the United States continues using economic pressure to force the country to agree to new limits on its nuclear program.
National Security Council documents show that 17 of Iran’s 18 existing retirement funds are losing money, according to Fox News. All members of Iran’s military are covered by one of the 17 funds operating at a loss.
Iran is a petro-state that makes large sums of money selling oil on the world market. United States sanctions have crippled Tehran’s ability to do business with much of Europe. China has flaunted U.S. sanctions and continues to purchase Iran’s oil.
Iranian pension funds rely heavily, up to 80%, on government subsidies. U.S. sanctions have undercut the government’s capacity to prop up the pension funds.
On top of Iran’s pension troubles, its real estate market is also unsteady. The NSC documents refer to Iran’s growing economic troubles as a “house of cards.”
President Trump pulled the U.S. out of the Iran nuclear deal in 2018 and enacted the sanctions that have led to Iran’s economic troubles. The Trump administration has insisted it is committed to its “maximum pressure” strategy after national security adviser John Bolton exited the administration on Sept. 10.
