Why Vast Natural Wealth Leads to Mass Poverty

The situation is gravely exacerbated by the pervasive web of international sanctions, particularly those targeting oil sales and financial transactions, which have choked off the primary source of national income. While domestic mismanagement is a core issue, the "maximum pressure" campaigns have drastically reduced the government’s foreign exchange revenues, limiting its capacity to fund essential public services, stabilize the currency, and invest in infrastructure and non-oil sectors. This external pressure acts as a multiplier of domestic economic failure, shrinking the overall economy and placing the heaviest burden of economic adjustment, price hikes, and shortages squarely on the shoulders of the poor and the struggling middle class.