President Masoud Pezeshkian claims barter trade has become a vital tool for Iran to maintain economic stability. He spoke about this during a televised address on state IRIB TV on August 6, 2026. Pezeshkian stated, “Since we do not have the possibility of transferring money, naturally some of the exchanges are done in the form of barter.” His remarks came during the second of four speeches marking the conclusion of his first two years in office. The barter arrangements, Pezeshkian explained, have enabled Iran to continue commercial activities. This includes exchanging Iranian goods such as carpets, non-oil exports, and agricultural products for essential supplies. These supplies come from neighboring countries such as Pakistan.
The Iranian leader emphasized that economic cooperation with neighboring countries has seen significant growth. He noted, “Naturally, we are designing different ways with our neighbors, expanding our trade with them.” Pezeshkian highlighted the efforts to adapt to limitations on traditional financial systems. These strategies, he said, aim to reduce the economic toll caused by sanctions. Sanctions have severely restricted Iran’s access to foreign currency and banking infrastructure. For instance, Iran has increased exchanges of consumer goods and industrial materials. This happens through mutual agreements with regional partners. These agreements enable domestic industries to sustain production without relying on international currency transfers or banking.
Security Coordination with Allies
Pezeshkian also drew attention to improved security coordination with regional allies. He stated, “They planned (armed) agents to infiltrate across borders and create unrest in these areas, but the countries in the region did not allow anyone to easily enter.” He was referring to reports of Western-backed efforts to arm Kurdish separatists in Iraq. He also referred to militants in Afghanistan and Pakistan. The administration has worked to counter these threats, he stated in his address. This reinforces the idea of collaborative security measures. These measures have involved intelligence sharing, joint military exercises, and cross-border monitoring systems. These systems detect and thwart potential infiltration attempts, which the Iranian government attributes to external actors. These external actors are said to seek to destabilize the region.
Despite the anti-U.S. foreign policy adopted after the 1979 Islamic Revolution, Pezeshkian said Iran’s regional partnerships have only strengthened. He added that these ties have proven crucial in resisting external attempts to destabilize the region. The Israeli-U.S. war with Iran, which began in February 2026, further highlighted the importance of these alliances. However, he added, regional cooperation has effectively neutralized those attempts. This demonstrates the value of unity among neighboring states. Pezeshkian said, “One of the plans they (the enemies) had during this war, was to create unrest and tension from the northwest and southeast.” He was referring to the alleged support for separatist and militant groups by Western powers.
Infrastructure Development Focus
Infrastructure development remains a central objective for the Pezeshkian administration, particularly in the area of rail networks connecting Iran to key regional partners. The Chabahar Port–Zahedan railway, which is over 600 kilometers long, is set to open in Government Week from August 23 to 29, 2026, despite delays caused by attacks on steel production facilities. Once completed, the railway will extend to Sarakhs, which borders Turkmenistan, playing a crucial role in a broader national transport corridor that enhances regional connectivity.
The government also reported progress on the Astara-Rasht railway, which will link Iran with Azerbaijan as part of the International North-South Transport Corridor. Pezeshkian noted that its construction is expected to proceed with Russian financial participation, highlighting international collaboration. In parallel, the Tehran–Cheshmeh Soraya railway is nearing the selection of a contractor, with the aim of improving regional connectivity through expanded rail infrastructure.
Ongoing Economic Challenges
Despite these developments, Pezeshkian acknowledged that challenges remain. “The Government is working with economists, academics, and business representatives to minimize economic challenges,” his office stated, showing a commitment to addressing the country’s financial constraints. Nevertheless, he emphasized that many foreign observers have underestimated Iran’s resilience, noting that “many had expected Iran's economy to collapse under mounting pressure but had been surprised by its resilience,” as recorded in his speech. The administration remains focused on diversifying the economy away from oil dependence, promoting domestic manufacturing and exports, and leveraging regional partnerships to circumvent the effects of sanctions.