US Sanctions and Blockade Fuel Skyrocketing Medication Prices in Iran

Medication prices are escalating rapidly in Iran, with certain treatments becoming scarce, forcing patients and their families to struggle as a U.S. blockade and intensified sanctions place pressure on the nation's pharmaceutical industry. Some medications have seen their prices more than triple, exacerbating financial difficulties for Iranians during the ongoing conflict with the United States and Israel.

Prices for food and other essential goods have also surged, coinciding with rising unemployment and a significant depreciation of the national currency, which recently hit a record low, losing half its value.

The conflict has become an economic endurance test. Iran has attempted to drive up global energy prices through attacks on regional oil shipping routes. In response, the United States has sought to cripple Iran's economy by blockading its ports since June and imposing increasingly stringent sanctions.

Iran's pharmaceutical sector is particularly vulnerable due to its reliance on imported goods. While major shortages at hospitals have not been widely reported, pharmacies are experiencing significant difficulties. Gholamreza Rahmani, a Tehran welder, described a two-day search with his wife across multiple pharmacies to find four necessary medications for their daughter's stomach ailment, ultimately failing to locate one.

"Each one would have one or two items, not all of them," he stated, noting the lost wages from his inability to work during the search. "My daughter’s illness and the loss of income are like scissors, cutting from two sides."

Reliance on Imports Hampers Domestic Production

Despite producing over 80% of its medicines domestically, according to official figures, a substantial portion of these rely on imported raw materials. Bahman Sabour, a member of the Tehran Pharmacies Association, explained that the American naval blockade has disrupted the primary sea routes for importing medicines and pharmaceutical components, which were common before the conflict.

Medical importers have shifted to more costly air cargo, but this avenue is also threatened by new U.S. sanctions on several Iranian airlines, leading to the suspension of some international flights.

While U.S. sanctions do not directly target medicines, existing financial sanctions implemented over years indirectly impact the pharmaceutical supply chain. International banks and companies often exercise extreme caution, refusing transactions due to fear of violating sanctions, according to Reza Majdzadeh, a professor at the University of Essex. "A medicine may be perfectly legal to sell to Iran, but a bank may refuse to process the payment," he said. "A pharmaceutical or shipping company may simply decide that dealing with Iran is not worth the risk. ... The transaction is legal on paper, but it does not happen in the real world."

The government has not specified the extent of the decline in medicine production, but officials have indicated that airstrikes have damaged over 40 pharmaceutical factories, including those manufacturing cancer treatments.

Pharmacies, facing cash flow issues, often struggle to maintain stock. Mohammad Jamalian, a member of parliament's health committee, noted that insurance companies are behind on payments for drug coverage by as much as nine months due to the "current situation." Sabour added that these companies owe pharmacies approximately $270 million.

Supplies are further strained by the smuggling of medicines to neighboring countries like Afghanistan, Pakistan, and Iraq, where prices are higher, according to state media.

Pharmacy Prices See Significant Increases

"The price of almost everything has gone up, in some cases doubling, quadrupling, or even increasing sixfold," said Mina Mohammadian, a Tehran pharmacy salesperson.

Mehdi Pirsalehi, head of the government agency responsible for drug pricing, stated last week that the prices of 2,000 types of medicines were adjusted in the past six months due to inflation and currency fluctuations.

Ali Fallah, a Tehran resident, reported that the price of an anti-inflammatory ointment he uses has quadrupled in three months, rising from approximately $0.35 to $1.46. The minimum daily wage for an unskilled worker in Iran is about $3.50.

Prices for essential tablets for kidney dialysis patients have increased by nearly 350% recently. Over-the-counter painkillers, such as acetaminophen, have also seen similar price hikes, when available.

Hospitals Appear Prioritized for Supply

An employee at a public hospital reported shortages of critical specialized psychiatric medications for bipolar disorders and acute psychosis, as well as more common drugs for anxiety and panic disorders. Due to the unavailability or inferior quality of these drugs, doctors have resorted to increased use of electroconvulsive therapy.

Azita Hassanpour, a part-time teacher, stated that her mother, undergoing cancer treatment, has received chemotherapy, but occasional delays occur due to medicine availability issues. Hassanpour is also concerned that her mother has not been able to receive her annual flu shot, as authorities are seeking new vaccine sources.

Hadi Ahmadi, a spokesperson for the Iranian Pharmacists Association, confirmed that approximately 700,000 doses of flu vaccine have been imported from China, with another 500,000 expected. However, the cost of a flu jab this year is about $9, nearly double last year's price, although authorities have pledged to provide it free of charge to high-risk patients.