Ayatollah Ali Khamenei described claims that Iran sent messages to the U.S. in a bid to reach out to Washington as a "total lie."

Many Iranians point to mismanagement and corruption as the root of the economy’s difficulties. In front of billboards urging citizens to conserve water, sprinklers drench grass verges along the roadside. Fountains play merrily in country clubs frequented by the elite.

Iran’s foreign minister said his country would halt plans for a reinstatement of nuclear inspections at a time of heightened concern over Iran’s enriched uranium.

Iran will introduce a new gasoline price tier on Dec. 6, raising the cost of fuel purchased beyond monthly quotas to 50,000 rials per liter, which is about 4 cents on the Iranian exchange market.

A prolonged drought along with years of overconsumption, an inefficient agricultural sector and mismanagement have led to the problem, analysts say.