Iran has banned the import of luxury cars amid the growing frustration of ordinary Iranians at the costly vehicles, while the country grapples with a severe economic crisis.

President Masoud Pezeshkian ordered the ban, Iranian media reported on Wednesday. The move also reflected concerns about the outflow of foreign currency.

Despite the difficult economic situation, residents of major Iranian cities have reported seeing increasing numbers of luxury cars in wealthy neighbourhoods since US and Israeli forces launched the war on Iran on February 28.

Electric vehicles and SUVs from China have also become more common on the streets of major cities.

Some wealthy Iranians regard expensive cars as an investment because used-car prices tend to remain relatively stable.

Cars in Iran are expensive. Even small cars and entry-level models cost the equivalent of more than $11,000, putting them beyond the reach of many Iranians, whose average monthly wage is only a few hundred euros.

Petrol, by contrast, is extremely cheap in the oil-rich country, costing the equivalent of only a few cents per litre.