Impact of U.S. sanctions on Iran
Iran is currently facing one of its most difficult economic phases due to the escalation of U.S. sanctions following a severe economic decline. It is expected that the economy will contract by 5.4% in 2026, with inflation nearing 69%. Despite rising inflation, a 128% increase in food prices, and increasing unemployment, the Iranian regime has managed to develop its parallel economy and networks for evading sanctions—particularly through China, which imported around 1.38 million barrels of oil daily from Iran in 2025. Although sanctions may contribute to weakening the regime, they are not the sole decisive factor. The greatest challenge remains the potential outbreak of widespread popular protests resulting from declining living standards and inflation, alongside other economic setbacks linked to war and destruction. If pressures persist and coincide with internal splits within security agencies and a deteriorating ability to fund the state, the situation could escalate into a crisis threatening the survival of the Iranian regime.
Notice: This Is an AI-Generated Summary
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