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Living costs reduce Iranians' income
The article discussed the difficult economic conditions facing Iran, where the country is experiencing a severe crisis due to external pressures from recent U.S. sanctions targeting the oil, banking, and energy sectors. Following these sanctions, the local currency's value plummeted significantly, with the dollar surpassing one million rials in March 2025 and reaching approximately 2.2 million rials after the latest sanctions in August 2026. Iran also saw inflation rates rise to around 69%, with prices for basic goods increasing notably, leading to a decline in the purchasing power of government salaries and worsening the citizens’ living conditions. Despite the Central Bank's attempts to stabilize the currency by injecting billions of dollars, the economic situation is trending toward further deterioration, raising fears of large-scale popular protests—especially given the decline in oil exports and the contraction of the GDP. Additionally, Iran faces strategic challenges in the Strait of Hormuz, having failed to achieve its goal of blocking the strait to restrict Gulf oil exports. This failure has heightened internal economic losses and diminished its ability to use the strait as a key leverage point against its rivals, amid ongoing economic and political challenges.
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