Tehran – Iran is grappling with a deepening economic crisis as the country faces skyrocketing prices, a plunging currency, and growing hardship for ordinary citizens. The situation has added pressure to an already tense domestic environment, fueling social unrest and raising concerns about the government’s ability to stabilize the economy.
According to economic analysts, the Iranian rial has plummeted to record lows against major currencies, trading at over 1.4–1.6 million rials to the US dollar in open markets. This steep depreciation has sharply reduced the purchasing power of households, making imports of essential goods, food, and medicine increasingly unaffordable for millions of Iranians.
The surge in prices has been driven by multiple factors, including international sanctions, restricted access to foreign currency, reduced oil exports, and shifts in monetary policy. Analysts note that the resulting inflation has pushed basic commodities to unprecedented levels, with food, housing, and energy costs rising far faster than wages, leaving many families struggling to meet daily needs.
Inflation in Iran remains persistently high, hovering above 40% annually, and citizens are resorting to buying dollars, gold, or other assets to preserve their savings, further weakening the rial. The government’s limited capacity to stabilize prices has compounded public frustration, prompting protests in major cities where citizens demand relief and accountability.
The economy’s heavy dependence on oil revenues has made it particularly vulnerable to sanctions and reduced exports, constraining the government’s ability to earn foreign currency and sustain public spending. Analysts say that without a revival of exports and foreign exchange inflows, the country’s fiscal position is likely to remain precarious, further straining households and businesses alike.
The social impact has been significant, with families cutting back on essentials and traders facing rising costs amid shrinking consumer demand. Public dissatisfaction over the economic situation has intersected with broader discontent over governance, making the crisis not just financial but also a source of political tension.
Iranian authorities have acknowledged the challenges and stated that measures are being considered to stabilize the economy and protect citizens from the worst effects of inflation and currency depreciation. However, experts warn that without structural reforms and easing of sanctions, the road ahead remains uncertain and difficult, with ordinary Iranians continuing to bear the brunt of economic instability.
This story has been reported by PakTribune. All rights reserved.