Iran faces deepening economic crisis amid US pressure

Iran is facing a deepening economic crisis characterized by rampant inflation, rising household debt, and high unemployment. Food inflation has increased by nearly 130% over the last year, while wages for low-paid workers have grown by less than half of that rate. The International Monetary Fund projects the Iranian economy will shrink by 6% this year due to lost output and conflict-related damage.

US President Donald Trump has stated that inflicting economic pain is a central component of Washington’s strategy toward Iran, noting that the administration is observing the country’s high inflation and lack of funds.

Domestic concerns are mounting as the Iranian government considers reducing gasoline subsidies, a move experts warn could trigger further inflation and social unrest. President Masoud Pezeshkian has previously cautioned about the social consequences of the economic meltdown, with state media acknowledging that persistent inequality and declining purchasing power could lead to renewed discontent.