Iran’s already struggling economy is now on the brink of complete collapse due to weeks of war. Food prices are skyrocketing, with some essentials increasing by at least 50% compared to pre-war levels.
Meanwhile, internet disruptions have caused major service halts. Factories are facing shortages of raw materials, and the administrative system has been severely impacted. A resident of Tehran expressed, “It has become impossible to endure this situation any longer.”
Reports indicate that over 40% of the population lives below the poverty line, with the number exceeding 50% in the capital. Economists fear that the real poverty rate could be over 60% nationwide.
As the middle class diminishes, the income gap between different salary brackets has widened significantly. Despite efforts to stabilize the currency, economic conditions continue to deteriorate rapidly in Iran.
The situation worsens as the Persian New Year approaches, bringing traditional spending spikes that are now exacerbated by the ongoing war. Economists predict a severe economic decline for Iran in 2025, with a significant drop in household incomes amid high inflation.
Experts warn that the country’s economy faces instability, high inflation, and financial market stagnation, compounded by the impact of the war. Rising food prices are taking a toll on lower and middle-income households, forcing many to cut back on essential items.
The already dire economic situation in Iran has been further complicated by the conflict, leading to a chaotic spring for the economy. As prices soar and daily life is disrupted, Iranians are facing increasing challenges to make ends meet.
