Residents across Iran are experiencing severe economic difficulties as multiple crises compound existing structural challenges. Pensioners report that government income increases fail to keep pace with rapidly rising costs, while renters face steep increases well above legal limits. Inflation has reached approximately 90 percent, with food prices climbing 134 percent compared to a year earlier, and the national currency hit new lows this week at more than 1.9 million rials per dollar.
Government support measures have proven insufficient to address the crisis. Monthly cash subsidies and electronic coupons for food purchases amount to only a few dollars, and some retailers refuse to accept coupons due to lack of government compensation. Bread prices nearly doubled following an official decree last month, while petrol price increases are anticipated. Unemployment insurance fails to reach most informal and digital workers, and businesses report inadequate loan allocations and slow relief processes.
The country is contending with extensive infrastructure damage from an ongoing conflict launched by the United States and Israel beginning in February, following a separate 12-day conflict months earlier. US and Israeli forces have systematically targeted ports, airports, energy facilities, and water infrastructure, with damage estimates reaching hundreds of billions of dollars. A naval blockade on southern ports continues, and electricity blackouts persist despite summer temperatures exceeding 40 degrees Celsius in some regions, causing water shortages as pumping systems fail.
Internet access remains severely limited after a three-month shutdown that ended in late May, representing the longest recorded in any country. Additionally, authorities have closed numerous cafes and shops in central Tehran this week, citing various infractions, further restricting public gathering spaces. These restrictions follow deadly nationwide protests in January and have drawn criticism from public figures about restrictions on freedom of expression and normal daily life.