Iran Economic Crisis 2026

 The Iran Economic Crisis 2026

Iran's economy is facing its deepest and longest crisis in modern history, triggered by a combination of international sanctions, domestic mismanagement, corruption, and geopolitical instability. 

The Iranian rial has plummeted to record lows, with the exchange rate hitting 1.42 million rials per US dollar in late December 2025, a 56% devaluation in just six months.

The economic downturn has led to widespread protests across the country, with demonstrators calling for regime change and economic relief. The protests, which began in Tehran's Grand Bazaar, have spread to 110 cities across Iran's 31 provinces, with reports of at least 45 deaths and over 2,000 arrests.

Crisis Fact:

- International Sanctions: 

US sanctions, particularly those reimposed under President Donald Trump, have severely limited Iran's oil exports and access to the global market.

The US imposed sanctions on Iran in 1979, following the Iran hostage crisis. However, the most significant sanctions were imposed in 2012, when the US and EU tightened restrictions on Iran's oil exports and financial transactions.

In 2015, the Iran Nuclear Deal (JCPOA) eased some sanctions, but the US withdrew from the deal in 2018 and reimposed sanctions.

- Frozen Assets:

Iran's frozen assets in international accounts are estimated to be worth between $100 billion and $120 billion. Almost $2 billion of Iran's assets are frozen in the United States, including real estate and other property. The estimated value of Iran's real estate in the U.S. and their accumulated rent is $50 million.

Some notable seizures include:

- $1.4 billion in frozen cash: 

Awarded in punitive and compensatory damages to the family of Robert Levinson, a former FBI agent who went missing in Iran.

- A Manhattan skyscraper: 

Worth over a billion US dollars, seized by the US government.

The seizures are part of international sanctions imposed on Iran, primarily due to its nuclear program and alleged support for terrorism. 

- Domestic Mismanagement:

 Corruption, lack of diversification, and inefficient economic policies have exacerbated the crisis. Most of the liberal and progressive Iranians flew to Europe which caused a huge gap in skilled work force.

- Geopolitical Tensions

The international support of Iran to some militant groups like Hamas, Hothis, Syrian Bashar regime, religious sects in Pakistan, Bahrain and Lebanon  often consider Iran as country supporting anti state movements.

The Iran Iraq war was also a reason which seperated Iran from core Arab world inspite of the fact where Iraq invaded Iran just after its Islamic revolution in 1980.

In 2025, Iran had an air war with Israel and whole world voted in favour of Iran and condemned Israel for its aggression.

- Corporate Subsidy Misuse:

 The government's duty rebates and subsidies on raw material imports weren't passed on to local consumers, benefiting manufacturers instead.

- Smuggling and Supply Gaps: 

Local goods are smuggled to neighboring countries, creating supply gaps and inflation. Manufacturers prioritize border traders, offering advance payments and earning windfall gains.

- Hoarding and Short Supply: 

Traders hoard goods, exacerbating shortages and fueling inflation.

- Kerb Money Market: 

Informal money market players facilitate money laundering for manufacturers, smugglers, and hoarders.

- Overseas Remittances: 

Iranians abroad arrange family support  through offshore agents, booking goods at higher prices for local elite buyers.

- Direct Subsidy Shift: 

The government now provides direct subsidies to consumers, aiming to eliminate trader mafia influence, but sparking protests from affected traders .These subsidies are in the form of discounts to every local for FMCG purchases.

Impact on Iranian Society:

- Food price inflation has soared to 72% year-over-year, with some essential goods experiencing price increases exceeding 1,000%.

- The poverty rate has increased, with 27-50% of Iranians living below the poverty line.

The international community is closely watching the situation, with the US and European nations expressing support for the protesters and urging restraint from Iranian authorities.And somewhere the news are that if Iran takes any strict action against these protest, it may lead any external aggression again.

The overall economic and social situation are going towards bad to worst.And the othe veto powers are silent.It arise below questions.

1.Why West is against Iran? And the country is facing strict trade embargo for no reason?

2. Is the Islamic Revolution in Iran is going to end?

3.Why the Iranian people turned down Shah Of Iran Kingdom in 1979 and again willing to welcome his son to take charge from Iran current leadership?

4.Why Iran failed to settle unrest among its own people? And having disputes with most of her bordering neighbour countries?

5.Why the mass majority of local Iranians prefer liberal and democratic form of government inspite of 45 years have been past by Imam Khomeni lead Revolution?

6.Will the Country be different in thoughts by next coming months?

7.Was it a different dream which Iranians expect in 1979?

8.Some other frictions of society were also the part of turning down the Shah of  Iran regime? So where they vanished after Shah turmoil?

9.If the Political Islam which was demonstrated, in Iran, another sort of religious dictatorship?

10.How the top military and nuclear leadership of Iran were killed by Israel? does it means there is a vast anti government sentiments exist among people?

11.How the Iranian Ex Prime Minister was killed in air crash while while way back home from Armenia?

12.During the recent war between Armenia and Azerbijan, why Iran supported to Armenia and not to Azerbijan which also follow the same Shia sect of Islam?

13.The protesters have their freedom of protest in Iran but why they are ablazing the holy masjids in their own cities?

The Iran has to find a better solution to this crisis.No other country has a right to dictate or ignite them for the way which would be against their wishes.

May Allah Help Iran. Ameen.