Iranian economic crisis

As of January 2026, Iran is experiencing its deepest and longest economic crisis in modern history. With international sanctions, particularly those reimposed under current United States president Donald Trump, Iran's oil exports and access to the global market have been severely limited. Domestic mismanagement, rampant corruption, geopolitical instability, and structural inefficiencies have all led to acute social discontent. Due to the crisis, inflation skyrocketed to over 48.6% in October 2025 and 42.2% in December 2025, severely impacting household budgets. As of March 2025, estimates ranged from 22% to 50% of Iranians living under the poverty line — a stark increase from 2022. A systemic energy crisis has consistently plagued the country for years, with the issue reaching a climax alongside the rapid economic decline.

The ministry of social welfare announced in 2024 that 57% of Iranians are having some level of malnourishment. Majlis reported that 50% of males 25–40 are unemployed and not looking for employment.

The dual crises have resulted in severe food shortages and triggered nationwide protests in Iran in May 2025, along with labour strikes in the mass transportation sector. Later in 2025, even greater protests erupted over the dire economic situation, and also included many anti-government sentiments and chants.

As of 10 December 2025, Time magazine, Euronews, and Al-Monitor reported that Iran was nearing economic collapse. The rial has dropped to its lowest value ever, trading at 1,750,000 rials to one US dollar, with the Minister of Finance blaming the impact of its recent war with Israel. Iranian Supreme Leader Ali Khamenei ordered people to reduce consumption of food, water, energy and fuel.

The budgetary commission has reported that the government's budget deficit was estimated to be around 1,800 trillion tomans. Meat has reportedly become a luxury food item, whereas 7 million Iranians have gone hungry.