Trump Pushes Iran’s Economy to the Brink

Iran’s Economy in Freefall: A Nation on the Brink

Iran’s economy is in a state of acute crisis, grappling with skyrocketing inflation, a rapidly depreciating currency, and escalating poverty. These challenges have pushed millions of Iranians to the edge, making survival a daily struggle. The situation has worsened significantly since former U.S. President Donald Trump intensified his "maximum pressure" campaign against Iran, reimposing crippling sanctions and vowing to paralyze Tehran’s economy. As the crisis deepens, the Islamic Republic’s leadership is under mounting pressure to find solutions, while ordinary citizens bear the brunt of the economic turmoil.

The Human Cost of Economic Collapse

The impact of Iran’s economic meltdown is deeply personal for its citizens. Food, housing, and essential goods have become prohibitively expensive, with inflation soaring above 45 percent. Nearly half the population now lives in poverty, according to the Statistical Centre of Iran. For many families, affording basic necessities has become a daily battle. Rent in Tehran has surged 24-fold over the past 12 years, while real estate prices have skyrocketed by more than 37 times. Meanwhile, wages have only increased by around 20 times, leaving many workers unable to afford even modest housing.

Sanctions and the U.S. "Maximum Pressure" Campaign

The U.S. sanctions under Trump’s "maximum pressure" campaign have dealt a devastating blow to Iran’s economy. The sanctions target key sectors, including oil, which accounts for nearly half of government revenue and a significant portion of Iran’s hard currency earnings. Trump’s strategy has already begun to bite, with Iran’s currency, the rial, plummeting to a record low of 928,000 rials to the dollar in aftermarket trading. This sharp devaluation has fueled inflation, wiped out savings, and made imported goods unaffordable for many Iranians.

Oil Sanctions and Energy Shortages

Iran’s oil sector, the backbone of its economy, is particularly vulnerable to U.S. sanctions. Trump’s directive to cut Iran’s oil exports to zero has sent shockwaves through the economy, exacerbating energy shortages and further strangling state revenues. According to Afshin Molavi, Senior Fellow at the Foreign Policy Institute at Johns Hopkins University, "Iran’s oil revenues have been able to paper over many of the structural faults in the economy. But with those revenues under threat, the cracks are beginning to show."

A Crisis Decades in the Making

While U.S. sanctions have intensified Iran’s economic woes, the roots of the crisis stretch back decades. Years of mismanagement, corruption, and poor policy decisions have undermine