Iran's economy is at risk of simultaneous hyperinflation and severe recession, officials and analysts say, as clerical rulers scramble to preserve stability with limited room to manoeuvre after a snapback of UN sanctions.
They followed a breakdown in talks to curb Iran's disputed nuclear activity and its ballistic missile programme.
Diplomacy to resolve the deadlock remains possible, both sides say, though Iranian Supreme Leader Ayatollah Ali Khamenei has rebuffed U.S. President Donald Trump's offer to forge a new deal.
Three senior Iranian officials, speaking on condition of anonymity, said Tehran believes the U.S., its Western allies and Israel are intensifying sanctions to fuel unrest in Iran and jeopardise the very existence of the Islamic Republic.
Since the reimposition of UN sanctions on 28 September, multiple high-level meetings have been held in Tehran on how to avert economic collapse, circumvent sanctions and manage simmering public anger, the officials told Reuters.
Deepening economic disparities between ordinary Iranians and a privileged clerical and security elite, economic mismanagement, galloping inflation - reported even by state media - have fanned discontent.
But analysts warn that such workarounds may not be enough to shield the sprawling country of 92 million people from the renewed economic blow.
"The impact of the UN sanctions will be severe and multifaceted, deepening the country’s longstanding structural and financial vulnerabilities,” said Umud Shokri, an energy strategist and senior visiting fellow at George Mason University near Washington.
U.S. President Donald Trump's threats to make the Strait of Hormuz part of U.S. territory have been mocked by Iran's Deputy Foreign Ministe...
Five years ago today, Taliban fighters entered Kabul, completing a rapid takeover of Afghanistan as the former government collapsed....
For fishermen along Pakistan’s southwestern coast, the consequences of the U.S.-Iran conflict are being felt far from the battlefield....
Hundreds of flights have been cancelled or rerouted at Catania Airport over the past week as ash from Mount Etna’s ongoing eruption continues to disrupt air travel in Sicily.
The U.S. will impose unprecedented measures on Iran in order to economically isolate the country, U.S. Treasury Secretary Scott Bessent has said.
Wildfires across England and Wales have reached their highest level on record, according to the National Fire Chiefs Council, as firefighters struggle to contain outbreaks following a spell of extreme heat.
U.S. President Donald Trump's threats to make the Strait of Hormuz part of U.S. territory have been mocked by Iran's Deputy Foreign Minister, Kazem Gharibabadi, who said the sea passage "cannot be seized by tweet."
At least 47 people have been killed after a magnitude 7.7 earthquake struck off eastern Indonesia early on Saturday, triggering small tsunami waves and dozens of aftershocks, officials say.
For fishermen along Pakistan’s southwestern coast, the consequences of the U.S.-Iran conflict are being felt far from the battlefield.
Afghanistan’s Foreign Ministry has expressed regret over the death of a 21-year-old pregnant woman killed by gunfire across the border in Tajikistan’s Darvoz district. Dushanbe has issued a formal protest to Kabul over the incident, which it said involved a violation of its airspace.
Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan all reported blackouts on Friday, which Kazakhstan’s Energy Ministry said had been caused by a "sudden change in the power flow" from the Central Asian grid.
The United Nations has urged sustained international engagement with Afghanistan five years into Taliban rule, warning that restrictions on women and terrorism concerns risk undermining gains from improved security.
Iran says the U.S. war and military presence in the region have worsened marine pollution around the Strait of Hormuz, calling for environmental protection to form part of future arrangements governing the strategic waterway.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment