The impact of what started as a war against Iran by the U.S. and Israel and has turned into somewhat of a “standoff” might be having a far more serious effect on Iran than what is typically in the headlines of major newspapers and TV broadcasts.
Iranian leaders, including those in charge of its military, make strong boasts and still send drones to attack oil tankers in the Strait of Hormuz, but on the streets of the country’s cities and its towns and villages, the story is one of a growing economic disaster.
If anything, it suggests that President Trump might be winning his war against Iran’s economy, an economy which might be nearing bankruptcy.
While Americans complain of the high cost of gasoline and diesel fuel and inflation, the U.S. Naval blockade and the U.S. economic sanctions are creating a growing strain on the country of Iran. Iranian ports and restrictions on the Strait of Hormuz have choked off petroleum exports—Iran’s primary source of foreign currency. Analysts warn that crude and condensate revenues face a potential complete halt.
At least, judging by a recent article in The Telegraph, which interviewed everyday Iranians and found many are becoming desperate as their economy is in shambles as the result of the U.S. economic sanctions against the country. The situation is dire enough that Iranian leaders fear there could be a government collapse and a backlash by the citizens of the country who are weary of living lives with little to no income, meager food supplies and “anxiety rarely spoken aloud that the Islamic Republic may not weather the strain with a supreme leader who has remained almost entirely out of view.”
Currency Collapse and Inflation: The Iranian rial has plummeted to historical lows, trading around 2 million rials to the dollar. Inflation has surged past 65% to nearly 89%, with food prices escalating by over 128%.
The blockade has severely restricted the import of vital commodities, including agricultural goods (corn and wheat), raw materials, and medicine.
“It is clear Trump is playing the longer game now, waiting for the system to reach a point where it is forced to give concessions,” one analyst in Tehran told The Telegraph.
“But that may take a long time, because Shia ideology is all about resisting. When people are hungry, though, it is another case.”
One man told the paper, “You see few people laughing. Everyone, everywhere, is complaining – and no one knows whom to blame.”
A student in Tehran said life sinks “deeper into misery every passing day,” adding, “I just think about my future, which is being taken from me every day. It feels like no one cares about us – it’s all politics and we are stuck.”
