Iran's Economic Crisis Deepens Amid US Sanctions and Fuel Shortages

The economic crisis in Iran is dire, with runaway food inflation and a lack of foreign exchange reserves leading to a severe depreciation of the national currency. According to official data, the price of vegetable oil in August was 383% higher than it was a year ago, while eggs were up 294%, chicken by 177%, and red meat by 148%. The situation has left households struggling to afford basic necessities, with diets changing as people opt for cheaper alternatives like potatoes. Mohsen Zavaar, a biomedical engineer, noted that 'the issue is no longer buying a house or a car; the issue is cutting out meat, reducing food quality, postponing medical treatment, and scraping by until the end of the month.'

The crisis has also led to long lines at petrol stations, with many closed due to fuel shortages. The US dollar has reached a record 2m rials on Iran's open market, and year-on-year inflation in August hit 84.4%. Fatemeh Mohajerani, a government spokesperson, recently announced that future poverty statistics would only be published with the permission of the supreme national security council, sparking concerns about transparency.

Iranian leaders have attempted to appeal to patriotism, urging citizens to reduce petrol consumption and avoid unnecessary travel. However, these appeals seem increasingly desperate as the economic crisis worsens. Amirhossein Hashemi-Javid, an energy expert, warned that Iran's true economic crisis lies in its inability to export oil due to the US blockade.