Source: Fortune
Summary
The Iranian economy is on the brink of collapse due to high inflation, a currency collapse, and a war with the US and Israel. The rial has plunged 8% against the dollar since the war started, and prices have risen by 6%. The central bank has issued its largest-ever currency denomination, the 10 million rial note. Residents report that some prices have shot up around 40% since the war began. The government fears renewed unrest and is struggling to make payroll, with an insider warning that the economy is the country’s Achilles heel.
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The numbers tell one story. Iran’s economy was already in shambles before the war, and the relentless bombing has pushed the regime to the brink. The rial’s plunge and rising prices are just the beginning. The government’s ability to govern is threatened, and the IRGC’s financial resources are at risk. The US naval blockade on the Strait of Hormuz could choke off Iran’s main source of money. The regime’s survival depends on either reform or exporting instability abroad.
Author: Evan Null
