Iran Faces Severe Economic Crisis Amid Renewed UN Sanctions and Political Turmoil

Iran is grappling with a severe socio-economic crisis characterized by hyperinflation, recession, and a collapsing financial sector, exacerbated by the reimposition of United Nations sanctions. The economy's stagnation is driven by a sharp decline in oil exports and limited access to technology, causing inflation rates to soar above 40% and sparking local protests over rising costs and unemployment. The collapse of Bank Ayandeh, a major private bank, highlights systemic financial instability, while proposed fuel price hikes risk further social unrest. Despite these challenges, Iran's leadership maintains a cautious stance, continuing a policy of "strategic patience" amid fears of war, but this has raised concerns that paralysis may be setting in as economic and political pressures mount. Efforts to counteract these difficulties include a shift toward a "resistance economy" reliant on alliances with China and Russia, though analysts doubt these measures will fully shield Iran from further shocks. The combination of economic hardship, political infighting, and social discontent underscores a regime struggling to maintain control amid intensifying internal and external pressures.