Iran's economy faces mounting pressure

The Islamic Republic's threats of igniting a regional war have caused significant turmoil in Iran's financial markets. On Saturday, the Tehran Stock Exchange index plunged by 24,000 points, falling to just above two million points. Meanwhile, the US dollar surged to near-record highs, and gold prices spiked, both serving as clear indicators of the escalating crisis.

Iran's economy has clearly felt the looming threat of war and responded swiftly. Further spikes in the dollar rate and gold prices seem inevitable, heightening public anxiety about their financial survival.

In this situation, President Masoud Pezeshkian's government is similarly powerless to take effective action, as both war and sanctions are beyond its control. Economy Minister Abdolnasser Hemmati's calls for lifting sanctions to improve economic conditions are made with the full knowledge—shared by Hemmati himself—that this is impossible under current circumstances. Iran’s military and foreign policy decision are made by Supreme Leader Ali Khamenei.

Iran's economy has essentially become hostage to its foreign policy—a policy that is increasingly moving toward greater tension and conflict with the US and Israel. Not only is there no hope of lifting the sanctions, but new sanctions, such as those against Iran Air, have worsened the situation, leading to the complete suspension of Iran's flights to Europe.

Amid the ongoing economic crisis, protests from various sectors of society, including retirees and nurses, have grown, with people consistently voicing complaints about worsening economic conditions and their increasingly empty dinner tables. A central theme in these protests is the widespread anger toward the government’s neglect of domestic issues

Many feel that, in the face of these crises and mounting economic pressures, the government has abandoned its own people, focusing on its regional proxies. This sentiment has further widened the gap between the public and the government, with anger and dissatisfaction clearly reflected in the protestors’ messages.

In summary, as political and military tensions persist, Iran's economy is facing mounting pressure with no clear path to recovery. The Islamic Republic's foreign policy, focused on supporting regional proxy groups rather than national interests, has effectively held the economy and people's livelihoods hostage. Continuing with this foreign policy approach will not only fail to improve the situation but will further exacerbate the economic and social crisis.