Iranian authorities fear new protests due to US pressure

On August 14, US President Donald Trump promised to deal Iran a severe economic blow. A day earlier, US Treasury Secretary Scott Bessent stated that Washington could impose unprecedented measures against Tehran as early as this week, Reuters reported.

Iran entered the war with the US amid high inflation, a weakened currency, energy shortages, and sanctions. The war has added to this damage to infrastructure, trade disruptions, lost production, and reconstruction costs.

In July, annual inflation in Iran reached 66%, consumer prices were 87.9% higher than a year earlier, and food inflation was 128%, according to data from the Statistical Center of Iran, cited by Reuters. The minimum wage was raised by approximately 60% this year, but due to the rial's depreciation, its dollar equivalent has fallen from approximately $105 to $86 since the end of March.

For the Iranian authorities, the main risk is not the worsening economic situation itself, but the possibility of a new wave of protests. A former Iranian official cited the appointment of Hossein Taeb, implicated in previous crackdowns, as the head of the Basij paramilitary force as one sign of this concern.

The situation is further exacerbated by the US naval blockade. Iran is attempting to transport essential goods via land routes and across the Caspian Sea, but attacks on bridges are increasing the cost and duration of such shipments. Due to the blockade, gasoline imports have virtually ceased: the country produces approximately 130 million liters per day, while consuming 137 million liters.

Photo: gujaratsamachar.com.