The economic situation in Iran is dire, with deepening poverty, rising household debt, and rampant inflation. The Iranian government has warned of the social consequences of the economic meltdown, and state media has acknowledged the risk of renewed social unrest.

Economic Pressure

The Trump administration is using economic sanctions to pressure Iran, and the strategy appears to be working. The Iranian economy is expected to shrink by 6% this year, largely due to lost output and physical damage caused by the conflict.

The US has huge economic leverage over Iran through sanctions and the ability to block or limit the release of its frozen overseas assets. The International Monetary Fund has projected that the Iranian economy will continue to struggle, and the Trump administration believes that time is on its side.

Humanitarian Impact

The economic pressure is having a significant humanitarian impact on the Iranian people. Many are struggling to make ends meet, and the use of credit apps is becoming increasingly common. Workers are constantly indebted to everyone and everything, and the fear of not having money and falling behind on installments is a constant worry.

Original reporting: KRDO (Colorado Springs metro) — read the source article.