- On 23 August, the US dollar reached roughly 2m rials on Iran’s open market, a new record. Three days later, Iran’s statistical centre announced that year-on-year inflation in August reached 84.4%; the rolling annual average rate was about 65%.
- In August, vegetable oil cost 383% more than a year ago, eggs rose by 294%, chicken by 177%, and red meat by 148%.
- Long lines of cars stretched through parts of Tehran and Mashhad as motorists queued for fuel, with some lines blocking entire streets. Many petrol stations, including some of the largest, were closed. Officials blamed isolated panic buying caused by rumours of a government-planned price increase, or Israeli bombs that destroyed two of Tehran’s three main oil depots.
- Pakistan and China have both announced they will not comply with the latest US sanctions on Iran and will continue trading with the country.
- According to the Mehr news agency, demand for red meat fell by 50% in April 2026 compared with the same period last year.
- Iranians are facing runaway food inflation, closed petrol stations, and a seemingly never-ending depreciation of the nation’s currency caused by a lack of foreign exchange reserves.
- Basic goods like eggs are now unaffordable to middle- and working-class families, said Golshan Fathi, an Iranian feminist. “They don’t understand that people can no longer afford even a normal life.”
- Mohsen Zavaar, a biomedical engineer, said: “For part of the population, the issue is no longer buying a house or a car; the issue is cutting out meat, reducing food quality, postponing medical treatment, and scraping by until the end of the month.” He added: “The people don’t want miracles — they want decisions.”
- The new approach is illegal, cruel and will fail because economic sanctions do not bring down governments determined to survive them; they can impoverish populations and empower security services but do not topple governments.
- The US proposes to remove Iranian oil exports from a world that has already lost a fifth of its oil supply because the Strait of Hormuz is shut, deepening a stagflationary shock for its allies.
- The campaign is targeted against China, which buys more than 80 percent of Iran’s oil exports. If the US sanctions Chinese banks, Beijing will restrict its rare earth exports, having already run this experiment and won.
- China’s Foreign Ministry Spokesperson Lin Jian stated that China firmly opposes illicit unilateral sanctions without basis in international law or UN Security Council authorisation, and that economic warfare and maximum pressure provide no solution.
- The US has repudiated the UN Charter, as shown by its withdrawal from more than 60 international organisations in January 2026 and voting with the international majority in only five percent of recorded UNGA resolutions in 2025.
Iran's economy is facing unprecedented challenges as the US intensifies sanctions through Operation Economic Outcast.
Food inflation has skyrocketed, with vegetable oil prices up 383% and eggs by 294% compared to last year.2
On August 23, the US dollar hit 2 million rials, marking a record low for the currency.1
Year-on-year inflation reached 84.4%, with a rolling average of 65%.
Basic goods are now unaffordable for many families, as noted by Iranian feminist Golshan Fathi, who stated, “They don’t understand that people can no longer afford even a normal life.”9
Mohsen Zavaar, a biomedical engineer, highlighted the dire situation, saying, “For part of the population, the issue is no longer buying a house or a car; the issue is cutting out meat, reducing food quality, postponing medical treatment, and scraping by until the end of the month.”1011
Long queues for fuel have become common, with many petrol stations closed due to panic buying triggered by rumors of price hikes.
Officials attribute the closures to panic buying and external factors, including rumors of Israeli attacks on oil depots.
The sanctions, described as “the toughest in history,” aim to isolate Iran economically, but critics argue they will not topple the government and may instead empower security services.
China and Pakistan have expressed their intent to continue trading with Iran, defying US sanctions, indicating a potential shift in international alliances.
The situation remains critical as Iranians navigate a landscape of soaring prices and diminishing resources.
“In August, vegetable oil cost 383% more than a year ago, eggs 294%, chicken 177%, and red meat 148%, while the dollar reached 2m rials. Pakistan and China have refused to comply with the sanctions, with China warning that economic warfare provides no solution.”
The Guardian
