By Pishtaz | 2026-01-17

Iran is facing a profound economic crisis that has shaken the nation’s social fabric and fueled widespread public unrest.

Once central to Tehran’s diplomacy, the 2015 nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA) briefly stabilized the economy by lifting sanctions in exchange for strict monitoring.

At that time, the Iranian rial traded at around 32,000 to the US dollar, reflecting relative stability compared with previous years.

However, this fragile balance collapsed as Iran continued to pursue its nuclear ambitions in subsequent years.

Plunging Rial

In the years since, the Rial’s free-market value has plunged, reaching about 1.4 million rials to the dollar by early this year.

This marks a devaluation of more than fortyfold since the JCPOA era, as inflation surged to 40-70 percent, sharply eroding purchasing power.

These trends have directly impacted household budgets, driving up prices of food, energy, and other essentials and sparking mass protests across the country.

The streets of Tehran’s historic bazaar and dozens of cities nationwide have seen demonstrations driven by economic hardship and grave dissatisfaction with the country’s leadership.

Beginning with shopkeepers frustrated by currency collapse and high inflation, the protests quickly grew into widespread discontent over Iran’s political direction and governance.

Public pressure has intensified as those in power in Tehran continue to ignore the people’s demands.

Too little, too late

Iranian President Masoud Pezeshkian’s government has introduced some policy shifts, including appointing a new central bank governor to stabilize the currency.

However, many Iranians view these measures as too little, too late, failing to address the depth of the country’s economic and political crises.

Meanwhile, internet blackouts and forceful crackdowns on protesters have drawn international concern and underscored the urgency of the crisis.

On the diplomatic front, global pressure on Islamic Republic Regime has intensified, with multiple countries calling for stricter measures and increased oversight.

In September 2025, the United Nations reinstated nuclear-related sanctions on Iran as a result of the Islamic Republic Regime’s noncompliance under its JCPOA nuclear obligations.

These measures reactivated previously lifted penalties, including asset freezes and arms restrictions in response to Tehran’s nuclear activities.

The Islamic Republic's leadership has rejected full cooperation with international monitoring, notably refusing inspections of nuclear sites damaged during recent conflicts.

Iranian Atomic Energy Organization head Mohammad Eslami made clear that Tehran will not allow such inspections to proceed until its conditions are met.

President Pezeshkian has warned of strong responses to external threats, reinforcing resistance, even as many Iranians call for urgent change and economic relief.