by Noureddine Omar | 2026-05-20

The Islamic Republic regime faces an ongoing economic collapse, pushing the domestic situation to the very verge of a popular explosion.

The crisis is driven by eroding purchasing power, flawed economic policies, and the resulting massive erosion of citizen livelihood.

The government's Task Force for Food Security and Livelihood Improvement allocated one billion dollars from the National Development Fund to import essential commodities.

According to a report published by Iran International, these basic goods include sugar, rice, red meat, and animal feed.

Mahmoud Mustafa, an economic expert and professor at Damascus University views this costly measure as a desperate attempt to silence the public and prevent future "hunger riots".

The Iranian economy is "gasping its last breaths" due to decades of crippling military spending and mismanagement.

"This excessive spending damaged essential civilian infrastructure, escalating unemployment, stifling production, and raising inflation to 67 percent," he added.

The economic collapse signals a looming social breakdown, with the currency plunging to 1.5 million rials per single US dollar.

Repeatedly drawing funds intended for critical infrastructure and long-term investments will cause devastating medium- and long-term consequences.

The Islamic Republic's policies have also severely damaged vital sectors-including oil, steel, and petrochemicals- and caused prolonged internet outages across the nation.

"Past economic-driven protests were brutally suppressed by authorities, coinciding with the start of the current conflict," Mustafa said.

As war and sanctions persist, Iran’s domestic landscape is poised to reach a breaking point despite palliative economic measures.