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Iran: Widespread Protests & Economic Crisis
As of early January 2026, Iran is in the throes of a severe downturn. The numbers are stark: inflation soared to over 48.6% in October 2025, easing only slightly to 42.2% in December. This relentless increase in living costs is directly linked to the dramatic collapse of the Iranian Rial. From 1.25 million Rials to one US dollar in early December, the currency has plummeted further, now trading at 1.45 million Rials per dollar. This historic depreciation has decimated the purchasing power of ordinary Iranians. Reports indicate that between 27% and 50% of the population is now living below the poverty line, a significant jump since 2022. Even more concerning, 57% were experiencing some level of malnourishment in 2024.
The drivers of this crisis are multifaceted: persistent international sanctions, particularly those reimposed by the United States, coupled with domestic mismanagement, rampant corruption, geopolitical instability, and deep-seated structural inefficiencies. A systemic energy crisis has also plagued the country for years, now reaching a critical point alongside this rapid economic decline.
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Published on 3 days ago