TEHRAN, Iran (FN), In the bustling markets of Tehran, shopkeepers count stacks of newly issued banknotes while customers haggle over bread and cooking oil that cost twice what they did a year ago. Inflation has hollowed out wages, the rial has plunged to record lows, and the threat of renewed war hangs over conversations in cafés and homes.
Families say they are struggling to afford basics. “We used to buy meat once a week. Now it’s once a month, if at all,” said Zahra, a mother of three waiting in line at a bakery. Merchants report dwindling supplies of imported goods, with many transactions now conducted in cash because of banking instability.
The economic crisis is compounded by geopolitical tensions. Iran’s closure of the Strait of Hormuz and the U.S. naval blockade have cut off most trade, while clashes involving Hezbollah and Israeli forces add to fears of escalation. Analysts warn that sanctions and isolation are squeezing ordinary Iranians hardest, even as oil exports briefly buoy government revenues.
Residents describe a sense of uncertainty that shapes daily choices. Students worry about whether they can afford tuition, while taxi drivers complain that fuel costs eat into their earnings. “We live day to day, not knowing if tomorrow will bring war or more shortages,” said Ali, a shopkeeper in central Tehran.
The International Monetary Fund projects Iran’s economy will shrink by more than six percent this year, with food inflation exceeding one hundred percent. The government has introduced larger banknotes to cope with cash demand, but critics say reforms have done little to ease the burden on households.
For many in Tehran, the struggle is not only about money but about resilience. Families gather around modest meals, neighbors share supplies, and conversations often turn to how to endure both economic hardship and the looming shadow of conflict.
