Iran's economy is buckling under the weight of war as households are forced to cut spending on food, utilities, and medicine, which are becoming increasingly unaffordable amid soaring inflation.
The war has compounded years of sanctions and economic mismanagement, while U.S. financial measures further restrict Tehran's access to foreign currency and overseas revenue.
The IMF projects average Iranian consumer-price inflation of 68.9% in 2026, alongside a severe economic contraction.
Every week, the shopping lists of Iranians become shorter as inflation soars and purchasing power plunges.
The Iranian economy was already crippled by international sanctions and government mismanagement, but the war has pushed the country to the verge of economic collapse.
The U.S. and Israel's bombing campaign has left some of Iran's infrastructure and industries in tatters, fueling runaway inflation and joblessness.
Even as unemployment has increased, the prices of basic food items, medication, and utilities have soared.
