New UN Sanctions Deepen Economic Crisis in Iran

As the global community prepares to enforce new United Nations sanctions on Iran for its nuclear endeavors, the impact is already profound and deeply felt among its civilian population. Iran’s fragile economy is grasping for stability as the nation’s currency, the rial, hits an all-time low, intensifying strain on food affordability. This situation is complicating everyday lives of Iranians who are finding it increasingly difficult to afford fundamental dietary needs like meat and rice. Concurrently, there is palpable anxiety regarding the potential for increased conflict with Israel or possibly even the U.S., as missile silos that were targeted in the twelve-day war in June appear to be under restoration.

Fear is mounting amongst activists regarding a rise in repressive actions within the Islamic Republic. The reported executions have already exceeded the total number recorded over the last thirty years. A father of a twelve-year-old boy described the unprecedented challenges the nation is facing, surpassing even the hardship of the Iran-Iraq war in the 80s and the subsequent years of sanctions. He expressed a generational discontent, ‘we have always struggled with economic difficulties, and it only gets harder with each passing year. Our dreams seem more elusive every day.’

Sunday midnight, GMT, will mark the reinstatement of U.N sanctions on Iran via ‘snapback’ unless there is an unforeseen diplomatic intervention. This mechanism was designed to be immune to veto at the U.N. Security Council, implying that China and Russia cannot singularly oppose it as they have managed to do with previous attempts to deter Tehran. This initiative will be compelling on multiple fronts, affecting Iranian offshore assets, disrupting arms deals with Tehran, and imposing penalties on the development of Iran’s ballistic missile program.

France, Germany, and the United Kingdom jointly initiated snapback to tighten restrictions on the monitoring of Iran’s nuclear program. However, in response, Iran disengaged further from the International Atomic Energy Agency’s oversight after the conflict with Israel in June, an occasion that also witnessed U.S. airstrikes on Iranian nuclear facilities. Despite this, Iran continues to hold a uranium stockpile enriched to 60% purity, a step shy of weapons-grade material that necessitates a 90% enrichment level. This stockpile is robust and could potentially be employed in the production of several atomic weapons if Iran decides to rush towards armament.

Iran has consistently maintained the peaceful nature of its nuclear program, but Western nations and the IAEA argue that Tehran had an elaborate weapons program in operation till 2003. On the brink of sanctions being reimposed, Iran issued a recall of its ambassadors to France, Germany, and the United Kingdom for consultation sessions. The aftermath of the war in June has led to escalated food prices in Iran, causing an even heavier burden on poorer families who can hardly afford meat, a dietary staple.

Official estimates from Iran’s government placed annual inflation at 34.5% in June, while the Statistical Center reported a surge of over 50% in the prices of essential food items over the same period. These however, do not accurately represent the high costs that consumers see at grocery stores. The prices of pinto beans have tripled over the year, butter prices nearly doubled, and even locally consumed and widely grown staple, rice, has risen in price by over 80%, reaching a soaring 100% for premium sorts. Prices for whole chicken have spiked by 26%, and there has been a 9% increase for both beer and lamb.

The escalating issue of food affordability coupled with the looming threat of renewed warfare has led to a sharp increase in the number of people seeking psychological help since June. The simultaneous strain of wartime trauma and runaway inflation has left the community feeling drained and demotivated. A clinical psychologist projected that if the current economic situation persists, ‘it would have grave social and moral repercussions.’

There have been repeated instances of nationwide protests in Iran in recent years, sparked by frustrations over the stagnant economy, demands for women’s rights, and calls for radical changes in the nation’s theocratic governance. In response to these protests and the events of the June war, Iran has expedited executions at a rate not seen since 1988, during the Iran-Iraq conflict. In 2025 alone, over 1,000 individuals were reportedly executed, though the actual number could be higher as not all executions are officially recorded and reported.

The political and civic landscape in Iran has been radically diminished, and external to Iran, activists and dissidents face transnational oppression. The aspiration of millions of Iranians for a life beyond a repressive and brutal theocracy has made headway, but their leaders remain resistant. Despite enduring great hardships, the people of Iran have resorted to any means within their reach to find relief from their challenging circumstances.