Iranian economy squeezed by US war, domestic woes

Iranian households are enduring a simultaneous set of pressures from long-standing economic fragility, sanctions, and the broader fallout of a war involving the United States and Israel. Pensioners report that even basic items like ice cream and yoghurt cost roughly $5, while a 40% pension increase does little to cover essentials. Rents are rising steeply despite government caps, with tenants often facing higher actual prices after disputes and negotiation costs, and a move to cheaper neighborhoods as next year’s costs loom. Across sectors, ordinary Iranians confront collapsing purchasing power, unaffordable food, medicine shortages, and disruptions to electricity, internet, banking, and infrastructure. The government’s limited and uneven support compounds hardship for many, as people struggle to maintain housing and daily necessities in a tightened economy. The accounts highlight a deteriorating quality of life for ordinary Iranians amid international tensions and domestic economic constraints.