Iran Is On The Brink? Sanctions Strain Economy, Military Threats Loom, Power Battle Rages | World News
As reimposed UN sanctions hit Iran’s economy hard, leaders strike a defiant stance, citizens feel the economic pinch and rival political factions continue to vie for power. UN sanctions were reimposed on Iran this month through the withdrawal mechanism of the 2015 nuclear deal. European powers led by France, Germany and the United Kingdom have pushed for sanctions after negotiations with Tehran failed. Iran has rejected any compromise and described Western demands as a form of capitulation.
Inflation in the country has risen above 40 percent and the economy is struggling with the weight of sanctions. Public disillusionment is growing and political infighting is escalating within the ruling establishment as the government seeks policies to stifle criticism.
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Supreme Leader Ayatollah Ali Khamenei took a stubborn stance. In a televised speech, he stated that Tehran “will not bow to the impositions” of Washington.
He criticized US President Donald Trump during his trip to the Middle East, accusing him of using “a bunch of empty words and buffoonery” to facilitate the Gaza ceasefire.
Iran’s top military commanders declared their readiness and claimed the country had overcome losses suffered during the 12-day war with Israel in June.
“Our next response will definitely be stronger than our response to the 12-day war,” Islamic Revolutionary Guard Corps (IRGC) chief Mohammed Pakpour said.
Authorities also promoted nationalist imagery across the country. Statues and banners depicting Iranian heroes and historical victories appeared in major cities. In Isfahan’s Shahinshahr, a giant statue of the legendary Persian hero Rustam, seen fighting a dragon on his horse, was unveiled.
In Tehran, moving trucks with giant screens depict the firing of Iranian missiles as well as the capture of Roman emperors by Persian rulers.
Economic Strain
Inflation continues to burden citizens and the rial (Iran’s currency) remains near record lows against the US dollar. Direct talks with Washington have been ruled out, and Iran continues to contest the imposition of sanctions, with China and Russia arguing that the original sanctions have expired under the terms of the 2015 nuclear deal.
Local restrictions, especially on internet access, still continue. Social media and messaging services were blocked.
President Masoud Pezeshkian cited the war with Israel as the reason for the delays in lifting these restrictions. No timeline is provided for when these controls might be eased.
The ongoing energy crisis has increased the pressure on citizens. Authorities continue to subsidize fuel to prevent unrest, and officials have denied plans to raise oil prices despite persistent rumors.
The government recently approved a bill joining the UN Convention on the Suppression of the Financing of Terrorism. Conservatives opposed the law, while supporters warned that Iran would face further international financial isolation if it did not comply with global anti-money laundering and terrorist financing standards.
Group Rivalries
In the midst of these crises, high-profile Iranians have attracted public attention and media attention. Ali Shamkhani, an advisor to Supreme Leader Khamenei and former head of Iran’s Supreme National Security Council, survived an Israeli attack during the June war and continues to run a U.S.-sanctioned maritime empire.
Former President Hassan Rouhani was subject to criticism due to the collapse of the nuclear deal in 2015 and the country’s current financial problems.
The leak of a video showing Shamkhani’s daughter without a headscarf at her wedding sparked controversy. While foreign media highlighted the hypocrisy among officials, local media accused foreign actors of trying to create conflict.
Rouhani has come under scrutiny for allegedly mismanaging the PS752 incident, draining the government’s gold reserves and creating a budget deficit.
UK courts recently upheld the seizure of the National Iranian Oil Company’s headquarters in London, worth more than $130 million, following a failed gas deal with the UAE in 2001. Both sides continue to blame each other for the developments.
Despite government media bans, Rouhani has published online messages suggesting that any law opposed by 90 percent of society is “meaningless,” possibly referring to hijab rules.
Former Revolutionary Guard chief and senior military advisor to the Supreme Leader, Major General Yahya Rahim Safavi, recently made statements about martyrdom, stating that he would rather die at the hands of the United States or Israel than die in a bed or swimming pool.
His comments sparked outrage from the family of former President Akbar Hashemi Rafsanjani, who was killed in the 2017 swimming pool incident that reshaped Iran’s political balance.
