Iran's Economy on the Brink: Hyperinflation and Recession Loom

Iran's economy faces possible hyperinflation and recession due to renewed U.N. sanctions and economic mismanagement. The leadership is striving to maintain stability through a 'resistance economy' strategy, while diplomatic efforts continue. Sanctions disrupt banking and trade, exacerbating inflation and public distress, risking potential social unrest.

Iran's economic landscape is teetering on the edge of dual crises: hyperinflation and severe recession. This precarious situation follows the reimposition of U.N. sanctions after unsuccessful negotiations concerning Iran's nuclear activities. Both Iranian and international officials acknowledge that diplomacy may still offer a resolution.

Unnamed Iranian officials suggest that the U.S. and its allies, including Israel, aim to destabilize the Islamic Republic by intensifying sanctions. High-level talks in Tehran have focused on avoiding economic collapse and addressing public dissatisfaction. Deep economic inequalities and state corruption have stoked unrest among the Iranian populace.

Tehran is relying heavily on its 'resistance economy' tactic, fostering self-sufficiency and boosting trade with China and Russia. However, experts warn that these measures may not suffice to protect Iran's economy from further decline, as U.N. sanctions curb critical oil revenues and exacerbate financial vulnerabilities.

(With inputs from agencies.)