Iran’s Economic Unraveling: A Tale of Political Choices Over Sanctions

Despite a narrative of blaming sanctions, the root of Iran's economic turmoil lies in its political decisions and structural decay.

Iran’s Economic Unraveling: A Tale of Political Choices Over Sanctions

The economic woes plaguing Iran today are not mere consequences of international sanctions. Instead, they are deeply woven into the political fabric that governs the country. Former official Masoud Roghani Zanjani reveals that the real problem is the dominance of the regime’s political ambitions over sound economic management.

Inflation Spirals Out of Control

Iran’s inflation is not the result of external pressures but of unchecked political choices. The regime’s excessive liquidity growth, driven by reckless borrowing and money printing, has destabilized the economy. Daily essentials like food and rent are spiraling beyond affordable reach for many families. Temporary stopgaps such as food coupons are proving futile in addressing this chaos.

Entrenched Corruption and Institutional Dysfunction

A network of corrupt institutions continues to siphon resources away, eroding any potential for substantial reform. Financial missteps, such as the forced sale of bonds to state banks, have further depleted the economy’s strength. Previous campaigns against so-called “economic criminals” have done little to instill public confidence—wealth disparity persists as a stark reminder of systemic corruption.

Sanctions: Symptom, Not Cause

The Iranian regime’s activities have triggered international sanctions, yet these are merely symptoms of deeper governance issues. According to National Council of Resistance of Iran - NCRI, the genuine crisis arises from the mullahs’ repeated defiance of global norms and their pursuit of costly regional influence.

The Rial’s Decline and Societal Unrest

Considered one of the worst-hit currencies globally, the rial has reached a point where public trust in any form of governmental stability is nonexistent. With the unemployment rate soaring and confidence diminishing, the Iranian populace finds itself at a cliff’s edge, teetering on social and psychological despair.

A Change in Leadership as a Way Out?

The prevailing economic collapse is due not to a lack of resources, but a lack of political will. Decades of prioritizing authoritarian rule over the wellbeing of its citizens have left the regime weak and the economy frail. A change in leadership might be the only path to reviving Iran’s economy and restoring hope to its millions of citizens.

Iran stands at a political and economic crossroads. The question remains—will the regime adapt and thrive, or maintain its current path and face inevitable decay?