The regime in Tehran is still standing after the U.S.-Israeli war on Iran, but its economy is collapsing and could spark more unrest among the population.<\/p>\n
Iran\u2019s economy was already in shambles before the war began more than three months ago, with high inflation and a currency crash spurring mass protests in late December.<\/p>\n
But the war has only made conditions worse. Unemployment and prices have soared, including for basic food items. The Iranian government\u2019s own data showed that the price of cooking oil is up 430% compared to a year ago, with eggs up 345%, rice 287%, and milk 139%. <\/p>\n
\u201cWe have all become poor,\u201d a resident of Tehran told Radio Free Europe\u2019s Radio Farda<\/a> earlier this month. \u201cThose of us who were once middle class, or a little above it, are now financially destitute.\u201d<\/p>\n He added that he has sold his furniture, appliances, carpets and other household items to survive. On top of that, he\u2019s unemployed and has resorted to making sandwiches to sell on the subway. Meanwhile, his phone bill and electricity bill have jumped fivefold.<\/p>\n Iran has estimated that the war inflicted\u00a0$270 billion worth of damage, nearly equal to its GDP. The International Monetary Fund expects the economy to contract by 6.1% this year, and the United Nations warned 4.1 million more Iranians could drop below the international poverty line.<\/p>\n But the regime has also mismanaged the economy for decades and worsened its wartime crisis with policies like an internet blackout that put more people out of work.<\/p>\n In addition, the U.S. naval blockade cut off oil revenue for Iran, putting pressure on its foreign exchange reserves, which Capital Economics estimated in April were only enough for three months\u2019 worth of imports at prewar levels.<\/p>\n Iran-based economist Javad Rahimpour told Radio Farda that people are draining their savings and economic discontent is very high.<\/p>\n \u201cThe conditions for protests may not currently exist,\u201d he added. \u201cBut that should not lead us to think there is some kind of convergence between the state and the people.\u201d<\/p>\n However, an Iranian government employee who has attended pro-regime rallies expressed more impatience with the country\u2019s leadership.<\/p>\n