{"id":433266,"date":"2026-02-19T01:38:10","date_gmt":"2026-02-19T01:38:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/433266\/"},"modified":"2026-02-19T01:38:10","modified_gmt":"2026-02-19T01:38:10","slug":"money-is-leaving-iran-faster-as-oil-income-falls-and-uncertainty-mounts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/433266\/","title":{"rendered":"Money is leaving Iran faster as oil income falls and uncertainty mounts"},"content":{"rendered":"<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">To understand what could follow the Islamic Republic, it helps to start with where Iran stands now. As of February 2026, with the Islamic Republic still in power, tens of thousands of Iranians have been killed.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Inflation has surged: year-on-year inflation hit 60% in January, with annual inflation hovering at 45%. By comparison, Iraq\u2019s inflation rate in 2002 \u2013 before Saddam Hussein was toppled \u2013 was around 19%, although Iraq had already lived through a severe five-year crisis from 1991 to 1995.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Years of politically mandated lending and the rapid expansion of private banks have pushed Iran into an acute banking crisis. Bank Ayandeh has collapsed, and by the Central Bank\u2019s own criteria only nine banks in the country are not considered insolvent. The strain has now reached Bank Sepah, which pays the salaries of Iran\u2019s military \u2013 an institution that itself was once created through mergers of military-linked banks to avert systemic failure.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Civilian deaths in the US-led invasion of Iraq to remove Saddam are widely estimated at roughly 7,000. In Iran, by contrast, at least 36,500 citizens were killed over two days and a matter of hours in what was described as a massacre \u2013 without any foreign military intervention \u2013 exceeding the toll of some of the largest wars and crackdowns in modern history over a comparable timeframe.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">The economic disruption is already visible in daily life. In 2024, the state\u2019s inability to supply gas in winter and electricity in summer meant at least one province was effectively shut for 72 of 291 working days. A survey by Iran\u2019s Chamber of Commerce of more than 3,000 businesses found firms were operating at just 39% of capacity in autumn 2025.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Taken together, the figures suggest that even before the national uprising began in January 2026, Iran was already exhibiting the hallmarks of a country battered by war.<\/p>\n<p><img alt=\"36,500 deaths in context: How Iran\u2019s toll compares with wars and crackdowns\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"EditorialContentCard-module-scss-module__t6bfYa__image\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/02\/bec617ad75902d42d26ba540f9421ba7ecad6054-1280x751.jpg\"\/><a class=\"EditorialContentCard-module-scss-module__t6bfYa__link\" href=\"https:\/\/www.iranintl.com\/en\/202601277218\" rel=\"nofollow noopener\" target=\"_blank\">36,500 deaths in context: How Iran\u2019s toll compares with wars and crackdowns<\/a><img alt=\"Iran crossed point of no return as protests collide with economic exhaustion\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"EditorialContentCard-module-scss-module__t6bfYa__image\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/02\/6c956dccc47625256aed5fa9d7824a74e8d59540-5328x3552.jpg\"\/><a class=\"EditorialContentCard-module-scss-module__t6bfYa__link\" href=\"https:\/\/www.iranintl.com\/en\/202601265537\" rel=\"nofollow noopener\" target=\"_blank\">Iran crossed point of no return as protests collide with economic exhaustion<\/a><\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Pessimistic scenarios<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Since the mid-2010s \u2013 especially after the civil wars in Syria and Lebanon \u2013 much of the media conversation about a post-Islamic Republic Iran has centered on worst-case outcomes. Those arguments have resurfaced again in recent months. The main scenarios typically cited are:<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">War and foreign intervention: In a central power vacuum, neighboring states could intervene directly or back separatist groups. Yet after the fall of Iraq\u2019s Baathist regime and the Taliban in Afghanistan, regime collapse did not automatically trigger large-scale foreign invasions.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">The challenge of post-collapse security, the argument goes, is likely to be as much political as military.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">The Iran Prosperity Project, launched in 2025 as a transition-era economic and governance blueprint supported by exiled Prince Reza Pahlavi, sets out an \u201cemergency phase\u201d handbook that urges early outreach to neighbors \u2013 particularly Pakistan, Saudi Arabia and Turkey \u2013 as a way to contain spillover risks and reduce the chances of destabilization after a collapse.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Fragmentation and civil war: Another fear is a spiral into armed conflict \u2013 either from forces loyal to the Islamic Republic resisting change, or from ideological and ethnic fighting on the model of Syria, Libya or Yemen \u2013 creating space for extremist groups such as ISIS and driving insecurity along Iran\u2019s borders. Supporters of this view point to the danger of militia-style violence and state breakdown.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">At the same time, the reported entry of at least 5,000 Iraqi mercenaries during the January crackdown could be read as a sign of uncertainty about the reliability of domestic forces.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">And during the January uprising, the same pro-monarchy slogans were heard from Kurdish-majority Kermanshah to Turkish-dominant Tabriz and Baluch-majority Zahedan \u2013 alongside Tehran and Fars \u2013 without clear evidence of widespread ethnic or sectarian fracture, even as the risk is still seen as latent.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">A rebranded Revolutionary Guard dictatorship: In this scenario, the Islamic Revolutionary Guard Corps (IRGC) fills the vacuum, consolidating power with a less overtly religious posture. <\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">But the IRGC\u2019s reach is already a central driver of international pressure on the current system, making it unlikely \u2013 under this reading \u2013 that foreign powers would accept its continued dominance after a collapse.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">A drawn-out transition: A slower-motion breakdown is another widely cited possibility: deepening economic isolation, accelerating brain drain, sharp declines in production, rolling protests and a society worn down by exhaustion and uncertainty.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Disillusionment with transitional justice and a revival of the Islamic Republic: A further risk is political backlash if accountability is perceived as weak. Public anger over mass killings and systemic corruption could turn against a transitional administration if leading perpetrators are not quickly brought to justice and if assets transferred abroad \u2013 an outflow US Treasury Secretary Scott Bessent pointed to in January \u2013 cannot be traced and seized. In that climate, loyalist networks could regroup, backed by money moved offshore.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Planning for transition<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">By most economic and statistical measures, Iran under the Islamic Republic already bears the hallmarks of a war-damaged state. The January killings were unprecedented in scale over such a short period.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">In recent years, the Iran Prosperity Project \u2013 backed by Prince Reza Pahlavi and affiliated with advocacy organization the National Union for Democracy in Iran \u2013 has developed an extensive policy framework for a post-Islamic Republic transition.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">A series of white papers published on the project\u2019s website address governance, energy, foreign policy, healthcare, industry and macroeconomic stabilization.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">From these documents, the authors compiled an \u201cEmergency Period Handbook\u201d outlining how to manage the interval between regime collapse and the installation of a new government.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">The latest version, released in summer 2025, spans 15 chapters and focuses on the first 100 to 180 days after the fall of the Islamic Republic.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Supporters describe it as the only fully structured opposition blueprint for the immediate post-collapse period, drafted by a 26-member team of specialists with input from additional unnamed advisers inside and outside Iran, whose identities are withheld for security reasons.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">The plan assumes the absence of civil war and broad public backing for Prince Pahlavi during the transition.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Preventing famine and securing essential goods<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">One of the first challenges in any transition would be stabilizing supply chains.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Mohammadreza Jahanparvar, an economist involved in the project, told Iran International that financing essential imports would not be the primary obstacle.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">\u201cFunding essential goods is not particularly difficult,\u201d he said. \u201cThe greater challenge is restoring communication and negotiation with suppliers. Iran has never been sanctioned on food.\u201d<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">According to Jahanparvar, supplier countries have been identified and preliminary discussions held to allow imports to resume immediately after regime collapse.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Security, however, poses a parallel challenge. Control over ports, customs terminals and transportation corridors would be critical to prevent disruption. The handbook\u2019s section on \u201cMaintaining Core Functions\u201d prioritizes the rapid restoration and protection of vital systems, including food production and healthcare, from day one through the first three months.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Maintaining uninterrupted flows of energy and water is another pillar. In its \u201cSeize and Stabilize\u201d section, the plan calls for securing key infrastructure \u2013 energy facilities, oil and gas installations, water systems and power plants \u2013 using vetted army units to deter sabotage. The criteria for vetting are not publicly detailed, likely for security reasons.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">A related initiative, known as \u201cNational Cooperation,\u201d was launched in July 2025. It invited civil servants, security personnel and members of the armed forces to signal their willingness to cooperate in a future transition by scanning a QR code broadcast during a live Iran International program. In August, Prince Pahlavi said 50,000 individuals had responded. Iran\u2019s armed forces are estimated to number roughly 640,000.<\/p>\n<p><img alt=\"Iran International message tool beams comfort to loved ones past net blackout\" loading=\"lazy\" decoding=\"async\" data-nimg=\"fill\" class=\"EditorialContentCard-module-scss-module__t6bfYa__image\" style=\"position:absolute;height:100%;width:100%;left:0;top:0;right:0;bottom:0;color:transparent\" src=\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/02\/18c24c394dfd535d239a5a3b476196477cbe1410-1200x800.jpg\"\/><a class=\"EditorialContentCard-module-scss-module__t6bfYa__link\" href=\"https:\/\/www.iranintl.com\/en\/202601199945\" rel=\"nofollow noopener\" target=\"_blank\">Iran International message tool beams comfort to loved ones past net blackout<\/a><\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Financing the transition<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Tehran\u2019s draft budget for the next Iranian year (starting on March 21) projects total expenditures of 401,740 billion tomans (or 4,017.4 trillion rials) approximately $25 billion at an exchange rate of 1,620,000 rials to the dollar \u2013 equivalent to about $2 billion per month simply to sustain current operations.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Sanctions have frozen substantial Iranian assets abroad while also limiting the country\u2019s external borrowing.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Jahanparvar estimates that between $100 billion and $200 billion in Iranian assets could potentially be recovered.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">By comparison, oil export revenue in 2025 was estimated at between $30 billion and $60 billion, meaning recoverable assets could equal two to seven years of oil income.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Sanctions nonetheless pose a practical hurdle. Even if assets exist overseas, access would not be automatic during a transition. Jahanparvar argues that the US president could grant temporary three-month waivers, with comparable measures potentially adopted by European governments.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">\u201cBased on precedents in other sanctioned countries,\u201d he said, \u201cshort-term exemptions pending formal legal review are both feasible and common.\u201d<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Other stopgap measures could include securing a modest loan from the United States \u2013 not primarily for its size, but for the signal it would send to global financial markets. Even if frozen assets remain temporarily inaccessible, they could serve as collateral to unlock short-term international financing.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">\u201cIran has not drawn on its IMF quota since the 1960s,\u201d Jahanparvar noted. \u201cWith the political constraints associated with the Islamic Republic removed, those channels could reopen.\u201d<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Pessimism or optimism?<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">All of these measures relate to the emergency phase immediately following a collapse.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">If the more dire scenarios fail to materialize, the subsequent stabilization phase could see the return of thousands of Iranian entrepreneurs and professionals. With at least nine million Iranians living abroad, the diaspora represents a significant pool of capital, expertise and investment potential. During the national uprising, many demonstrated continued ties to their homeland.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">The future remains uncertain and dependent on both internal dynamics and external actors. Yet one variable, proponents argue, lies largely in the hands of Iranians themselves: national cohesion.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Until 24 hours before the January 8-9 uprising, some questioned whether Prince Pahlavi commanded broad public backing. Then the largest street protests in the Islamic Republic\u2019s history erupted.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">For years, the Islamic Republic has invoked worst-case scenarios \u2013 \u201cSyrianization,\u201d lack of alternatives, war and insecurity \u2013 to discourage defections and blunt support for change.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Yet Iran\u2019s economic indicators already resemble those of a country at war, and the two-day massacre exceeded even the Islamic Republic\u2019s own official tally of 276 civilian deaths from Israel\u2019s 12-day full-scale attack.<\/p>\n<p class=\"CustomPortableTextComponents-module-scss-module__MwAzyW__paragraph\">Iranian society and political actors may need to prepare for pessimistic outcomes. But at pivotal moments, the country\u2019s recent history suggests, the public has shown an ability to defy the expectations of analysts.<\/p>\n","protected":false},"excerpt":{"rendered":"To understand what could follow the Islamic Republic, it helps to start with where Iran stands now. As&hellip;\n","protected":false},"author":2,"featured_media":433267,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,585,119479,119476,119474,33472,119477,5452,119475,119473,119478,632,56,54,55,49792],"class_list":{"0":"post-433266","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-iran","11":"tag-iran-and-china","12":"tag-iran-covid","13":"tag-iran-economy","14":"tag-iran-government","15":"tag-iran-media-iran-and-the-united-states","16":"tag-iran-news","17":"tag-iran-nuclear","18":"tag-iran-politics","19":"tag-iran-us","20":"tag-middle-east","21":"tag-uk","22":"tag-united-kingdom","23":"tag-unitedkingdom","24":"tag-us-sanctions"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/433266","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=433266"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/433266\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/433267"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=433266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=433266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=433266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}