The Wall Street Journal reports that Iran’s economy is in a death spiral. They say that more than 1 million people are out of work because of the war. Food prices are soaring, and a prolonged Internet shutdown has destroyed online businesses.
The talks between the US and Iran are going nowhere. Iran makes deals and then doesn’t follow through. They are a waste of time.
Iran is trying to counter by raising wages, subsidizing basic goods, and handing cash to the poor. However, this is a level of hardship they’ve not seen in decades. Their spending spree has made inflation worse, the WSJ suggests.
According to The Wall Street Journal, the inflation rate in Iran has reached 67% through mid-April. Red meat has gone up around $3.60 a pound, beyond the reach of most people in the country, where the minimum wage is around $130 a month. Iran’s economic meltdown began before the war, crippled by US and international sanctions. The bombing campaign by the US and Israel caused extensive damage to roads, ports, and residential buildings. It hit vital industries, including steelmaking and petrochemical factories, according to the Wall Street Journal. Before the blockade, most of Iran’s exports moved through the Strait of Hormuz.
Now Iran is struggling to ship the commodities that generate most of their revenue. Iran wants to push for a quick reopening of the Strait. However, they won’t discuss the nuclear program.
Iran is trying to bypass the US blockade by using alternative trade routes. They are using rail and road connections. Pakistan announced six corridors, both ports and land borders, through which Iranian goods can transit. It isn’t adequate to the task.
Soon, they will have to cap their wells.
National Pride?
The leadership has asked the people to reduce water consumption and take pride in their government. However, they probably don’t have that kind of popular support. The recent massive popular uprising was supported by the merchants due to the economics that were already in trouble. The IRGC and Basij massacred thousands to contain the uprising. The rial hasn’t bottomed out yet, and it’s terrible now. Additionally, it seems obvious that Mojtaba Khamenei is dead, and without him, they can’t inspire millions in the populace.
The economic problem has become far worse with the closing of the Strait of Hormuz. Iran closed it to force the Americans’ hand. However, the president of the United States countered with his own blockade.
IFGC Commander Vahidi wants one thing only: to maintain the hardline regime. Nothing else matters.
Meanwhile, this professor says the U.S. only destroyed decoys. However, they lie all the time.
Tehran University Professor Mohammad Marandi:
U.S. Escalation Would Be Catastrophic for the World; Many of the Missile Launchers, Anti-Aircraft Systems, Helicopters, and Planes That Were Destroyed in the War Were in Fact Sophisticated Chinese-Made Decoys. pic.twitter.com/FbFNfJlmBm
— Open Source Intel (@Osint613) April 29, 2026