Tehran | April 5, 2025 — As tensions soar in the Middle East, Iran’s hardline government is ramping up military spending at the cost of its crumbling economy. With inflation spiraling, the rial crashing, and unemployment reportedly crossing 70%, ordinary Iranians are bearing the brunt of the crisis. Experts say the situation has drastically worsened under new President Masoud Pezeshkian, with no relief in sight.
War Chest Full, But Wallets Empty
While the streets of Tehran struggle with joblessness and sky-high prices, Iran’s Islamic regime has opened its financial floodgates — but only for its military. The budget of the Islamic Revolutionary Guard Corps (IRGC) has reportedly been increased by 200% in the new fiscal year.
“The government is prioritizing war preparation over welfare,” says Mohammad Machine Chian, a senior researcher at the University of Pittsburgh. “This isn’t just mismanagement — it’s a tragedy.”
Currency Collapse, No Safety Net
The Iranian rial has lost over half its value, prompting international concern. Even U.S. Treasury Secretary Scott Besant warned that “if I were Iranian, I’d pull my money out of the rial immediately.”
Meanwhile, basic state functions like pension disbursement are faltering, and economic confidence is eroding fast.
Oil Money Can’t Save the System
Iran earned an estimated $54 billion from oil exports in 2024, but U.S. sanctions and export limits have severely destabilized this revenue stream. Economists warn that if oil exports grind to a halt, the government could run out of foreign reserves — leading to fuel and food price explosions.
“If petrol subsidies are removed, Iran could face a repeat of the deadly 2019 fuel protests,” warns Mehdi Godsi of the Vienna Institute for International Economic Studies.
“Worse Than the Iran-Iraq War”
Godsi added that Iran is facing its worst economic crisis since the 1979 Islamic Revolution, even worse than during the 8-year Iran-Iraq war. He claims the regime is stoking regional conflict as a distraction and survival tactic.
“This regime is clinging to power through militarization and fear, not reform,” said Godsi.
Iran’s Powder Keg Moment?
The economic time bomb is ticking. With soaring inflation, unpaid wages, and no public relief plans, analysts fear a new wave of nationwide protests may erupt — especially if basic goods like fuel become unaffordable.
In a country gripped by war paranoia, economic collapse, and public frustration, the pressure on Iran’s leadership is intensifying by the day.
