Iran finds itself at a critical juncture, grappling with the severe impact of reinstated UN sanctions that are squeezing its economy. Despite official pronouncements of defiance, citizens are enduring escalating inflation, which has surged past 40 percent, and the national currency, the rial, hovers near historic lows against the US dollar. This economic hardship fuels public frustration and exacerbates simmering political rivalries within the ruling establishment.
Supreme Leader Ayatollah Ali Khamenei has adopted an unyielding stance, publicly rejecting any ‘impositions’ from Washington. He has also criticized US President Donald Trump’s rhetoric. Iran’s military leadership has asserted its readiness, with top commanders claiming the nation has recovered from recent military losses and vowing stronger retaliation in future conflicts. To bolster national spirit, authorities are actively promoting nationalist imagery, featuring statues of legendary Persian heroes and depictions of military might in major cities.
The nation’s economic woes are compounded by ongoing disputes with China and Russia over the interpretation of previous sanctions. Internet restrictions remain stringent, with social media and messaging services blocked, a move attributed by President Masoud Pezeshkian to security concerns. The persistent energy crisis adds to the daily struggles of citizens, though officials deny plans to raise fuel prices. In an effort to avoid international financial isolation, Iran has ratified a bill joining the UN Convention for the Suppression of the Financing of Terrorism, despite opposition from hardliners.
Internal power struggles are also coming to the fore. Ali Shamkhani, an advisor to the Supreme Leader, continues to navigate his role despite sanctions on his business interests. Former President Hassan Rouhani faces criticism regarding the 2015 nuclear deal and current economic turmoil. A leaked video of Shamkhani’s daughter without a hijab has sparked controversy, with accusations of hypocrisy and foreign interference. Rouhani also faces scrutiny for past alleged mismanagement. Meanwhile, UK courts have upheld the seizure of Iran’s London oil headquarters, a consequence of a failed 2001 gas deal. Rouhani’s online messages hint at societal opposition to certain laws, possibly referring to hijab mandates. Military figures are also making strong statements, with one former IRGC chief expressing a preference for martyrdom over a quiet death, a comment that has drawn sharp reactions.