Iran emerges from war with its economy in free fall and inflation on some food items above 400%. If the regime doesn’t fix it, ‘there will be trouble’

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. Iran’s 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. But the war has only made conditions worse. Unemployment and prices have soared, including for basic food items. The Iranian government’s 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%. “We have all become poor,” a resident of Tehran told Radio Free Europe’s Radio Farda earlier this month. “Those of us who were once middle class, or a little above it, are now financially destitute.” He added that he has sold his furniture, appliances, carpets and other household items to survive. On top of that, he’s unemployed and has resorted to making sandwiches to sell on the subway. Meanwhile, his phone bill and electricity bill have jumped fivefold. Iran has estimated that the war inflicted $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. 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. 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’ worth of imports at prewar levels. Iran-based economist Javad Rahimpour told Radio Farda that people are draining their savings and economic discontent is very high. “The conditions for protests may not currently exist,” he added. “