US-Iran conflict deepens Iranian economic crisis and fuels price hikes

Millions of Iranians are facing severe financial hardship as the conflict with the United States has crippled the nation’s economy and driven consumer prices to record highs. Government statistics released this week show inflation accelerating to over 55 percent year‑on‑year, while the national currency has lost more than 70 percent of its value against the dollar since the hostilities began. The sharp rise in the cost of basic goods, including food, fuel and medicine, has pushed a growing segment of the population below the poverty line, according to the Ministry of Labor’s latest social welfare report.

Economic analysts attribute the downturn to a combination of disrupted trade routes, intensified sanctions and the suspension of foreign investment, all of which have reduced export revenues and limited access to foreign currency. In response, the Iranian government has announced a series of subsidy adjustments and a temporary price‑control scheme aimed at stabilising essential commodities, while urging international mediators to seek a diplomatic resolution to the conflict. The measures are expected to provide limited relief, as experts caution that sustained recovery will depend on a de‑escalation of hostilities and the restoration of normal trade relations.