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On August 30, regime-affiliated economist Morteza Afqah warned via state-controlled media that the government’s plan to unify the exchange rate could have catastrophic consequences.
“Decision-makers are writing dreams, not policies,” Afqah said. “With foreign currency reserves at historic lows, pushing for a single exchange rate would drive 80% of Iranians below the poverty line.”
Afqah criticized policymakers for ignoring economic realities, arguing that these “paper reforms” would benefit elites while devastating lower- and middle-income groups. Analysts say the plan aims to shore up regime revenues while shifting the cost of crisis onto ordinary citizens, further fueling public anger in an already explosive environment.
Officials Fear Uprisings as the Economic Collapse Push #Iran on the Brinkhttps://t.co/sw8tYzKhuE
— NCRI-FAC (@iran_policy) June 9, 2025
Blackouts and Water Shortages Cripple Businesses
Reports reveal that rolling blackouts lasting six to ten hours and widespread water shortages are pushing businesses to the brink of bankruptcy.
- On August 25, merchants and residents in Babolsar staged their fourth protest in a week against persistent blackouts, water cuts, and internet disruptions, gathering outside the governor’s office.
- In Behbahan, truck drivers protested after cement factory shutdowns caused by power failures wiped out work opportunities.
- Farmers in Khuzestan Province blocked the Seydoun-Kohgiluyeh road on August 24, denouncing water diversion projects that threaten agriculture and livelihoods.
Meanwhile, food prices are soaring. Agriculture Minister Gholamreza Nouri Qazaljeh admitted that repeated power cuts forced poultry farmers to slaughter birds prematurely, driving chicken prices up more than 26% since the start of the year.
#Iran’s Currency Crisis: The Legacy of Four Decades of Multi-Rate Policieshttps://t.co/IQdGFZryQ3
— NCRI-FAC (@iran_policy) August 24, 2025
Factories Near Collapse
The Semnan Chamber of Commerce warned on August 20 that continued financial mismanagement risks triggering a “wave of mass layoffs.” Many factories are now operating at 30% capacity or less due to energy shortages and broken supply chains.
Although official figures claim the national unemployment rate is 7.3%, regime-controlled outlets admit that 40% of the unemployed are university graduates, exposing a worsening jobs crisis among Iran’s educated youth.
Economists also warn that government statistics are misleading since anyone working even one hour a week is counted as “employed.” Hidden unemployment, reduced hours, and low wages have left tens of thousands without sustainable income, deepening inequality and despair.
#Iran News: Shargh Daily Warns of Impending “Bread Uprising” Amidst Economic Collapsehttps://t.co/fxXKTuIfMC
— NCRI-FAC (@iran_policy) April 1, 2025
Regime Braces for Backlash
The cascading crises are fueling protests nationwide and raising fears inside the regime of another wave of uprisings.
Deputy Interior Minister Pourjamshidian recently admitted that authorities are preparing security forces for “difficult days ahead” by arming Basij checkpoints and deploying FARAJA police units across cities. He revealed that during the recent 12-day war, the regime implemented over 70 emergency security measures overnight, including evacuating Evin Prison amid fears of unrest.
These preparations show that even the regime recognizes the growing threat posed by economic collapse, resource shortages, and mounting social anger.
#Iran’s Economic Collapse and Social Unrest Looming in 2025https://t.co/zN1eMj0Spm
— NCRI-FAC (@iran_policy) March 18, 2025
A Society on the Edge
With 80% of the population at risk of poverty, infrastructure breakdowns, soaring food prices, and youth unemployment surging, Iran faces one of its deepest crises in decades. While the regime continues spending on foreign interventions and domestic repression, millions of Iranians struggle to secure water, electricity, food, and jobs.
Analysts warn that public frustration is reaching a breaking point — and the clerical dictatorship may soon find itself unable to contain the storm it has created.