Ongoing protests in Iran, which began on December 28, 2025, have drawn significant international attention. Triggered by the decline of the Iranian rial and soaring inflation, demonstrators have been rallying against rising living costs. President Donald Trump has voiced support for the protesters, suggesting military intervention while claiming to want to assist. However, his administration’s sanctions have been a pivotal factor in the economic crisis fueling these demonstrations.
Iran’s Economic Crisis: The Role of US Sanctions
Iran is one of the most heavily sanctioned nations globally. The history of US sanctions against Iran dates back to November 1979, following the hostage crisis when Iranian students stormed the US embassy in Tehran. These sanctions have intensified over the years, particularly under Trump’s administration.
Key Events in Sanction History
- 1979: Initial sanctions imposed post-hostage crisis.
- 1995: President Bill Clinton bans US investment in Iranian oil and gas sectors.
- 2015: Iran agrees to the Joint Comprehensive Plan of Action (JCPOA) to limit nuclear activities in exchange for sanctions relief.
- 2018: Trump withdraws from the JCPOA and reinstates previous economic sanctions.
- 2020: US assassinated Qassem Soleimani, escalating tensions further.
- 2025: UN sanctions reimposed due to Iran’s nuclear program concerns.
The Impact of Sanctions on Iran
The sanctions have had disastrous effects on Iran’s economy:
- GDP Decline: From over $8,000 in 2012 to around $5,000 by 2024.
- Oil Exports: Dropped from 2.2 million barrels per day in 2011 to over 400,000 by 2020.
- Rial Devaluation: The rial traded at over 1.4 million to the US dollar recently, compared to 700,000 in January 2025.
Overall, Iran has experienced hyperinflation, with food prices rising 72% compared to the previous year. The combination of sanctions and poor economic management has worsened living conditions for ordinary Iranians.
Consequences for Iranian Society
The sanctions have devastated the middle class. Research indicates that the middle class shrank significantly, with many falling into the ‘working poor’ category. The purchasing power of fixed-salary workers has sharply declined, contributing to widespread financial instability.
Health and Environmental Impact
Sanctions have also affected healthcare, leading to drug price increases of up to 300%. Environmental issues persist, as sanctions impede the implementation of cleaner fuel standards, worsening air quality in cities like Tehran. The reduction in access to essential goods and services has been directly associated with declines in life expectancy.
The Broader Implications
Experts claim that while sanctions are intended to pressure governments, they disproportionately harm civilians. Investigations reveal that since 1970, US and EU sanctions have attributed to the loss of 38 million lives worldwide. As the crisis deepens, it raises questions about the efficacy and morality of such strategies.
The situation in Iran illustrates the complex interplay between international politics and the lives of ordinary people, revealing the often unseen consequences of foreign policies. As events unfold, the global community continues to watch, hoping for a resolution that prioritizes humanitarian outcomes.
