Iran Fears Mass Protests Due to U.S. Economic Pressure, According to Reuters
Iranian authorities fear that increased economic pressure from the U.S. could further worsen the situation for the population and trigger a new wave of mass protests.
On August 14, U.S. President Donald Trump announced his intention to deal Iran a severe economic blow.
The day before, U.S. Treasury Secretary Scott Bessent said that Washington could impose measures against Tehran as early as this week that have “never been seen before.”
At the same time, the U.S. has not yet disclosed exactly what restrictions are being considered.
Iran entered the conflict with the U.S. already facing significant economic challenges—high inflation, a weakened national currency, energy shortages, and long-standing sanctions. The war has dealt a further blow to the country’s economy due to damage to infrastructure, disruptions to trade, reduced production, and significant reconstruction costs.
According to data from the Iranian Statistical Center cited by Reuters, annual inflation in the country stood at 66% in July.
Consumer prices were 87.9% higher than a year earlier, and food inflation reached 128%.
The minimum wage was raised by approximately 60% this year; however, due to the decline in the value of the Iranian rial, its dollar equivalent has fallen from about $105 to $86 since the end of March.
According to sources speaking to Reuters, the greatest risk for the Iranian leadership is not the further deterioration of the economic situation itself, but the possibility of a new outbreak of protests.
A former official cited the appointment of Hossein Taeb as head of the paramilitary “Basij” force as one sign of the Iranian leadership’s concern. Taeb had previously been involved in suppressing protests in the country.
The situation is further complicated by the U.S. naval blockade. Iran is attempting to transport essential goods via land routes and across the Caspian Sea, but damage to bridges caused by airstrikes is increasing both the cost and duration of transport.
The fuel situation remains particularly acute. Gasoline imports have effectively ceased due to the blockade. According to Reuters, Iran produces about 130 million liters of gasoline per day, while domestic consumption stands at approximately 137 million liters.
Thus, a further tightening of U.S. sanctions and restrictions could pose not only an economic threat but also a serious domestic political threat to the Iranian government, fueling public discontent and increasing the risk of new mass protests.
Reuters reports this, citing three Iranian officials and sources in political circles.
Iran has given the U.S. several weeks to comply with the terms of the previous agreement, threatening a military response should diplomatic negotiations fail.
Hardline Iranian leaders may have developed a plan to prepare for a new phase of the war. According to The Wall Street Journal, Tehran is tightening control over the military, increasing the production of missiles and drones, and attempting to expand the zone of conflict.
The heavy losses of Reaper drones in the war with Iran highlight one of the main challenges of modern warfare: even an expensive, high-tech drone can quickly become vulnerable when operating against an enemy with a powerful air defense system. The Washington Post reports on this.
The U.S. has sufficient military resources to maintain a naval blockade of Iran indefinitely. U.S. Defense Secretary Pete Hagseth stated that American ships can continuously rotate in the region, so Washington is capable of maintaining pressure on Tehran for as long as necessary.
