Tehran : Iran is grappling with a severe economic downturn following the reimposition of United Nations sanctions which have intensified the risk of hyperinflation, recession and social unrest. The sanctions were reinstated after negotiations aimed at curbing Iran's nuclear and ballistic missile programs broke down, leading to a snapback of measures that had been eased under the 2015 nuclear agreement.

The United Nations Security Council’s decision to reinstate sanctions has further isolated Tehran, exacerbating existing economic vulnerabilities. Oil revenue, which constitutes roughly a quarter of Iran’s GDP, faces disruption as sanctions limit trade with China, Iran’s main oil buyer. At the same time, the Iranian rial has plummeted and inflation has surged above 40 percent, eroding purchasing power and heightening public frustration. Citizens report rising costs for basic goods and stagnant wages, sparking fears of renewed protests similar to those seen since 2017.

Despite government efforts to maintain stability through a resistance economy, focusing on self reliance and increased trade with China and Russia, analysts warn these measures may be insufficient to mitigate the economic fallout. The breakdown in nuclear and missile program negotiations triggered the sanctions snapback, leaving Tehran increasingly isolated.

Iran’s leadership now faces mounting challenges in managing the crisis with limited options to reverse the economic downturn. The outlook for recovery remains uncertain with the potential for further international isolation and heightened geopolitical tensions if the nuclear impasse persists.