Reinstated UN sanctions have hit Iran’s economy hard, while leaders maintain a posture of defiance, citizens feel the economic pinch and rival political factions continue to jostle for power.
Reinstated UN sanctions have hit Iran’s economy hard, while leaders maintain a posture of defiance, citizens feel the economic pinch and rival political factions continue to jostle for power. UN sanctions were reimposed on Iran this month through the 2015 nuclear deal snapback mechanism.
Led by France, Germany and the United Kingdom, European powers pushed for the sanctions after negotiations with Tehran failed. Iran has rejected any compromise and described Western demands as a form of capitulation.Inflation in the country has risen above 40 percent, and the economy is struggling under the weight of the sanctions. Public frustration is growing, and the government is seeking policies to quell criticism, while political infighting simmers within the ruling establishment.Defiance On DisplaySupreme Leader Ayatollah Ali Khamenei has maintained an unyielding stance. In a televised speech, he stated that Tehran will not “submit to impositions” by Washington.He criticised US President Donald Trump, accusing him of using “a handful of empty words and buffoonery” during his Middle East trip to facilitate the Gaza ceasefire.Iran’s top military commanders have asserted their readiness and claim that the country has recovered from the losses sustained during the 12-day war with Israel in June.Mohammad Pakpour, chief of the Islamic Revolutionary Guard Corps , said, “Our next response will certainly be stronger than the response to the 12-day war.”Authorities have also promoted nationalist imagery throughout the country. Statues and banners depicting Iranian heroes and historical victories have appeared across major cities. In Isfahan’s Shahinshahr, a giant statue of Rostam, a legendary Persian hero, was unveiled, showing him atop his horse fighting a dragon.In Tehran, moving trucks with giant screens depict Roman emperors being captured by Persian rulers along with imagery of Iranian missiles being fired.Economic StrainInflation continues to burden citizens, and the rial remains close to record lows against the US dollar. Direct talks with Washington have been rejected, and Iran continues to dispute the enforcement of sanctions with China and Russia, which argue that the original sanctions have expired under the terms of the 2015 nuclear agreement.Local restrictions, particularly on internet access, remain in place. Social media and messaging services are blocked.President Masoud Pezeshkian has cited the war with Israel as the reason for delays in lifting these restrictions. No timeline has been provided for when these controls may be eased.The ongoing energy crisis has added further pressure on citizens. Authorities continue to subsidise fuel to prevent unrest, and officials have denied plans to raise petroleum prices despite persistent rumors.The government recently ratified a bill joining the UN Convention for the Suppression of the Financing of Terrorism. Hardliners opposed the legislation, while proponents warned that Iran would face further international financial isolation if it did not comply with global anti-money laundering and anti-terror financing standards.Factional RivalriesHigh-profile Iranian people have dominated public attention and media coverage amid these crises. Ali Shamkhani, adviser to Supreme Leader Khamenei and former head of Iran’s Supreme National Security Council, survived an Israeli attack during the June war and continues to run a US-sanctioned shipping empire.Former President Hassan Rouhani has faced criticism over the collapse of the 2015 nuclear deal and the country’s current financial troubles.A leaked video showing Shamkhani’s daughter without a hijab at her wedding has sparked controversy. Foreign media highlighted hypocrisy among officials, while local outlets accused foreign actors of attempting to sow discord.Rouhani has faced scrutiny for alleged mismanagement of the PS752 incident, emptying government gold reserves and and creating budget gaps.UK courts recently upheld the seizure of the National Iranian Oil Company’s London headquarters, valued at over $130 million, following a failed gas deal with the UAE in 2001. Both sides continue to blame each other for the fallout.Despite state media bans, Rouhani has posted online messages, suggesting that any law opposed by 90 percent of society is “pointless”, likely referencing the hijab rules.Major-General Yahya Rahim Safavi, former IRGC chief and top military adviser to the Supreme Leader, recently made remarks about martyrdom, stating that he would prefer to die at the hands of the United States or Israel rather than in a bed or a swimming pool.His comments have drawn outrage from the family of late former President Akbar Hashemi Rafsanjani, who died in a 2017 swimming pool incident that reshaped Iran’s political balance.
Iranian Economy Crisis IRGC Military Threats Khamenei Defiance Rouhani Criticism Tehran Political Struggle Middle East Tensions UN Nuclear Sanctions Iran Inflation 2025 Iran Political Factions Iran Military Readiness Iran Sanctions Middle East Conflict IRGC Iranian Politics Economic Crisis Iran Khamenei Rouhani Tehran Unrest Military Threats Political Rivalries Iran Iran Economy Iran Military Iran Protest
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