Iran's Economy Collapses Post-War

Iran's economy is on the brink of collapse following weeks of strikes by the United States and Israel, which have destroyed factories, power plants, railways, airports, and bridges. The critical trading relationship with Gulf states, especially the United Arab Emirates, has been severed, creating a trust gap that may last for decades. This economic devastation has led to widespread job losses, surging prices, and a growing risk of nationwide protests, similar to those in January that resulted in thousands of deaths. Experts like Ali Ansari and Umud Shokri highlight the dire situation, with estimates suggesting a 10% economic contraction for Iran this year. The Iranian government faces immense pressure to lift international sanctions and secure frozen funds to repair infrastructure and meet payroll obligations, as the current economic state poses a greater threat to the Islamic Republic than external military action.