US sanctions deepen Iran's soaring inflation and fuel shortages

Iran's economy is spiraling under a fresh wave of U.S. sanctions called Operation Economic Outcast, compounding an already dire situation marked by hyperinflation and a plunging rial that reached roughly 2 million per dollar in late August. Prices for essentials—vegetable oil, eggs, chicken, and red meat—have surged by hundreds of percent, forcing families to cut back on meat, repair clothing and defer medical care. Fuel supplies have become scarce, with long lines in Tehran and Mashhad after several large stations closed, a situation officials attribute to panic buying and recent bomb strikes on oil depots.

Internal debates over raising oil prices risk igniting protests similar to those triggered by a 50% hike in 2019, while accusations of fuel smuggling implicate political factions. The government has also moved to classify poverty statistics as secret, framing the economic hardship as part of a broader war against America, with paramilitary and security leaders urging citizens to reduce consumption and produce goods domestically.