It is heartening to note that Iranian President Masoud Pezeshkian has asked security forces not to crack down on economic protests. In other words, he has drawn a distinction between peaceful demonstrators and rioters.
That Iran’s economic is more than dire is a fact that has found its best expression from the devastating slide of the Iranian currency. For example, Iran’s rial has fallen to a fresh record low on unofficial markets, with the US dollar quoted at about 1.47 million rials. The euro is said to be trading around 1.72 million rials and the pound at about 19.94 million rials.
The decline of the Iranian currency on a highly brisk pace triggered street protest last month. Since last month, situation has in fact deteriorated in a country that has been facing woeful water shortages due to severe drought. However, it is important to note that despite extensive and biting US sanctions, Iran’s oil revenues have remained stable, but there is a big contraction in the country’s economic growth. It has declined from around USD 600 billion in 2010 to an estimated USD 356 billion in 2025.
There exists a widely-held perception that the future of Iran’s economy is not known, which is quite accurate due to a variety of reasons, including growing geopolitical tensions. Therefore, no plausible scenario in this regard can be created. Be that as it may, the Iranian government, in my view, must take all the required steps aimed at addressing the hardships of the common man in particular without any further loss of time.
Shabbar Mehdi (Dubai, UAE)
Copyright Business Recorder, 2026
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