Expansion of Informal Settlements and Poverty in Iran

Abdolreza Golpayegani, the Iranian regime’s Deputy Minister of Roads and Urban Development, described the issue of informal settlements as serious and reported that currently “around 6.5 to 7 percent of Iran’s population lives in the outskirts of cities.” In an interview with the state-run ILNA news agency, published on Sunday, February 23, Golpayegani described the situation in Razavi Khorasan Province (mainly Mashhad), Sistan and Baluchestan, Hormozgan (Bandar Abbas), Khuzestan, and Tehran as “more critical.”
Severe Housing Price Increases: Home Ownership, a Distant Dream for Many Iranians
He stated, “In some cities of Tehran Province, the figures and statistics for informal settlements are very high. We are witnessing informal settlements within Tehran itself, and this phenomenon has spread into the city’s urban boundaries. In areas such as Islam Abad Valley, Farahzad Valley, Oqaf neighborhood, Khak Sefid, southeast Tehran, and parts of District 19, informal settlements are expanding.” Experts and researchers have long attributed the expansion of informal settlements in Tehran and provincial capitals to the concentration of resources and business centers in these cities. However, according to the Deputy Minister of Roads, the primary cause of informal settlement expansion in Iran’s eastern provinces is drought—an issue the government has been unable to resolve in recent years, leading to its worsening. Golpayegani stated, “In the eastern provinces of the country, the common factor behind the expansion of informal settlements has been prolonged droughts, which have occurred over the past 30 to 40 years.” The regime’s Deputy Minister of Roads did not provide current statistics on informal settlements in different provinces. However, in 2022, the state-run ISNA news agency, citing the Statistical Center of Iran, reported that “more than one million people in the four cities of Zabol, Zahedan, Chabahar, and Iranshahr in Sistan and Baluchestan Province live in informal settlements.”
Housing Market Stagnation in Iran: Despite Rising Dollar Rates, “No Buyers for Housing”
Iran’s Welfare Organization had estimated the number of informal settlers in the country at 12 to 13 million in 2016 and approximately 19 million in 2018. Earlier, Iranian media had reported that housing construction in the capital had dropped “to its lowest level in 23 years.” In May 2024, Ahmadreza Sarhadi, a housing expert, warned in an interview with the state-affiliated Entekhab website about the phenomena of “shared housing” and “rooftop sleeping” in Tehran, stating that people’s incomes do not “match” housing rental prices. The rise in housing costs in Iran in recent years has led to the expansion of informal settlements and the emergence of phenomena such as “grave sleeping,” “rooftop sleeping,” and “shared housing.” He stated, “Some people cannot even afford to rent a house in the lower-income neighborhoods of Tehran. Renting a 50-square-meter house in Naziabad [located in southern Tehran] now requires a 1 billion rial (approximately $1065) deposit and a monthly rent of 100 million rials (approximately $107).” It is worth noting that the minimum wage for a worker with two children is 110 million rials (approximately $117).  

The Soaring Price of the Dollar Has Crushed Iranian Retirees

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As the value of Iran’s rial has dropped and the exchange rate of the dollar has raised sharply in recent months, retirees and wage earners are facing a severe decline in their purchasing power. A retirees’ rights activist states, “The first winner of the dollar’s price surge is the government.” According to the state-run ILNA news agency, Mohammadreza Ghorbani, a labor retirees’ union activist, explained the winners and losers of the currency surge, stating, “The higher the exchange rate goes, the government receives more foreign currency through legal exports or even by bypassing sanctions, and by converting it to rials, it compensates for its budget deficit.”
Endless Wave of Price Increases Continues in Iran
Ghorbani added, “After the government, quasi-private rent-seeking companies such as petrochemical firms, steel industries, and large mines benefit the most, as exports become easier for them, and their revenues multiply with the rising exchange rate.” Criticizing the widespread economic corruption in the Iranian regime’s system, he further stated, “Embezzlers and those who obtain massive loans from banks without proper regulations or guarantees are also among the winners.” Describing the struggles of workers in obtaining a 300 million rial loan (approximately 320 dollars), this retirees’ rights activist remarked that some influential and well-connected individuals secure billion-rial loans, use them to buy dollars and gold, and within a few months, amass astronomical wealth in this turbulent economy. This social security retirees’ union activist emphasized that the main losers of the dollar’s price hike are employed workers, retirees, teachers, nurses, and all government employees with fixed incomes. He warned, “The upper layers of wage earners, who once belonged to the middle class, have now fallen below the poverty line, while the lower classes are plunged into absolute destitution.” Ghorbani, referring to the dire situation of working-class families, said, “In the outskirts of Tehran, such as Abdolabad, I know workers who have been forced to pull their children out of school due to the sharp rise in living costs.” Describing how these children are now street vendors instead of students, he stated, “Street vending by the children of the working class in the southern parts of the city has become normal, which means education has become deeply class-based.” Ghorbani then pointed to the consequences of the dollar’s surge in the healthcare sector, adding, “The deregulation of drug prices and the rising exchange rate have made it impossible for workers and retirees to afford doctor visits or buy medicine.” This labor activist further noted, “Many have been forced to resort to self-treatment or forgo treatment altogether—which puts their lives at risk.” Iran’s economy has faced multiple challenges in recent months. With the continued rise in the dollar’s value and persistent inflation, retirees and workers are experiencing severe financial strain. While labor activists warn about the livelihood crisis of wage earners, economic policymakers continue to insist on policies that, according to Ghorbani, “only fill the pockets of embezzlers and profiteers.”  

Iran: Some Nurses Are Homeless and Sleep in Their Cars

Mohammad Sharifi-Moghaddam, the Secretary-General of Iran’s Home of Nurse, says that some nurses in Tehran are homeless and, to avoid paying rent, work multiple shifts and sleep in their personal cars during rest hours. On Saturday, February 22, Sharifi-Moghaddam told the state-run ILNA news agency that these nurses even use hospital showers for bathing and “live in a homeless manner.” Sharifi-Moghaddam stated that according to World Health Organization standards, there should be three nurses per 1,000 people to prevent increased patient mortality. However, he added that in recent years, Iran has set a record low, with only “one and a half nurses” per 1,000 people.
Nurse Shortage Leads to Closure of Hospital Departments in Iran
The Secretary-General of the Home of Nurse, pointing to the high rate of nurses leaving the profession or emigrating to work abroad, said that the nursing community has become “hopeless” about any improvements in their livelihoods, human resource management, and service tariff systems. Mohammad Sharifi-Moghaddam stated that the nursing profession in Iran has been in a tense situation for years and added that Milad Hospital in Tehran has been experiencing turmoil in recent weeks. According to human rights media outlets and some professional nurse news channels, nurses in several other cities in Iran have also staged protests in recent days. The Telegram channel of the Coordinating Council of Nurse Protests published images of demonstrations by the medical staff of Beheshti Hospital in Kashan on February 20. The channel reported that these nurses gathered to protest against “delayed payment of wages,” “low salary levels,” and “overtime payments and service tariff issues.” Meanwhile, on August 31, 2024, Masoud Pezeshkian, the President of the Iranian regime, announced that he had received permission from the regime’s Supreme Leader to withdraw funds from the National Development Fund to settle the healthcare workers’ debts. This decision came in response to widespread protests by nurses in various hospitals across Iran, which lasted for nearly two months.
Widespread nurses' protests in Iran
Widespread nurses’ protests in Iran
The nurses’ protests began on August 3 last summer with demonstrations and strikes by nurses in hospitals in Shiraz and later spread to other cities. Nurses protested both the neglect of their demands and the harsh working conditions, including “mandatory overtime with extremely low wages, exhausting work under insults and threats” in their workplaces. According to them, this situation has seen “no change” so far.  

Iranian Regime MP Warns About Intensified Medicine Shortages

In continuation of the medicine crisis in Iran, Mohammad Jamalian, a member of the Health and Treatment Commission in the Iranian regime’s Majlis (parliament), announced that in the “coming months,” medicine shortages will be seen with “greater intensity.” Jamalian issued this warning in an interview with the state-run ILNA news agency, which was published on Friday, February 21. Jamalian said, “The medicine production cycle has been disrupted, and even if the situation is corrected today, it will take four months to compensate for this deficiency. For this reason, unfortunately, in the coming months, we will see medicine shortages with greater intensity.”
Iran’s Health Minister Claims Drug Price Hikes Due to Currency Fluctuations
Speaking about the cause of the disruption in the medicine production cycle in the country, Jamalian said, “Social Security Insurance, due to not receiving its claims from the government, has been unable to pay the claims of pharmacies and private centers. Pharmacies have not paid pharmaceutical companies, and companies have also not paid importers.” This situation has arisen while medicine production in the country depends on importing raw materials from foreign countries. This MP, noting that currently “between 350 to 400 types” of medicine are in shortage, said: “Our concern is that in the coming months, we will again reach a stage where essential medicines and those whose consumption is a matter of life and death for patients will become scarce.” The warning from this Majlis member was published while some social media users wrote on Friday that soon insurance companies will stop covering medicine costs. In this regard, Jamalian confirmed that pharmacies are not accepting Social Security Insurance. As he stated, “Pharmacies have announced that from February 20, they will no longer accept Social Security Insurance booklets. In some provinces, this date has been set for February 22, and in others, March 5.” It was previously reported that while the price of some medicines has increased up to fourfold, insurance companies and the government are blaming each other and refusing to take responsibility for the issue. The warning about the worsening medicine shortage in the country was published less than ten days after a revelation that the Iranian Pharmacists Association had sent a letter to the regime’s Secretary of the Supreme National Security Council, warning about the medicine crisis caused by the failure of Social Security Organization and insurance companies to pay pharmacies’ claims. The letter emphasized that the Social Security Organization had only paid 8.8% of pharmacies’ claims, which is not sufficient to cover their operating costs. Mohammad Jamalian also had no good news regarding this matter: “When the Social Security Health Management was present in the commission two days ago, they announced that the Social Security account is empty.” In its letter, the Pharmacists Association requested the Supreme National Security Council to take urgent action to resolve this crisis to prevent disruptions in medicine supply for patients and to safeguard public health. A member of the board of directors of the Iranian Pharmacists Association stated on January 26 that the increase in the price of some medicines has caused “shock” among the people, and out of every ten people who enter pharmacies, three do not purchase any medicine.

USD Surpasses 940,000 Iranian Rials as Inflation Accelerates

The exchange rate of the U.S. dollar in Iran’s free market surged by more than 13,500 rials on Thursday, February 20, reaching 941,000 rials. Meanwhile, Iran’s Statistical Center reports that monthly inflation in February has broken a two-year record. The value of the U.S. dollar against the Iranian rial has increased by five percent over the past week, more than 15 percent in the past month, and nearly 70 percent in the past year. This trend, coupled with the expansion of liquidity, has led to rampant inflation in the country.
Iran: USD-rial Exchange Rate Increasing Hourly
The price of various gold coins also jumped between 1.5 percent and over three percent on Thursday compared to Wednesday. On the same day, Iran’s Statistical Center released a report indicating that the price of goods and services in February (corresponding to the Iranian month of Bahman) increased by 4.1 percent compared to January. This marks the highest monthly inflation rate in the past two years. However, inflation in food items has been significantly higher than other goods and services, reaching 6.7 percent. The year-on-year increase in the price of goods and services in February (point-to-point inflation) has been reported at over 35 percent, with food items experiencing a higher rate of inflation compared to other goods and services. However, field reports from Iranian media suggest that the actual inflation rate is significantly higher than the figures provided by the Statistical Center. For example, Iranian media have reported an 83 percent surge in the price of rice in February 2025 compared to September 2024. However, the Statistical Center claims that the highest monthly inflation rate was recorded in vegetables and legumes at approximately 17 percent, while other food items saw lower price increases. In recent years, Iran has faced rampant inflation, with household purchasing power shrinking each year. According to the International Monetary Fund (IMF), Iran is once again among the ten countries with the highest inflation rates in the world. Amid this crisis, Iran’s Statistical Center reports that 27 percent of Iranians live on a daily income of just two dollars, meaning that one-third of the population cannot afford basic living necessities. Additionally, the Global Hunger Index (GHI) indicates that 6.5 percent of Iran’s population suffers from malnutrition. Masoud Pezeshkian, the president of the Iranian regime, has failed to curb the rising exchange rate in the free market despite his promises. Moreover, the exchange rate in the NIMA system (the official foreign exchange market) has also soared, and from next year, the allocation of preferential foreign currency for essential goods will be discontinued.  

Grossi: The JCPOA Is an Empty Shell

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Statements by the Director-General of the International Atomic Energy Agency (IAEA) regarding the ineffectiveness of the Joint Comprehensive Plan of Action (JCPOA) in imposing restrictions on Iran’s nuclear program have prompted a reaction from the Iranian regime. On Thursday, February 20, the Atomic Energy Organization of Iran (AEOI) called Grossi’s remarks “biased,” while Kazem Gharibabadi, Deputy Legal and International Affairs Minister of the Iranian regime’s Foreign Ministry, described them as “political and unprofessional” in a post on X (formerly Twitter).
Grossi: Iran Seeking to ‘Sevenfold’ Its Production of 60% Enriched Uranium
On Thursday, during a press conference in Tokyo, Grossi stated that the JCPOA is obsolete in relation to Iran’s nuclear program and that seeking a new framework for an agreement with Iran is necessary. He went on to describe the JCPOA as an empty shell and said he does not believe anyone still thinks the agreement can play a role at this point. He added that while the agreement was in effect for some time, regardless of opinions on its benefits or drawbacks, it is now technically obsolete and no longer functional. Clarifying his remarks, the IAEA chief pointed out that the previous agreement contains outdated elements, such as specifications on the types of centrifuges used by Iran. However, he noted that in a meeting with Iranian regime Foreign Minister Abbas Araqchi, both sides agreed that the fundamental philosophy of the JCPOA—which is based on Iran refraining from certain activities in exchange for incentives—could still continue. In response to these statements, the AEOI said: “At a time when the U.S. and certain Western countries are seeking to exploit this agency for their unjust pressures against Iran, such political and unprofessional remarks could serve as a pretext for their illegitimate ambitions.” The statement further claims that Grossi has demanded Iran prove that it is not seeking nuclear weapons, adding, “Any rational mind knows that the most fundamental legal principle is the presumption of innocence.” These comments come while there is substantial evidence, including recent revelations by the National Council of Resistance of Iran (NCRI), that the Iranian regime is continuing to move closer to developing a nuclear bomb. The protests by this Iranian government body and Gharibabadi against Grossi’s remarks come despite the fact that the IAEA has for years been unable to persuade the Iranian regime to provide a logical explanation for the traces of uranium discovered at its undeclared sites. Furthermore, Tehran officials have yet to provide an explanation for enriching uranium to 60 percent purity—very close to weapons-grade levels required for a nuclear bomb—only stating that Iran has deviated from its nuclear commitments in response to the U.S. withdrawal from the JCPOA. On February 14, the IAEA director-general also warned that Iran intends to “increase sevenfold” its monthly production of 60 percent enriched uranium and cautioned that time is running out to reach an agreement to curb Iran’s nuclear program. He stated that Iran is in the process of increasing its monthly production of 60 percent enriched uranium by approximately seven times. He further noted that by the time the IAEA releases its next report in the coming weeks, Iran will likely have around 250 kilograms of uranium enriched up to 60 percent. Reuters reports that this amount of uranium stockpile, if further enriched to 90 percent, would be sufficient to produce six nuclear bombs.  

The Outflow of Capital from Iran Through Cryptocurrencies Increased By “70 Percent” In 2024

A recent report published by the American company Chainalysis reveals that 39 percent of “illegal cryptocurrency transactions” in 2024 were carried out by countries under U.S. sanctions, including Iran. The report states that entities and countries under U.S. sanctions traded $15.8 billion worth of cryptocurrency last year. Financial restrictions and geopolitical tensions have pushed countries like Iran and Russia toward digital assets as a means to circumvent sanctions. Chainalysis, a New York-based company specializing in Bitcoin tracking and blockchain analysis, highlighted in its recent report Iran’s growing reliance on cryptocurrencies and the outflow of capital from the country through domestic centralized exchanges. According to the report, capital outflows from Iran through cryptocurrencies reached $4.18 billion in 2024, marking a 70 percent increase compared to the previous year. Chainalysis attributes this rise not only to the Iranian government’s attempts to evade sanctions but also to Iranians’ growing preference for digital assets due to the sharp devaluation of the rial and soaring inflation in the country. Previous reports had also indicated that many Iranians, facing international sanctions and economic instability, have turned to cryptocurrencies to safeguard their wealth. Under these circumstances, Iran’s central bank blocked the payment gateways of all domestic cryptocurrency exchanges in November and December 2024. The central bank then imposed strict conditions on cryptocurrency trading platforms in Iran, stating that payment gateways would only be reopened if these regulations were met. Among the central bank’s requirements for granting operating licenses to cryptocurrency exchanges were the submission of detailed transaction records and all user order and trade data. However, the Chainalysis report indicates that despite the severe restrictions imposed on Iranian citizens’ use of cryptocurrencies, the Iranian government itself is increasingly leveraging this financial technology to bypass sanctions.  

A Lethal Iranian Regime Drone Displayed at Major Republican Event in the U.S.

At this year’s major Republican gathering in the U.S., on Thursday, February 20, an Iranian regime-manufactured drone was displayed as definitive evidence of its involvement in transnational wars. This drone, a Shahed-136 model produced by the Iranian regime, was recently transferred to the United States. The Shahed-136 drone is manufactured under the supervision of the Islamic Revolutionary Guard Corps (IRGC), which the U.S. has designated as a terrorist organization.
Ukraine shot down 9 Shahed drones made by Iran’s regime
This drone is one of many weapons supplied by the Iranian regime to Russia and has been used in attacks against Ukraine. The Shahed-136 drone was also used in a deadly attack by Iran-backed Shia militias on a U.S. base in Jordan called “Tower 22” in January 2024. That attack prompted a military response from the U.S. This drone was transferred to the U.S. with the cooperation of the organization “United Against Nuclear Iran” (UANI), led by Mark Wallace, a former U.S. ambassador to the United Nations. The U.S.-based non-governmental organization UANI has stated that the drone was moved from Ukraine to Poland and then to Washington. The drone will be displayed on Thursday at the “CPAC” summit, a major gathering for conservative policymakers in the U.S. Mr. Wallace himself will present the drone during the CPAC summit. This gathering will host top figures from the current U.S. government, including President Donald Trump, Vice President J.D. Vance, White House National Security Advisor Mike Waltz, senior senators, and other officials. The destructive power of the Shahed-136 is equivalent to more than 50 kilograms of TNT, and it has been used in various attacks. Each of these drones costs Iran’s regime approximately $80,000 to produce. A large number of these drones and similar weapons are continuously supplied by the Iranian regime to its allies. The Iranian regime’s support for Moscow, initially limited to drone sales, later expanded to include joint production within Russian territory. Despite repeated warnings from the international community regarding its support for Russia against Ukraine, the Iranian government has increased its military cooperation with Moscow through the sale of ballistic missiles.  

University Students in Iran Condemn Regime for Murder of Amir Mohammad Khaleqi

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In response to the killing of Amir Mohammad Khaleqi, a 19-year-old University of Tehran student, by Iranian regime security agents, students from two universities issued separate statements on Tuesday, February 18, criticizing the “lack of security” in society and the “incompetence and inefficiency” of the government. According to the Telegram channel Daneshjuyan-e Motahed (United Students), the student council of Beheshti University and a group of students from Allameh Tabataba’i University in Tehran emphasized the need to break the silence against “this injustice and oppression” and demanded an “immediate, thorough, and decisive” response from authorities to this “heartbreaking crime.” The student council of Beheshti University, in its statement, strongly condemned the murder of Amir Mohammad Khaleqi following a “brutal attack by armed thieves” and described it as “a clear indication of the deteriorating security situation around university campuses and the increasing threats to students’ lives.” At the same time, a group of students from Allameh Tabataba’i University held a gathering in memory of Amir Mohammad Khaleqi, attributing his murder to the consequences of “the dominance of a weak and ineffective political structure” and the result of the authorities’ neglect of the “lack of security” for students. In their statement, they did not limit the blame for Amir Mohammad Khaleqi’s murder to street criminals, emphasizing: “His killer is a system that has sacrificed security to its own incompetence  The protesters at Allameh Tabataba’i University added: “Law enforcement agencies, which are supposedly responsible for maintaining security, have long deviated from their primary function and have become tools for repressing society.” They emphasized: “We will not remain silent in the face of this injustice and oppression, nor will we allow this crime to be buried in silence. Our demand is an end to this vicious cycle and broken system. We refuse to continue paying the price for your incompetence.” Amir Mohammad Khaleqi, a 19-year-old undergraduate business management student at the University of Tehran, lost his life on the evening of Wednesday, February 12, after being stabbed by “muggers” near the university. On Tuesday, February 19, Tehran’s police claimed that five individuals had been arrested in connection with Amir Mohammad Khaleqi’s “murder.” Mohammad Shariari, the head of Tehran’s criminal prosecutor’s office, cited the “confessions” of the suspects and stated that their motive was “robbery.” The killing of Amir Mohammad Khaleqi has sparked widespread reactions in Iran, with student protests at the University of Tehran continuing over the past several days. In this context, the “No to Executions Tuesdays” campaign, consisting of prisoners protesting against executions in 36 prisons across the country, has called Amir Mohammad Khaleqi’s murder suspicious and held the government responsible for the incident. At a protest and march on Monday, February 18, students at the University of Tehran condemned the authorities’ disregard for student safety, the allocation of resources to suppress individual freedoms, and the enforcement of the government’s mandatory hijab policy on women. They chanted: “So many hijab enforcers, yet not a single guard for our safety.” The national student councils also issued a statement emphasizing: “The lives of students are not only not a priority for university officials, but they hold absolutely no significance in university policymaking.”

Poverty and the Collapse of Ethical Values Under Iran’s Regime

Ahmad Delbari, Senior Advisor at Iran’s Welfare Organization, has revealed that 4,800 elderly individuals have been abandoned in hospitals, shrines, and on the streets by their own children. He also confirmed that thousands of retirees have become homeless, now residing in shelters across Tehran. According to official statistics, Iran has 9.8 million elderly citizens, including 5.15 million women and 4.7 million men. Hesamodin Allameh, the former head of Iran’s National Council for the Elderly, warned that Iran has one of the fastest-growing aging populations in the world, stating that “Iran will not witness a single good day in the field of elderly care over the next decade.” During a conference on “Aging Justice,” Delbari disclosed that 30% of nursing homes in Iran are filled with unidentified elderly individuals, reflecting the deepening social crisis in the country. He added that aging in Iran has escalated from a “crisis” to a “mega-crisis” due to the lack of supportive policies for the elderly. Inflation, Falling Pensions, and Homeless Retirees Iran’s disastrous economic conditions have forced retirees—who should be enjoying a dignified life—to return to work just to survive. Official studies indicate that:
  • 25% of retirees receive pensions below the minimum wage.
  • 60% of pension payments fall below the poverty line.
  • More than half of living expenses are not covered by pensions, forcing retirees to seek additional jobs or work in the informal economy.
As a result, many retirees have lost their homes and become homeless. Field reports confirm that some of them are now living in public shelters in Tehran. Meanwhile, economic expert Faramarz Tofighi has revealed that the minimum cost of living in major cities is 320 million rials and 280 million rials in smaller cities, while pension payments remain far below these figures. The Regime’s Regional Spending: A Major Cause of Domestic Poverty This crisis continues to escalate while Iran’s regime spends billions funding militias and armed groups across the region, as well as advancing its military programs. While Iranian citizens struggle with poverty, inflation, and unemployment, the state’s budget is directed toward foreign interventions and domestic repression. These policies have not only worsened economic conditions but have also fueled growing public discontent. Rising Protests: The Streets Are the Only Solution As the economic crisis deepens, retirees have taken to the streets in increasing numbers, chanting slogans that express their frustration with the regime and its policies:
  • “Enough with the warmongering, our tables are empty!”
  • “Our enemy is right here, they lie when they say it’s America!”
With protests becoming more frequent and economic hardship worsening, it is now clear that retirees have realized that the only solution lies in continuous demonstrations and taking their demands to the streets—not in the empty promises of the regime, which no longer fool anyone.