As the United States implements its policy of “economic exclusion,” supporters of the Iranian regime speak of resilience. But in the view of many citizens, ordinary people are paying the main price for this isolation through empty tables, businesses on the verge of collapse, and deteriorating livelihoods. Meanwhile, there is a deep gap between the official narrative and what is unfolding in society. While some government supporters on social media view these sanctions as a “resilience test” for the people of Iran, who have supposedly grown accustomed to them over the decades, the reality of citizens’ daily lives is miles away from these slogans.

The Death of Price Tags in Supermarkets

A middle-aged man who owns a small grocery store in a neighborhood in southern Tehran speaks with despair about the brutal fluctuations in prices. He explains that he stopped putting price tags on his merchandise long ago because the prices printed on the goods lose their validity even before the products reach the customer.

Iranian Regime Replaces Essential Goods with Non-Essential Items in Subsidized Voucher Program

According to him, instability is no longer limited to the gold and dollar markets; consumer goods and people’s daily necessities are also subject to changes on a daily and even hourly basis. He says bitterly that he can clearly see people’s purchasing power shrinking before his eyes. His regular customers shorten their shopping lists month after month, while the store’s credit ledger continues to grow.

Regime Supporters Profit From Sanctions

This crushing pressure is not limited to supermarkets; it has also paralyzed the very heart of commerce. The impact of sanctions on the regime cannot be denied, but it should not be forgotten how a group known as “sanctions profiteers” makes a living by circumventing these restrictions and pockets huge profits. It is precisely these enormous financial interests that cause the small circle of loyalists to the system to become even more closely tied to the regime. With financial dealings with the outside world cut off, the possibility of trade has effectively disappeared, and the limited exports that were previously carried out with great difficulty through unofficial channels have become completely impossible with the imposition of new sanctions. This marks the end of decades of efforts by family-run and small businesses. It is this bitter combination of international isolation, crippling sanctions, and domestic mismanagement that has placed the heaviest burden on ordinary people and established businesses.

Sharp Decline in Childbearing

Perhaps the most tangible, concrete, and at the same time painful face of this runaway inflation can be seen in the expenses faced by families with infants and children. The mother of an infant reveals the growing inability of families to meet their children’s most basic needs. Providing a rough calculation, she estimates the monthly cost of meeting a child’s completely ordinary, everyday needs at about 150 million rials (approximately $75). This is while the minimum monthly wage of a worker with one child and one year of work experience barely reaches $120.

Iran’s Statistical Center: Point-To-Point Inflation in July Reached Nearly 88%

According to this mother, the price of a very simple and basic plastic toy has reached 2 million rials (approximately $1), let alone educational and intellectual toys, which carry astronomical price tags. But the real crisis becomes apparent when special dietary needs or a child’s illness are involved. She explains that the price of infant formula for babies suffering from gastric reflux, such as the “Aptamil AR” brand, has reached an exorbitant 45 million rials because of severe shortages in the market and illegal, smuggled imports through the borders of the Kurdistan Region or Turkey.

A Return to the Past; Replacing Diapers With Cloth

The inflation crisis in children’s hygiene products has also left families desperate. The price of a package of diapers has risen from 2.5 million rials to 9 million rials since January. This price surge has been so crippling that it has forced many families to return to using training pants and washable cloth diapers; each of these items also costs parents about 10 million rials (approximately $5). This long list also includes visits to subspecialist doctors costing 8 million rials, several-million-rial expenses for vitamin drops, and a 100% increase in the price of domestically produced detergents.

The Plight of the Younger Generation in “Wonderland”

The heavy shadow of sanctions and the freefall in the value of the national currency have also left the future and daily lives of the younger generation in a state of limbo. Despite every effort to save money and quickly convert income into gold or dollars, domestic inflation is accelerating at such a frightening pace that expenses continually outstrip savings. A student who is trying to immigrate to Germany explains that the registration fee alone for the IELTS language test is about $300, but when that amount is converted into tomans, paying it becomes a terrible nightmare for a student. He says that in these turbulent conditions, no one feels comfortable making purchases because waking and sleeping in this country is accompanied by bizarre price fluctuations. A product that was worth 300 million rials the previous day may be sold for 400 or 500 million rials the next morning. Replacing electronic devices such as laptops or smartphones also requires budgets of several hundred million rials, beyond the means of most young people. The intertwined accounts of citizens from different cities across Iran clearly and without any concealment show that, contrary to officials’ official rhetoric about national resistance and resilience, it is the fragile structure of ordinary people’s daily lives and livelihoods that is being crushed under the heavy burden of international sanctions. The combination of severe and crippling economic isolation with inefficient administrative structures has not only further marginalized and weakened the middle class, but has also turned meeting the most essential and basic human needs into a grueling, bitter, and daily struggle for survival.

The admission by senior Iranian regime officials that an increase in gasoline prices is inevitable demonstrates the depth of the regime’s financial crisis. Mohammad-Jafar Ghaem-Panah, executive deputy to Iranian regime president Masoud Pezeshkian, admitted that an increase in gasoline prices is inevitable and acknowledged the high costs of importing fuel. Referring to the impact of the naval blockade, he stressed that domestic gasoline production is insufficient to meet the country’s needs and that new management measures must be implemented. These remarks come as numerous reports have emerged of long lines at fuel stations across the country. Fearing the eruption of livelihood-related protests similar to those in 2019, regime officials have yet to announce a final decision on the timing and extent of a price increase.

Iran’s Regime Lays Groundwork for Raising Gasoline Prices

The severe diesel shortage at fuel stations across the country has once again seriously disrupted the road transportation fleet. In many provinces, truck drivers are forced to wait for days in long lines stretching for kilometers to receive their basic fuel allocations. The Ministry of Oil’s mandated reduction in fuel quotas has severely affected the livelihoods of this sector and the distribution of essential goods. Experts are warning about the economic consequences of this crisis and the possibility of a complete halt to road transportation. The release of videos showing long diesel lines at 5 a.m. reveals new dimensions of the country’s fuel crisis. Heavy-vehicle drivers wait for hours before sunrise to receive a meager amount of fuel. Despite repeated promises, Iranian regime officials are unable to address the people’s most basic livelihood needs. Documented reports indicate that around 5 million liters of gasoline are systematically smuggled directly from Iranian regime refineries every day. This widespread plunder takes place while Iranian youth and citizens are forced to wait for hours in long gasoline lines. The astronomical revenues generated by this smuggling flow into the pockets of mafia gangs affiliated with the regime. Contrary to claims by regime officials, the gasoline crisis in Iran is not caused by high consumption by citizens but is the result of systematic plunder.

Following the announcement of new U.S. sanctions against the Iranian regime, people are once again witnessing a rise in the dollar’s price and a surge in prices. The sudden and astronomical increase in the prices of household appliances in Iran’s market once again exposed the regime’s severe economic incompetence. Reports indicate that the price of a refrigerator increased by as much as 700 million rials in just three days. This unprecedented surge has made purchasing essential goods impossible for a large segment of society. The plunder of public assets to preserve the Iranian regime’s survival is considered the main cause of this runaway inflation.

Livelihood Protests Sweep Iran’s Streets Again

According to accounts obtained by Iran Azadi website, a resident of Khuzestan Province said: “After the announcement of the harsh U.S. sanctions and the rise in the dollar’s price, people are very worried about rising prices. If someone can afford to buy something, they buy it because they know they will have to pay more for it tomorrow. Most importantly, they are worried about gasoline because it directly affects the prices of all goods and services. Besides the price, the shortage of gasoline has forced people to stand in line for hours to get it. They have to go to two or three gas stations before they can manage to fill their tank. Our wages don’t cover a family’s expenses for even one week. Where else have you seen a situation where every time you buy something, say a container of yogurt, its price has gone up? People are worried, anxious, and appear distressed, and everyone is waiting for something to happen.” After the U.S. sanctions were imposed, people were both happy that they might lead to the fall of the regime and worried about new price increases. People are extremely angry at government officials who laugh at the sanctions or claim to be a power or superpower. They curse them and, in fact, hate them. He continued: “An agricultural worker earns 7 million rials a day, while an ordinary scarf costs 12 million rials. That’s approximately $3.50 in daily wages versus $6 for a basic scarf. You can’t even afford to see a doctor.” “Fraud has become so widespread that we can’t even file a complaint. A simple complaint costs 45 million rials in judicial office fees and other expenses. This is the situation people face in our city.” A farmer said: “Everything is getting more expensive day by day. Now even fruit has been removed from people’s tables and lives. People have truly had enough.” “They are afraid of society’s anger; they are afraid of the people. They wanted to raise gasoline prices, but they didn’t because they know that this time, if people take to the streets, it will be the end of them.” “I think that, given the dire situation I am seeing, this will happen soon.” “High prices and shortages of medicine are also rampant. For a simple cold, I searched everywhere until I found a syrup, an injection, and a few pills, and I paid 30 million rials for them (approximately $15)! A pill that I used to take for my heart is no longer available at all.” “They keep cutting off the electricity, and water has also become scarce. They took the wheat from the farmers but haven’t paid them. Every time they say they will deposit the money, but nothing happens.”

Iran: Water, Electricity Bills Increase by Up to Five Times

“On top of that, fertilizer has become outrageously expensive. A 50-kilogram bag of fertilizer now costs 500 million rials; the same fertilizer used to cost 500,000 rials per bag (approximately 25 cents)! Liquid fertilizers have also reached 200 million rials per liter (approximately $10) and more.” A driver spoke about embezzlement: “I am also one of the complainants against Arian Pars Diesel. I registered for a truck on November 30, 2025. The company was supposed to deliver the vehicle in February 2026 at a price of 89 billion rials, but it failed to deliver the vehicle on time.” “Now, after all these delays, they have sent me a payment notice and announced the vehicle’s price as 193.4 billion rials! In other words, they have sharply increased the price of the vehicle in a short period of time.” “We have filed complaints with all the relevant authorities to pursue our rights, including the Consumer and Producer Protection Organization, the Competition Council, the government price-gouging enforcement organization, the Ministry of Industry, the Supreme Audit Court, the General Inspection Organization, and the prosecutor’s office. Unfortunately, none of them have done anything for us, and they all say the price announced by the manufacturer is fair!” “We are 120 people who registered for this truck. The manufacturer has increased the price of each vehicle by more than 100 billion rials (approximately $50,000) in two months, yet all the relevant offices and officials say the manufacturer is in the right.” “This manufacturer has so far faced more than 3,000 complaints filed with the prosecutor’s office; around 2,500 complaints concern Lamari vehicles, 120 concern Shacmoto tractor-trailers, and around 300 concern 12-ton JAC trucks. There are also other complaints.”

Water and electricity bills for millions of Iranian households suddenly increased by as much as four times in June and July 2026. The surge came as Iran’s regime faced a massive budget deficit, raising the question of whether the government is replenishing its treasury at the expense of ordinary people. The sudden increase in water and electricity bills in June and July 2026 shocked many households. Some customers reported that their bills rose from about 3 million rials (about $2) in June to between 8 million and 10 million rials in July. The increase reached 300% and, in some cases, even more. Iranian regime officials attributed the rise to households exceeding the official consumption threshold. However, multiple reports indicate that the tiered pricing structure and pressure from the regime’s enormous budget deficit played a role in the increase.

Inflation And Collapse of People’s Purchasing Power, New Signs of Expanding Poverty in Iran

The tiered pricing system and the sudden surge in costs.

In ordinary regions, the official consumption threshold for the warm months is set at 300 kilowatt-hours. This is a very low limit, and by setting it at this level, the regime effectively classifies even low-consumption households as high-consumption users. Exceeding this threshold moves customers into higher pricing tiers, where rates multiply. On August 19, the state-run Khabarfoori news website wrote that water and electricity bills are calculated using a tiered pricing system. Up to 300 kilowatt-hours, charges are calculated at half the base supply cost. Once a household exceeds the limit for each tier, the excess consumption is billed at a higher rate. If consumption exceeds 500 kilowatt-hours, the upper portion is charged at five times the base rate. On August 6, the state-run Ettelaat newspaper reported that people’s water and electricity bills had increased by as much as 300% and, in some cases, even more. According to Ettelaat, the increases have affected ordinary customers living in small and medium-sized homes, including people who had previously been considered efficient consumers and who spend most peak daytime hours at work. The newspaper said they were genuinely shocked when they saw their July bills.

Suspicion that higher bills are being used to offset the budget deficit.

On August 5, the state-run ANA News Agency wrote that the sudden jump in water and electricity bills occurred despite the absence of any official announcement of a higher base rate. The tiered pricing system, combined with a 35-fold gap between the lowest and highest rates, can turn even small changes in consumption into a financial shock. So far, the Ministry of Energy has not provided a clear and easily understandable explanation. Iran’s regime is facing an enormous budget deficit of 18.2 trillion. Some analysts view the higher charges collected through water and electricity bills as an attempt to offset that deficit. The National Water and Wastewater Engineering Company also said that water tariffs had been announced at the beginning of the year on March 22 and that no increase outside the approved framework had occurred. It said higher bills resulted from increased consumption, moving into higher pricing tiers, or the improper installation of pumps. Nevertheless, public demands for a simple and transparent explanation remain unresolved.

Additional pressure on farmers and ordinary households.

The problem has not been limited to households. On August 19, the state-run ISNA News Agency published a report under the headline “The Shadow of a 400 Million Bill Over Farmers,” saying that the monthly electricity bill for an agricultural well had risen from 40 million to 50 million rials (about $5.5) to more than 4 billion rials (about $2,128). Bills of 1 billion rials have also been issued. In one case, a bill of 1.2 billion rials (about $638) was issued for just 10 days of consumption. The Agricultural Guild Chamber said the previous base tariff was 210 rials. Under the new pricing schedule, the lowest rate starts at about 800 rials and reaches as high as 86,800 rials in some tiers. In some cases, this represents a 400-fold increase. Paying such amounts is beyond the means of many farmers. Technical explanations about pricing tiers alone cannot justify the steep rise in water and electricity bills that has disrupted people’s daily lives. This situation continues the same pattern that has been repeated for nearly five decades: poor resource management has imposed heavy costs on households instead of improving people’s welfare. If meaningful reforms were going to happen, they would have been achieved over this long period. The threefold to fourfold increase in water and electricity bills in June and July is the result of an ineffective tiered pricing system and the Iranian regime’s efforts to offset its massive budget deficit. Over the past four decades, the Iranian regime has repeatedly promised reforms, but the practical result has been nothing more than greater pressure on people’s livelihoods. The official explanation that households simply exceeded the consumption threshold does not account for the economic realities facing families and farmers.