Tehran Responds to U.S. Proposal After Trump’s Threat
The state-run IRNA news agency reported on Sunday, May 10, that the Iranian regime had sent its response to the latest U.S. proposal aimed at reaching an agreement and ending the war to Washington through Pakistan, acting as a mediator in the negotiations.
Without providing details of the response, IRNA wrote that the negotiations at the current stage are focused on ending the war in the region. This comes as U.S. officials in recent days had repeatedly warned that if the talks fail, they will consider other options.
U.S. President Donald Trump said on Friday that Washington would likely receive Tehran’s response by that evening. Speaking to reporters at the White House, he warned that if something positive does not happen from the Iranian regime, America may once again carry out the freedom project.
Trump also stressed last week that the United States would not allow the Iranian regime to obtain nuclear capability and would take Iran’s enriched uranium. At the same time, U.S. Secretary of State Marco Rubio expressed hope that Tehran’s response would pave the way for serious negotiations.
Meanwhile, conflicting reports have emerged regarding the contents of the U.S. proposal. Axios and Reuters reported that Washington and Tehran are close to a one-page memorandum of understanding to end the war. According to Reuters, the understanding does not mention the complete halt of the regime’s nuclear activities or the reopening of the Strait of Hormuz.
However, The Wall Street Journal reported that the United States is demanding the dismantling of the Fordow, Natanz, and Isfahan facilities, a halt to underground nuclear activities, and a 20-year suspension of uranium enrichment—conditions that could deepen the disagreements between the two sides.
Tensions escalated following a war that began on February 28 with U.S. and Israeli strikes on the Iranian regime’s military and nuclear centers. After about 40 days of fighting, the two sides reached a ceasefire on April 9, but negotiations have so far failed to produce a final agreement.
375% Increase in Food Prices in Iran
State-run media outlets reported on Saturday, May 9, a new wave of price increases for essential goods and basic necessities; a wave affecting bread, sugar, oil, rice, chicken, and eggs, further intensifying economic pressure on Iranian households.
The state-run Etemad newspaper, in a report on rising bread prices, wrote that increased production costs—from insurance and workers’ wages to energy, yeast, and rent—have led to the implementation of new bread prices. Based on the new rates, the price of lavash bread has reached 20,000 rials, sangak bread 80,000 rials, plain barbari bread 165,000 rials, and taftoon and local bread 350,000 rials.
Iranians Struggle to Afford Basic Food Basket as Prices SurgeAt the same time, sugar prices have also increased. The state-run IRNA news agency, quoting the deputy minister of agriculture of the Iranian regime, stated that rising production costs in the new year are the main reason for the price hikes. Under the new rates, each kilogram of bulk sugar at the factory gate has been set at 950,000 rials, while a 900-gram package of sugar is priced at 1.25 million rials. At present, the price of one U.S. dollar is around 1.9 million rials, while the minimum monthly salary of a worker is approximately $127. Meanwhile, statistics released by the regime’s Statistical Center indicate an unprecedented surge in food prices. Solid vegetable oil, with a 375% increase compared to April of last year, has become the record-holder for food inflation, with its price rising from about 810,000 rials to more than 3.85 million rials. Liquid cooking oil follows with more than a 308% price increase, as the cost of a 900-milliliter bottle has risen from about 740,000 rials to more than 3 million rials. Additionally, first-grade imported rice with a 209% increase, industrial chicken with a 191% increase, mayonnaise with a 190% increase, and industrial eggs with more than a 170% increase are among other goods that have experienced massive price surges over the past year; a trend that continues to shrink the tables of millions of Iranian families every day.
The Shadow of Iranian Regime Assassination Squads in Germany
As political and security tensions rise across Europe, German security officials have warned about an escalating security threat in the country. Germany’s Interior Ministry announced that the country’s intelligence agencies have received specific signs and information regarding the possible planning of terrorist operations by the Iranian regime and its affiliated forces. This warning comes as the Iranian regime’s name has repeatedly surfaced in recent years in cases involving the assassination of political opponents and the activities of proxy networks in Europe.
Elena Singer, spokesperson for Germany’s Interior Ministry, said during an emergency press conference that “the country is currently facing a high-threat situation.” She stated that German security and intelligence agencies are working around the clock to review and monitor information related to this security threat. According to her, the intelligence gathered indicates that the danger of terrorist operations is not limited to one specific target and involves several groups and centers.
Singer emphasized that American centers and individuals, Jewish facilities and institutions, as well as political opponents of the Iranian regime and Iranian refugees living in Germany are exposed to this security threat. She explained that Germany’s federal and state agencies are operating in full coordination and that the alert level at many sensitive locations has been raised.
Growing Concern Over the Security Threat of Proxy Groups
Germany’s Interior Ministry also described the role of proxy groups affiliated with the Iranian regime as part of the country’s core security assessments. The ministry’s spokesperson stated that the activities of organizations such as Hezbollah and other Tehran-backed groups are considered an inseparable part of Berlin’s security calculations. German security agencies have been monitoring the movements of these networks more closely in recent months. This security threat is being raised while Germany’s judicial and security institutions had previously investigated several cases related to espionage, intelligence gathering, and planning attacks against opponents of the Iranian regime. In some cases, agents and operatives linked to the Iranian regime were accused of attempting to identify political activists, journalists, and opposition figures. German officials announced that if the threat level rises further, additional physical and cyber protective measures will be implemented to safeguard sensitive sites. According to Singer, the German government is at the highest level of alertness, and the country’s security forces are prepared to confront any potential security threat.Opponents of the Iranian Regime Under the Shadow of Security Threats
In recent years, many political activists and opponents of the Iranian regime who sought refuge in Germany had repeatedly warned about the activities of networks linked to the Iranian regime. Some of these activists said they had been surveilled or received direct and indirect threats. The German government’s official warning has now heightened concerns about the safety of these individuals.Foreign Militia in Iran: A Show of Power or a Sign of Crisis?Security analysts in Europe believe that over past decades, the Iranian regime has repeatedly used diplomatic structures, front networks, and proxy forces to advance intelligence and security operations outside Iran. Assassination cases involving opposition figures in European countries, including Germany, France, and the Netherlands, have repeatedly brought this issue into the public spotlight. The German government stated that confronting this security threat will not be limited to police measures and that intelligence cooperation with European countries and Western allies will also increase. At the same time, some German media outlets reported that protection levels for Jewish and American centers in several major cities have been heightened. Berlin’s official warning regarding a security threat linked to the Iranian regime has once again brought the issue of the regime’s overseas operations in Europe to the forefront of the news. Many political observers believe that the continuation of domestic repression and the regime’s growing crises, alongside the expansion of its security and proxy networks outside Iran, have projected an increasingly tense image of the Iranian regime on the global stage.
Iranian Citizens Face Drug Shortages and Health Crisis
Turmoil in the pharmaceutical and medical supply market and the emergence of brokers on the streets of the capital reflect the depth of the crisis. Securing foreign currency and importing foreign products for patients with special illnesses has become an unsolvable problem that has destabilized the market. This situation has caused vital medical items either to become scarce or to be sold at astronomical prices in unofficial markets.
Production Challenges and the Deadlock in Drug Pricing
Mohammad Jamalian, a member of the Health Commission in the Iranian regime’s parliament, stressed on May 2 the necessity of choosing between higher prices or the absence of medical supplies. He believes that rising prices of raw materials and plastic have created serious difficulties for manufacturers in continuing operations. Jamalian stated: “Today, one of the main concerns is the sharp increase in the price of plastic, raw materials, and other pharmaceutical necessities. To preserve the ability to continue production, we have no choice but to increase drug prices.”Born Addicted: The Tragic Tale of Drug Abuse in IranHe warned that imposing price controls would certainly intensify shortages and create severe dependence on imports. In the past two weeks, out of 1,030 reviewed items, 800 failed to receive permits due to objections. This lack of economic viability has gradually pushed manufacturers out of the production cycle and created secondary shortages. Jamalian emphasized: “An increase in drug prices is unavoidable, and if we try to suppress prices through pressure, production will certainly stop and we will be forced to import at much higher prices.” According to him, under current conditions, having products available at higher prices is more vital for patients than their complete disappearance. The provision of foreign currency resources and fluctuations in exchange rates have severely affected distribution capacity and destabilized the market. In addition to currency-related problems, phenomena such as hoarding and profiteering in provincial centers have led to the distribution of expired products in the market. This situation creates crushing additional costs for residents of smaller cities who must travel to Tehran to obtain a single medication. The pressures of travel, lost time, and the possibility of missing critical treatment opportunities have endangered the health of many families.
The Removal of Subsidized Currency and Its Consequences for the Supply Chain
Distrust in the ability of insurance providers to respond and their failure to settle payments with pharmacies have turned access to medical supplies into a catastrophe. On May 2, Homayoun Najafabadi reported the complete disappearance of products that were previously easy to obtain in the market. He described the current situation as follows: “Many medicines that were essential and previously very easy to obtain and abundant like خاک are now unfortunately unavailable even in a single unit. There is now a severe shortage in cardiac, ophthalmic, and injectable products.” The main reason for the price surge is due to budget legislation and the complete removal of subsidies and preferential currency rates for importing raw materials. Previously, raw materials were obtained using currency valued at one-fifth of the current rate, but they must now be purchased at the free-market rate. This currency policy change has sharply increased production costs and transferred the burden to consumers. Mohammadreza Zafarghandi, the health minister of the Iranian regime, stressed on May 1 that the country’s conditions are akin to wartime and that meeting needs requires comprehensive cooperation. Fluctuating currency policies and ineffective management have transformed the pharmaceutical crisis from an economic challenge into a serious threat to patients’ lives. The regime’s promises of free healthcare are made while patients with special illnesses now remain stuck in long lines just to receive minimum treatment services. The government’s 300 trillion rial debt to the industry, approximately $158 million, has pushed the healthcare system to the brink of collapse and restricted access to treatment.Shocking Statistics on Price Increases and Risks for Rare Disease Patients
Reports show that out of every 10 pharmacy customers, three refrain from purchasing medicine after seeing the prices. This abandonment of treatment means the spread of disease and an increase in silent deaths across different layers of society. Prices of seizure-related medications have risen by 220%. Domestically produced insulin has also experienced a price increase of more than threefold. Supplement syrups such as Vitamin D3 and zinc have become 3.2 times and 286% more expensive, respectively. Anesthesia-related items such as propofol, with a 122% increase, and betadine, with a 161% increase, have raised hospitalization and surgery costs. Even simple products such as clopidogrel and stroke-treatment syrups have not escaped inflationary increases of 116% and 37%, respectively. Major companies such as Zahravi have increased the prices of some products by as much as 415%, reflecting the depth of the crisis in the private sector. Hamidreza Edraki, CEO of the Rare Diseases Foundation, warned about interruptions in medication use and described them as a cause of disruption in treatment. He believes continuous access to medicine for the 560 identified rare diseases in Iran is absolutely vital and cannot be ignored. In a letter to the Iranian regime’s Supreme National Security Council, the Pharmacists Association warned about the complete collapse of the supply chain and its security risks. The theft of chemotherapy drugs from hospitals is also a symbol of the regime’s disorder and incompetence in protecting the country’s limited medical resources.Iranians Struggle to Afford Basic Food Basket as Prices Surge
While only about five months have passed since the implementation of the plan to remove subsidized foreign currency rates for some essential goods, the latest economic reports show that the cost of the basket of goods covered by the electronic coupon program has risen sharply and far exceeded the amount of government support being paid.
According to statistics published by economic media outlets affiliated with Iran’s regime, the total price of items included in the electronic coupon basket, which was around 21.8 million rials before the removal of subsidized currency rates, has now reached approximately 37.8 million rials. Meanwhile, the amount of support paid to eligible households has remained fixed at 10 million rials with no increase. It is worth noting that the U.S. dollar exchange rate has surged in recent months to an unprecedented 1.9 million rials per dollar, while a worker’s salary is approximately $126.
The Rising Cost of Food in Iran; Hidden Pressure on Large FamiliesAt the same time as food prices have risen, the foreign exchange rate has also experienced an unprecedented jump. The price of the U.S. dollar on the open market, which stood at around 820,000 rials before the 12-day Iran-Israel war in June 2025, has now reached approximately 1.9 million rials. As a result, the value of the dollar has increased by more than 120% over roughly 10 months, and the collapse of the national currency has imposed a new wave of price hikes on consumer and food markets. When implementing the plan to remove subsidized currency rates, the Iranian regime had promised that the resources generated from the measure would be directly returned to the public through electronic coupons and that the value of the credit would increase in line with inflation. Ahmad Meydari, head of the Planning and Budget Organization, had also promised that the coupon credit would be reviewed every three months based on the inflation rate. However, no increase has so far been applied to the amount of this subsidy. On May 6, Fatemeh Mohajerani, spokesperson for the government of Iranian regime president Masoud Pezeshkian, referring to the government’s financial limitations, said that the government wanting to increase the coupon amount and actually having the ability to do so are two different matters. Meanwhile, official reports and data published in domestic media indicate the continued upward trend in food inflation. Some estimates show that inflation in food items has surpassed 70%. A recent assessment also shows that in April 2026, the cost of a household food basket was equivalent to 85% of the minimum income of a married worker with two children, highlighting the severe decline in purchasing power and the deepening livelihood crisis in Iran.
Iran’s Inflation Crisis: A Monster Nurtured by the Power Structure
Iran’s inflation crisis is no longer a temporary phenomenon but has become a chronic and structural condition. Contrary to official narratives, this crisis is not merely the result of war or reduced supply of goods, but the direct outcome of economic and political mechanisms that have taken shape over many years. It is a structure in which unproductive and rent-seeking costs are continuously imposed on society.
Structural Roots of Iran’s Inflation Crisis
In the past, even under unstable conditions, there was a possibility of relatively returning to lower inflation levels. But now, this possibility has almost disappeared. The reason for this change lies in the accumulation of deep economic imbalances. One of the most important factors is the uncontrolled expansion of spending orders within the power structure. In this framework, economic resources are allocated not based on productivity, but according to the interests of groups close to power. This process has caused public expenditures to rise continuously without any growth in the economy’s productive capacity.Behind the Internet Shutdown: The Iranian Regime’s Black MarketUnder such conditions, the gap between supply and demand expands artificially. The economy lacks the capacity to produce sufficient goods and services, yet demand is increased through liquidity injections and populist policies. The result of this situation is nothing other than the intensification of Iran’s inflation crisis. Contrary to official claims, historical evidence shows that war alone is not the determining factor behind inflation. The experiences of various countries, from post-World War Europe to contemporary economies, demonstrate that severe inflation has mainly been caused by unstable fiscal policies. Even within Iran itself, there have been periods without war that experienced extremely high inflation.
Rent-Seeking Economy and the Reproduction of Inequality
One of the main features of Iran’s inflation crisis is its connection to the rent-seeking structure of the economy. In this structure, resources are placed in the hands of specific networks instead of being distributed fairly. These networks benefit from exclusive privileges and are effectively shielded from inflationary pressures. In contrast, the costs of inflation fall disproportionately on low-income groups. Rising prices of essential goods, declining purchasing power, and economic instability have all caused class divisions to increase at an unprecedented level. This is the very process that can be described as the transfer of wealth from the lower classes to the upper classes. Policies such as distributing electronic coupons or increasing nominal wages not only fail to solve the problem, but in many cases contribute to worsening Iran’s inflation crisis. This is because such measures, without productive backing, merely increase liquidity and place greater pressure on prices. On the other hand, the expansion of parallel and unaccountable institutions has imposed a heavy financial burden on the economy. These institutions consume a significant share of resources without playing any role in increasing production. Such a structure effectively makes any form of economic balance impossible.Social and Political Consequences of Inflation
Iran’s inflation crisis is not merely an economic issue, but one with profound social and political consequences. The continuous decline in purchasing power has eroded public trust. People who see their dining tables shrinking day by day gradually lose confidence in the future. This situation has laid the groundwork for widespread social unrest. The experience of recent years has shown that rising prices have been one of the main factors behind protests. When daily life is disrupted, dissatisfaction becomes a natural reaction. Moreover, chronic inflation also damages the production structure. Price instability deprives economic actors of the ability to plan and reduces investment. As a result, the economy enters a vicious cycle in which inflation and recession reinforce one another simultaneously. Iran’s inflation crisis cannot be explained solely by external factors. This crisis is the direct product of a structure in which economic decisions are made in service of political and factional interests. As long as this structure remains unchanged, any effort to control inflation will be doomed to failure. The reality is that Iran’s economy is facing a fundamental imbalance: limited resources but endless expenditures. This imbalance is not a temporary error, but the result of a flawed decision-making system — a system that, instead of accountability, is focused on reproducing and preserving itself.Increasing Pressure on Female Political Prisoners in Iran’s Evin Prison
Reports indicate increasing pressure and restrictions against female political prisoners in Iran, particularly women arrested for supporting the People’s Mojahedin Organization of Iran (PMOI/MEK). According to these reports, the process of imposing new restrictions, opening new judicial cases, and issuing additional sentences against these prisoners has intensified in recent weeks.
In this context, Shiva Esmaeili and Elaheh Fouladi, two political prisoners held in Tehran’s Evin Prison, faced a new case after protesting the death of Somayeh Rashidi and were each sentenced to an additional six months in prison on charges of insulting the supreme leader. Somayeh Rashidi, 42, had previously died in October 2025 in Qarchak Prison in Varamin due to lack of medical treatment, an incident that at the time sparked reactions among political prisoners.
Iran Intensifies Pressure on Families of PMOI Prisoners Amid Expanding CrackdownIt has also been reported that seven female political prisoners — including Zahra Safaei, Forough Taghipour, Marzieh Farsi, Elaheh Foladi, Arghavan Fallahi, Shiva Esmaeili, and Golrokh Iraee — have been denied family visitation rights due to participating in protest activities inside prison and taking part in the “No to Execution Tuesdays” campaign, including singing songs and chanting slogans against executions. In Yazd Prison, another political prisoner and supporter of the PMOI/MEK, Parisa Kamali, is reportedly under severe pressure. According to informed sources, prison authorities, citing special conditions, have refused to provide her with necessary medication and transfer her to medical centers, raising concerns about her health condition. Reports also indicate that she is facing an order to be transferred to Khash Prison in Iran’s southeastern Baluchestan region. In response to these developments, several human rights organizations and advocacy groups have called for greater international attention to the situation of political prisoners in Iran, especially women, and emphasized the need for an independent investigation into prison conditions.
Behind the Internet Shutdown: The Iranian Regime’s Black Market
Severe communication restrictions in recent months, imposed under the pretext of war and security concerns, have fundamentally altered the economic and social structure of access to cyberspace. Transforming internet access from a public right into a class-based privilege has led to corruption, rent-seeking, and the destruction of the country’s digital economy.
The Emergence of Digital Apartheid and the Concept of “Internet Pro”
More than 69 days after the blocking of the vital arteries of communication, a phenomenon known as “Internet Pro” has emerged in society. Instead of solving infrastructure problems, this new structure has effectively entrenched a form of digital apartheid across the country. This is no longer merely about simple filtering. Internet access, which should serve as a tool for development, is now traded on the black market at exorbitant prices. This trend reflects the transformation of public services into exclusive privileges for wealthy and influential groups. The rent-based distribution of bandwidth has left academics and intellectuals struggling behind the regime’s extensive filtering barriers.If restricting access is rooted in security concerns, then class-based access effectively means selling security to select applicants. This raises the question of how paying 600 million rials (about 315 dollars) can supposedly eliminate security risks for a wealthy individual, while internet access for a student or journalist is still considered a security threat and remains blocked. This comes as the monthly salary of an ordinary worker barely reaches 130 dollars. The divide created by this discrimination could itself become the greatest threat to the stability and long-term security of society.🛠️ It's now the 69th day of #Iran's internet blackout after 1632 hours largely cut off from international networks. The shutdown continues to drive job losses with a disproportionate impact on independent workers, effectively redistributing wealth to regime-aligned groups. pic.twitter.com/6AAWwsGThu
— NetBlocks (@netblocks) May 7, 2026
Underground Economy and Crisis in the Technology Market
Alongside this prolonged shutdown, a corrupt underground economy has emerged that directly targets people’s livelihoods and finances. Tools used to bypass restrictions, which were previously inexpensive, are now sold in some packages for 100 million to 120 million rials (approximately 53 to 63 dollars). According to reports, some citizens spend up to 600 million rials per month to purchase these tools.Iran’s Economy Under Pressure from War and Internet ShutdownsThe lack of oversight in this market has paved the way for greater exploitation of users. Conditions in the hardware and mobile phone market have reached catastrophic levels, with field reports describing the situation as outright looting. The current distribution system has fully enabled abuse by intermediaries who have access to unrestricted networks. The Iranian regime speaks of providing support to businesses, yet it has completely ignored a basic economic principle. Even if the seller has access to the network, no online transaction can take place when the customer remains trapped behind filtering barriers. According to official statistics, around 2,000 digital companies can survive under these conditions for only another one to two months. The severe 40% to 70% drop in platform sales has sent silent shockwaves through the country’s already fragile digital economy, with potentially irreversible consequences.
Institutional Denial of Responsibility and the Uncertain Future of the Internet
Reza Olfat Nasab, head of the Union of Virtual Businesses, stated on May 3 that no specific authority is accountable for the internet in Iran. He emphasized that it remains unclear which institution economic actors should negotiate with to resolve their problems. According to him, many businesses have suffered sales declines of 40% to 50%, while some have completely halted operations. Workforce reductions of up to 60% in these companies demonstrate the depth of the unemployment crisis among skilled sectors of society. Dissatisfaction with discriminatory policies has reached its peak among all participants in this field. Ehsan Chitsaz, deputy communications minister of the Iranian regime, announced on May 2 that decisions regarding this network are made outside the ministry. Meanwhile, Mohammad Hafez Hokmi, an adviser to the minister, reported widespread violations in the implementation of the so-called special access program. He believes mismanagement and misconduct have occurred during the process, leading to the creation of a black market for selling access quotas. These remarks came after revelations that organizational internet access had been illegally sold to ordinary individuals. The Communications Ministry claims it neither designed these restrictions nor authorized selective access programs. According to officials, the original permits were issued solely to maintain the stability of company services during crisis conditions and prevent disruptions. However, reports by technology websites indicate that the scheme has turned into a black market for the sale of organizational internet quotas.Iranian Regime Judiciary Confiscates Assets 40 More Individuals
The Iranian regime’s judiciary says that by judicial order, the assets of 40 individuals accused by the regime of acting against the country’s security and stability have been confiscated. The judiciary claimed that these assets were seized in line with protecting public rights for the benefit of the people and would be used for the “reconstruction of damaged locations.”
The judiciary has not disclosed the names of these 40 individuals. The Justice Department of Hamedan province had also announced on Thursday, April 9, the confiscation and seizure of the assets of 25 individuals.
Head of the Iranian Regime’s Judiciary Emphasizes Accelerating ExecutionsThe details of the legal proceedings leading to the confiscation of these individuals’ assets remain unclear. However, in recent weeks, the judiciary has on several occasions published lists of individuals—mostly residing outside Iran—accusing them of supporting war efforts. As the confiscation of assets intensifies against individuals from a wide range of social backgrounds—including journalists, former actors, political activists, and artists—the Iranian regime’s judiciary has also begun taking measures to prevent the transfer of assets. Previously, Iran’s State Organization for Registration of Deeds and Properties issued a directive to notary offices requiring that any transfer of property based on powers of attorney issued by the Iranian regime’s consulates since February 28 must first receive approval from the Office of the Attorney General. Less than a month ago, the attorney general of the Iranian regime announced that a judicial order had been issued to the Foreign Ministry to suspend, until further notice, the processing of powers of attorney for the transfer of assets belonging to Iranians living abroad through an online system.
Aftermath of the War: Iranian Workers’ Lives in Grip of a Livelihood Crisis
Following the US and Israeli war against Iran’s regime, the impact of the attacks has not been limited to infrastructure damage; the labor market has also entered a period of widespread instability. A wave of layoffs, the shutdown of internet-based businesses, runaway inflation, soaring rents, and a sharp decline in purchasing power are now putting immense pressure on working-class families and large segments of Iranian society.
Iran’s economy, already suffering from structurally high inflation, is now bending further under the crushing pressure of rising prices. Reports indicate that the US dollar exchange rate has surged to an unprecedented 1.9 million rials. At the same time, according to Iran’s regime Central Bank, point-to-point inflation has reached around 70% and living costs have crossed critical thresholds. Official data also show that food inflation has exceeded 60%, rents have once again increased in many cities, and working-class household incomes have fallen to around $200 per month. This is while, under a government decree, the minimum wage for a worker with one child stands at approximately $127, an amount that continues to decline daily due to the rising dollar exchange rate.
How Did Inflation in Iran Become the Most Chronic Structural Crisis?
