Battered by war, Iran’s rulers wary of more economic pain and unrest if US tightens pressure
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- Trump vowed to hit Iran "hard economically" on Friday, with Treasury Secretary Scott Bessent saying measures "never been seen" could come as early as next week.
- Iran's annual inflation hit 66% in July with food inflation at 128% year-on-year, per Iran's Statistical Centre, as the country enters its sixth month of conflict with the US.
- Hossein Taeb, a key architect of past crackdowns, was appointed last week to lead the Basij militia — a paramilitary force affiliated with the Revolutionary Guards used to quell protests.
- A US naval blockade has cut off Iran's gasoline imports, with daily output hitting its limit at 130 million liters versus consumption of 137 million liters, lawmaker Reza Sepahvand told ILNA.
- President Pezeshkian acknowledged the squeeze, saying "Our problems have multiplied several times over, while our income has also fallen," citing less oil sales and lower tax revenue.
- Iranian households are cutting meat and staples, with the minimum wage's dollar value falling from about $105 to $86 since late March despite a 60% nominal raise.
Why it matters: The clerical establishment's appointment of a crackdown architect to lead the Basij signals Tehran is prioritizing domestic control over wartime mobilization, meaning Trump's promised sanctions threaten to deepen the divide between rulers and a public whose minimum wage has already lost roughly 18% of its dollar value since March.
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