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Friday, May 1, 2026

Even state media sounds alarm as Iran’s economy sinks

Iran’s worsening economic crisis is drawing unusually blunt warnings from state media and establishment voices as war, inflation and shortages squeeze households and expose the limits of the government’s response. The exchange rate for the US dollar surged again on Wednesday, April 29, climbing above 1.8 million rials. That same day in downtown Tehran, a single fried egg cost one million rials and a hamburger five million—prices that bite hard in a city where minimum wage is just above 200 million rials a month.

“What is going on in this country, Mr. Pezeshkian?” state TV anchor Elmira Sharifi asked earlier this week, staring directly into the camera after reporting that many Iranians can no longer afford basic staples such as rice, sugar, cooking oil, fruit, dairy products and medicine. Had President Masoud Pezeshkian been watching, he might have been startled. State television rarely addresses officials so directly or publicly demands accountability. But he is no stranger to criticism. Calls for answers have become routine in the press and on social media. His administration inherited a vast budget deficit, soaring inflation, high unemployment and widespread shortages. Those problems have worsened since he took office in 2024.

The war with the United States and Israel has deepened the crisis further, accelerating shortages, disrupting supply chains and giving officials a ready explanation for an economy already in freefall. The government’s efforts to ease the burden have been criticized as too slow and too limited. Its latest initiative asks some supermarkets to offer goods on credit to customers unable to pay in cash. Fars News, an outlet affiliated with the Revolutionary Guards, reported Tuesday that the government had approved a plan allowing households receiving cash subsidies to buy goods on credit, with repayments deducted from future handouts if necessary. (Read More)