Iran is feeling the pinch. The re-introduction of U-S sanctions has had a crippling effect
on the economy. The value of the Rial has plummeted - pushing
inflation to over 30 percent. And US President Donald Trump's attempt to destroy the country's
oil industry is having an effect too. The influential middle-classes are among those
being hit hard. The economic war is a reality and people are
under extreme pressure. They keep telling us to be strong, but we can already hear the
sound of our bones breaking under this pressure. Some are being pushed below the poverty line.
As far as I can see, people's purchasing power has been more than halved. Anyone earning
between one point five million rials to two million rials a month, between 35 and 47 US
dollars, who also needs to pay rent, won't be able to even afford to buy bread and potatoes.
It is unimaginable." The lifting of sanctions in 2016 spurred rapid
growth of more than 12 percent. But their reimposition last year dealt a massive blow.
The International Monetary Fund is forecasting the Iranian economy to SHRINK by SIX percent
this year. The withdrawal of foreign companies has also
driven up unemployment. European firms that have left include carmakers Mercedes and Peugeot.
But smaller firms are also becoming increasingly wary of doing business in Iran.
Should Iran follow through on its threat to enrich uranium beyond permitted levels, the
nuclear deal could collapse entirely. In
that case, UN sanctions would also be
re-imposed.