Iran faces financial death blow because of war
Same show, different day.
Already strained by decades of sanctions and economic mismanagement, Iran faces a complete financial collapse as a result of its war with the U.S. and Israel.
The U.S. and Israel’s attack against Iran has driven international trade, the energy industry, and much of the financial system to a halt, further worsening the economic situation of the country. President Donald Trump announced on Friday that the U.S. forces had bombed Kharg Island, a key Iranian oil facility in the Strait of Hormuz.
Iran had already descended into the worst economic crisis in its history in December, characterized by sky-high inflation, food shortages, an energy crisis, and the spread of poverty. The crisis triggered the largest protests in Iran’s recent history, culminating in the mass shooting of protesters by regime forces on Jan. 8-9.
IRAN ROLLS OUT $7 PAYMENTS TO QUELL AFFORDABILITY PROTESTS
Research Fellow and Middle East expert Zineb Riboua, at the Center for Peace and Security in the Middle East, Hudson Institute, believes the war has triggered a spiral that Tehran is unlikely to escape.
Currency collapse
One of the most significant signs of an imminent financial collapse was an odd pattern with the Iranian Rial in recent days — its appreciation by 13%.
A man shops for soda at a grocery store in northern Tehran, Iran, Tuesday, Jan. 6, 2026. (AP Photo/Vahid Salemi)
“It’s odd, right? A ten-day economic shutdown should produce currency depreciation, not appreciation. When you see the opposite, it tells you that someone is intervening deliberately. Maybe the central bank is drawing down reserves. Maybe assets are being mobilized through back channels. Maybe the Russians and the Chinese are helping. They have the means and the motive to provide that kind of support quietly,” Riboua said.
An appreciation of Iran’s currency signals a sudden injection of money from elsewhere. While this may help them survive for the moment, problems will begin to cascade when the Islamic Revolutionary Guard Corps’s payday comes.
“The moment those obligations come due, liquidity enters an economy that has almost nothing left to buy. When people realize the money is circulating, but the goods are not there, you get a collapse in confidence, and capital starts moving out very fast,” Riboua explained.
CONSERVATIVES COMPLAIN GOP CONGRESS ISN’T DOING ENOUGH AHEAD OF MIDTERM ELECTIONS
“The Iranian financial system is not functioning as a coherent system anymore. There is a huge loss of trust …
Same show, different day.
Already strained by decades of sanctions and economic mismanagement, Iran faces a complete financial collapse as a result of its war with the U.S. and Israel.
The U.S. and Israel’s attack against Iran has driven international trade, the energy industry, and much of the financial system to a halt, further worsening the economic situation of the country. President Donald Trump announced on Friday that the U.S. forces had bombed Kharg Island, a key Iranian oil facility in the Strait of Hormuz.
Iran had already descended into the worst economic crisis in its history in December, characterized by sky-high inflation, food shortages, an energy crisis, and the spread of poverty. The crisis triggered the largest protests in Iran’s recent history, culminating in the mass shooting of protesters by regime forces on Jan. 8-9.
IRAN ROLLS OUT $7 PAYMENTS TO QUELL AFFORDABILITY PROTESTS
Research Fellow and Middle East expert Zineb Riboua, at the Center for Peace and Security in the Middle East, Hudson Institute, believes the war has triggered a spiral that Tehran is unlikely to escape.
Currency collapse
One of the most significant signs of an imminent financial collapse was an odd pattern with the Iranian Rial in recent days — its appreciation by 13%.
A man shops for soda at a grocery store in northern Tehran, Iran, Tuesday, Jan. 6, 2026. (AP Photo/Vahid Salemi)
“It’s odd, right? A ten-day economic shutdown should produce currency depreciation, not appreciation. When you see the opposite, it tells you that someone is intervening deliberately. Maybe the central bank is drawing down reserves. Maybe assets are being mobilized through back channels. Maybe the Russians and the Chinese are helping. They have the means and the motive to provide that kind of support quietly,” Riboua said.
An appreciation of Iran’s currency signals a sudden injection of money from elsewhere. While this may help them survive for the moment, problems will begin to cascade when the Islamic Revolutionary Guard Corps’s payday comes.
“The moment those obligations come due, liquidity enters an economy that has almost nothing left to buy. When people realize the money is circulating, but the goods are not there, you get a collapse in confidence, and capital starts moving out very fast,” Riboua explained.
CONSERVATIVES COMPLAIN GOP CONGRESS ISN’T DOING ENOUGH AHEAD OF MIDTERM ELECTIONS
“The Iranian financial system is not functioning as a coherent system anymore. There is a huge loss of trust …
Iran faces financial death blow because of war
Same show, different day.
Already strained by decades of sanctions and economic mismanagement, Iran faces a complete financial collapse as a result of its war with the U.S. and Israel.
The U.S. and Israel’s attack against Iran has driven international trade, the energy industry, and much of the financial system to a halt, further worsening the economic situation of the country. President Donald Trump announced on Friday that the U.S. forces had bombed Kharg Island, a key Iranian oil facility in the Strait of Hormuz.
Iran had already descended into the worst economic crisis in its history in December, characterized by sky-high inflation, food shortages, an energy crisis, and the spread of poverty. The crisis triggered the largest protests in Iran’s recent history, culminating in the mass shooting of protesters by regime forces on Jan. 8-9.
IRAN ROLLS OUT $7 PAYMENTS TO QUELL AFFORDABILITY PROTESTS
Research Fellow and Middle East expert Zineb Riboua, at the Center for Peace and Security in the Middle East, Hudson Institute, believes the war has triggered a spiral that Tehran is unlikely to escape.
Currency collapse
One of the most significant signs of an imminent financial collapse was an odd pattern with the Iranian Rial in recent days — its appreciation by 13%.
A man shops for soda at a grocery store in northern Tehran, Iran, Tuesday, Jan. 6, 2026. (AP Photo/Vahid Salemi)
“It’s odd, right? A ten-day economic shutdown should produce currency depreciation, not appreciation. When you see the opposite, it tells you that someone is intervening deliberately. Maybe the central bank is drawing down reserves. Maybe assets are being mobilized through back channels. Maybe the Russians and the Chinese are helping. They have the means and the motive to provide that kind of support quietly,” Riboua said.
An appreciation of Iran’s currency signals a sudden injection of money from elsewhere. While this may help them survive for the moment, problems will begin to cascade when the Islamic Revolutionary Guard Corps’s payday comes.
“The moment those obligations come due, liquidity enters an economy that has almost nothing left to buy. When people realize the money is circulating, but the goods are not there, you get a collapse in confidence, and capital starts moving out very fast,” Riboua explained.
CONSERVATIVES COMPLAIN GOP CONGRESS ISN’T DOING ENOUGH AHEAD OF MIDTERM ELECTIONS
“The Iranian financial system is not functioning as a coherent system anymore. There is a huge loss of trust …
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