Iraq News - Local News - Baghdadpost

Iran's economy plummets amid US sanctions

United States and Iran

In another blow to Iran's clerical regime, the country's economy is plummeting less than two months before new sanctions by the US take effect.


Following the election of US President Donald Trump in 2016 and the dissolution of the Iran nuclear deal that had been reached under former US President Barak Obama, Iran's economy has taken a major hit.


With oil sanctions introduced by the Trump administration in August, Iran's oil exports have decreased by roughly 35 percent since April, and with a new set of sanctions set to be introduced in November, the decrease is expected to become even more dramatic.


The drop in oil exports is seriously affecting Iran's economy, as 80 percent of the country's tax revenue comes from oil, according to the IMF (International Monetary Fund).


Meanwhile, as the Iranian rial has hit a record low against the US dollar, Iran's central bank stated in August that inflation is expected to reach 60 percent this year.


With 40 percent of youth unemployed and more than 30 percent of citizens living under extreme poverty, widespread protests that have plagued the country since last December are expected to become more prevalent.


As the clerical regime is focused more on spreading chaos in Syria, Yemen and the rest of the region rather than spending on its own citizens, chants of "leave Syria alone; think of us instead" and "death to the dictator" are now common.


In addition, Iran's tourism sector has seen a major decline since 2016, affecting hotels and local businesses, and the UK Foreign Office, under Foreign Secretary Jeremy Hunt, has just warned British-Iranian dual nationals against traveling to Iran.


As Iran's economy crumbles and protests become more widespread and desperate, international experts are wondering how much longer the regime of Supreme Leader Ayatollah Ali Khamenei can last.