Iran’s rulers wary of renewed unrest if US tightens economic pressure

As Iran remains engaged in conflict with the United States, reports suggest that the Islamic Republic’s leadership is increasingly concerned that further economic punishment could reignite nationwide unrest. US President Donald Trump has vowed to hit Iran hard economically, with Treasury Secretary Scott Bessent signaling that Washington may impose unprecedented measures as early as next week. Three Iranian officials and two political insiders told Reuters that despite the government’s public bravado, the combination of wartime infrastructure damage, trade disruptions, and severe economic strain has heightened the risk of domestic instability. Iran’s annual inflation rate reached 66% in July, with food inflation soaring to 128% year-on-year. The recent appointment of Hossein Taeb to lead the Basij militia is viewed by some observers as a clear signal of the regime’s concern over potential protests. President Masoud Pezeshkian recently acknowledged that the country’s problems have multiplied while revenues have fallen. Meanwhile, reports of gasoline shortages and difficulties in importing essential goods due to trade disruptions and a naval blockade continue to exacerbate the economic hardship faced by ordinary Iranians.