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Iran Faces Economic Turmoil as Trump Revives 'Maximum Pressure' Sanctions

Tehran grapples with domestic unrest, sanctions, and nuclear negotiations while seeking economic relief.

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China's top diplomat Wang Yi poses with Iranian Supreme National Security Council Secretary Ali Shamkhani and Saudi Arabia's national security adviser Musaad bin Mohammed Al Aiban in Beijing after the two Middle Eastern nations agreed to re-establish diplomat ties in March 2023.
Iranian President Masoud Pezeshkian looks on as he attends a press conference in Tehran, Iran. February 19, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS/File Photo
People wave flags next to an Iranian missile on display during the 46th anniversary of the Islamic Revolution in Tehran, Iran, February 10, 2025. Majid Asgaripour/WANA (West Asia News Agency) via REUTERS/File Photo

Overview

  • President Trump has reinstated his 'maximum pressure' campaign, targeting Iran's oil exports and intensifying sanctions enforcement.
  • Iran's economy is struggling under inflation, a collapsing currency, and rising poverty, with public discontent growing over worsening living conditions.
  • Supreme Leader Ayatollah Khamenei has rejected U.S. offers for nuclear negotiations, citing concerns over negotiating under pressure.
  • European allies remain divided on cooperating with Trump's Iran strategy, potentially undermining international sanctions enforcement.
  • Iran's leadership faces mounting challenges, including protests, energy shortages, and fears of Israeli military action on nuclear facilities.