This past Saturday, the United Nations Security Council reimposed sanctions on Iran over the status of its nuclear program and lack of diplomatic cooperation. Such treaties and sanctions have existed for the past twenty years and were due to be up in 2025; this paired with the recent expansive enrichment of their uranium stock have created on-going global headlines. This news provides even more detrimental news for the Iranian people amid already destitute economic situations. Energy and water supply is extremely low, inflation is rising over 40%, unemployment is skyrocketing, and their currency is being devalued.
These sanctions and their consequences showcase the potential impacts of external forces such as foreign politics on the health of an economic system. The sanctions effect trade liberalization for Iran which can be directly seen through the devaluation of their currency and spiking inflation. Iran's mixed economy has facets of central planning by the government particularly over their oil industry. These externalities are accentuating the inefficiencies of the the command economy system. For instance, the government is currently rationing water and power usage throughout the nation. All in all, this situation highlights how outside factors effect the health of an economy.
https://www.nytimes.com/2025/09/27/world/middleeast/sanctions-iran-economy-snapback.html
Interesting article that talks about the deteriorating economy of Iran. With things already in shambles in Iran this news certainly doesn't help. With the high level of inflation they have I can imagine the normal citizen will be immediately impacted by these sanctions.
ReplyDelete