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INSIGHT

Coupons and concerts: Tehran scrambles for quick fixes as sanctions loom

Behrouz Turani
Behrouz Turani

Iran International

Sep 23, 2025, 16:15 GMT+1Updated: 00:36 GMT+0
Vocalist Alireza Ghorbani in his My Iran tour, Tehran, Iran, August 26, 2025
Vocalist Alireza Ghorbani in his My Iran tour, Tehran, Iran, August 26, 2025

Officials in Tehran are scrambling to blunt the impact of impending UN sanctions later this month and avert another popular flare-up that even insiders warn is near.

Among the proposals floated by politicians and economists are issuing coupons or smart ration cards to placate the public—especially the younger generation.

Efforts to introduce coupons began nearly a decade ago but stalled as rival factions in parliament and the cabinet fought over control of lucrative contracts.

In recent weeks, however, the idea has regained traction, with President Masoud Pezeshkian publicly backing it.

“We have no choice but to raise prices as subsidies on fuel and other goods are cut,” Pezeshkian said last week. “Issuing coupons will help low-income workers afford essential items.”

The system was used successfully during the 1980s war with Iraq, and many Iranians still credit then-prime minister Mir Hossein Mousavi, who is now under house arrest for nearly 15 years for leading protests against the disputed 2009 election.

‘A silent crisis’

Analysts in Tehran predict another spike in exchange rates once sanctions return on September 27. The government is expected to face a severe shortage of hard currency as oil sales become increasingly difficult.

Tehran’s priority appears to be containing unrest.

On September 18, Vice President Mohammad Reza Aref instructed the Tax Office to ease pressure on businesses and “avoid making people feel oppressed by the government.”

Many firms have already shuttered in recent months due to prolonged power outages and water shortages.

Just hours before the UN vote to reinstate sanctions last week, the reformist website Rouydad24 ran a headline warning of “A Silent Crisis in Iran.”

“Persistent economic problems … and limited access to basic services like electricity and water have severely impacted daily life, fostered a sense of despair and eroded public trust in the government,” the editorial said.

‘Bread riots’

Several academics, including political scientist Ahmad Naghibzadeh and sociologist Taghi Azad Armaki, have warned of “blind protests” and “bread riots” as public dissatisfaction reaches a boiling point.

Yet as economic warnings mount, officials have leaned on cultural gestures many see as unserious.

One initiative was a proposed free-for-all concert by renowned vocalist Homayoun Shajarian at Tehran’s iconic Azadi Square. Hardliners blocked the event, citing security concerns, and also vetoed a proposed indoor venue.

Wooing exiled artists

Once the resolution to extend Iran’s sanctions relief was voted down, government officials floated another gesture: inviting Iranian expatriate singers in Los Angeles to return to Tehran.

“I know that some of them in Los Angeles are struggling financially,” Vice President Aref said. “I invite them to come back freely.”

The administration’s spokeswoman Fatemeh Mohajerani insisted groundwork was being laid for such a move: “God forbid we end up only seeing their bodies brought back to Iran,” she told reporters on Tuesday. “They should be able to come home while they’re alive.”

Since 1979, Los Angeles has been a hub for Iranian musicians, many banned from working in Iran, stripped of homes and assets, and still censored despite their music being widely played in cars, weddings,and parties. Most are now elderly, many no longer able to perform.

No artist has yet responded. Some young users have—wryly.

“You can’t fool the new generation,” one commented on the vice president’s remark. “Even if you brought Lady Gaga to Tehran, she couldn’t make people forget their financial hardships.”

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