A man looks at fresh produce in a fruit and vegetable market in Tehran, Iran, March 2025
Escalating talk of war and renewed negotiations with the United States may dominate Iran’s political discourse, but the country’s deepening economic crisis is more present in daily life—and no less likely to drive change.
On Monday morning, the Foreign Ministry spokesman said foreign reporters visiting the country had described life as “normal.” Yet the indicators and daily experience suggest anything but.
That same day, Iranian media quoted bakers and grocers saying that wealthier customers now leave deposits so poorer families can take bread or meat without paying upfront.
Even newspapers aligned with Supreme Leader Ali Khamenei have begun issuing warnings.
Khorassan cautioned about the political consequences of rising bread prices. Days earlier, Kayhan warned that bread riots were likely if the government proceeds with plans to raise prices for a fourth time since President Massoud Pezeshkian took office in mid-2024.
Tabnak, the news site run by former IRGC commander Mohsen Rezaei, reported that a family of two or three now needs about twice the government’s worst-case estimate from last year to cover food costs.
Overall inflation is above 60 percent and expected to approach 70 percent this month. Donya-ye Eqtesad warned that food inflation could soon reach triple-digit levels. The Statistical Center of Iran reports inflation for agricultural goods above 85 percent and services above 45 percent.
Across the media spectrum, analysts point to three converging pressures: soaring food prices, wages that lag behind living costs and persistent instability in financial markets.
Specialized economic outlets report continued volatility in the foreign-exchange market. The dollar has fluctuated between 1,630,000 and 1,650,000 rials in recent days, with traders describing “high-tension anticipation” tied to uncertainty over negotiations with the United States and broader political risks.
Gold prices have surged alongside the currency, placing what has long been a traditional hedge against instability beyond the reach of most households.
The stock market has added to public unease. Shargh reported sharp index declines and heavy retail capital flight on Monday, with roughly 110 trillion rials ($680 million) exiting the market in 24 hours.
Analysts cite eroding confidence in government support policies and fears that regional tensions could spill into the domestic economy. Even those with no investments feel the consequences, as market instability feeds broader uncertainty.
Ramadan, traditionally marked by nightly gatherings and shared meals, has taken on a subdued tone. Many families can no longer afford customary foods, let alone host guests.
State television and pro-government social-media accounts now openly discuss the possibility of war. Online documentaries show Tehran’s pre–New Year shopping districts open but nearly empty. Instead of browsing, residents exchange advice on stockpiling food, fuel and clothing — precautions in case the capital comes under attack.
If this is normal, it is a fragile and increasingly costly version of it.
An illustration showing an ancient Iranian soldier and a Revolutionary Guard member holding a weapon together, displayed during a November 7 ceremony in Tehran where a statue of pre-Islamic Persian King Shapur I was unveiled.
Tehran’s unveiling of a towering statue depicting the Roman Emperor Valerian kneeling before pre-Islamic Persian King Shapur I has renewed criticism of the Islamic Republic’s appeal to nationalist sentiment following the June war with Israel.
For over forty years, the theocracy purged ancient Persian history from schoolbooks, replacing it with post-Islamic narratives. But after the 12-day conflict with Israel, officials have turned to the distant pre-Islamic past to rally a divided society.
From murals of ancient kings and soldiers to patriotic songs added to Shi’ite mourning ceremonies performed before Supreme Leader Ali Khamenei, Tehran now embraces imagery once deemed heretical by its own revolutionary ethos.
The statue unveiled in Tehran's Revolution Square
'Kneel before Iran' campaign
Tehran’s Revolution (Enghelab) Square was the scene of an unusual spectacle on Friday as officials unveiled a massive bronze statue depicting Roman Emperor Valerian kneeling in submission before Sassanid King Shapur I, commemorating Iran’s victory at the Battle of Edessa (260 AD).
The event was held under the slogan “Kneel before Iran,” part of what authorities describe as a campaign to project “national unity and historical pride” following the June war with Israel.
Tehran Mayor Alireza Zakani, a staunch ultraconservative, said on X: “Enmity with Great Iran can only end in kneeling before this historic nation.”
Municipal official Davood Goodarzi said the installation would be accompanied by visual displays depicting “other victories of Iranians over foreign aggressors,” including the defeat of British forces by local commander Rais-Ali Delvari, Mirza Kuchak Khan’s resistance against Russian troops, and Surena’s triumph over Rome at the Battle of Carrhae in 53 BCE.
The goal, Goodarzi said, is “strengthening concepts such as national dignity, social unity, and Iranian identity.”
The statue, he said, would remain temporarily at Revolution Square before being moved to a city gateway “where it will stand as the first emblem of Iran before diplomats and foreign visitors.”
Unveiled women were allowed to attend the unveiling ceremony—an uncommon scene at events organized by Tehran’s ultra-hardline municipality.
The turn to the pre-Islamic past
The sharp reversal also recalls remarks once made by Khamenei. In a 2011 speech, he asserted that “all the great military victories of this nation came after Islam,” dismissing pre-Islamic accounts as “things that are not documented.”
In 1987, he had said that prophets triumphed over kings such as Cyrus and that “nothing remains of these monarchs in history but names remembered with derision.”
Nevertheless, pro-government social media accounts have now gone so far as to circulate posters equating Khamenei himself with Shapur, showing him standing with a staff as Benjamin Netanyahu and Donald Trump kneel before him. The caption reads: “You will kneel before Iran.”
Image circulating by hardliners on social media
'Hypocrisy'
Pro-government figures have hailed the move as a patriotic success. Conservative political reporter Hossein Saremi posted: “Today’s grand Iranian gathering showed that people and the state share one essence: Iran itself. Nothing can take our homeland away.”
Others, however, called the spectacle “hypocrisy.” Journalist Gholamhossein Pashaei wrote on X: “Every year you close Pasargadae to stop people from celebrating Cyrus Day, yet you unveil Shapur’s statue in Enghelab Square with drums and fireworks during Fatimiyya (mourning period)!”
Dissident commentator Hamid Asafi called the ceremony “a perfect snapshot of the Islamic Republic’s contradictions.”
On Telegram he wrote: “A week ago they closed Cyrus’s tomb out of fear of the crowds, and now they glorify Shapur in the same breath. The Islamic Republic fears living history but poses for selfies with its corpse.”
He added: “They know people no longer respond to rosaries and sermons. That’s why they’ve brought history back to the stage—in a controlled costume. If they can’t erase the past, they’ll try to own it.”
The irony deepened as UNESCO formally recognized Cyrus’s Charter as one of the earliest human-rights documents.
President Masoud Pezeshkian wrote on X: “Iran, the cradle of dialogue, justice, and coexistence, can still inspire peace today.”
Users swiftly replied, questioning how such pride could coexist with a government that blocks access to Cyrus’s tomb each year to those wishing to visit it on his birthday.