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Economic Woes May Force Iran to Bargain with U.S.
(Reuters) Parisa Hafezi - Tehran is increasingly concerned that mounting public anger over economic hardships could erupt into mass protests, four Iranian officials said. Tehran's concerns were exacerbated by President Trump's speedy revival of his first term's "maximum pressure" campaign to drive Iran's oil exports towards zero with more sanctions and bring the country's already fragile economy to its knees, they said. Iran has staved off economic collapse largely thanks to China, the main buyer of its oil and one of the few nations still trading with Tehran despite sanctions. Iranian oil exports have recovered in the past few years, bringing in more than $50 billion in revenue in both 2022 and 2023 as Iran found ways to skirt sanctions, according to the U.S. Energy Information Administration. Now Trump's maximum pressure policy aims to throttle Iran's crude sales with multiple rounds of sanctions on tankers and entities involved in the trade. Iran's rulers are also facing energy and water shortages, a collapsing currency, military setbacks among regional allies, and growing fears of an Israeli strike on its nuclear facilities. The Iranian rial has shed more than 90% of its value against the dollar since 2018. Some Iranian experts say inflation is over 50%. Based on Iranian state media reports, there were at least 216 demonstrations across Iran in February focusing on economic hardships, involving retirees, workers, healthcare professionals, students and merchants.