Construction workers building a bridge in Iran's southwestern province of Khuzestan, November 2025
Iran’s economy is now defined by a widening gulf between rich and poor and the rapid disappearance of the middle class, with a constant stream of corruption scandals adding to the daily hardship millions already face.
Iranian families across several regions described a rapid contraction of their diets in recent weeks, portraying kitchens reduced to bread-only meals as prices rose sharply across the country as reflected in multiple messages shared with Iran International.
Average monthly incomes now stand near $200, leaving millions unable to keep pace with food inflation. Many respondents said basic protein disappeared from their tables months ago.
“Our daily cost for five people is about 30,000,000 rials (around $27), not even counting meat, oil or rice,” one respondent said. “Our table has not just shrunk, it has been wiped out,” the message said.
Another described a timeline of disappearing foods: meat long ago, dairy a year ago, chicken six months ago, fruit four months ago. “It costs 1,000,000 rials (about $0.90) every time we buy bread. There is not much distance left until absolute hunger,” the person said.
One self-described employee earning 220,000,000 rials (around $195) a month and renting on a city’s outskirts said survival required queuing for subsidized poultry. “We removed meat from our diet at Nowruz because we were coming up short,” the message said.
Several said long-considered staples – Iranian rice, fish, nuts, fresh fruit and legumes – had become aspirations. “We eat only bread, yogurt and rice from morning to night,” another message said.
Health concerns mounting
In mid-October, domestic outlets reported that roughly 35 percent of recorded deaths were linked to undernutrition. Health ministry estimates say at least 10,000 people die each year from shortages of omega-3 fatty acids, another 10,000 from low fruit and vegetable intake, and about 25,000 from insufficient whole grains.
Shortages extend beyond food. “People are cutting doctor visits and medicine before anything else,” another respondent wrote. “We live on luck alone.”
One family of four said six months had passed since they last bought meat. “Life has become hard. My 16-year-old son left school to work, yet we still cannot cover daily needs,” the message said.
Another wrote that the essentials most families consider the heart of a meal – red meat, chicken and fish – were now out of reach. “If this government continues, the rest will disappear too, whether we like it or not,” the person said.
Many described a shift to cheaper staples. “Everything has been removed from my basket: fruit, dairy, meat, legumes. The only things I can still manage, with difficulty, are Indian rice, eggs and potatoes,” one message said.
Middle-class erosion
Several respondents who once identified with the middle class said they were now buying fruit with difficulty. “We take four apples, some pears, persimmons, cucumbers and oranges – it reaches 20,000,000 rials (around $18). One kilo of meat is 15,000,000 rials (about $13),” a message said, calling the situation “frightening and broken.”
Travel – once a marker of modest stability – has vanished. “Red meat, chicken, fish, clothes and gold have become dreams. Travel is zero,” one person said.
Amid the accounts of vanished foods, one message pressed for solutions rather than surveys. “We need a way out, not a question whose answer we all already know,” the person said.
Independent labor and pensioner groups warned in a joint 21 October statement that worsening living conditions and unanswered demands were pushing more workers, teachers and retirees toward street-level protest. They wrote that daily demonstrations reflected a determination to “win rights and express grievances” despite the economic strain.
The broad concern running through the messages is not only what families can no longer buy, but how long they can endure a decline that has turned routine meals into calculations of survival.
Iran's President Masoud Pezeshkian is coming under growing pressure for what critics call his failure to match tough talk on economic reform with concrete action.
The pressure comes amid rising inflation, stagnant growth and deepening shortages of energy and water that have strained public patience.
Experts warn the situation could deteriorate further next year, when the full impact of renewed UN sanctions triggered by European powers is expected to hit Iran’s already fragile economy.
Economist Morteza Afghah told the moderate outlet Fararu on November 12 that Pezeshkian’s call for eight-percent annual growth—echoed by Supreme Leader Ali Khamenei—was “unattainable even without the war with Israel and Europe’s snapback sanctions.”
He said Iran’s fifth development plan had already fallen far behind schedule and criticized Pezeshkian for repeatedly insisting that “major economic problems should be solved” without offering specifics.
“Which of the people’s problems can be solved by repeating that over and over?” he asked.
'Wasteful'
Conservative commentator Vahid Yaminpour made a similar point in a televised debate with a member of Pezeshkian’s media team, saying the president had invoked the country’s economic malaise nine times in less than a week without offering a semblance of a solution.
One such instance came earlier that day, when Pezeshkian criticized the large annual budgets allocated to organizations he said served no useful purpose.
“Start cutting those budgets from my own office,” he told lawmakers, noting that the presidential office employs nearly 4,000 staff, though he believes it could function with 400.
Economist Mehdi Pazouki urged the president to move beyond rhetoric and impose discipline on government spending, highlighting the proliferation of parallel bodies performing overlapping tasks.
“The irregular expansion of the government is one of the main reasons for the rising inflation rate,” he told Fararu. “Without solving this problem, it will be too difficult to overcome inflation.”
Pazouki also ridiculed Pezeshkian’s pledge to deliver a “budget without deficit,” calling the assertion a “joke.”
'Unaware'
Last month, even the conservative establishment daily Jomhouri Eslami advised the president: “Cut off the budget of organizations that have no achievements. The only thing they do is act like devoted disciples of those who fund them.”
Such criticism has been leveled at every administration, and Pezeshkian appears no more capable—or willing—than his predecessors to confront it. But he is also developing a growing PR problem.
During Pezeshkian’s parliament address on Tuesday, speaker—and elections rival—Mohammad Bagher Ghalibaf told the president that his economy minister Ahmad Meydari and his spokesperson Fatemeh Mohajerani did not grasp basic economic concepts.
Pezeshkian admitted he was unaware of what his own spokesperson had told the nation.
An Iranian Grand Ayatollah has urged the faithful to perform traditional Islamic prayers for rainfall as a worsening drought across the country has caused water shortages and threatens to eventually make the capital Tehran uninhabitable.
Grand Ayatollah Abdollah Javadi Amoli, a Shi'ite religious authority based in the holy city of Qom, said during his weekly ethics session on Wednesday that Islamic tradition recommends the so-called salat al-istisqa, which he described as a prayer for water in all forms, not just rain.
“This prayer, meaning asking for water, is not only for requesting rain but also for the abundance of water in wells, springs, and underground sources,” he said.
Multiple cities in Iran have held or scheduled rain-seeking prayers this week in response to a dramatic drop in rainfall and depleted river and reservoir levels.
In Tehran, the prayer will be held on Friday at 15:00 at the shrine of Imamzadeh Saleh Shrine in north Tehran, led by Ayatollah Seyyed Jamal al‑Din Din Parvar according to state media reports.
In Qom in central Iran the ceremony is scheduled for Friday morning at the Grand Mosque, as announced by provincial officials.
In Mashhad, in Khorasan Razavi Province, the country’s second-largest city and a major religious center with around four million residents, the prayer ceremony was held on Thursday.
Last week, the head of the Mashhad Water and Wastewater Company said water reserves in the city’s dams have now dropped to below 3 percent of capacity.
In Qazvin Province, the prayer ritual was performed on Monday, according to IRGC-affiliated Tasnim.
“The prayer for rain is an opportunity for hearts to return to God, to repent for shortcomings, and to recall hope and humility. When people pray with pure hearts and unity, divine mercy revives the earth,” Tasnim quoted Ayatollah Hossein Mozaffari, the Friday Prayer Leader of Qazvin, as saying about the ceremony.
Iran is now facing one of its most severe shortages in decades, with major reservoirs and dams nearing depletion.
President Masoud Pezeshkian said this month that if rain does not arrive before December, water rationing in Tehran would be needed.
Officials say the city of more than 10 million may be rendered uninhabitable if the drought persists. "Even if we do ration and it still does not rain, then we will have no water at all. (Residents) have to evacuate Tehran," Pezeshkian declared in a speech.
Last week, Iranian officials warned that water rationing could soon begin in several major cities, including Tehran, Mashhad and Isfahan, as reservoir levels fall to their lowest in decades amid a sixth consecutive year of severe drought.
Experts say the crisis is the culmination of decades of environmental mismanagement and overexploitation of resources.
Despite repeated warnings from experts over the years, Iran’s water management system has focused on building dams and drilling deep wells instead of investing in and maintaining infrastructure, often blaming the crisis solely on declining rainfall.
The debut of Tehran Fashion Week, held as part of Tehran Design Week, has set social media abuzz as the officially sanctioned fashion on show looked nothing like its past editions which extolled Islamic modesty.
For decades, Iran’s Public Culture Council and the National Foundation for Islamic-Iranian Fashion and Clothing have strictly overseen what they call “chaste attire.”
Tehran held fashion events in 2014 and 2015, where the designs were limited to “modest fashion”—long coats, scarves and loose forms approved by authorities. No later editions followed the events due to the official denial of permits.
This year’s revival of Tehran Fashion Week was folded into Tehran Design Week, a government-approved initiative showcasing design, furniture and art. Yet despite official oversight, photos and videos showed a strikingly freer atmosphere.
Some female models appeared at the events without headscarves, wearing tight-fitting western-style outfits, and many visitors ignored the mandatory hijab altogether. Women were seen in some social media videos walking bareheaded through the galleries in jeans and dresses.
The contrast is shocking to conservatives who have long treated fashion as a state-controlled domain. Yet for many Iranians, it simply reflects what the streets already look like after nearly two years of weakening hijab enforcement.
Private runways and changing tastes
Bita, a Tehran resident, told Iran International that private fashion shows have quietly flourished in major cities in the past two decades. “They are often underground, mixed-gender, and without hijab,” she said. “The clothes are usually exclusive and extremely expensive—far beyond what ordinary people could afford.”
The social shift since 2022, she added, has reshaped the industry itself and these private fashion events.
“The hijab barely exists anymore in many places,” she said. “Designers who once made luxury scarves and manteaux have turned to new lines because their former clients—the wealthy women who followed fashion—have mostly abandoned the hijab. Only a small group of very rich religious women still buy such expensive clothing, and their taste is totally different.”
Bita said she saw online ads for the Design Week fashion section, held at a well-known Tehran gallery, though she didn’t attend. “But my friends who went say it largely looked like seriously testing limits.”
Cultural paradox
Earlier this year, several clothing sellers at Tehran’s Grand Bazaar were prosecuted for hosting a women’s fashion show in which models appeared without scarves or with hair visible on the red carpet. Officials accused them of “violating public morality”, and their shops were shut down.
Independent news website Rouydad24 published a commentary published an analysis arguing that clothing in Iran has become not just a cultural or social question but a political and even security issue.
“In a country where just a few years ago shop mannequins were banned, stores were closed for selling open-front manteaux, and a small fashion show at the Bazaar caused a scandal," the commentary pondered, "how can Fashion Week possibly align with the realities of society?”
As Iran’s capital Tehran endures its worst water crisis in living memory, few recent global cases offer clearer lessons than Cape Town in South Africa in 2018.
The city’s narrow escape from “Day Zero” offers a workable blueprint for how Tehran could still avert a breakdown of its own.
President Masoud Pezeshkian underscored the urgency last week with one of the bluntest warnings any Iranian leader has issued: without rain, Tehran may one day have to be evacuated.
Tehran typically receives 50 to 60 millimeters of rain in October and November. This year it has had none, and forecasts offer little hope.
Utility officials have called the shortage “unprecedented,” stressing that the president’s warning is “serious” and that the city “no longer has any water for excess consumption.”
The picture is stark: a megacity entering winter with no meaningful rainfall, groundwater in freefall, and consumption habits far beyond its ecological limits.
How Cape Town pulled back from the brink
Cape Town, a city of four million, endured the worst drought in four centuries beginning in 2015, when winter rains fell to less than half their long-term average for three consecutive years.
By 2018, officials warned of “Day Zero” — the moment when reservoirs would become too low to keep water flowing.
Fear spread quickly: queues for bottled water, soaring tanker prices, and social tension. But instead of losing control, city authorities responded with an unusually disciplined strategy built on strict demand cuts and complete transparency.
A 50-liter daily limit per person was imposed
Tariffs rose steeply, with high-use households paying up to ten times more
A public campaign launched under the slogan “Every Drop Counts”
Reservoir levels and the projected “Day Zero” date were posted online every day
Small desalination units, expanded wastewater reuse, and limited groundwater extraction provided backup supply
Low-income households received additional subsidies to ensure fairness
The impact was dramatic. Water use fell by more than 55 percent in under two years, from 1.2 billion liters per day to about 500 million.When rains finally returned in 2018, the reservoirs refilled. But the deeper lesson endured: transparent, collective action can shift behavior on a massive scale.
High use, high leak
Average household use in Tehran is 250 to 300 liters per person per day — roughly double that of many developed countries. Nearly one third of the city’s water disappears through leaks in its aging network.
Yet policy continues to rely on large-scale water-transfer projects that postpone, rather than resolve, the crisis.
Decades of over-pumping have pushed Tehran’s aquifers into an annual deficit of roughly 130 million cubic meters, with cumulative losses over forty years approaching 5 billion.
Southern districts now face accelerating land subsidence, which Iran’s Geological Survey warns poses “a direct threat” to the city’s infrastructure.
Once aquifers collapse, they cannot be restored.
What can be done?
Cape Town turned fear into a turning point. Tehran has yet to begin that kind of honest conversation. Years of distrust between state and society have made public cooperation far harder to mobilize.
Drawing on Cape Town’s experience, five measures stand out as immediately actionable for Tehran
Demand before supply: Network repairs, realistic pricing and public education must outrank new transfer projects.
Transparency builds trust: Citizens need clear, regular data on reservoir levels and consumption.
Scale up recycling: Treated industrial and domestic wastewater can meet a significant share of demand.
Protect the vulnerable: Pricing and rationing must account for low-income households to prevent unfair burdens.
Unify management: Fragmented authority is the biggest obstacle; Tehran needs a single, accountable command structure.
Tehran can avoid a Day Zero with concrete, credible action. The window is still open—but barely, and not for long.
Nearly 40 million Iranians now live below the relative poverty line, according to labor officials, including seven million in absolute poverty—people who would still face malnutrition even if they spent all their income on food.
Bread provides more than 40% of daily calories for low-income families, yet prices of bread and cereals, set by the government, have almost doubled in a year.
Meanwhile, the real dollar value of workers’ wages has collapsed from about $500 in 2015 to less than $160 today.
“The gap between the rich and the poor is now so wide that the middle class is effectively disappearing,” economist Ali Ghanbari told moderate outlet Fararu.
‘National crisis’
Faramarz Toufighi of the Labour Councils told ILNA that real food inflation surpassed 90% in October, warning that the minimum wage covers “not even one-third of workers’ basic living costs.”
The business site Eghtesad24 highlighted the figure and amplified the alarm, writing that a misstep in setting next year’s wages could trigger “a national crisis.”
Economist Hossein Raghfar told Etemad that even the most optimistic wage proposals—up to a 35% rise—will do nothing to restore purchasing power.
“For more than three decades, wage hikes have lagged behind inflation,” he said. “Workers and public employees are effectively subsidizing the state by earning less than the cost of living.”
Raghfar criticised the government for claiming it lacks funds for higher wages while “injecting vast sums into the stock market, spending foreign currency reserves on luxury imports, and sparing large corporations from fair taxes.”
‘Fighting for survival’
The financial daily Eghtesad News warned that the official poverty line “has become a political slogan,” noting that people judge reality by supermarket prices, rent, and school fees—not by government claims.
Labour expert Hamid Haj-Esmaeili told the paper that the average wage is roughly 170 million rials (about $155), while the average household now needs at least three times that to get by.
Ali Dehghan-Kia, head of the Tehran Retired Workers’ Association, told Etemad that the wage–inflation gap has stripped families of purchasing power.
Retirees, he said, face “a survival crisis” in food, housing and healthcare. “If this continues, the social consequences will be severe.”
Chronic corruption
Raghfar has long warned of what he calls the “São Paulo-ization” of Iran’s economy—extreme wealth concentrated in a small elite while the majority sink deeper into poverty. He told Khabar Online this week that rising poverty is inseparable from corruption in the banking sector.
Britain sanctioned Ayandeh’s owner, Ali Ansari, in October for allegedly financing the Revolutionary Guards. Foreign media estimate his London property holdings at about the same value as Iran’s entire annual anti-poverty budget—roughly $180 million.
“What makes this case more than personal … is the staggering contrast between a banker’s frozen wealth in London and the structural poverty inside Iran,” the labour news agency IONA wrote in an editorial.
“When a nation’s anti-poverty budget equals one man’s assets, the real question is no longer ‘where the money came from’ but ‘what kind of system made this possible.’”