TEHRAN — Iran is preparing for a postwar transition marked by economic contraction of approximately 10 percent and inflation.
The Ministry of Energy denied that controlled two-hour power blackouts would begin next month. However, Arash Najafi, head of the energy commission of the Iranian Chamber of Commerce, said, "To maintain production, people must prepare themselves for two hours of daily shutdowns." Energy consumers are offered a 30 percent price discount for reducing energy consumption by 10 percent.
The Statistical Centre of Iran reported that the annual food inflation rate reached 130 percent in May. Inflation for meat and chicken reached 176 percent. Fuad Habibi, a sociology professor at the University of Kurdistan, stated, "Economic crises and livelihood dissatisfaction have clearly increased, even without precise statistics. We are witnessing a rare increase in prices due to the naval blockade and the consequences of the war. The internet blockade has also led to direct or indirect unemployment of at least 2 million."
Mohammad Javad Azari Jahromi, a former communications minister, said, "Trump and Netanyahu’s next bomb may not be gunpowder; it may be inflation. The battlefield is the people’s table, housing rent, and gentlemen in charge, are you aware of the accumulation of dissatisfaction? Is the country’s economic defence ready, or will we be surprised again?" Masoud Pezeshkian has warned of difficult economic conditions and emphasized the need to maintain social cohesion.
Albert Baghzian, an economics professor at the University of Tehran, said, "In an economy of the size of Iran’s economy, with this level of efficiency in the policymaking sector, it is wrong to think that the influx of $12bn or $24bn will lead to a major opening. In our economy, figures higher than this have been brought in many times, but because we had not planned properly, resources were wasted, we ended up where we are today." Mousa Ghaninejad, an economist, stated, "The main issue in the Iranian economy is the dominance of command-based governance over rule-based governance, meaning that decisions are made in many cases not based on stable and transparent rules, but rather on short-term expediency and political considerations." The parliament is currently banned from holding in-person meetings. Internet censorship in Iran is being gradually lifted. Hardliners in the parliament are attempting to impeach the communications minister.