Iran Faces Economic Collapse With 89.8% Inflation Rate
Iran's economy is contracting sharply with hyperinflation and mass job losses as U.S. Treasury Secretary Scott Bessent predicts the regime is going bankrupt.
The Iranian economy is experiencing a severe contraction marked by 89.8% year-on-year inflation as of September 2026. Scott Bessent, the U.S. Treasury Secretary, predicted a further 25% economic retraction by next March, stating that the regime is going bankrupt.
Labor market instability has intensified, with official figures reporting 700,000 jobs lost during recent conflicts, though unofficial estimates suggest losses as high as two million. Seyed Malek Hosseini of the Ministry of Cooperatives, Labor and Social Welfare warned that an additional 1.4 million people could exit the labor market by the end of the Iranian calendar year.
The crisis is compounded by a three-month internet blackout, international sanctions, and damaged energy infrastructure. While the government struggles to fund unemployment benefits, it continues to provide tens of millions of dollars to Hezbollah. To manage energy shortages, First Vice-President Mohammad Reza Aref has urged citizens to limit their consumption of subsidized gas and natural gas.
In an effort to mitigate the collapse, Caretaker Oil Minister Hamid Bovard met with Vladimir Putin in Moscow to discuss joint oil and gas projects.
