War's impact is being felt far beyond battlefields and military targets in Iran, where months of conflict with the United States have deepened economic pressures on ordinary families. Rising prices, disrupted supply chains and growing uncertainty are forcing households to rethink everyday spending, from food and essentials to other basic purchases. As the economic fallout intensifies, Iranian consumers are facing a difficult new reality at the dinner table, with inflation and financial strain becoming part of daily life. This report looks at how the Iran-US conflict is hitting households, reshaping consumer behaviour and adding to the wider economic cost of war.

War is making food unaffordable in Iran

Year-on-year inflation in Iran reached a level in May that was unseen since World War II, says a report issued by Iran’s Central Bank on Monday, underlining the economic pain average Iranians face as the Islamic Republic stares at the prospect of renewed fighting amid the stalemate in difficult peace negotiations.&nbsp;The report of Iran’s Central Bank is the first official acknowledgement of the economic hardships due to the war and what Iranians shopping, paying for a taxi or visiting a medical clinic already know: The rial currency has been battered by the war and uncertainty around it resuming, reported CBS News.&nbsp;Besides, longtime problems of economic mismanagement and government corruption also appear to be dragging down Iran’s oil-backed economy as it remains under a US naval blockade.&nbsp;&nbsp;Also Read: <a href="https://www.wionews.com/world/mosque-built-illegally-by-pakistanis-in-japan-inaugurated-by-envoy-faces-demolition-1780425871272">Mosque built illegally by Pakistanis in Japan, inaugurated by envoy, faces demolition</a><h2>Consumer price index rose to 77.2% in May</h2>&nbsp;As per Iran’s central bank, the consumer price index, which measures a basket of goods and services, rose to 77.2% in May compared to the year before. It added that the rate is 8.5% higher than in April. Besides, inflation in daily and general needs, like medicine, taxi fares, tobacco and communication fees, rose 113.8% from the year before.&nbsp;Iran only saw worse inflation in 1942 during World War II, sparked by the British and Soviets invading the country and taking over its railways, disrupting food supplies.&nbsp;&nbsp;Economic pressure ignited nationwide protests in the past, something Iran’s theocracy has been trying to avoid since it violently quashed demonstrators in January. Rights groups estimate that over 7,000 people were killed then, but President Donald Trump said Iranian authorities killed some 30,000 people in the crackdown.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/unwarranted-categorically-reject-india-on-reference-to-jammu-and-kashmir-in-pakistan-eu-statement-1780419234068">‘Unwarranted, categorically reject’: India on reference to Jammu and Kashmir in Pakistan-EU statement</a>&nbsp;Experts fear that fresh demonstrations could start again if people find themselves priced out of feeding their families.&nbsp;<h2>Redirected 122 ships under Iran blockade: CENTCOM</h2>&nbsp;US forces have redirected 122 commercial ships “to ensure compliance” of the US blockade against Iran, US Central Command said in a post on X on Tuesday.&nbsp;CENTCOM also posted an image of the USS Abraham Lincoln transiting the Arabian Sea to support the blockade.&nbsp;Also Read: <a href="https://www.wionews.com/world/trump-picks-loyalist-bill-pulte-as-acting-director-of-national-intelligence-to-replace-tulsi-gabbard-1780410910956">Trump picks loyalist Bill Pulte as acting director of national intelligence to replace Tulsi Gabbard</a>&nbsp;<h2>Negotiations with Iran ‘going on continuously’: Trump&nbsp;</h2>&nbsp;Refuting claims to the contrary, President Donald Trump said on Tuesday that it’s “false and erroneous” that Iran and the US stopped speaking to each other a few days ago.&nbsp;“The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today,” Trump wrote on Truth Social. “Where they lead, one never knows, but as I told Iran, ‘It’s time, one way or another, for you to make a Deal. You’ve been doing this for 47 years, and it cannot be allowed to go on any longer!’”&nbsp;Also Read: <a href="https://www.wionews.com/india-news/govt-cracks-whip-shunts-cbse-chairman-secretary-over-evaluation-fiasco-orders-probe-1780405678066">Govt cracks whip, shunts CBSE chairman, secretary after evaluation fiasco; orders probe into vendor selection</a>&nbsp;Iran’s semi-official Tasnim news agency said on Monday that Tehran was halting all conversations with the US until Israel stops fighting in southern Lebanon.&nbsp;<h2>No sanctions relief to Iran ‘just in exchange for reopening the strait’</h2>&nbsp;Secretary of State Marco Rubio said on Tuesday that Iran will not get any sanctions relief “just for reopening the strait.”Replying to Democratic Senator Chris Murphy’s pointed query about what incentives, if any, Washington was willing to offer Tehran in exchange for an agreement to end the war, Rubio said any sanctions relief for Iran would have to come in exchange for major concessions on the Islamic Republic’s nuclear programmr, including its stockpile of highly enriched uranium.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/1-5mn-hits-in-2-minutes-1-lakh-file-access-attempts-cbse-re-evaluation-portal-faces-barrage-of-cyberattacks-1780402353408">‘1.5mn hits in 2 minutes, 1 lakh file access attempts’: CBSE re-evaluation portal faces massive cyberattack</a>&nbsp;“Will they receive relief just in exchange for reopening the strait?” Murphy asked.&nbsp;Rubio responded, “No, that’s not been discussed. That’s not been offered.”

Year-on-year inflation in Iran reached a level in May that was unseen since World War II, says a report issued by Iran’s Central Bank on Monday, underlining the economic pain average Iranians face as the Islamic Republic stares at the prospect of renewed fighting amid the stalemate in difficult peace negotiations. The report of Iran’s Central Bank is the first official acknowledgement of the economic hardships due to the war and what Iranians shopping, paying for a taxi or visiting a medical clinic already know: The rial currency has been battered by the war and uncertainty around it resuming, reported CBS News. Besides, longtime problems of economic mismanagement and government corruption also appear to be dragging down Iran’s oil-backed economy as it remains under a US naval blockade. Also Read: Mosque built illegally by Pakistanis in Japan, inaugurated by envoy, faces demolition Consumer price index rose to 77.2% in May As per Iran’s central bank, the consumer price index, which measures a basket of goods and services, rose to 77.2% in May compared to the year before. It added that the rate is 8.5% higher than in April. Besides, inflation in daily and general needs, like medicine, taxi fares, tobacco and communication fees, rose 113.8% from the year before. Iran only saw worse inflation in 1942 during World War II, sparked by the British and Soviets invading the country and taking over its railways, disrupting food supplies. Economic pressure ignited nationwide protests in the past, something Iran’s theocracy has been trying to avoid since it violently quashed demonstrators in January. Rights groups estimate that over 7,000 people were killed then, but President Donald Trump said Iranian authorities killed some 30,000 people in the crackdown. Also Read: ‘Unwarranted, categorically reject’: India on reference to Jammu and Kashmir in Pakistan-EU statement Experts fear that fresh demonstrations could start again if people find themselves priced out of feeding their families. Redirected 122 ships under Iran blockade: CENTCOM US forces have redirected 122 commercial ships “to ensure compliance” of the US blockade against Iran, US Central Command said in a post on X on Tuesday. CENTCOM also posted an image of the USS Abraham Lincoln transiting the Arabian Sea to support the blockade. Also Read: Trump picks loyalist Bill Pulte as acting director of national intelligence to replace Tulsi Gabbard Negotiations with Iran ‘going on continuously’: Trump Refuting claims to the contrary, President Donald Trump said on Tuesday that it’s “false and erroneous” that Iran and the US stopped speaking to each other a few days ago. “The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today,” Trump wrote on Truth Social. “Where they lead, one never knows, but as I told Iran, ‘It’s time, one way or another, for you to make a Deal. You’ve been doing this for 47 years, and it cannot be allowed to go on any longer!’” Also Read: Govt cracks whip, shunts CBSE chairman, secretary after evaluation fiasco; orders probe into vendor selection Iran’s semi-official Tasnim news agency said on Monday that Tehran was halting all conversations with the US until Israel stops fighting in southern Lebanon. No sanctions relief to Iran ‘just in exchange for reopening the strait’ Secretary of State Marco Rubio said on Tuesday that Iran will not get any sanctions relief “just for reopening the strait.” Replying to Democratic Senator Chris Murphy’s pointed query about what incentives, if any, Washington was willing to offer Tehran in exchange for an agreement to end the war, Rubio said any sanctions relief for Iran would have to come in exchange for major concessions on the Islamic Republic’s nuclear programmr, including its stockpile of highly enriched uranium. Also Read: ‘1.5mn hits in 2 minutes, 1 lakh file access attempts’: CBSE re-evaluation portal faces massive cyberattack “Will they receive relief just in exchange for reopening the strait?” Murphy asked. Rubio responded, “No, that’s not been discussed. That’s not been offered.”

The report of Iran’s Central Bank is the first official acknowledgement of the economic hardships due to the war. Besides, the old problems of economic mismanagement and government corruption also appear to be dragging down Iran’s oil-backed economy as it remains under a US naval blockade.

Iran’s central bank says inflation at World War II levels; eco pain deepening for Iranians

 Iran’s currency has lost roughly 20,000 times its value since 1979 due to US sanctions, political turmoil, and economic mismanagement. The rial fell from 70 per USD to over 1.4 million.

&nbsp;Iran’s currency has lost roughly 20,000 times its value since 1979 due to US sanctions, political turmoil, and economic mismanagement. The rial fell from 70 per USD to over 1.4 million.

Why has Iran’s rial lost about 20,000× of its value since 1979?

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War is making food unaffordable in Iran

Iran’s central bank says inflation at WWII levels; eco pain deepens for Iranians

Why has Iran’s rial lost about 20,000× of its value since 1979?