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Analysis: Iran faces 'a permanent state of crisis' as time wanes and sanction pressure grows

Iran’s economy is shrinking with 45% inflation, while internal political divisions and stalled nuclear talks deepen the country’s crisis, officials and analysts say.

  • On Oct. 20, 2025, Supreme Leader Ayatollah Ali Khamenei halted talks with the West and blocked direct negotiations as Iranian delegates traveled to New York, while analyst Ali Abdullah Khani warned Iran faces a 'permanent state of crisis.'
  • Last month the United Nations reimposed sanctions targeting Iran's Central Bank and oil exports, deepening economic collapse despite Tehran's protests.
  • Executions are at a decades-long high and public life shows caution after the June war, with no major military parades and limited sea drills as industrial accidents and rial drops erode savings.
  • China and Russia publicly decried sanctions while United States and European nations enforce them, raising risks of Iranian crude seizures and deepening Tehran's isolation.
  • With no clear successor to Ayatollah Ali Khamenei, former President Hassan Rouhani is organizing critics in Qom, while Khamenei's public speeches rejecting U.S. coercion complicate Iran's political future.
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Analysis: Iran faces 'a permanent state of crisis' as time wanes and sanction pressure grows

Iran faces significant challenges as its economy struggles and sanctions are reimposed. Despite these pressures, the government hasn't taken major actions to address the situation or restart nuclear talks with the West.

·United States
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Iran faces deep crisis: stagnant GDP, currency crisis and energy deficit - intelligenceIran is experiencing its deepest socio-economic crisis in recent years, with GDP growth forecast at just 0.3% in 2025 and inflation at over 40%. This is due to a sharp decline in oil exports due to international sanctions and structural problems in the economy.

·Kyiv, Ukraine
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abc News broke the news in United States on Thursday, October 23, 2025.
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