Iran’s Inflation Hits Worst Levels Since World War II

Iran’s inflation has reached levels not seen since World War II, according to a report issued Monday by the country’s own Central Bank. This makes it the first official acknowledgement of an economic crisis.

The US-Iran war continues to destabilise the region, with its economic shockwaves reaching far beyond the Middle East. Oil prices have fluctuated since the war began, surging from around $70 per barrel just before the conflict began to an average of $103 per barrel in March.

The Strait of Hormuz has been classified as a high-risk zone, with major energy-importing economies including China, Japan, and South Korea among the most exposed.

Back in Iran, the rial has been battered by the ongoing conflict since the war began three months ago on February 28. The situation has worsened further by a US naval blockade, long-standing economic mismanagement, and government corruption.

Experts warn the economic pressure could trigger fresh nationwide protests if Iranians find themselves unable to afford basic necessities.

Reports indicate that diplomatic efforts between the two countries remain fragile. Iran is still considering the most recent draft of a potential agreement with the US and has yet to respond, as indirect negotiations remain in flux.