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flag Sanctions on Iran have shrunk its middle class by 28% since 2012, worsening inequality and undermining reform efforts.

flag Western sanctions on Iran, imposed over its nuclear program and regional activities, have severely harmed the country’s middle class—the demographic often seen as key to political and social reform. flag A study in the European Journal of Political Economy found that without sanctions, Iran’s middle class would have grown by 17% from 2012 to 2019, but instead shrank by 28%, equivalent to about 9 million people losing middle-class status. flag Soaring inflation—42.4% in October 2025—and currency devaluation have driven up prices for basic goods, while unemployment remains high, with official and IMF estimates at 7.4% and 9.2% respectively. flag The economic strain has eroded living standards, undermined reform movements, and deepened inequality, with luxury services accessible to a small elite while ordinary Iranians struggle. flag The sanctions, intended to pressure the government, have instead weakened the very social base for change, fueling public frustration and raising questions about their long-term effectiveness and humanitarian impact.

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