Iran Update, February 22, 2023
February 22, 2023 - ISW PressGrowing elements of the regime are publicly recognizing that the Islamic Republic has lost the confidence of its people as Iran faces a period of severe economic disruption that risks further popular discontent. CTP has previously assessed that Supreme Leader Ali Khamenei will tolerate limited criticisms of the regime, particularly those that pertain to Iran’s deteriorating economic conditions. Actors from across the political spectrum have subsequently acknowledged such issues and discussed the economy with urgency in recent days, suggesting that the regime must improve Iran’s economic conditions to regain the trust of an increasingly disillusioned populous. They have become increasingly vocal as the Iranian rial hit a new all-time low on February 21--valuing at around 500,000 for one US dollar--and as inflation rates hold at roughly 50 percent. The regime must implement significant economic reforms in order to meaningfully address Iran’s economic conditions, although it is presently unclear if Iranian officials have articulated and cohered around such a solution.