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

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.

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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.

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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.

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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!’”

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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.

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“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.”