Economics

How Iran’s Economic Strains Helped Stoke Protests

Abrahamian Says Budget Cuts Sparked Protests in Iran

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Demonstrations have erupted across Iran, sparked by discontent over rising living costs and broadening into rallies against the religious and security establishment. They come less than a year after voters reelected President Hassan Rouhani, a cleric who favors closer ties with the rest of the world. His efforts to end his country’s economic isolation were underpinned by a 2015 deal to limit Iran’s nuclear program, and he has promised that the agreement will bring the nation prosperity -- eventually. In a sign the protests could further polarize Iranian politics, Rouhani’s supporters have accused opponents of fanning economic concerns among poorer citizens. At the same time, hostility toward Iran under U.S. President Donald Trump raises the risk that the nuclear accord will founder.

Unemployment is 12 percent, with women and young people among the hardest hit. While inflation has dropped from more than 40 percent in 2013, when Rouhani was first elected, it still hovers around 10 percent. Some reportsBloomberg Terminal say a recent spike in egg and poultry prices -- blamed on a cull over bird flu concerns -- may have provoked the initial protests last week.