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Iran Warns Suppliers as Subsidy Overhaul Spurs Price Jumps and Protests

The reform redirects support to consumers through roughly $7 monthly credits at designated stores.

Overview

  • President Masoud Pezeshkian cautioned suppliers against hoarding or overpricing and directed regulators to secure supply lines and tighten price checks.
  • The overhaul ends preferential foreign-exchange access for importers, which officials say fostered distortions and rent-seeking.
  • Iranians are slated to receive about $7 per month to purchase basic goods at designated groceries under the new scheme.
  • Prices of staples such as eggs and cooking oil have risen sharply since the policy announcement, fueling public frustration.
  • Local reports describe tear gas used in Tehran’s Grand Bazaar during protests, and rights groups note demonstrations in several cities as Tehran defends the reform as fiscally necessary.