UN Reimposes Sanctions on Iran Amid Economic Crisis

The United Nations has reimposed sanctions on Iran as of September 28, 2025, intensifying pressure on the country already grappling with severe economic challenges. The sanctions, which took effect at midnight GMT, freeze Iranian assets abroad, halt arms deals, and penalize the development of Iran's ballistic missile programme. This action follows failed diplomatic efforts at the UN and is part of a mechanism known as "snapback" from the 2015 nuclear deal.

Iran's economy is in turmoil, with its currency, the rial, at a record low, leading to skyrocketing food prices. Basic staples like meat and rice have become increasingly unaffordable for many families. The government reported an annual inflation rate of 34.5% in June, with essential food items seeing price increases of over 50%. For instance, the price of pinto beans has tripled, while butter has nearly doubled. A mother of two, Sima Taghavi, expressed her frustration, stating, "Every day I see new higher prices for cheese, milk and butter. I cannot omit them like fruits and meat from my grocery list because my kids are too young to be deprived."

The sanctions come amid fears of renewed conflict, particularly between Iran and Israel, following a 12-day war in June that has left many anxious about the future. Activists are also concerned about a potential rise in repression within Iran, which has reportedly executed more people this year than in the past three decades. A father, identified only as Sina, shared his despair, saying, "For as long as I can remember, we’ve been struggling with economic hardship, and every year it’s worse than the last. For my generation, it’s always either too late or too early — our dreams are slipping away."

The snapback mechanism was designed to be veto-proof, preventing China and Russia from blocking it. France, Germany, and the UK initiated the snapback due to Iran's reduced cooperation with nuclear monitoring and stalled negotiations with the U.S. Iran has also withdrawn from monitoring by the International Atomic Energy Agency (IAEA) following the June conflict.

Despite Iran's claims that its nuclear programme is peaceful, it maintains a stockpile of uranium enriched to 60% purity, which is close to weapons-grade levels. Experts warn that the lack of IAEA inspections increases the risk of miscalculations, potentially leading to further military actions by the U.S. or Israel.

As the economic situation worsens, mental health issues are rising, with more people seeking psychological help. Dr. Sima Ferdowsi, a clinical psychologist, noted that the combination of inflation and the psychological toll of the recent conflict has left society exhausted and unmotivated. She cautioned that continued economic decline could lead to serious social and moral consequences, stating, "People may do things they would never think of doing in normal circumstances to survive."