Iranians cut essentials and put dreams on hold as war-hit economy bites

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Iranian families are cutting back on food, housing and education as the eight-month-old war with the United States fuels one of the country’s worst inflation surges in decades, eroding incomes and pushing households to the brink, Reuters reports.

The strain is being felt far beyond the country’s major cities. Workers say wages no longer cover basic expenses, while businesses face rising costs and weakening demand as families spend most of their budgets on food, rent and other necessities.

Reuters has spoken to more than two dozen people across Iran from different social and economic backgrounds who say worsening conditions have left them struggling to afford food, housing, healthcare and education.

“We have no money, no future and no hope. We’re tired of living in fear, fear of another US attack and fear of not being able to make ends meet at the end of every month,” says Mohammadali, a 47-year-old shopkeeper and father of two in the northeastern city of Mashhad.

Read more here.

People shop at a local market in Tehran, Iran on October 27, 2026. — Reuters
People shop at a local market in Tehran, Iran on October 27, 2026. — Reuters

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