Summary

The Iranian government’s decision to slash petrol subsidies went over like a societal earthquake, as thousands took to the streets in cities across the country last week to voice their dismay over worsening economic conditions. That the Rouhani administration decided to increase fuel prices by 50% at a time of near double-digit contraction and sky-high inflation speaks to the severity of Iran’s economic collapse. However, despite the very real anger that is now being vented toward the regime, the most likely political outcome here is not necessarily one that will be considered favorable by the architects of ‘maximum pressure’ in Washington.