Grocery stores in Tehran remain stocked, but rising prices and job losses are making it increasingly difficult for many Iranian families to afford basic necessities.
Ahmad Karimi, a 52-year-old taxi driver and father of two, said he now works about 15 hours a day just to support his family.
"We have virtually given up on many things," Karimi said, adding that his family has stopped buying fruit and protein and has cut back on leisure activities. He also works on weekends to earn enough money.
Nearly six months into the war involving Iran, the United States and Israel, Iran's economy has come under growing pressure from sanctions and a naval blockade that has made it harder for the country to export oil, its main source of income.
It remains unclear whether the economic pressure will force Iran to make military or political concessions. Some experts doubt it will happen soon.
Since the war began, Iran has attacked oil-producing countries and US bases in the region and disrupted shipping through the Strait of Hormuz, a key waterway for global energy supplies.
Iran hopes the pressure, which has contributed to higher global energy prices, will help it secure better terms for ending the conflict. It is seeking sanctions relief and greater control over the Strait of Hormuz, including the ability to demand payments from ships carrying energy and other goods.
The Trump administration, meanwhile, has threatened even tougher sanctions to put more pressure on Iran. But experts say the US may be underestimating Iran's ability to withstand the economic strain.
Iran has faced Western sanctions for years and has developed ways to reduce their impact. It has increased domestic production, relied on informal trade networks, purchased restricted goods through third countries and used a shadow fleet to export oil.
"Iran's resistance capacity not only avoids collapse, it also prevents the economic pain from translating into the political pressure and changes that the U.S. expects," said Hadi Kahalzadeh, an Iran economy expert at Brandeis University.
Rising prices add to pressure
Tehran's Grand Bazaar remains busy as shoppers look for cheaper essential goods.
Prices have risen sharply, with rice now costing about 60% more and beef 150% more than before the war.
A 41-year-old mother of two from northern Iran recently posted on X about spending 89 million rials, about $65, on milk, eggs, toilet paper and a few other items without buying meat.
She spoke to The Associated Press on condition of anonymity because she feared possible retaliation.
"Buying basic necessities has become our main priority, and our shopping basket has gotten smaller and more limited," she said.
She also described the emotional strain of having to repeatedly tell her children that the family cannot afford things they want or activities they would like to join.
The International Monetary Fund expects Iran's inflation rate to approach 70% by the end of the year. The country's economy, already badly damaged by years of sanctions, is expected to shrink by more than 5%.
Gasoline remains relatively cheap because of government subsidies, but even that could change as fuel supplies become tighter.
An aide to the Iranian president told state television last week that the country is consuming more gasoline each day than it produces and may have to increase prices. Previous fuel price increases have triggered widespread protests.
Economic anger amid war
Iran's leadership was already facing public dissatisfaction over economic conditions before the US and Israel began the war on Feb. 28.
Protests had spread across the country earlier this year but were violently suppressed, with thousands killed and tens of thousands reportedly arrested.
Hassan Golmoradi, an economist based in Tehran, said some Iranians now blame countries imposing sanctions and carrying out attacks that have damaged factories and key infrastructure and killed civilians.
"Despite the hardships and difficulties, they have shown considerable patience in putting up with the resulting economic pressures," Golmoradi said.
Iranian authorities have warned that taking part in anti-government protests is treason and can carry the death penalty.
Mohammad Farzanegan, a professor of Middle Eastern economics at the University of Marburg in Germany, said many people were suffering but did not believe violent protests would improve their situation.
Trump threatens tougher sanctions
US President Donald Trump said Wednesday that he would launch the "most crushing economic operation ever taken against any country" against Iran.
He also threatened secondary sanctions against countries and companies that continue to trade with Tehran.
The United Arab Emirates, which has long been an important route for Iran to obtain goods and avoid sanctions, announced this week that it was suspending all trade with Iran. The announcement came a day after Trump spoke with UAE President Sheikh Mohammed bin Zayed Al Nahyan.
Iranian President Masoud Pezeshkian has said his elected government supports negotiations to end the war.
"What concerns us is people's livelihoods and their economic situation, and we are doing everything we can to deal with it," he told reporters last week.
However, the powerful Islamic Revolutionary Guard Corps remains a major force in Iran. The group has grown stronger after surviving US and Israeli airstrikes that killed senior Iranian leaders at the start of the war.
The Revolutionary Guard is seeking greater concessions from the US, including Iranian control over the Strait of Hormuz and financial compensation for the damage caused by the war.
With peace talks stalled, hard-liners in Iran believe the country can withstand the economic pressure longer than its opponents.
Iran's Supreme Leader Ayatollah Mojtaba Khamenei this month appointed a former Revolutionary Guard commander to lead the Supreme National Security Council, signaling continued support for a tougher approach.
Jobs losses deepen hardship
Official figures put Iran's unemployment rate at 9.1%, although state-linked media say the actual rate could be much higher.
A Labor Ministry official said more than 1 million jobs had been lost by late May, only three months after the war began.
The government has also eased enforcement of mandatory hijab rules, suggesting that authorities remain concerned about public opinion.
For many Iranians, however, the biggest concern now is the growing cost of maintaining their daily lives.
Karimi, the taxi driver, said the government needs to act quickly to ease the financial burden.
"The people won't be able to continue living like this," he said. "We're simply breathing, surviving, and trying to make it from one day to the next."
