Tehran’s Gold Bazaar Amidst Inflation Crisis: Citizens Turn to Gold as Currency Collapses

International Sanctions and Their Role in the Economic Crisis

8.1 Historical Context of Sanctions on Iran

Since 1979, Iran has faced various international sanctions, primarily targeting its nuclear program, missile activities, and regional policies. The 2018 US withdrawal from the JCPOA (Joint Comprehensive Plan of Action) reignited sanctions, severely restricting Iran’s access to global financial systems.

8.2 Impact of Sanctions on Iran’s Economy

Sanctions have:

• Restricted Iran’s ability to sell oil internationally
• Limited access to foreign investment and banking
• Caused capital flight and currency depreciation
• Hampered imports of essential goods

Data Point: Iran’s oil exports fell from approximately 2.5 million barrels per day pre-2018 to less than 300,000 barrels during peak sanctions, drastically reducing revenue.

8.3 Evasion Tactics and Black Market Dynamics

Despite sanctions, Iran has employed various tactics:

• Smuggling oil through regional intermediaries
• Using cryptocurrencies for transactions
• Developing barter trade arrangements

However, these measures only partially mitigate losses and often lead to increased inflation due to currency destabilization.

8.4 Sanctions and Inflation Nexus

Sanctions exacerbate inflation by:

• Shrinking supply chains
• Increasing import costs
• Reducing government revenue
• Causing currency devaluation

In Iran’s case, sanctions have intensified the inflationary spiral, fueling the surge in gold purchases as a hedge.

September 26, 2025 | 4:07 pm