The Bank Collapse Behind Iran's Protests

Iran's financial crisis, triggered by renewed U.S. sanctions in 2018, is examined, highlighting the collapse of Ayande Bank as a turning point. The bank's failure, rooted in risky loans and investments in projects like the Iran Mall, led to a government bailout and increased money printing, causing inflation and a rial devaluation. A military conflict with Israel further strained the economy, leading to budget cuts and subsidy removals that sparked widespread protests. These protests, fueled by economic anxiety and a drop in the rial's value, were met with a severe government crackdown, exacerbating the crisis and raising questions about the regime's stability. The situation underscores the impact of financial isolation on Iran and the difficult choices facing its government.