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Europe & Eurasia · Center-Right

Tehran’s Predicament: A Regime Devouring its Own

As sanctions bite deeper, the Iranian regime’s ideological fixations are pauperizing its populace, with predictable consequences for regional stability.

a group of people standing around a wooden pole
Photo: Hossein Nasr / Unsplash
By Anastasia Volkova · Center-Right·Saturday, September 12, 2026 at 3:01 AM·Edited by Vivienne Marchand

The recent wire report out of Tehran, detailing the escalating economic hardship faced by ordinary Iranians, is hardly surprising to those who observe the machinations of theocratic strongmen. While the NPR piece frames the situation as a consequence of "war and sanctions," a more precise analysis points to a regime that prioritizes ideological purity and regional destabilization over the welfare of its citizens. To attribute Iran’s economic woes primarily to external pressures without acknowledging the foundational mismanagement and strategic choices of the Islamic Republic is to offer a misleading palliative.

For decades, the Iranian government has siphoned national wealth into ventures designed to project power far beyond its borders: funding proxies from Hezbollah to the Houthis, developing ballistic missile programs, and enriching uranium for purposes that consistently raise international alarm. These are not the expenditures of a state focused on job creation or economic diversification for its populace. They are the hallmarks of an expansionist ideology, one that considers the suffering of its people a necessary, perhaps even desirable, sacrifice in its grander theological and geopolitical schemes.

Sanctions, particularly those levied by the United States, are indeed biting. That is their explicit purpose. They are designed to exert pressure on a regime unwilling to alter its behavior through diplomatic means. To lament their impact on the average Iranian without also acknowledging *why* those sanctions are in place — largely in response to nuclear proliferation activities, human rights abuses, and state-sponsored terrorism — is to lose sight of the causal chain. The leadership in Tehran holds the keys to alleviating much of this suffering, yet consistently refuses to turn them.

The notion that Iranians are losing "backup jobs" as conditions worsen paints a stark picture of desperation. This isn’t merely a cyclical downturn; it’s a structural collapse exacerbated by a ruling elite insulated from the consequences of its decisions. The Revolutionary Guard Corps, the Bonyads, and the clerical establishment continue to control vast swathes of the economy, often operating with impunity and benefiting from the very distortions that crush small businesses and private enterprise. When the state apparatus is primarily a vehicle for patronage and repression, economic dynamism becomes an impossibility.

One must disabuse oneself of the romantic notion that the Iranian leadership will suddenly pivot towards economic pragmatism. Their hold on power is predicated on a narrative of resistance against external enemies and internal dissent. A robust, independent private sector, empowered by economic freedom, would inevitably breed political challenges to their authority. Thus, the current state of affairs, however dire for the average Iranian, paradoxically serves to consolidate power within the existing hardline framework.

From a center-right perspective, the plight of the Iranian people is tragic, but the solution does not lie in easing pressure on the regime. Instead, it underscores the urgent need for a coherent, long-term strategy that supports the Iranian people while robustly countering the regime's destabilizing actions. This includes targeted sanctions, robust intelligence gathering, and clear messaging that distinguishes between the regime and its victims. Wishful thinking about the regime's capacity for reform has proven to be a dangerous indulgence time and again.

The implications for the broader region are also clear. A desperate populace, governed by an intransigent elite, remains a volatile element. The regime's historical response to internal pressure has been increased repression at home and heightened adventurism abroad. As the economic noose tightens, the risk of miscalculation, or deliberate escalation, from Tehran only grows. Europe and Eurasia, my primary beat, cannot afford to ignore these tremors. The struggle of ordinary Iranians is not merely an internal affair; it is a consequence of a regime that poses an enduring threat to international order. Their suffering is a direct result of their leaders’ priorities, and until those priorities shift, or are shifted for them, relief will remain elusive.