News|Israel-Iran conflictProtests, strikes after Iran’s economic situation rapidly deterioratesIranians are further squeezed every day amid a tanking economy, an energy crisis, water bankruptcy and lethal pollution.

Recent developments in Tehran have highlighted significant economic challenges facing Iran, as business owners have closed shops in response to the declining value of the national currency. Protests have emerged, particularly in the capital's Jomhouri area, where shopkeepers at major tech and mobile phone centers initiated closures and demonstrations.

The Iranian currency, the rial, has reached a record low of over 1.42 million per US dollar. Although it has slightly recovered, the depreciation poses a serious threat to businesses, particularly those dealing in mobile phones. The government news agency IRNA has acknowledged this concern among vendors.

Iran continues to grapple with several long-standing issues, including an energy crisis contributing to severe air pollution and a water shortage affecting major cities. Additionally, Iran's tightly controlled internet landscape remains a challenge.

International pressure on Iran over its nuclear programme has intensified. In June, military actions by Israel and the US resulted in significant damage to Iran's nuclear facilities. The International Atomic Energy Agency (IAEA) has been denied access to these sites, complicating diplomatic efforts.

President Masoud Pezeshkian recently defended a contractionary budget proposal in parliament, which includes a 20 percent wage increase amid 50 percent inflation and a 62 percent tax hike. The president highlighted the challenges of balancing wage increases with limited financial resources.

Iran has experienced nationwide protests in recent years, notably in 2022 and 2023, following the death of Mahsa Amini. These demonstrations resulted in significant casualties and arrests, with authorities attributing unrest to foreign influences.

Based on reporting by Al Jazeera.