Mehdi Pazouki, an economist, in a conversation with Fararu, warned about the consequences of the continuation of military confrontation, a decline in oil revenues, and a severe budget deficit. He said that if the underlying problems are not resolved, the country’s economy will move toward hyperinflation and that annual inflation could exceed 600 percent.

According to Fararu, Pazouki said that Iran’s economy is currently facing one of the highest rates of persistent inflation in the world.

Rejecting Abdolnaser Hemmati’s claim that hyperinflation is impossible, he emphasized that if oil exports are completely halted and the costs are covered through the creation of money, the value of the rial will fall in an unprecedented way, leading to economic conditions similar to the crises in Venezuela and Argentina.

Citing the reduction of 450,000 in the number of people employed and noting that one quarter of the country’s gas capacity in the south has been damaged, the expert pointed out that the simultaneous pressure of U.S. sanctions and insisting on the hardline policies of domestic extremists have multiplied the cost of living. He said that avoiding war and diplomatic de-escalation tensions with the West is the main prerequisite for preventing economic collapse.