Iran continues to grapple with a series of internal crises amid an intensifying conflict with the United States that has now lasted five months. The multifaceted challenges range from public discontent over executions and economic hardship to concerns over biased state media coverage, contributing to an atmosphere of political tension and social unrest.

Iranian officials warn that the current conflict extends beyond military engagements, describing it as a war waged on economic and social fronts. Masoud Pezeshkian, the country’s president, recently emphasized that the U.S. strategy involves applying economic pressure to foment social discontent, potentially undermining the public support that the government relies on. He highlighted that while traditional combat continues, the primary battlefield increasingly involves the livelihoods of ordinary Iranians, with rising inflation and unemployment exacerbating the situation.

Economic indicators underscore the depth of the crisis. Food inflation surged by 134% compared with the previous year, forcing many Iranians to alter their diets due to the soaring costs of staples such as fruit, eggs, and chicken. Overall inflation stands at 84%, and the real value of the minimum wage has significantly declined. The deputy labor minister, Gholamhossein Mohammadi, reported that over one million jobs have been lost as a result of the conflict’s economic fallout. The tourism and service sectors have also suffered, with all 400 hotels on Kish Island—recently targeted in U.S. military action—closed, and civilian infrastructure including the Bushehr airport rendered largely inoperative.

Public outrage persists over the continuation of secretive trials followed by public executions, particularly in cities like Isfahan, where protests have emerged in response to what many see as unjust state violence. Critics question the transparency and legitimacy of the judicial process, which has taken place behind closed doors. The political bureau of the reformist Nation’s Union party cautioned that ignoring these protests could lead to serious consequences, calling on academics and religious authorities to intervene.

The Iranian reformist camp has also voiced concern about the societal costs of ongoing hostilities and political polarization. Azar Mansouri, a former ally of Pezeshkian, warned that perpetuating conflict threatens not only military targets but the country’s economic stability, social capital, and future development prospects. Activists have united in calls for a public referendum on the war, asserting that most Iranians oppose continued confrontation with the United States.

However, hardline factions remain entrenched, opposing negotiations with Washington and framing diplomatic efforts as weakness or capitulation. State media, particularly the Islamic Republic of Iran Broadcasting (IRIB), has come under scrutiny for amplifying hardline views while marginalizing reformist voices. Despite its conservative orientation, critics argue that IRIB lacks accountability and fails to represent the broader diversity of Iranian society. Iranians increasingly turn to foreign satellite media amid declining trust in domestic outlets.

Adding to internal pressures are revelations of widespread corruption involving government-affiliated trusts responsible for managing foreign exchange revenues from Iranian oil sales. Zabihullah Khodayian, head of the General Inspection Organisation, disclosed that one such trust received $200 million and has not returned the funds, with the responsible individuals having fled the country. Investigations are reportedly underway into nearly 50 cases involving a combined debt to the state exceeding €23 billion. The opacity surrounding these entities and their role within the political system raises concerns of elite misconduct and potential scandal.

As Iran wrestles with these overlapping political, economic, and social challenges, the prospect of prolonged conflict and internal division looms large, complicating efforts toward reconciliation or de-escalation. The interplay of war, economic hardship, and governance issues continues to test the resilience of the Iranian state and society.