Police Raid On Businesses Leads To Closure Of Major Tehran Mall

In the aftermath of a government crackdown on Kurosh Mall in the western part of Tehran, shop owners have made the decision to shutter their businesses.

Reports suggest that authorities seized merchandise from stores, citing concerns related to smuggling and mandated that all items must be of exclusive Iranian origin, with no presence of recognizable foreign brands.

Social media users view the operation as another move by the clerical regime to tighten financial constraints on the public amid a severe budget deficit.

Iran is currently contending with a considerable infrastructure deficit amounting to $500 billion. The government's operating budget also faces a 50-percent deficit.

The economic challenges in Iran have deepened since the United States withdrew from the JCPOA nuclear accord in 2018 and imposed sanctions. However, the roots of Iran's economic struggles extend further, as the Islamic regime has failed to allocate its substantial oil export revenues towards adequate infrastructure and investments since the 1990s. Despite generating around $1.5 trillion from oil sales over the past two decades, the government now finds itself controlling over 80% of the economy and facing bankruptcy.

Constrained by US oil export sanctions, Iran sells crude at discounted rates to China, earning approximately $30 billion annually, with no significant revenues in hard currencies. The amount falls short of covering the government's annual budget, leaving no funds for essential long-term investments.

While some commentators in Iran, including certain regime politicians, attribute the current economic challenges to President Ebrahim Raisi's administration, this perspective often neglects the impact of the country's foreign policy, typically influenced by Supreme Leader Ali Khamenei.