Iran’s Leaders Eschew Wartime Rationing as Economic Pressure Mounts
Iranian policymakers are refusing to begin rationing as part of wartime economic policies, relying instead on inadequate cash transfers to ease pressure on households.
By Nader Habibi
Iranian government officials have openly admitted that U.S. and Israeli war has caused severe damage to the Iranian economy. In addition to the destruction of many industrial and manufacturing units by airstrikes, an intrusive naval blockade has also caused major disruptions to Iranian supply chains. While Iranian economy was already suffering under maximum pressure economic and financial sanctions even before the 2026 war, the unprecedented direct conflict has resulted in a sharp increase in inflation, poverty, and food insecurity for large segments of the population.
There is evidence that addressing these hardships and preventing shortages of food and other essential commodities is a top priority for the government. Yet, instead of introducing a comprehensive and effective rationing system—a step commonly taken in countries facing major wars, including in Iran itself during the long Iran-Iraq war—the government has focused on managing the supply of these essentials without significantly interfering in market prices. The current policies include a digital voucher cash payment system (called “Kalabarg”), a monthly per-capita income support transfer, and a collection of price subsidies for fuel, electricity, and some food items. While these measures have offered some economic relief, they fall short of providing adequate minimum economic security under the current war conditions.
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