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Home»Explore by countries»Dubai / UAE»Rapid deterioration of Iran-UAE ties threatens a critical trade lifeline
Dubai / UAE

Rapid deterioration of Iran-UAE ties threatens a critical trade lifeline

By IslaApril 24, 20265 Mins Read
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“Prices here have increased tenfold and rice and cooking oil are hard to find,” one resident wrote from Zahedan in southeastern Iran, pointing to worsening access to staple goods.

Other citizens described the rapid erosion of purchasing power. “We go to sleep and wake up to everything being twice as expensive,” one message said, reflecting widespread concern over accelerating inflation.

Food costs climb, access narrows

Messages from multiple cities highlighted steep increases in the cost of everyday items. Citizens said even the most basic foods were becoming unaffordable, with eggs, rice and cooking oil among the hardest hit.

“Eggs have become so expensive they are being removed from our tables,” one citizen wrote, describing the shrinking range of affordable protein options.

Shoppers queue at a butcher’s counter in Iran as food costs continue to climb.

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Shoppers queue at a butcher’s counter in Iran as food costs continue to climb.

Restaurant prices were also cited as an indicator of inflation. Citizens said a single serving of kebab now costs between 5,000,000 and 6,000,000 rials (about $3.10 to $3.75), while a plate of chicken with rice ranges from 3,000,000 to 4,000,000 rials (about $1.90 to $2.50). Soft drinks were reported to exceed 1,000,000 rials (about $0.60).

  • As Tehran digs in, ordinary Iranians pay the price

    As Tehran digs in, ordinary Iranians pay the price

Based on an exchange rate of around 1,600,000 rials per dollar, the new minimum monthly wage of 162,550,000 rials is equivalent to roughly $104. This comes as annual inflation had already exceeded 70 percent before the start war on February 28, reaching its highest level since World War II.

 man sells fruit at the Grand Bazaar, amid the US-Israeli conflict with Iran, in Tehran, Iran, March 18, 2026.

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man sells fruit at the Grand Bazaar, amid the US-Israeli conflict with Iran, in Tehran, Iran, March 18, 2026.

As of late 2025/early 2026, average Iranian incomes have contracted to roughly $200 per month.

Shortages compounded the problem. Messages described difficulty finding chicken in distribution centers and limits on purchasing cooking oil in shops. Others pointed to disruptions in supply chains linked to industrial slowdowns and rising production costs.

Economic journalist Arash Azarmi said the surge in food prices was hitting lower-income households hardest. “Eggs priced at 200,000 rials ($0.12) each are shocking. This is a basic food item, especially for lower-income households, and it is effectively being pushed out of their consumption basket,” Azarmi said.

Official data, he added, already showed food inflation exceeding 112 percent, with some categories such as cooking oil rising by more than 200 percent.

  • Bread shortages, soaring prices strain households in Iran, residents say

    Bread shortages, soaring prices strain households in Iran, residents say

Iran’s monthly minimum wage for workers is set at one of the lowest levels compared to many countries in the region. Among Oman, Saudi Arabia, Turkey, Iraq, Qatar, Pakistan and Lebanon, the lowest minimum wage belongs to Pakistan, where workers earn at least the equivalent of $133. This figure is about $201 in Lebanon, around $275 in Qatar, about $345 in Iraq, and $625 and $585 in Turkey and Oman, respectively.

A woman shops for groceries in a store in Iran as prices continue to rise.

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A woman shops for groceries in a store in Iran as prices continue to rise.

Pressure spreads beyond food

Beyond rising prices, citizens said financial obligations continued to tighten during and after the conflict period, adding to the strain on households and businesses.

A billboard about the Strait of Hormuz on a building in Tehran, April 22, 2026.

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A billboard about the Strait of Hormuz on a building in Tehran, April 22, 2026.

“During the war there was no tax relief, insurance was taken in full from the private sector, and all loans faced late penalties despite earlier promises,” one message said, describing continued pressure on businesses.

Another citizen pointed to mounting banking enforcement and legal follow-up tied to unpaid debts. “All checks were bounced, accounts were closed and legal action started. Loan installments were either collected with interest or deducted from guarantors,” the message read.

Business owners described a cycle of rising costs and falling demand. A clothing seller said prices for goods were increasing by around 35 percent each week, while customers’ ability to pay continued to decline.

A shopkeeper stands in his clothing store at the Grand Bazaar, amid the US-Israeli conflict with Iran, in Tehran, Iran, March 18, 2026.

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A shopkeeper stands in his clothing store at the Grand Bazaar, amid the US-Israeli conflict with Iran, in Tehran, Iran, March 18, 2026.

Jobs scarce, costs rising

Citizens also pointed to a lack of job opportunities and growing difficulty in covering basic living expenses, including rent and utilities.

“There is no work and our savings are gone,” one citizen said, describing limited options for supplementing income.

Others reported rising bills even as businesses slowed or shut down. “We cannot pay rent, we cannot work,” another citizen wrote, pointing to disruptions affecting daily commerce.

  • Strikes on petrochemical hubs leave Iran short of plastics

    Strikes on petrochemical hubs leave Iran short of plastics

Small business owners said they were increasingly operating at a loss. One restaurant operator said higher meat prices and reduced customer demand were pushing the business toward closure. “If this continues, we will shut down and pay rent from our own pockets,” the message read.

Experts warn of accelerating inflation

Economist Mohammad Machinechian said the pace of price increases had reached a point where monthly inflation was more relevant than annual figures.

“I’m no longer talking about annual inflation, but monthly inflation, and that is the reality we’re dealing with,” Machinechian said. “Even in the best-case scenario, inflation could average at least 5 percent a month, meaning prices rise around 80 percent over a year.”

Machinechian added that in a prolonged stalemate scenario, prices could triple over the year, while renewed conflict could push monthly inflation above 20 percent, leading to annual increases approaching 500 percent.

File photo of people shopping for eggs and bread at a street market in Iran amid rising food prices.

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File photo of people shopping for eggs and bread at a street market in Iran amid rising food prices.

Azarmi described the situation as a “modern famine,” where goods remain available but are increasingly unaffordable for many households.

The accounts from citizens across the country depict an economy where rapid price increases, supply constraints and falling incomes are converging, leaving many struggling to secure even the most basic necessities.



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