Iran missiles
A billboard depicting Iranian ballistic missiles in Tehran.
  • Iran's economy is in bad shape.
  • Decades of sanctions have driven up inflation, government debt, and poverty rates.
  • Iran's struggles could be a warning for Russia as the war in Ukraine drags on.

Escalating tensions between Iran and Israel have driven up commodity costs, reignited worries about a flare-up in inflation, and sparked renewed fears of wider conflict in the Middle East.