Iran Feature: The Regime's Food Problems (Saul/George)

Queuing for Chicken, July 2012Iran's food distribution system is in crisis even though Western sanctions do not directly target the market, badly hurting the poor and turning some staples into luxuries.

Private importers are shrinking away from deals made risky by turmoil in the rial currency, and many foreign banks are reluctant to finance even trade exempt from the sanctions for fear of drawing fire simply for doing business with Iran.

The result is that the Iranian state is under growing pressure to import and allocate more goods as it tries to avoid any social unrest due to shortages and soaring prices.

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