• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Middle EastIran

Is Iran next for Trump? A currency collapse, energy crisis, and water shortage have exploded into unrest against the regime

Jason Ma
By
Jason Ma
Jason Ma
Weekend Editor
Down Arrow Button Icon
Jason Ma
By
Jason Ma
Jason Ma
Weekend Editor
Down Arrow Button Icon
January 5, 2026, 12:57 PM ET
A view of the currency exchange office in Tehran on Dec. 31, 2025.
A view of the currency exchange office in Tehran on Dec. 31, 2025. Fatemeh Bahrami—Anadolu via Getty Images

A day before the U.S. military captured Venezuelan dictator Nicolás Maduro, President Donald Trump threatened Iran’s regime as protests there continued amid deteriorating economic conditions.

Recommended Video

Given the stunning success of the weekend raid in South America and the U.S. bombing of Iran’s nuclear facilities in June, speculation has grown that Trump may turn his sights back to the Middle East.

On Friday, he warned on social media that if Iran kills peaceful protesters, “the United States of America will come to their rescue. We are locked and loaded and ready to go.” And days before that, Trump threatened to “knock the hell out of” Iran if it tried to rebuild its nuclear program or expand its ballistic missile program.

On Saturday, Secretary of State Marco Rubio suggested the Venezuela operation was a warning to other U.S. adversaries who doubt Trump.

“When he tells you that he’s going to do something, when he tells you he’s going to address a problem, he means it,” he told reporters.

Protests among shopkeepers in Tehran began late last month after Iran’s currency plummeted further, raising costs for merchants selling imported goods. Others joined in, prompting the regime to crack down, with some deaths reported.

Iran in crisis

The unrest comes as multiple crises have whipsawed the economy. The currency has lost 60% of its value since June, when Iran and Israel fought a 12-day war that was capped by the U.S. bombing.

That has worsened soaring inflation, which hit 64% for food products in October, according to the World Bank.

At the same time, Iran has been plagued by chronic energy shortages. Despite vast oil and gas reserves, fuel and electricity must be rationed because of underinvestment, outdated infrastructure, subsidies, corruption, and sanctions.

That means rolling blackouts are imposed during the summer, when the need for air-conditioning stokes electricity demand. At the same time, natural gas supplies for winter heating also suffer disruptions.

The energy crunch has prompted Iran to look toward solar energy, but the weak currency also means importing the necessary technology is extra expensive.

Meanwhile, Iran is suffering its worst drought in at least 40 years. As recently as a month ago, the main reservoirs supplying Tehran were only about 11% full. The situation was so dire that Iranian President Masoud Pezeshkian even suggested people may need to evacuate the capital.

While some rain has since fallen, it hasn’t improved the overall situation much, and precipitation is just 5% of what’s considered a normal autumn. Service has reportedly been interrupted in some Tehran neighborhoods.

Water carries political risks, too, as previous shortages have sparked some protests in the past, and any curbs to agricultural users could worsen food inflation even further.

Like the energy shortage, the water crisis has several factors, including decades of mismanagement and overextraction, leaky pipes, corruption, and climate change.

With multiple calamities converging at once for Iran, while Trump’s appetite for foreign intervention is expanding beyond Venezuela, observers see heightened risks for the Islamic Republic. Maduro is also a close ally of Iran, which has condemned his capture and arrest by the U.S.

“Whether Trump becomes enamored with ‘surgical’ regime change, or gives [Israeli Prime Minister Benjamin] Netanyahu a U.S. imprimatur for similar actions, it’s hard not to see how this gives momentum for the many actors pushing for renewed war with Iran,” Jamal Abdi, president of the National Iranian American Council, told Al Jazeera.

Join us at the Fortune Workplace Innovation Summit May 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.
About the Author
Jason Ma
By Jason MaWeekend Editor

Jason Ma is the weekend editor at Fortune, where he covers markets, the economy, finance, and housing.

See full bioRight Arrow Button Icon

Latest in Middle East

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Most Popular

placeholder alt text
Economy
An unusual Fed ‘rate check’ triggered a free fall in the U.S. dollar and investors are fleeing into gold
By Jim EdwardsJanuary 26, 2026
1 day ago
placeholder alt text
Success
Despite running $75 billion automaker General Motors, CEO Mary Barra still responds to ‘every single letter’ she gets by hand
By Preston ForeJanuary 26, 2026
23 hours ago
placeholder alt text
Commentary
Yes, you're getting a bigger tax refund. Your kids won't thank you for the $3 trillion it's adding to the deficit
By Daniel BunnJanuary 26, 2026
1 day ago
placeholder alt text
Success
'The Bermuda Triangle of Talent': 27-year-old Oxford grad turned down McKinsey and Morgan Stanley to find out why Gen Z’s smartest keep selling out
By Eva RoytburgJanuary 25, 2026
2 days ago
placeholder alt text
Personal Finance
Current price of silver as of Monday, January 26, 2026
By Joseph HostetlerJanuary 26, 2026
1 day ago
placeholder alt text
Personal Finance
Sweden abolished its wealth tax 20 years ago. Then it became a 'paradise for the super-rich'
By Miranda Sheild Johansson and The ConversationJanuary 22, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.


Latest in Middle East

Middle EastIran
Carrier strike group with stealth fighters arrives in Mideast as Trump weighs Iran attack while Air Force jets and cargo planes also head to region
By Konstantin Toropin and The Associated PressJanuary 26, 2026
16 hours ago
kushner
PoliticsUkraine
Three-way-talks between Ukraine, Russia and U.S. held in Abu Dhabi in diplomatic first
By Kamila Hrabchuk, Kostya Manenkov and The Associated PressJanuary 24, 2026
3 days ago
kushner
Middle EastGaza
Jared Kushner’s dream of a Gaza city full of new skyscrapers clashes with reality of 60 million tons of rubble
By Julia Frankel and The Associated PressJanuary 23, 2026
4 days ago
powell
North AmericaGreenland
The shortest flight path for a nuclear missile between China or Russia and the United States goes directly over Greenland
By John Leicester and The Associated PressJanuary 22, 2026
5 days ago
Trump
Middle EastMiddle East
Trump’s Gaza ‘Board of Peace’ extends invitations to Russia, Belarus and Thailand along with EU
By Samy Magdy, Julia Frankel and The Associated PressJanuary 19, 2026
8 days ago
trump
EuropeGreenland
Trump says he wants Greenland because he was rejected for a Nobel Peace Prize last year
By Aamer Madhani, Geir Moulson, Jill Lawless and The Associated PressJanuary 19, 2026
8 days ago