Jan Egeland Warns of Economic Crisis and War Fears in Iran
Jan Egeland, Secretary General of the Norwegian Refugee Council (NRC), has reported a severe economic crisis unfolding in Iran following a five-day mission across five provinces and the western border with Turkey. While surface-level normality has returned to cities like Tehran, Egeland warns that a profound financial collapse is hidden behind the facade of returning traffic and daily commutes.
Hyperinflation and Economic Collapse
Data from Iran’s central bank reveals a critical economic situation, with inflation for common goods and services rising by 113.8 percent compared to 2025. This represents the most severe inflationary period the country has faced since 1942.
Egeland noted that purchasing power has effectively vanished, leaving food prices prohibitively expensive for many. While gasoline remains cheap, the broader economy is struggling under the weight of hyperinflation.
The Secretary General highlighted that sanctions intended to target the regime are instead impacting ordinary citizens, regardless of their political leanings, as well as millions of refugees.
The Toll of Conflict and Infrastructure Loss
The economic distress is compounded by the aftermath of warfare between Iran and the US/Israel, which began on February 28. The region has endured over 20,000 airstrikes, resulting in the destruction of tens of thousands of homes.
Egeland observed widespread damage to military buildings, police stations, and industrial sites. However, the destruction extends to civilian infrastructure, including schools, apartment buildings, and a completely burnt-out hospital in Tehran.
Despite the scale of the damage, Egeland noted that the destruction is more dispersed across Iran’s 1,648,000 square kilometers—an area five times larger than Norway—compared to the concentrated devastation seen in Gaza or Lebanon.
Impact on Afghan Refugees
Among the most affected are the 4.5 million Afghans living in Iran, many of whom arrived decades ago during the 1980s and 1990s. While Iran previously provided these populations with access to free healthcare and education, their economic stability has vanished.
Many Afghan refugees have lost their jobs as Iranians, displaced from the industrial and business sectors, compete for the remaining available work. This shift has left a massive population of vulnerable people without a means of survival.
Funding Shortfalls and Future Risks
The NRC is currently facing a critical funding gap, possessing only one-third of the financial resources required to maintain its operations. While Norway, Sweden, and the EU remain the primary contributors, Egeland expressed frustration over the lack of other donor nations.
If additional funding is not secured, the NRC may be forced to scale back its assistance efforts despite what Egeland describes as a “desperate need.”
Such a reduction in aid could lead to several precarious scenarios. Because return to Afghanistan is not a viable option, a lack of support in Iran could potentially drive refugees to seek further asylum toward Europe.
Frequently Asked Questions
What is the current state of inflation in Iran?
Inflation for ordinary goods and services has risen by 113.8 percent compared to 2025, marking the worst crisis of its kind since 1942.
How many airstrikes has Iran experienced in this conflict?
Iran has experienced over 20,000 airstrikes since the conflict with the USA/Israel began on February 28.
Why are Afghan refugees in Iran particularly vulnerable right now?
Beyond the general economic crisis, many Afghan refugees have lost their employment because Iranian citizens, who have also lost jobs in industry and business, are now competing for the same work.
Do you believe international aid should be prioritized for refugees in third-party countries like Iran to prevent further migration shifts?