The Iranian middle class, long a force of political moderation, stability, economic growth, and the base of the country’s reform movement, is shrinking fast under the pressure of Western sanctions, researchers say. Left in its wake are rising societal resentments and an ever-increasing wealth gap.

A study published in the European Journal of Political Economy has used an innovative method to investigate the true extent and damage of Western sanctions on Iran since 2012 and how they have resulted in a dwindling middle class, leaving more Iranians to struggle on low incomes as a small elite prospers.

Resentment between the social classes is clear when speaking with Iranians, and the frustration felt by a young, highly educated population is more palpable than ever. Iran’s current unemployment rate is 7.4% according to the Statistical Center of Iran, while the International Monetary Fund (IMF) puts the rate at 9.2% for 2025.

“You can feel the difference between rich and poor more than ever; everything has become expensive, whether it’s bread or chicken. Meanwhile, you see people in luxury coffee shops, luxury restaurants,” said Elham, a schoolteacher in Tehran who is trying to make ends meet. Elham asked to be identified by her first name due to security concerns, as did other Iranians in the country who spoke with CNN.

The minimum wage in Iran is approximately 104 million rials, about $110 per month. The prices of basic goods have risen, with an annual inflation rate of 42.4%, according to October figures from the IMF.