Iran’s gold reserves are at their strongest level in decades and would help cushion the economy even if Western powers trigger the so-called snapback of UN sanctions, a former senior banker said on Wednesday.
“The volume of gold imported last year was unprecedented in recent decades,” said Hossein Mehri, former head of Iran’s Bank of Industry and Mine. “Imports of 100 tons of gold is a very significant figure and shows our reserves are in an excellent and rare condition.”
Mehri said the reserves were untouched during the recent 12-day conflict with Israel. “Even in that period, there was no need to draw from our gold reserves, and this shows the strategic depth of the country’s resources,” he said.
Dismissing concerns over possible sanctions snapback under the 2015 nuclear deal, he said: “Even if this mechanism is activated, it does not mean the collapse of the country’s economy. For 46 years we have withstood Western pressures and the country has become, in a way, vaccinated against them.”
He said timely government and central bank measures, including allocating $2 billion to essential goods during the conflict, had helped maintain market stability. “Our situation in terms of foreign exchange, gold, essential goods and other sectors is relatively good, and even activation of the snapback mechanism cannot create a serious crisis,” he said.
Gold has become a key safe-haven asset in Iran as the country navigates sanctions, currency volatility, and political uncertainty.
In the first half of the previous Iranian calendar year (March 21–September 20, 2024), Iran imported about 43 tons of gold bullion worth $2.5 billion — a sixfold increase compared to the same period in 2023.
Officials have allowed certain exporters to import gold instead of repatriating foreign currency, a policy seen as a way to sidestep sanctions and manage currency reserves. Gold has also been used in transactions such as the sale of Shahed drones to Russia, partly paid in bullion.
The trend has accelerated since the June war with Israel, when about $500 million was pulled from the Tehran Stock Exchange, much of it shifting into gold or moving abroad.
World Gold Council data shows that in Q2 2025, Iran’s gold coin and bullion purchases rose 20%, while jewelry demand grew 12% despite record prices. In 2024 alone, gold imports exceeded 100 tons worth over $8 billion, representing roughly 11% of total imports.
Shargh newspaper published results of a study on Tuesday, with data collected from different parts in Iran on food intake and access to nutrition.
The daily cited non-governmental organizations and volunteers as having carried out the research, without elaborating.
The report said only 1.7% of households reported daily protein consumption while 27% of all households said they do not consume any kind of protein.
Among households with temporary employment, more than 93% consume protein less than once a week or not at all. In unemployed households, this figure rises to 95%.
No dairy
Iranians face ever-rising prices with inflation around 40%, according to officials. The national currency Rial has lost over 90% of its value since US sanctions were reimposed in 2018.
Dairy consumption is also low, posing a serious nutritional crisis for children.
According to the report, only 2% of children consume daily dairy, and 50% receive none at all, even among households with stable jobs.
The study said that among families classed as living in food poverty, 43% endured what it classed as economic hardship, 32% involved earning-age parents experiencing unemployment and 6% were effected by some form of addiction.
Based on the findings, more than 80% of responses directly or indirectly point to the lack of stable income and employment as the major reason for malnutrition.
Disparity in access
Only 1.7% of households consume protein daily, the report added, with 26.9% consuming no protein at all. Among households with temporary jobs, over 93% consume protein less than once a week or not at all.
“Essentials like meat, chicken, milk, and cheese are gone. Some used to buy scraps or expired chicken, but now even those are unaffordable. Fruit and vegetables, too, are out of reach,” Shargh quoted Reyhaneh Shirazi, a social activist in Tehran’s Darvazeh Ghar district, as saying.
“We see more children with serious stomach aches linked directly to poor diets.” Shirazi added. "Once, food aid was for rare cases. Now it’s common, which is shocking."
Access and affordability
“No one buys meat. If they can afford anything, it's chicken. Maybe if someone donates meat. Fruit is a luxury except watermelon, which grows locally," said a teacher near Kerman.
"Vegetables are rarely consumed. Food is mostly lentils and bread. Breakfast is nonexistent. Illnesses tied to nutrition are high, especially in children."
Parisa Ahmadi, a social worker in Shiraz, says iron and vitamin deficiencies are widespread.
“Parents are street vendors, and kids also work. Doctors confirm they suffer from severe malnutrition, iron and vitamin deficiency, which effects physical and cognitive development," she said. "Common meals are eggplant, beans, lentils and pasta. Meat and eggs once a month. Rice is rare.”
Worst malnutrition cases
Child rights advocate and social entrepreneur Faezeh Derakhshani launched a creative program turning surplus fruit into dried fruit for kids, according to the paper. Her team distributed 130 kg (286 pounds) of dried fruit to kindergartens in Sistan and Baluchistan province.
“There’s no detailed report on kids' intake of meat, dairy, and fruits in Iran. Besides protein-energy malnutrition, we have micronutrient malnutrition, which is less visible but has lasting effects. Zinc, iron and vitamin A and D deficiencies lead to weak immunity, poor learning and stunted growth.”
Iranian media report sharp product price increases despite no official hikes, with some dairy producers quietly raising prices in recent months. Industry officials cite a needed 35% rise due to production costs.
Data sent by viewers to Iran International show the price jumps, with the cost of a packet of cheese or a tub of yogurt in some areas exceeding the entire daily budget of a household. The average monthly wage in Iran is roughly $150 at today’s exchange rate.
Many respondents said they no longer buy dairy products, with some reporting they have gone months without them. In their messages, families said they now focus only on “essential and cheap” purchases.
“The price of yogurt we use has gone up by 40,000 tomans (about 55 US cents) in just one week,” a resident of Mahallat, Markazi province, told Iran International. A consumer in northern Gilan province said prices there were even higher than in Tehran.
One viewer wrote: “I don’t buy industrial cheese anymore because half the packet is water.”
In several reported cases, a tub of yogurt now costs about 70 percent more than a few weeks ago.
Another reported that Lighvan cheese – among Iran’s finest -- had jumped from 240,000 tomans (about $2.5) before the recent 12-day conflict with Israel to 600,000 tomans (about $6.5).
Iranian hardline daily Kayhan has criticized what it calls an unregulated surge in dairy prices and the lack of clear action from officials following a recent government-approved rise in the purchase price of raw milk.
“Within just a few weeks, milk, yogurt, cheese, and buttermilk have appeared on shelves with noticeably higher price tags — in some cases exceeding a 30% increase — placing the burden squarely on households,” it wrote.
According to the paper, industry representatives blame weak oversight and unclear policymaking for enabling opportunistic pricing, while experts warn that without consumer protections, the policy aimed at supporting livestock farmers has instead added pressure on ordinary Iranians.
According to Mohammadreza Banitaba, spokesperson for the Iranian Dairy Products Industries Association, per capita dairy consumption in Iran has dropped from around 100–130 kilograms in 2010 to below 70 kilograms today — less than half the 150–160 kilograms recommended by global health standards and far below consumption levels in developed countries, which often exceed 200 kilograms per person annually.
Declining quality
In addition to price hikes, consumers have complained about declining quality. One reported that a bottle of milk was delivered spoiled and “resembled yogurt.”
Another said that packaged cheese labelled as 400 or 500 grams turned out to be “half water.” Others reported milk spoiled before opening or tasted sour on purchase.
Some people linked spoilage to frequent power and water cuts. “Because of electricity outages, dairy products are not sold fresh and when we buy them, they are already spoiled,” one person told Iran International.
Producers call for 35% price rise
Industry representatives say higher prices are inevitable given rising costs. Ali Ehsan Zafari, head of the Dairy Cooperatives Union, told state-run Young Journalists Club earlier this month that the increase in raw milk prices had significantly raised production costs.
He said the price of raw milk had risen from 18,000 tomans per kilogram to 23,000 tomans (from about 20 to 25 cents). According to Zafari, “the overall increase in fat and milk prices is more than 20 to 25 percent, and therefore dairy prices should increase by 35 percent.”
Zafari urged the Ministry of Agriculture and the market regulation authorities to quickly set “logical prices” for dairy to prevent “chaos in the market.”
“Given that people’s salaries have not increased, we agree that this price increase should not happen. But when raw materials become more expensive, production units should not suffer losses,” he added.
Silent price hikes in recent months
The government’s official news agency IRNA reported in July that several dairy companies had quietly raised prices in multiple stages without official approval in recent months, even as cattle farmers complained that the official raw milk purchase price was below expert estimates.
According to the Ministry of Agriculture’s livestock affairs division, Iran produced 11.7 million tons of raw milk last year and aims to exceed 12 million tons this year, with more than nine million tons for domestic consumption and 2.4 million tons of dairy products exported.
Both Iranian media and industry officials say higher prices have reduced consumption among middle- and low-income households, raising concerns about public health. Dairy producers argue that without further price adjustments, the industry’s survival is at risk due to higher costs for feed, transport, labor and energy.
Livestock farmers say increasing the raw milk purchase price is unavoidable if their sector is to survive.
