Podcast Summary: Planet Money – "Iran, protests, and sanctions"
Date: February 7, 2026
Hosts: Mary Childs, Rick (Nick) Fountain
Guests/Sources: Ali (Iranian protester, pseudonym), Eva Leila Pesaran (Political Economist), Asfand Yar Batmanghelidj (Researcher on Iran and Sanctions)
Episode Overview
This episode explores the interplay between Iran’s recent wave of mass protests, mounting economic hardships exacerbated by U.S. sanctions, and the nation's long struggle with economic independence. The hosts narrate how decades of sanctions have both failed and succeeded, igniting unrest, impoverishing ordinary Iranians, and entrenching powerful interests. Interviews with an Iranian protester, an academic, and a sanctions expert illuminate how economics, politics, and hope for change remain inseparably tied.
Key Discussion Points & Insights
1. On-the-Ground Reality in Iran (00:16 – 03:50)
- Ali’s Visit: Ali, a returning Iranian, observes significant social change—such as increasing numbers of women appearing in public without hijabs and women riding motorcycles, previously forbidden (00:34).
- Economic Fear: “Other changes… have been more ominous. People were way more worried about money than they used to be, he says.” (00:49)
- Soaring Prices: During a brief stay, the price of a dozen eggs jumped by over 30% in one week (01:20).
- Protests Sparked by the Economy: A sharp devaluation of the currency triggers a historic protest; even vendors in Tehran’s bazaar cannot profit (01:31).
- Covert Protest Code: “Going for a walk that night was at 8pm was the key word for hey, I'm going out to join the protest.” (Ali, 02:13)
- Mass Mobilization: The protest is unprecedented in size and reach: “This time, it was everywhere... All the cars that were driving would see the people, and as a support, they were honking…” (Ali, 02:41)
- Hope and Despair: There is an initial sense of hope: “We're finally going to get a revolution that we want.” (Ali, 03:09)
2. Sanctions as (Economic) Warfare (03:50 – 06:49)
- Roots of Economic Pain: Economic hardship is driven by both regime corruption and the prolonged effect of U.S. (and Western) sanctions (03:50).
- Purpose of Sanctions: Intended to pressure Iran to cease support for militias and nuclear ambitions by making citizens uncomfortable enough to demand change (04:10).
- Human Cost: The government responded to protests with violent force—thousands killed, thousands more imprisoned; estimates of death far exceed official numbers (05:04).
- Generational Impact: The young are especially affected: “Most of the people that have been shot are the younger generation because they're fearless. But they're putting the dream of freedom ahead of their own dream.” (Ali, 05:42)
3. The History of Iran’s Economic Policy and Sanctions (07:50 – 26:24)
a. Post-Revolution—Defining Identity Through Opposition (09:12 – 17:16)
- Eva Leila Pesaran’s Research: Explores how the 1979 Revolution and U.S. hostility shaped Iran’s self-image (09:32). The U.S.-engineered Shah’s regime is overthrown; new leadership institutionalizes a deep suspicion of foreign investment (10:37).
- Pivotal Moment: Embassy hostage crisis prompts the U.S. to impose its first sanctions, reinforcing Iran’s economic protectionism (15:34).
- Shifting Policy: “There was one event that had a huge impact on their decision making. The hostage situation… changes the mood of the room.” (Mary Childs, 14:40)
- Constitutional Changes: Foreign economic concessions are forbidden, “They go full protectionist.” (Rick Fountain, 15:58)
b. Opening Up and Growth (17:16 – 22:38)
- After the Iran-Iraq War: Iran slowly opens to global trade, inviting foreign investment, and pursuing economic liberalization (18:00).
- Neoliberal Shift: Many Iranian economists in government are trained in the US/Europe and support market reforms (18:45).
- Modern Economy: “You had a diversified economy with a large services sector and you had local manufacturing. You had, of course, agricultural sector as well.” (Yar, 20:28)
- On-the-Ground Changes: Move towards Western-style supermarkets (Carrefour joint ventures) and a growing middle class, but gathering economic unease (21:00).
c. The “Smart” Sanctions Era Post-2010 (22:38 – 26:24)
- New U.S. Strategy: The U.S. partners with other countries to systematically choke financial ties to Iran, e.g. conditioning access to dollar-based financial systems (23:49).
- Banking Isolation: Relentless US pressure leads to overcompliance; most global banks refuse to deal with Iran (24:18).
- Visible Economic Decline: Rapid devaluation, high inflation, and a first major contraction since the 90s (24:36).
- People’s Response: “Many blamed their own government… their government’s defiance was causing the sanctions.” (Mary Childs, 25:18)
- Result: The 2015 Iran nuclear deal—sanctions relief in exchange for rolled-back nuclear activity, which was initially hailed as a diplomatic triumph (26:07).
4. Why Sanctions Often Don't Work as Advertised (27:45 – 33:09)
- Overcompliance Problem: After sanctions are (temporarily) lifted post-nuclear deal, global banks are unwilling to re-enter Iranian markets (28:17).
- “It was, it's safe to do business with Iran now… But the response from the banks was not exactly cooperation.” (Yar, 28:37–29:01)
- “The chief legal officer for HSBC wrote this incredible op ed… and just said that his bank was not going to re engage Iran.” (29:11)
- American Ideals Limiting U.S. Leverage: US government cannot force private entities to resume business (29:46).
- Sanction Whiplash: Trump withdraws the US from the nuclear deal in 2018, imposing harsher sanctions; inflation and poverty in Iran worsen (30:24).
5. Who Benefits (and Who Suffers) Under Sanctions (31:05 – 33:09)
- Empowering the Wrong Actors: Sanctions often enrich entities like the Islamic Revolutionary Guard Corps (IRGC), which controls up to half the economy due to lack of foreign competition (31:31).
- “Instead of Exxon or Boeing getting a contract, they get it.” (Rick Fountain, 31:57)
- Sanctions = Economic Violence: Sanctions are not as bloodless as often depicted—they block access to essentials. “If you've got diabetes, maybe you, you don't get your insulin.” (Eva Leila, 32:26)
- Real World Toll: Recent peer-reviewed research attributes over half a million deaths per year to US and EU sanctions (32:49).
- “Sanctions are not non violent. They are a form of warfare and they just sound more palatable.” (Eva Leila, 32:33)
6. The Futility and Tragedy of Sanctions (33:43 – 34:47)
- Regime Resilience: “The regime has shown an ability to withstand and endure through a lot of protest movements previously…” (Eva Leila, 33:09)
- Protester’s Perspective: Ali believes that sanctions, though brutal for ordinary people, may help weaken the regime (33:56).
- “Of course, the effect of it is felt by the people... But going after this brutal regime, they have had to do this.” (Ali, 33:56)
- A Cry for External Help: “If we can have some sort of help, it's going to happen sooner. There's going to be less lives lost. But there is no way that things can go back to normal.” (Ali, 34:27)
Notable Quotes & Memorable Moments
- On Hope and Protest:
“We're finally going to get a revolution that we want.”
— Ali, Iranian protester (03:09) - On the Real Target and Effects of Sanctions:
“The actual mechanism by which sanctions put pressure on a government is the immiseration of its people.”
— Mary Childs (32:03) - On the Side Effects of Economic Isolation:
“Sanctions actually benefit some people in the sanctioned country. So in Iran, … the IRGC has benefited from the lack of international competition.”
— Mary Childs (31:05) - Sanctions as Warfare:
“Sanctions are not non violent. They are a form of warfare and they just sound more palatable.”
— Eva Leila Pesaran (32:33) - The Overcompliance Trap:
"You have to let economic activity resume. And we're just very bad at that when it comes down to it."
— Asfand Yar Batmanghelidj (30:04) - Youth and Despair:
"They don't have much to look forward to. Basic human rights are not there. That's why...most of the people that have been shot are the younger generation because they're fearless."
— Ali (05:42) - On the Irreversibility of Change:
“There's no way you can go back...everyone can see the end. It's just the sooner…if we can have some sort of help...there's going to be less lives lost.”
— Ali (34:27)
Timestamps for Key Segments
- 00:34–01:07: Ali describes shifts in social norms and escalating economic worry
- 01:20: Price of eggs used as an economic indicator
- 02:13: “Going for a walk” as code for protest participation
- 03:09: Ali’s hope for revolution
- 03:50–04:10: Connection between economic pain, corruption, and sanctions
- 05:12: “No one’s okay” after crackdown
- 09:32–13:34: Eva Leila’s research on Iran’s constitutional debates about foreign influence
- 14:40–15:58: Hostage crisis and its role in shaping a protectionist economy
- 18:00–21:30: Iran’s period of economic liberalization and subsequent anxieties
- 22:38–24:36: Effects of post-2010, multilateral banking sanctions
- 28:17–30:24: Overcompliance and failure to deliver sanction relief
- 31:05–32:33: How sanctions enrich the IRGC and harm ordinary citizens
- 33:56: Protester’s conflicted view on the need for sanctions
- 34:27–34:47: Hope and the need for international assistance
Episode Tone
The episode is empathetic, forthright, and analytical—balancing on-the-ground stories with policy history. Personal accounts lend a sense of immediacy and pain; academic and policy voices explain the broader economic and political dynamics.
Conclusion
Planet Money’s episode provides a nuanced account of how U.S. sanctions have interacted with Iranian society and politics: intended to force reform, they have inflicted deep economic pain, killed hope for ordinary life, empowered the regime’s hardliners, and left Iranians desperate for lasting change and external support. The episode complicates the notion that sanctions are a nonviolent or surgical tool—they are revealed as blunt instruments with widespread, often tragic, consequences.