On Turkey’s bustling border crossing with Iran, inflation and shortages are driving a surge in cooking oil trade as economic pressures deepen inside Iran. At the Kapikoy crossing near Van in eastern Turkey, merchants and travelers described a growing demand for basic goods, particularly cooking oil, as Iranian consumers grapple with soaring prices and limited supply.
Shopkeepers at the crossing said demand has risen sharply in recent days, with dozens of individuals carrying multiple large bottles of oil back into Iran. The trade has become a small but vital source of income for both Turkish vendors and Iranian buyers seeking to resell or use the goods domestically.
Rising food prices and subsidy reforms reshape consumer behavior
Iran’s inflation crisis, projected by the International Monetary Fund to approach 70 percent in 2026, has significantly eroded purchasing power. Cooking oil prices surged after the government removed subsidies on certain essential imports in January, a move intended to reduce state spending amid ongoing sanctions.
Iranian officials, including President Masoud Pezeshkian, have defended the policy, arguing that subsidies were being exploited without effectively lowering prices. However, many consumers report difficulty finding affordable cooking oil in local markets, forcing them to look beyond the country’s borders.
Border trade becomes a lifeline for struggling households
For some Iranians, cross-border trade offers a modest financial cushion. Individuals interviewed at the crossing described buying cooking oil in Turkey for just over $10 per five-liter bottle and reselling it in Iran at slightly lower prices than domestic shops, earning small profits.
The Kapikoy crossing has remained one of the few consistent links between Iran and the outside world during recent disruptions, including airspace closures and an ongoing internet shutdown that has limited access to information within the country.
Economic strain intensifies amid conflict and job losses
Beyond inflation, Iran’s economy is facing additional strain from conflict-related disruptions and layoffs. The country’s minimum wage, roughly $108 per month, has failed to keep pace with rising living costs, leaving many households under severe financial pressure.
Recent protests driven by economic discontent have been met with government crackdowns, adding to an atmosphere of uncertainty. While the government has introduced monthly cash payments equivalent to about $7 to offset rising costs, analysts say the measure is unlikely to significantly ease the burden on most families.
Limited relief despite growing cross-border activity
Although the increase in cross-border trade highlights the resilience of individuals adapting to economic hardship, the overall impact remains limited. The modest profits generated by transporting goods like cooking oil do little to offset the broader challenges posed by inflation, unemployment, and supply shortages.
For many Iranians, the scenes at the Turkey-Iran border underscore a deeper economic crisis, where even basic necessities require creative—and often difficult—solutions to obtain.
On Turkey’s bustling border crossing with Iran, inflation and shortages are driving a surge in cooking oil trade as economic pressures deepen inside Iran. At the Kapikoy crossing near Van in eastern Turkey, merchants and travelers described a growing demand for basic goods, particularly cooking oil, as Iranian consumers grapple with soaring prices and limited supply.
Shopkeepers at the crossing said demand has risen sharply in recent days, with dozens of individuals carrying multiple large bottles of oil back into Iran. The trade has become a small but vital source of income for both Turkish vendors and Iranian buyers seeking to resell or use the goods domestically.
Rising food prices and subsidy reforms reshape consumer behavior
Iran’s inflation crisis, projected by the International Monetary Fund to approach 70 percent in 2026, has significantly eroded purchasing power. Cooking oil prices surged after the government removed subsidies on certain essential imports in January, a move intended to reduce state spending amid ongoing sanctions.
Iranian officials, including President Masoud Pezeshkian, have defended the policy, arguing that subsidies were being exploited without effectively lowering prices. However, many consumers report difficulty finding affordable cooking oil in local markets, forcing them to look beyond the country’s borders.
Border trade becomes a lifeline for struggling households
For some Iranians, cross-border trade offers a modest financial cushion. Individuals interviewed at the crossing described buying cooking oil in Turkey for just over $10 per five-liter bottle and reselling it in Iran at slightly lower prices than domestic shops, earning small profits.
The Kapikoy crossing has remained one of the few consistent links between Iran and the outside world during recent disruptions, including airspace closures and an ongoing internet shutdown that has limited access to information within the country.
Economic strain intensifies amid conflict and job losses
Beyond inflation, Iran’s economy is facing additional strain from conflict-related disruptions and layoffs. The country’s minimum wage, roughly $108 per month, has failed to keep pace with rising living costs, leaving many households under severe financial pressure.
Recent protests driven by economic discontent have been met with government crackdowns, adding to an atmosphere of uncertainty. While the government has introduced monthly cash payments equivalent to about $7 to offset rising costs, analysts say the measure is unlikely to significantly ease the burden on most families.
Limited relief despite growing cross-border activity
Although the increase in cross-border trade highlights the resilience of individuals adapting to economic hardship, the overall impact remains limited. The modest profits generated by transporting goods like cooking oil do little to offset the broader challenges posed by inflation, unemployment, and supply shortages.
For many Iranians, the scenes at the Turkey-Iran border underscore a deeper economic crisis, where even basic necessities require creative—and often difficult—solutions to obtain.
How is U.S. pressure on Iran intensifying? It combines sanctions, blockade, and enforcement as economic and geopolitical forces converge to place unprecedented strain on Tehran, according to a former U.S. Treasury sanctions expert who described the current moment as a rare alignment of leverage.
Converging tools create peak economic pressure
Miad Maleki, a former Treasury Department sanctions specialist, said the United States is applying multiple pressu
How is U.S. pressure on Iran intensifying? It combines sanctions, blockade, and enforcement as economic and geopolitical forces converge to place unprecedented strain on Tehran, according to a former U.S. Treasury sanctions expert who described the current moment as a rare alignment of leverage.
Converging tools create peak economic pressure
Miad Maleki, a former Treasury Department sanctions specialist, said the United States is applying multiple pressu
Iran remained largely cut off from the global internet on Friday as authorities enforced a nationwide digital blackout while protests continued to spread across the country, intensifying an already volatile political and economic crisis. Internet monitoring data showed that connectivity across Iran had dropped to almost zero for more than 12 hours, severely limiting access to online communication platforms as demonstrators gathered in cities nationwide.
According to internet trackin
Iran remained largely cut off from the global internet on Friday as authorities enforced a nationwide digital blackout while protests continued to spread across the country, intensifying an already volatile political and economic crisis. Internet monitoring data showed that connectivity across Iran had dropped to almost zero for more than 12 hours, severely limiting access to online communication platforms as demonstrators gathered in cities nationwide.
According to internet trackin
Violent clashes broke out at Tehran Bazar on Tuesday as Iranian security forces confronted demonstrators in one of the most significant flashpoints of a protest movement that has spread across the country over the past 10 days. The unrest, driven largely by public anger over worsening economic conditions, has left at least 27 people dead, according to estimates released by a human rights organization monitoring developments inside the country.
The confrontation in the capital came a
Violent clashes broke out at Tehran Bazar on Tuesday as Iranian security forces confronted demonstrators in one of the most significant flashpoints of a protest movement that has spread across the country over the past 10 days. The unrest, driven largely by public anger over worsening economic conditions, has left at least 27 people dead, according to estimates released by a human rights organization monitoring developments inside the country.
The confrontation in the capital came a
