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Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Davos 2012 Technology Media Small Business Legal Deals Earnings Summits Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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Full Article Images of January Best photos of the year 2011 Follow Reuters Facebook Twitter RSS YouTube Read Anger after Russia, China block U.N. action on Syria | 10:46am EST Forget Romney or Obama, the voters want Tim Tebow: poll 03 Feb 2012 Greece on "knife edge" in last hours to agree bailout 6:59am EST Military comeback a distant dream for Afghan Taliban 4:37am EST Iran raid likely to drag in U.S. and hurt global economy 4:43am EST Discussed 192 Job growth seen slowing after holiday boost 95 Indiana poised to approve anti-union law 93 Romney wins Florida Republican presidential primary Watched Floating cities proposed as havens of future happiness Fri, Feb 3 2012 We are already in new great depression: Paul Krugman Fri, Feb 3 2012 Iran sends toy drone to Obama Sun, Jan 29 2012 Iranians bemoan sanctions hardship as vote approaches Tweet Share this Email Print Related News Iran threatens retaliation over oil embargo Fri, Feb 3 2012 Israel says Iran has material for four A-bombs Thu, Feb 2 2012 UPDATE 3-Brent struggles to hold gains, US stockpiles weigh Thu, Feb 2 2012 IAEA, Iran to meet again after "good" talks Wed, Feb 1 2012 Iran sanctions "biting" in recent weeks: CIA chief Tue, Jan 31 2012 Analysis & Opinion Algeria Islamist leader predicts unrest if May parliamentary vote is rigged Washington Extra – Coy in California Related Topics World » Sun Feb 5, 2012 8:03am EST (Reuters) - Each day that he struggles to buy food for his family, vegetable seller Hasan Sharafi shoulders part of the burden of Iran's defiance of the West over its nuclear programme. He can hardly bear it. "Prices are going up every day, life is expensive. I buy chicken or meat once per month. I used to buy it twice per week," the father of four said in Iran's central city of Isfahan. "Sometimes I want to kill myself. I feel desperate. I do not earn enough to feed my children." With just a month to go before a parliamentary election, Iran has been hit hard in recent months by new U.S. and European economic sanctions over its nuclear programme, which Tehran says is peaceful but the West says is aimed at making a bomb. In conversations in towns and cities across Iran, people complained of rapidly deteriorating economic conditions, likely to be the main issue in an election that exposes divisions between President Mahmoud Ahmadinejad and hardline opponents. The last time Iranians voted, in a 2009 presidential election, Ahmadinejad's disputed victory triggered eight months of violent street demonstrations. The authorities successfully put down that uprising by force, but since then the Arab Spring has demonstrated the vulnerability of governments in the region to uprisings fuelled by anger over economic difficulty. "My father lost his job because the factory he used to work for 30 years was closed last month. I am so pessimistic. Why is this happening to us?" lamented mathematics student Behnaz in the northern city of Rasht. "I don't know whether the prices are rising because of sanctions. The only thing that I know is that our lives are ruined. I have no hope for the future." Iran's leaders deny that sanctions are having an economic impact, but are also calling for solidarity in the face of them. In a defiant speech on Friday, Supreme Leader Ayatollah Ali Khamenei told Iranians sanctions would make them stronger. "Such sanctions will benefit us. They will make us more self reliant," he said in a televised address marking the anniversary of Iran's 1979 revolution. "Sanctions will not have any impact on our determination to continue our nuclear course." BREAD ON THE TABLE Such rhetoric resonates with some Iranians, who say they are willing to endure pain to defend a nuclear programme that has become a symbol of national pride. "America uses the nuclear issue as an excuse to replace our regime with a puppet regime to control our energy resources. But we will not let them. Nuclear technology is our right and I fully support our leaders' view. Death to America," said student Mohammad Reza Khorrami in the northern town of Chalous. But the West is hoping sanctions will turn ordinary Iranians against their leaders, and there are clear signs of discontent. When you ask Iranians about the nuclear issue, many seem to see it as a distraction from the real question of economic hardship. "I am not a politician. I don't care about the nuclear dispute. Soon, I might not be able to afford food and other basic needs of my children," said Mitra Zarrabi, a schoolteacher and mother of three. "What is the nuclear dispute? Don't waste my time asking irrelevant questions," said 62-year-old peddler Reza Zohrabi in a marketplace overflowing with imported Chinese goods in the city of Kashan. "I'm not interested in talking about politics and the nuclear issue. I have to find ways to put bread on my family's table." Iranian authorities say 15 percent of the country's workforce is unemployed. Many formal jobs pay a pittance, meaning the true figure of people without adequate work to support themselves is probably far higher. Hemmat Ghorban, 32, sits in a square in Mashhad city with a group of men, waiting to get work as day construction workers. "I used to sell fruit in a small shop in Zanjan city," said Ghorban, who was forced to close his shop because of the increasing rent and high price of materials. "Today I earned nothing. How am I going to support my family? Soon my family will be homeless. Sometimes I go without work for three or four days." The new sanctions include measures signed into law by President Barack Obama on New Year's Eve that would ban any institution dealing with Iran's central bank from the U.S. financial system. If fully implemented, the law would effectively make it impossible for countries to pay for Iranian oil. Washington is imposing the sanctions gradually and offering waivers to prevent chaos on international energy markets, but countries seeking those permits are expected to reduce trade with Iran over time. The European Union, which collectively bought about a fifth of Iran's 2.6 million barrels per day of oil exports last year, has announced it will halt Iranian crude imports. Other countries are scrambling to comply with U.S. and EU measures. Since the sanctions have only begun to bite, far greater pain is looming. Oil is 60 percent of Iran's economy. Much of its food and animal feed are imported, and many of its factories assemble goods from imported parts. Already, ships bringing grain have been turning back from Iranian ports because Tehran cannot pay suppliers: an agricultural consultancy said maize imports from Ukraine - a major source of animal feed - fell 40 percent last month. China, Iran's biggest trade partner, cut its purchases of Iranian oil by half in January and February this year, and is seeking steeper discounts for the oil that it does buy. Turkey wants a discounted price for gas. Such discounts mean that even if it does manage to thwart sanctions and find buyers for its energy exports, Iran's revenue will be hurt. It relies on oil exports to buy goods to feed its 74 million people and pay for subsidies to keep prices low. People have been queuing at banks to withdraw their savings and buy hard currency, even though banks have increased interest rates on savings to 20 percent from 12 percent. Currency exchange shops are refusing to sell dollars at official rates, forcing people to the black market where the rial has lost more than half its value in the past two months. For those who link the hardship to international sanctions, the most vivid example is neighboring Iraq, where an embargo imposed between 1991 and the U.S. invasion in 2003 reduced a wealthy oil exporting country to dire poverty. "I don't want Iran to become like Iraq before America's invasion. With the sanctions, soon we will have problems finding essential goods and even medicine," said 31-year-old teacher Rokhsareh Sharafoleslam in Chalous. Reformist candidates are largely barred from standing in Iran's parliamentary election, which will put Ahmadinejad - known in the West as a hardliner - against opponents that are even more conservative. The election will largely be a referendum on Ahmadinejad's economic policies, which his opponents blame for the economic disarray. For decades, Iran has used its oil wealth to provide the public with lavish subsidies for goods. Ahmadinejad has been cutting those subsidies, replacing them with direct payments to citizens of around $110 a month for a family of four. His hardline political opponents say the payments are a bribe to win support from voters and have fueled inflation. Analyst Hamid Farahvashian said the payments could nevertheless win voter support for the president. "The lower-income people in villages and small towns can live on that money. So, Ahmadinejad's camp basically will win their votes in parliamentary polls." INFLATION, UNEMPLOYMENT Iran's annual official inflation rate is running around 20 percent but economists and some lawmakers say it is really around 50 percent. Prices for bread, dairy, rice, vegetables and cooking fuel have soared. A traditional Iranian loaf of "sangak" bread costs 30 percent more than a few months ago. "We are worried and afraid. I feel depressed when I think about future of my children. What might happen if America and other countries impose further sanctions on Iran?" said a housewife in Kermanshah, who declined to give her name. Reza Khaleghi, who owns a small grocery store in the central city of Karaj near Tehran, said gloomily: "Because of sanctions prices are increasing almost every day. The purchasing power of people is nose-diving." Since 2010, subsidy cutbacks have tripled the price of electricity, water and natural gas used for factories, cooking and heating homes. Soaring costs caused the closure of at least 1,800 small factories in Tehran province alone, according to Iranian media. On a bus from Mashhad to the nearby town of Quchan, people spoke of little else but inflation. "Prices are increasing by the hour. My husband and I cannot afford starting a family as life is so expensive," said Mahla Aref, a government employee. Small businesses say they are struggling to operate as the falling currency raises the cost of goods. "Business is almost dead. People only buy essential basics," said Khosro Sadegi, who plans to shut down his electronics and appliance shop in the town of Sari. "Because of rial fluctuations we have to increase prices and people just don't buy anything anymore." (Editing by Peter Graff) World Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (3) Free-Speech wrote: Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Advertise With Us Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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