A billboard depicting Iranian ballistic missiles in Tehran.AFP/Getty ImagesIran's economy is in bad shape.Decades of sanctions have driven up inflation, government debt, and poverty rates.Iran's struggles could be a warning for Russia as the war in Ukraine drags on.Escalating tensions between Iran and Israel have driven up commodity costs, reignited worries about a flare-up in inflation, and sparked renewed fears of wider conflict in the Middle East.One factor that might avert a regional war is the dismal state of Iran's economy.The country has borne the brunt of Western sanctions for decades, making it tough for Tehran to finance any war effort — and that could be a warning sign for Vladimir Putin as the war in Ukraine drags on.Sanctions packagesThe US first imposed sanctions on Iran after students seized the American embassy in Tehran in 1979, and has stepped up its efforts considerably more recently.In 2018, Donald Trump decided to pull out of a nuclear agreement between the US and Iran.

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