Irans economy struggles amid ongoing US-Israeli tensions and attacks

Tehran, Iran - The ongoing US-Israeli war in Iran has led to widespread disruptions, including the longest internet shutdown in the country’s history. The conflict, now in its fourth week, has also exacerbated existing economic challenges.

Many businesses are struggling due to reduced market activity over the past year, particularly in the lead-up to Nowruz holidays. This has resulted in significantly slashed income for vendors and shopkeepers. “Our sales were probably about one-third of usual levels around this time,” said a vendor at Tehran’s Grand Bazaar. “Nobody is sure what comes next when we open back up after the holidays.”

Iranians’ purchasing power has been steadily declining, with well-paying jobs becoming scarce due to corruption, mismanagement, and sanctions imposed by the US government since 2018. Annual inflation was officially around 70 percent before the war, with food prices increasing by over 100 percent.

The government has announced plans to cut spending and raise the minimum wage by 60 percent, as well as offer a cash subsidy. However, rising costs have proven crushing for many families. Some have left major cities like Tehran due to safety concerns and are relying on their modest savings. The shutdown of the internet, which has blocked over 90 million people from accessing the global network, is also having a significant impact.

The lack of information and connectivity is causing psychological pain, while businesses are forced to close down and inflation continues to grow. “This time, there is not even a word about when the internet might get reconnected,” said a young woman who runs an online business selling jewellery and accessories on Instagram and Telegram.

Source: Al Jazeera