Iran’s War-Induced Economic Collapse: Unemployment, Inflation, and Currency Crisis

U.S. and Israeli airstrikes in February damaged petro-chemical, steel and textile factories; a naval blockade halted most oil exports and a three-month internet shutdown crippled online commerce.

Al Jazeera (website)

Before the conflict Iran’s per-capita income fell from $8,000 (2012) to $5,000 (2024) and inflation regularly exceeded 70 percent, while sanctions strained public finances.

The Media Line

Deputy Labor Minister Gholamhossein Mohammadi reported at least 1 million direct job losses; researcher Hadi Kahalzadeh warned 10-12 million jobs are at risk. Unemployment claims rose to 147,000 in two months, three times the prior year. Layoffs include 1,500 workers at Maral Sanat, 700 at Borujerd Textile, 500 at Pinak, and 700 at Borujerd’s plant; women account for one-third of new claims.

KFMB - San Diego News

Official data show March inflation at 72 percent, point-to-point at 73.5 percent, while the rial fell to a record 1.8 million per dollar. Chicken prices rose 75 percent, beef and lamb 68 percent, dairy 50 percent, sugar to 125,000 tomans/kg, and eggs to about 600,000 tomans each.

Iran’s Economy in Freefall: Inflation Hits Record Levels as Rial Collapses

Freelance designer Asal lost all overseas projects after the internet blackout; flight attendant Soheila was unpaid when flights were canceled; German teacher Somayeh said online classes constantly crashed; data analyst Jafar considered ride-hailing to survive. Many families have sold gold or taken credit for basic goods.

CNN

The government announced tax and insurance deferrals, low-interest loans and expanded monthly vouchers for the poorest. The Tehran Chamber of Commerce urged firms to “stand with workers with compassion and sacrifice.” Communications Minister Sattar Hashemi called the internet shutdown a “direct threat to employment for some 10 million people.”

CNN

Chamber member Saeed Tajik condemned a 60 percent salary hike for government staff while private firms lay off workers, calling the policy “unfair.” Women’s groups warned the shutdown hits remote workers, who make up a third of new unemployment claims.

CNN

Mohammadi cites 1 million direct job losses; Kahalzadeh estimates up to 12 million at risk. Inflation is reported as 72 percent (official) and 53.7 percent (Central Bank). Rial values range from 1.54 million to 1.81 million per dollar. Oil-storage capacity and timing of possible production cuts remain unverified.

YnetNews

• “no new projects, no replies. It’s like everything just stopped overnight.” — Asal, freelance designer

CNN

• “Students can’t all get online at the same time, platforms keep crashing.” — Somayeh, German teacher

CNN

• “The government orders a 60% salary increase for its employees while allowing many of them to work remotely with full pay. Meanwhile, economic enterprises, unable to afford wages, are laying off their workers,” — Saeed Tajik, Tehran Chamber of Commerce

CNN

• “direct threat to employment” — Sattar Hashemi, Communications Minister

Iran’s Economy in Freefall: Inflation Hits Record Levels as Rial Collapses

Iran will extend tax deferrals, increase low-interest loans and broaden voucher distribution, while analysts warn that continued blockade could force oil-production cuts once storage fills and that the internet shutdown may persist, deepening the labor crisis.

Al Jazeera (website)