Iran’s Nationwide Internet Blackout Deepens Economic Crisis Amid War

On 28 February 2026, Iran’s authorities cut off the global internet for roughly 90 million citizens, citing wartime necessity after hostilities with the United States and Israel began. The block has persisted for most of 2026, making it one of the longest nationwide shutdowns in recent history.

Iran's internet shutdown is crushing businesses in an already battered economy

A temporary restriction in January during anti-government protests preceded the February decision. Over the past decade, Instagram and WhatsApp had become essential for small entrepreneurs, allowing them to bypass sanctions and inflation. The full blackout forced the economy onto a state-controlled intranet.

Associated Press

The shutdown is estimated to cost $30-40 million daily. The communications minister says about 10 million jobs depend on internet connectivity. DigiKala, Iran’s leading e-commerce retailer, announced layoffs of 200 staff (?3 % of its workforce).

Associated Press

Communications Minister Sattar Hashemi stressed that the measure protects national security, noting “about 10 million people have jobs that depend on internet connectivity.” The state has introduced a tiered access system, granting limited global-internet privileges to select professions, businesses, and media.

Iran's internet shutdown is crushing businesses in an already battered economy

Mahsa Alimardani of the rights group Witness warned that “the combination of scale and severity…reverted an entire country of 90 million people to a controlled national intranet.” A Tehran e-commerce trade group condemned the tiered system as “an abuse of an obvious need of every citizen.”

Iran's internet shutdown is crushing businesses in an already battered economy

Fashion designer Amen Khademi, whose Instagram shop had 30,000 followers, reports no sales in four months and fears closure. Model and fitness coach Farnaz Ojaghloo says the situation “hits hard” psychologically. Former internet-provider employee Reza Amiri now sells hats and umbrellas at a metro stop after losing his job. Tailor Monireh Pishgahi shut down her workshop and laid off five staff. Downtown shopkeeper Mohammad Rihai lamented the surge of street vendors blocking sidewalks, saying he “cannot fight them anymore.”

Associated Press

• “The internet outage in the past four months has completely destroyed not only my business, but many online businesses,” — Amen Khademi, fashion designer

Associated Press

• “What makes Iran’s shutdown unprecedented is the combination of scale and severity: an entire country of 90 million people with a developed digital economy deliberately reverted to a controlled national intranet,” — Mahsa Alimardani, Witness

Associated Press

• “Psychologically, it really hits hard,” — Farnaz Ojaghloo, model and fitness coach

Associated Press

• “Nobody really wants to use these platforms, but there is no other option,” — a gamer in Isfahan (anonymous)

Associated Press

• “ It said the outage threatens “the destruction of the country’s infrastructure at the hands of our own decision-makers.” — Tehran e-commerce trade group

Iran's internet shutdown is crushing businesses in an already battered economy

• “After the war, you see them all along the sidewalk. I cannot fight them anymore.” — Mohammad Rihai, downtown shopkeeper

Associated Press

The tiered-access program remains under development. Analysts warn that prolonged isolation could deepen Iran’s recession and fuel further unrest, while any shift in the war’s trajectory may prompt a reassessment of the shutdown’s necessity.

Associated Press