Lead

Iran's wartime economic crisis has triggered mass layoffs across multiple industries, with Iranian officials estimating that some two million people have lost work directly or indirectly due to the conflict and a prolonged nationwide internet blackout, according to reports by France 24 and the Jerusalem Post.

The economy, already struggling under international sanctions, corruption, and mismanagement, has been further battered by the war and the government-imposed internet shutdown, now in its fourth month. Businesses across manufacturing, steel, petrochemicals, transportation, retail, and the technology sector have shed jobs as they grapple with disruptions and a collapse in demand.

Coverage Comparison

Two outlets, France 24 and the Jerusalem Post, have covered the crisis, each emphasizing different facets of the downturn. France 24 focuses on the human impact, weaving in personal stories of hardship from middle-class Iranians and small business owners. The Jerusalem Post, meanwhile, highlights the scale of job losses and the economic cost of the internet blackout, citing official statements and analyst estimates.

Both outlets attribute the economic deterioration to the combined effects of war, the internet blackout, and pre-existing structural problems. France 24 adds a layer of critique of government policies, while the Jerusalem Post maintains a more informative tone, relying on quotes from officials and experts.

Key Claims

Iranian Deputy Labor Minister Gholamhossein Mohammadi said the conflict had already resulted in the loss of more than one million jobs and left another two million people “directly or indirectly unemployed,” according to statements given to Tasnim and reported by the Jerusalem Post.

The layoffs have affected sectors including manufacturing, steel production, petrochemicals, transportation, retail, and Iran's technology sector, where companies dependent on internet access have struggled to continue operating during the blackout, as reported by the Jerusalem Post.

Iran's internet restrictions have caused severe disruptions to businesses and online services across the country. Analysts cited by Reuters, as mentioned in the Jerusalem Post, estimated the blackout was costing the Iranian economy as much as $80 million per day.

France 24 reports that Iran's currency has lost more than 60 percent of its value in just six months. Food prices have increased by around 200 percent in the last 19 months, with rice prices up more than 300 percent, oil by more than 400 percent, and chicken and meat by between 170 and 220 percent.

The internet blackout has been particularly devastating for tech startups. According to France 24, Iranian startups have lost between 25 and 70 percent of their revenue since the war started. The story of Sarina, a Tehran-based e-shop owner, illustrates the collapse: her monthly turnover of 100-150 million tomans (€660-€1,000 in January 2026) has dropped to zero for four months, and she fears her business will soon shut down.

Perspectives

Iranian Government: Through Deputy Labor Minister Gholamhossein Mohammadi, the government has acknowledged the scale of job losses and unemployment, with estimates of over one million jobs lost and two million people indirectly unemployed.

Iranian Citizens and Business Owners: Individuals like Sarina and economists like Amir Hossein Khaleghi describe a 'vortex of economic problems' and an unsustainable situation, with fears of being unable to afford food in the coming months.

International Observers: Analysts cited by Reuters provide estimates of the economic cost of the internet blackout, quantifying the damage at up to $80 million per day, underscoring the broader economic impact beyond individual hardship.