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🔴 Breaking ❓ Unknown

Amid US-Israeli attacks, people in Iran struggle to survive ailing economy

May 21, 2026 May 21, 2026 6 min read 📰 Al Jazeera
📋 Key Takeaway

The ongoing US-Israeli attacks have severely impacted the Iranian economy, leaving many citizens without income and causing displacement. The widespread internet blackout further complicates their ability to cope and access information.

🔍 Quick Context Guide
💡 Bottom Line: The Iranian population faces severe economic challenges amid external aggression and internal governance issues.

👥 Key Players

Ebrahim Raisi (ابراهیم رئیسی) ACTOR
President of Iran
"The government has said it is cutting spending and will raise the minimum wage for workers by 60 percent."
Islamic Revolutionary Guard Corps (سپاه پاسداران انقلاب اسلامی) ACTOR
Military unit
"They have also seen the Islamic Revolutionary Guard Corps (IRGC) launching projectiles at regional neighbours."
Donald Trump QUOTED
Former President of the United States
"Trump suggested on Monday that diplomacy may yet have a chance to stop the war."
Iranian government (دولت ایران) ACTOR
Government of Iran
"The government has said it is cutting spending and will raise the minimum wage for workers by 60 percent."
Tehran's Grand Bazaar Vendor QUOTED
Vendor
"Our sales were probably about one-third of usual levels around this time."
Small Grocery Shopkeeper QUOTED
Shopkeeper
"Rising prices have dismayed many customers."

⚡ Actions

United States and Israel ATTACK Iran
"Iranians are dealing with the fallout of the US-Israeli war on their country for the fourth week."
Confidence: 90%
Iranian government SHUTDOWN Iranian population
"More than 90 million people have now been blocked by the state from accessing the global internet for a 25th day."
Confidence: 90%
Iranian government RAISE minimum wage
"The government has said it is cutting spending and will raise the minimum wage for workers by 60 percent."
Confidence: 70%

📰 What Happened

Iranians face economic struggles amid US-Israeli war and prolonged internet shutdown.

  • United States and Israel attack Iran
  • Iranian government shutdown Iranian population
  • Iranian government raise minimum wage

💡 Why It Matters

🇮🇷 For Iran: Because the economic struggles are exacerbated by external conflicts and internal mismanagement.
🌍 Regional: Because regional stability is threatened by the ongoing conflict and economic distress in Iran.
🌐 International: Because the US-Israeli actions could lead to wider geopolitical tensions.

📚 Background

The Iranian population faces severe economic challenges amid external aggression and internal governance issues.

📝 Key Evidence

"Our sales were probably about one-third of usual levels around this time."
→ This proves the economic impact on vendors due to the ongoing conflict.
"More than 90 million people have now been blocked by the state from accessing the global internet."
→ This indicates a significant government action affecting the population.
📡 Source: INTERNATIONAL
📊 Confidence: 80%
Al Jazeera is generally considered a reliable international news source.

twitterwhatsappcopylinkgoogleAdd Al Jazeera on GoogleinfoIranians shop in a bazaar in Tehran, Iran, on 24 March 2026 [Abedin Taherkenareh/EPA]By Maziar MotamediPublished On 25 Mar 202625 Mar 2026Tehran, Iran – Iranians are dealing with the fallout of the US-Israeli war on their country for the fourth week while being squeezed by a dwindling economy and the longest internet shutdown the country has ever experienced.

Most of the country is closed down this week for Nowruz holidays to celebrate the Persian New Year.

But Iran has had numerous unexpected shutdowns this year, including those due to the 12-day war with Israel and the US in June, and the bloody nationwide protests in January, as well as air pollution rooted in an energy crisis.

For many business owners, significantly reduced market activity over the past year, and specifically in the lead-up to Nowruz, has meant significantly slashed income.

“There was some action in those last few days, but our sales were probably about one-third of usual levels around this time, which is supposed to be the time of the year when we get the most business,” said a vendor selling textiles and related commodities in Tehran’s Grand Bazaar.

“Nobody is sure what comes next when we open back up after the holidays. Things have only gotten worse over the past few years,” he told Al Jazeera, asking to remain anonymous due to security concerns.

Iranians’ purchasing power has been steadily falling for years, and well-paying jobs have become scarce due to a destructive mix of local corruption and mismanagement, paired with a “maximum pressure” campaign of all-encompassing sanctions started in 2018 during President Donald Trump’s first term in office.

Annual inflation was officially about 70 percent just before the war, with food inflation rates pushing more than 100 percent, signalling more trouble ahead for lower-income Iranians. The stock market was in the red with a lot of capital exiting, and experts raised concerns about potential hyperinflation and dollarisation of the embattled economy.

The government has said it is cutting spending and will raise the minimum wage for workers by 60 percent in addition to offering a meagre cash subsidy, but rising costs have proven crushing, particularly since the 12-day war in June. Taxes are also up significantly this year.

A small grocery shopkeeper in western Tehran said the store has regularly had access to most goods and items since the start of the war on February 28, but rising prices have dismayed many customers.

“You can see a lot of people double – checking the prices or making calculations when coming in to buy things. It’s not an uncommon sight these days,” he said.

Some families left Tehran and other major metropolises shortly after the start of the war and have yet to return, concerned about the safety of themselves and their loved ones. Many are burrowing into their modest savings and are left with an uncertain future.

But there is no sign of reprieve, at least in the short term, even though Trump suggested on Monday that diplomacy may yet have a chance to stop the war, they have also seen the Islamic Revolutionary Guard Corps (IRGC) launching projectiles at regional neighbours and driving up global energy costs.

Inside Iran, the fact that more than 90 million people have now been blocked by the state from accessing the global internet for a 25th day is making everything grimmer for a population left in the dark.

Not only has the shutdown prevented most Iranians from getting their voices out to the global community during the war and largely limited the flow of information to state-run outlets, but it has also inflicted serious psychological and financial pain on the population.

“This time, there is not even a word about when the internet might get reconnected. It is not only humiliating, but it is also forcing businesses to close down and inflation to grow,” said a young woman who ran a small online business selling jewellery and accessories on Instagram and Telegram.

She explained that she has not had a sustainable income in months since another 20-day near-total internet shutdown was imposed by the country in January, when many thousands were killed on the streets during nationwide anti-establishment protests.

Many online shops chose to either stop advertising or suspend operations entirely in the aftermath so they could help spread the news about the unprecedented protest killings.

Many private businesses were shuttered or had their online pages suspended by the authorities because they expressed solidarity with the killed protesters, even by posting Instagram stories.

The judiciary also confiscated the assets of a number of Iranians, including those of a renowned businessman who owned cafes and food brands, for protesting.

The latest effort was announced on Tuesday, when the judiciary said a man and a number of those close to him have all had their assets confiscated for being “active elements who are colluding and collaborating with the terrorists and the US-Israel child-killing regimes”.

Local media identified the man as Borzou Arjmand, an actor who has been advocating for the overthrow of the government since leaving the country some time ago.

The judiciary also announced on Tuesday that it now has the ability to “identify and confiscate assets online” for people believed to be aligned with “hostile countries”.

This comes amid numerous warnings of asset seizure issued by authorities against Iranians inside and outside the country for dissent.

“The court cases of terrorist agents of the enemy that have led to definitive sentences are being implemented,” Hamzeh Khalili, the first deputy of the judiciary, told state television in a video message on Monday.

Iran has executed multiple people over the past week based on national security charges related to last year’s June war and the nationwide protests in January.

Authorities also continue to crack down on any efforts amid the internet shutdown to send footage of war or armed state-run checkpoints on the streets to media outlets outside the country.

The IRGC-affiliated Fars news agency released the “confessions” of an unidentified young woman on Tuesday, who had her eyes and mouth covered with a black mask.

She was arrested because she filmed a missile impact point from the window of her home.

“Those who send videos to anti-Iranian media must await this moment,” said Fars.

Iranian authorities have also explicitly warned that anyone who protests against the establishment on the streets will be shot and killed as an “enemy”.

They have continued to mobilise pro-establishment paramilitary and civilian backers to maintain control on the ground.

Addressing the Iranian people during an interview this week, Brad Cooper, the top US military commander in the region, said it is better for antigovernment protesters “to stay inside for now”.

“[But] there will be a clear signal at some point, as the president [Donald Trump] has indicated, for you to be able to come out,” he said.

🌐

Translated from the original and edited for English readers. View original source →

Translation confidence: 100%

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