Iran’s economy struggles as internet shutdown severely impacts citizens and businesses.
Iran’s struggle for connectivity amid a significant state-imposed internet blackout highlights the challenges faced by an increasingly digital society. The blackout, which affected over 90 million people and coincided with nationwide protests, not only disrupted daily lives but also raised critical questions about economic stability and government transparency. The situation underscores the broader implications of technological control and the human cost of communication suppression in a rapidly evolving digital landscape.
—
Tehran, Iran – The economic outlook for Iran has taken a distressing turn more than three weeks after an extensive state-imposed internet blackout, which represents one of the most significant disruptions in modern history, impacting the lives of over 90 million people. This sudden blackout initiated on January 8 occurred during a wave of nationwide protests, which the United Nations and various international human rights organizations have condemned for being met with excessive force by authorities.
While recent days have seen a restoration of some internet bandwidth along with local and international phone calls and SMS services, the vast majority of Iranians remain unable to freely access the global internet due to stringent governmental filtering. This partial restoration has allowed some citizens to use proxies and virtual private networks (VPNs) to bypass restrictions; however, these methods are often prohibitively expensive and temporary.
According to Iranian Information and Communications Technology Minister Sattar Hashemi, the blackout inflicted economic damages estimated at 50 trillion rials (approximately million) per day. He acknowledged that the true financial impact may be considerably higher, as other officials have suggested even more severe losses in private discussions, though those estimates go unreported.
The government led by President Masoud Pezeshkian has distanced itself from responsibility for the blackout. Pezeshkian, who ran on a platform promising to reduce internet restrictions, has shifted focus towards economic reforms and cash subsidies while remaining silent on this historic communication crisis. Nonetheless, his administration has pledged support for online businesses, though the damages suffered have already proven catastrophic for many.
Local businesses have been particularly hard hit. Simin Siami, a travel agent in Tehran, revealed that her company lost most revenue, leading to layoffs due to cancelled international flights and an inability to facilitate ticket sales or hotel bookings. Likewise, Saeed Mirzaei from an immigration agency shared how the shutdown rendered communication with foreign counterparts impossible, severely impacting their operations and client services during critical application deadlines.
During the blackout, even the government’s National Information Network—a limited domestic intranet—was under strain. Its slow and unreliable connections left many businesses unable to operate effectively, exacerbating the overall economic stagnation in the country. Minister Hashemi described proposals from hardliners to abandon international web access in favor of domestic networks as impractical, recognizing the dire necessity of gradual reconnection.
Economic damages reported to date reflect only visible costs; hidden damages remain unquantified, as emphasized by Abazar Barari from Iran’s Chamber of Commerce. The comprehensive impact on imports and exports has undermined negotiations and disrupted trade processes, with many countries hesitating to engage with an unstable market.
In a nation grappling with soaring inflation, the internet outage has left countless Iranians—including small business owners and freelancers—anxious about their livelihoods. Social media platforms have become avenues for support as individuals share their struggles during the gradual restoration of services. Mehrnaz, a young video editor, recounted a near collapse of her financial stability and the pressures of maintaining independence.
Furthermore, postal services saw a dramatic 60-percent drop in deliveries during the blackout, placing immense strain on small and home-based enterprises reliant on shipping. The frustration extends beyond economic factors; many Iranians are dismayed by the state’s ability to sever communications at will, infringing upon their fundamental rights to internet access.
As citizens express their grievances over the tiered approach to internet access and the arbitrary decisions dictating what constitutes “essential” usage, the outcry reflects both a demand for economic recovery and the assertion of their rights to digital connection.
#MiddleEastNews #PoliticsNews
