Iran's economy in crisis

Sep 04, 2026

Iran's economy is collapsing under war and sanctions, and ordinary Iranians are bearing the pain while the government digs in.

  • Iran's currency has lost most of its value since March and prices are up about 85% from a year ago.
  • Even police officers, normally paid well to stay loyal, are complaining publicly that they can't afford basics like milk.
  • The war has wrecked Iran's industries: steel plants and petrochemical complexes are shut, tourism has vanished, and millions of jobs are at risk.
  • A US naval blockade has stopped oil exports for weeks, costing billions and risking permanent damage to Iran's aging oil wells.
  • The UAE, long Iran's back door for trade and banking, has cut off all dealings — a bigger blow than the American sanctions themselves.

Outlook: Expect more tit-for-tat strikes around the Strait of Hormuz and harsh crackdowns if protests return, with no sign either side backs down soon.

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