Iran's economy has long struggled under the weight of sanctions and domestic challenges and the recent war with Israel, it added more strain to an already fragile economic landscape.

Tehran

Iran's economy is experiencing heightened challenges following a recent conflict with Israel, compounding the effects of longstanding sanctions and economic recession. Many businesses, including start-ups, have reported severe revenue losses, leading to widespread layoffs and increased financial insecurity among workers.

The Iranian government has introduced measures to support affected businesses, such as expanding access to capital and relaxing insurance requirements for online enterprises. However, the country faces significant obstacles in its recovery, including infrastructure damage, disrupted trade, and persistent issues like inflation, a weak currency, and resource shortages. While reconstruction efforts are underway, the overall outlook remains uncertain.

Iran's economy: Country facing economic strain following recent war

In a country already struggling under decades of sanctions, the recent war with Israel has hurt Iranian businesses even more. While some are adapting, others remain on edge. Niman Amdari says his start-up company lost 85% of its revenue during the conflict. This 12-day period of time was kind of a tip of an iceberg. After two decades of tough sanctions and economic recession and a high level of unemployment in Iran, the economy, even for big and huge businesses, not just small and medium-sized, is very, very fragile. And this economic concern has forced companies into cost-cutting measures, including layoffs. Negin, herself a former HR manager, was among those laid off. Witnessing the psychological effects of unemployment on individuals is extremely difficult. In the Middle East, we wake up to a new surprise every day, and we have to try to stay our lives through these events. I hope things return to normal soon and life becomes stable again. The Iranian government says it's taking actions to help those affected. Under exceptional wartime conditions, we prioritized business support to ease the financial crisis, mainly by expanding access to capital. For platform-based and online enterprises, we relaxed insurance requirements to reduce pressure. Also, we're boosting sales opportunities, especially for small businesses. Beyond the job market, Iran faces reconstruction costs. Military and nuclear sites and civilian buildings were damaged across the country. Wartime losses also include airspace closure, disrupted trade and travel, and defense spending. But recovery will be difficult because of a host of existing challenges. Water and power shortages, soaring inflation, a weak currency, and strained international trade. The Iran-Israel war has worsened the existing challenges and added pressures to Iran's already strained economy. But despite the damages, efforts to rebuild are underway. It's a moment for the country to push forward, but the road ahead remains clouded by economic uncertainties. Tawheed Assadi, Al Jazeera, Tehran.

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Jerusalem

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