Economic Struggles During Conflict: Personal Stories from Iran

People walk past closed shops at the nearly empty traditional main bazaar during Iranian New Year, or Nowruz, holidays in Tehran, Iran, March 29, 2026.

Tehran’s Economic Strain
Rasoul, a 42-year-old engineer in Tehran, found his worst-case plan unexpectedly necessary. Despite a steady tech job, the war changed everything. As U.S. and Israeli forces attacked Iran, economic conditions deteriorated rapidly. Inflation surged, affecting essentials like gas, food, and rent. Many Iranians faced economic collapse, borrowing money to survive and delaying life plans. The official unemployment rate claims 9%, but independent reports suggest it’s much higher. Jobvision noted a 50% rise in resume submissions in April, signaling desperation among job seekers.

Even government-endorsed labor leaders recognize the crisis’s depth. Alireza Mahjoob from Iran’s Workers House publicly stated the issue: joblessness is more severe than anticipated.

“We don’t know how much it will afflict our already fragile working class, leaving us all helpless and powerless,” Mahjoob said.

Impact of Disruptions
For Rasoul, the downturn was immediate. January’s government crackdown on protests affected internet access in Iran, disconnecting his company from global networks. Delivery services suffered, leading to financial instability.

Rasoul recounts the rapid decline: “The company’s situation got really bad. They were losing customers one by one.”

By mid-February, layoffs hit Rasoul, leading to depression. Afraid of government retribution, he asked for anonymity during interviews. His solution was night driving for Snapp, Iran’s ride-sharing service. However, the strategy failed. A naval blockade increased fuel prices, eroding his earnings. U.S. airstrikes made night navigation perilous, forcing him to rely on family aid.

Plans such as starting a family are indefinitely on hold. “I thought that after marriage I could keep working and traveling, going places together,” Rasoul said. “But since we got married, nothing.”

Industry Collapse
Kayvan, a materials engineer, faced similar struggles. Working for a Chinese firm supplying Iran’s oil sector, the conflict halted maritime trade.

“The environment became so unsafe,” Kayvan said. “Transit routes shut down; the Strait of Hormuz closed, stopping sea transport.” Business ceased as clients couldn’t place orders. He described the job loss starkly: “It was like those American movies where people dump their belongings into a box and clear out their desk.”

Initially relying on his wife’s income and savings, Kayvan faced diminishing resources amidst severe inflation. “Terrifying inflation, unprecedented price hikes… we’ve genuinely never experienced days like these before,” he said. Kayvan believes peace is crucial to ending the turmoil.

Perceptions of Recovery
In July, Rasoul’s situation improved slightly with a new sales manager role. Yet, ongoing conflict and economic freefall keep future stability uncertain.

“We’re like passengers on a train,” Rasoul said. “We don’t know if the bridge ahead is broken or intact.”