Iran Begins to Weaken, War Causes Citizens to Cry Out in Hardship
Jakarta, CNBC Indonesia - Iran’s economy, already in dire straits before the outbreak of conflict, is now at its lowest point, with millions facing job losses and the threat of extreme poverty. Citing a CNN International report on Wednesday (29/04/2026), the two-month war against the United States (US) and Israel has paralysed almost the entire industrial sector, from oil refineries and textiles to aviation and journalistic services.
Asal, a freelance designer in Tehran, revealed how the war has killed her livelihood overnight due to a two-month internet blackout. Without global connectivity, she has lost all her overseas projects, and her income can no longer cover basic living expenses.
“No new projects, no replies. It feels like everything just stopped overnight,” said Asal over the phone.
This situation reflects the fate of millions of other Iranians dragged into the abyss of poverty, where national per capita income has plunged from US$8,000 (Rp138,024,000) in 2012 to just US$5,000 (Rp86,265,000) in 2024. The UN Development Programme (UNDP) predicts that an additional 4.1 million people could fall below the poverty line due to the prolonged conflict.
The physical damage from thousands of airstrikes is also massive, with EcoIran reporting that more than 23,000 factories and companies have been hit by missiles. Iran’s Deputy Minister of Labour and Social Security, Gholamhossein Mohammadi, stated that the attacks have directly caused the loss of one million jobs.
“The physical damage has directly claimed one million jobs,” said Mohammadi, while Etemad Online publication estimates that the war’s domino effect has pushed another one million people out of the workforce.
Hadi Kahalzadeh from the Quincy Institute added that disruptions to shipping and import routes have put 50% of jobs in Iran at great risk. Annual inflation in March even reached 72%, causing many companies to halt operations due to inflationary pressures, recession, and the collapse of market demand.
“Many companies have suspended operations under the combined pressure of war, inflation, recession, and collapsing demand,” wrote Kahalzadeh.
Heavy industries such as petrochemical refineries and steel factories were not spared from Israel’s airstrikes last month, forcing thousands of workers into unpaid leave. This impact has rippled into downstream industries, such as trailer manufacturer Maral Sanat, which had to lay off 1,500 workers due to a shortage of steel stock, and Borujerd textile company, which dismissed 700 employees.
This crisis has also struck the air transport sector, as experienced by senior flight attendant Soheila, whose contract ended in March without certainty on when flights will resume. She recounted that all her flight schedules were suddenly cancelled, leaving her without pay.
“I was just about to depart for a flight when a colleague called and said everything had been cancelled. Our contracts ended in March, so until flights resume, we won’t be paid,” Soheila told Fararu news site.
The surge in unemployment is evident from official data showing 147,000 people applying for unemployment insurance in the last two months, three times higher than last year. Jafar, a data analyst whose company has completely shut down, is now even considering becoming a ride-hailing driver just to survive amid mounting debts and rent.
“Now I’m thinking of working in online transport services just to get by. I have rent and debts to pay, and I don’t know what will happen next,” said Jafar.
The Iranian government itself accuses this suffering as a consequence of an “unfair war” imposed by the US and Israel. As an emergency measure, the government is reportedly planning to expand monthly voucher distribution to help the poorest citizens obtain essential goods, while conservative newspaper Ettelaat warns that the government may need to implement a special wartime economy programme soon.