Iran's Economy Buckles as Blockade Chokes Oil Exports and Households Cut Meat, Dairy and Medicine
Capital Economics says oil income worth about 11% of GDP has vanished, while consumer inflation reached 87.9% in July and households cut spending.
- Iran's crude oil exports fell to "close to nothing" in July after the US blockade shuttered the main terminal at Kharg Island, severing the nation's primary source of hard currency.
- Five months of war have pushed Iran into a deepening recession as President Donald Trump's administration signaled it will maintain economic pressure rather than negotiate on Iranian terms.
- Headline inflation reached 87.9% in July, while food costs surged with oils and fats rising 219% and dairy products 147% over the past year, compounding household purchasing power losses.
- Ali Ehsan Zafari, head of the Dairy Cooperatives Union, reported annual dairy consumption plummeted from 130 kg per person in 2010 to 40 kg, illustrating the severe squeeze on households.
- The International Monetary Fund expects Iran's economy to shrink 5.4% in 2026, marking the nation's sharpest contraction in 38 years as the country struggles to replace lost oil revenue.
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11 Articles
Hormuz blockade is 'worse than war’: Iranian official says US blockade would cost Iran $18 billion
“We must not get used to the blockade as we did with sanctions,” Majidreza Hariri told Iranian site Khabar Online. “We should impose the cost of lifting the blockade on the US, even through war."
Since early August, Iranian oil exports have ground to a halt due to the US naval blockade of Kharg Island, Iran's main oil export terminal. Djamchid Assadi, an economist and professor at the Burgundy School of Business in Dijon, France, believes this situation risks further devastating the Iranian economy, which is already suffering from rampant inflation.
Iran's economy is buckling after nearly 6 months of war. These 5 charts show the damage.
Fatemeh Bahrami/Anadolu via Getty ImagesIran's economy is showing signs of serious fatigue as the war heads for the six month mark. Inflation and unemployment have soared, while oil revenue has cratered amid the US blockade.Iran's Misery Index hit a record high in the first quarter, and the economy is shrinking. After almost six months of war, Iran's economy is struggling. President Donald Trump told Axios over the weekend that he's shifting his…
Iran's economy buckles as blockade chokes oil exports and households cut meat, dairy and medicine
Iran's oil exports have fallen close to nothing under a renewed US blockade, Capital Economics estimates, as households cut dairy consumption by two-thirds since 2010 and patients skip medical treatment they can no longer afford.
No oil tanker was loaded on the island of Kharg, Iran's main oil export terminal, at least a week ago, according to navigation data providers and satellite images, indicating that the naval blockade restored by the United States interrupted the sales of raw oil from Tehran. Exclusive material for subscribers. To have full access, access the link of the matter and register.
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HoweStreetIran’s Economy Is Unraveling
Iran International reports that the average advertised monthly rent in Tehran has climbed to 723 million rials, or about $389 at the open-market exchange rate. Many Iranian workers earn only 200 million to 250 million rials per month, equivalent to $108 to $134. A worker must now surrender nearly three months of wages to pay...
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