Iran Economy Contracts 10.1 Percent Amid War With US

The Statistical Center of Iran reported that the national economy contracted by 10.1 percent year-on-year from late March to late June. This decline follows a conflict with the United States that began on February 28, triggered by US-Israeli strikes that killed Iran's supreme leader and senior military officials. In retaliation, Tehran blocked the Strait of Hormuz, causing a surge in global oil prices.

Economic instability has reached levels described by residents as "catastrophic" and "unbearable." The crisis was further compounded by stringent U.S. sanctions implemented in August, which pushed the Iranian currency to new lows of over 200,000 tomans to the dollar. This financial collapse follows a brutal crackdown on anti-government protests in January.

Data indicates the country's misery index, which combines inflation and unemployment, hit 96 percent in June-July. Some regions experienced even higher rates, with the province of Ilam reaching 120.6 percent. The hardship has forced citizens to reduce essential food consumption and postpone marriages. In response, online retailers Snapp and Digikala expanded installment payment plans to include basic groceries to help citizens afford essential goods.