The United States-Israeli war on Iran, which began on 28 February 2026, when the two countries launched coordinated military operations against Iran, has had a far-reaching impact on Iran’s economy – an economy that was already in crisis and grappling with soaring inflation and currency devaluation. In fact, it was economic grievances that had pushed Iranians to protest, in late December 2025 – protests that were crushed with unprecedented brutality by the authorities. Since then, the US-Israeli bombings, which inflicted heavy damage on key industries, the disruption of daily economic activities caused by war, and the internet shutdown have pushed the economy into further crisis: causing significant job losses and contributing to spiraling prices.
In the first report on the economic impact of war, titled “The Impact of War and Security Crises on Iran’s Economy and Labor Market,” we sought to provide an initial picture of the economic consequences of the war at a time when many dimensions of the damage and available data had not yet fully emerged. Now, one month later, and with the publication of new statistics, this follow-up report takes a closer look at the impact of the war on livelihoods and the labor market.
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