Iran’s Internet Shutdown Costs Economy $2.6 Bln

Iran is facing economic losses exceeding $2.6 billion as the country continues to experience its longest nationwide internet shutdown, severely disrupting businesses, digital services, and online trade.

According to Bloomberg, the strict internet restrictions imposed by Iranian authorities since the outbreak of the war in late February have placed growing pressure on the country’s already struggling economy.

Data from NetBlocks indicates that the current blackout is the longest recorded nationwide internet shutdown in a highly connected society, with daily economic losses estimated between $30 million and $40 million.

The restrictions have hit thousands of businesses, particularly small and medium-sized companies that rely heavily on platforms such as Instagram, WhatsApp, and Telegram for sales, marketing, and customer communication.

Many of these platforms are either inaccessible or functioning only with severe limitations, causing widespread disruption across e-commerce, digital payments, online advertising, software development, and freelance work.

The outage has also affected broader sectors of the economy, including informal businesses and independent traders, as millions of Iranians depend on internet access as a primary source of income.

The shutdown comes as Iran faces one of its worst economic crises in recent years, with the national currency continuing to lose value and inflation remaining at high levels.

Millions of residents have also experienced disruptions to education, work, and everyday services in the country of more than 90 million people, where smartphone penetration exceeds 130 per cent.

In an attempt to reduce the economic fallout, the Iranian government launched a programme known as “Internet Pro,” offering limited internet access to selected companies and technology workers through special SIM cards subject to strict verification measures.

The increasing restrictions have pushed many businesses towards state-backed domestic platforms, although digital security experts continue to warn about privacy risks and weak encryption standards that may allow authorities access to user data.

With the blackout still ongoing, concerns are growing that Iran’s digital economy could enter a deeper recession, with analysts warning of long-term damage to the country’s technology sector, investment climate, and commercial activity.