Iran is grappling with a deepening economic crisis amid its ongoing conflict with the United States and Israel, with rising war expenditures and declining revenues severely impacting the country’s financial stability. The prolonged conflict has pushed the economy into distress, leaving ordinary citizens struggling to cope with mounting hardships and a sharp rise in the cost of living.
Inflation has surged across essential commodities, with food prices reportedly increasing by 112%, while cooking oil prices have jumped by over 200%. The impact of inflation has extended beyond daily necessities, as even funeral expenses have risen by nearly 40%. The sharp escalation in prices has significantly eroded purchasing power, placing a heavy burden on households across the country.
یک شهروند درباره کاهش قدرت خرید مردم در پیامی به ایران اینترنشنال گفت که قیمت هر دانه تخم مرغ به ۲۰ هزار تومان افزایش پیدا کرده و «هیچ چیز نمیشود خرید.» pic.twitter.com/0OzYUs1Ltp
— ايران اينترنشنال (@IranIntl) April 25, 2026
Employment has also taken a major hit, with around one million job losses officially reported since the conflict began, though estimates suggest the actual number could be between two to three million. Nearly 15 million people are currently without a stable source of income. Government assistance and food voucher schemes have proven inadequate, with many unable to afford even basic food supplies such as rice.
The Iranian rial has witnessed a steep decline, trading at nearly 1.6 million against the US dollar, further weakening the economy. The currency depreciation has wiped out savings and disrupted businesses, forcing many small establishments to shut down. Key sectors like petrochemicals and steel have been adversely affected, while the Tehran Stock Exchange remained closed for eight consecutive weeks—an unprecedented development reflecting the severity of the crisis.