FLASH
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The Iranian economy is facing a severe crisis after a massive internet shutdown that began on January 8, at the height of widespread anti-government protests. The blackout is considered one of the most widespread in history and affected over 90 million people, disrupting international and local communications.
Although some services have been restored in recent days, state restrictions and filtering still hinder free access to the internet. The use of VPNs and proxies is an expensive and temporary solution, causing many online businesses to suffer significant losses.
Technology Minister Sattar Hashemi estimated that direct economic damage is at least 50 trillion rials (about $33 million) per day, but the real figure could be much higher. Many businessmen and economic officials have offered more dire estimates, which have not been made public.
Tourism businesses and immigration agencies are among the hardest hit. Simin Siami, a travel agent in Tehran, reported massive losses due to the cancellation of international flights and the inability to book hotels or renew passports for clients. At the same time, the immigration agency where Saeed Mirzaei works forced 46 employees to go on forced leave for weeks after the lack of internet cut off communication with embassies and schools abroad.
The government, under President Masoud Pezeshkian, has downplayed its role in the decision to block, delegating it to the Supreme National Security Council. Pezeshkian, who campaigned on a promise to reduce internet filtering, has avoided discussing the blackout, focusing instead on economic reforms and financial support for online businesses, which have nonetheless been hit hard.
An attempt by the regime to maintain internal services through the National Information Network appeared to be a “bitter joke” according to Minister Hashemi. This limited intranet could not support the economic activity of companies, which in most cases remained unable to operate normally.
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