Iran’s economy is worsening because of the US-Israel war in the country, as 23,000 factories and companies have been hit by the bombings, with 1 million lost jobs, 4.1 million people may be driven into poverty, while inflation in March reached 72%, according to CNN.
Iran’s economy was already on a downward course even before the war. Per capita national income had fallen from about $8,000 in 2012 to $5,000 in 2024, because of inflation, corruption and sanctions against it.
Iran’s economy had already been on a downward course even before the war, since national income per person has fallen from $8,000 in 2012 to $5,000 in 2024.
The disruption in sea transport, and consequently in imports, has destabilised even further Iran’s already fragile economy, “putting at risk 50% of jobs in the country and pushing an additional 5% of the population into poverty,” according to Hadi Kahalzadeh of the Quincy Institute.
At the same time, although the ceasefire is in force, Donald Trump does not agree with Iran’s proposal for opening the Strait of Hormuz and ending the war, without the suspension of its nuclear programme.
The latest proposal of Tehran provides for setting aside the discussion on Iran’s nuclear programme until the war is ended and differences regarding navigation in the Gulf are resolved.
Sources: CNN, Reuters
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