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The Independent UK
The Independent UK
World
Mehdi Fattahi and Amir-Hussein Radjy

Soaring inflation and plummeting economy test Iran's ability to withstand war and US blockade

Iran Daily Life - (Copyright 2026 The Associated Press. All rights reserved)

Iran’s grip on the Strait of Hormuz is throttling the world’s energy supplies and inflicting global economic pain, but the struggles of the Islamic Republic's own economy are testing its ability to withstand the war and defy Washington’s demands.

Iranians have been hit by spiraling prices for food, medicine and other goods. At the same time, the country has seen mass job losses and business closures caused by strike damage to key industries and the government’s monthslong shutdown of the internet.

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