Iran’s strict internet shutdown is crushing an already shaky economy
Published on May 1, 2026.
Iran's internet shutdown, one of the world's longest and strictest national shutdowns, is crushing an already shaky economy. The 90 million people of Iran have been cut off from the internet for most of 2026, affecting an online economy that had previously defied government restrictions and international sanctions. The internet cutoff costs the economy an estimated $30-40 million daily, with indirect losses estimated twice that much. Despite an uneasy truce with the U.S. and Israel, Iran's rulers have refused to reverse the shutdown, citing it as a wartime necessity. The shutdown has led to mass job losses and increased scrutiny on Iran's economy. Online retailer DigiKala recently announced it was laying off 200 people, about 3% of its workforce.
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