Oil won’t save Iran: Economy in freefall as war damage mounts

Iran is incapable of withstanding more than a few additional weeks of conflict, according to assessments of the country’s deteriorating economic position. Damage to the Iranian economy has already accumulated to approximately $200 billion — at least half of the nation’s annual GDP — creating conditions for rapid economic collapse outside wealthy districts in Tehran’s suburbs.

The Islamic Republic is experiencing accelerating financial breakdown, with even subsidised essential goods rising in price at a rate of 180 per cent annually. Ordinary Iranians face these spiralling costs without wage adjustments or salary indexation to match inflation, compounding the hardship across the population.

The scale of economic damage suggests Iran’s capacity to sustain prolonged military engagement is severely limited. With half a year’s total economic output already lost to conflict-related losses, the country faces mounting pressure on its ability to fund ongoing military operations and maintain basic services for its citizens.

Source: Ynet — Original article in Hebrew.