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Iran's Economy Crumbles Under Weight of Its Own Aggression

Two million Iranians have lost their jobs as the regime's reckless conflict with the U.S. and Israel triggers a massive economic collapse.

Foreign PolicyPublished April 21, 2026 at 4:05 PMProcessed April 21, 2026 at 4:38 PM
A woman leans across a vegetable stall as a seated man watches her, at a market in Tehran (24/03/26)

The Iranian regime is finally facing the economic reality of its belligerent foreign policy, with Deputy Work and Social Security Minister Gholamhossein Mohammadi confirming that two million citizens have lost their jobs due to the ongoing conflict with the United States and Israel.

This massive wave of unemployment is the direct result of a regime that prioritizes state-sponsored aggression over the stability of its own workforce. The economic fallout has decimated sectors ranging from manufacturing and retail to the digital economy, as factories shutter and supply chains collapse.

The regime’s desperate attempt to control the narrative through internet blackouts—a tactic previously used to suppress domestic dissent—has only accelerated the decline, costing the economy over $1.8 billion in just 52 days.

While officials euphemistically label these mass layoffs as 'balancing the workforce,' the reality is a nation struggling under the weight of runaway inflation, which surpassed 50% in March 2026.

The disruption of key industries, including petrochemicals and steel, combined with the regime's inability to secure raw materials due to international sanctions and maritime instability, has left businesses unable to operate.

Rather than addressing the root cause of the crisis, the government is offering predatory loan schemes to small businesses, further burdening the private sector. As the regime continues its hostile posturing, it is the Iranian people who are paying the price for their leaders' refusal to abandon their destabilizing agenda.

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iranforeign-policyeconomysanctionsmiddle-east

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