Iran's four-decade-old 'resistance economy' is being tested as US and Israeli strikes pound the country's infrastructure. The model, designed to withstand sanctions and conflict, has helped Tehran survive economic isolation through domestic manufacturing, dispersed power plants, and barter trade. Now, with thousands of air strikes targeting military and industrial sites, Iran's ability to maintain basic economic functions faces its ultimate challenge.

Steel exports, a critical non-oil revenue source, have taken a hit after Israeli strikes damaged two of Iran's largest steel plants. Esfandyar Batmanghelidj of the Bourse & Bazaar Foundation estimates Iran was on track to export around $7 billion in steel products before the conflict. The country's diversified industrial base, dating back to the shah's modernization efforts, provides some buffer against complete economic collapse.

Despite relentless bombardment, Iranian authorities project stability, insisting essential goods remain available. Supermarket shelves stay stocked, civil servants continue receiving pay, and food prices have stabilized as the currency market becomes inactive. Higher oil prices have paradoxically boosted revenues, with Iran earning over $140 million daily from exports. However, analysts warn that if the US targets Iran's power plants, the economic situation would deteriorate rapidly. While Iran's economy shows resilience through crisis, Batmanghelidj cautions that economic pressures will fuel domestic discontent, though may not break the regime's resolve.