Iran's economy has collapsed under the weight of a brutal conflict that erupted in February, when Israel and the United States struck key industrial sites. The strikes have killed 1,700 civilians, shattered airports and petrochemical plants, and forced the government to shut the Strait of Hormuz to shipping. The shutdown has cut oil exports, the country’s lifeline, and sent crude prices to a new high.

Inflation has surged as imports choke and domestic production stalls. Basic goods that once cost a few dollars now cost double or more, pushing households into debt. Factory shutdowns—such as a plastic bottle plant near Mashhad—have laid off hundreds, while pharmacies ration medicine and health officials warn of shortages.

The war has reshaped investor sentiment. Oil‑dependent firms face supply cuts; international sanctions tighten as the United States signals continued pressure. Domestic firms lag as raw materials dry up and consumer spending collapses. For businesses, the lesson is stark: geopolitical shocks can wipe out revenue streams overnight, and companies must adapt swiftly to survive the crisis.