Iran economy contracts during US war: Official statistics

TEHRAN

(FILES) Shopkeepers arrange dried fruits and nuts in front of their shop at a market in Tehran on August 24, 2026. Iran's economy contracted by more than 10 percent during the Middle East war, which began with US-Israeli attacks in late February that unleashed turmoil and battered the Islamic republic's economy. (AFP Photo)

Iran's economy contracted by more than 10 percent during the Middle East war, which began with U.S.-Israeli attacks in late February.

The country's gross domestic product (GDP) shrank by 10.1 percent year-on-year from late March to late June, a period known in Iran as the first quarter of the Persian calendar, according to the Statistical Center of Iran on Sept. 20.

Iran has been at war with the United States since late February, when U.S.-Israeli strikes killed the Islamic republic's supreme leader and senior military officials at the start of a vast offensive.

The strikes sparked Tehran's retaliation in blocking the Strait of Hormuz — causing global oil prices to surge — as the conflict spread in the Middle East.

Aside from this, Iran's economy has long struggled with hyperinflation and devaluation of its currency, caused in large part by economic sanctions.