Economic Hit: Iran Loses $42 Million a Day Amid Internet Blackout

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Economic Hit: Iran Loses $42 Million a Day Amid Internet Blackout
  • 26 Jan, 15:09
  • Iran

Ali Hakim-Javadi, Head Of The ICT Guild Organization (A Semi-Governmental Body Representing The IT Sector), Stated That The Internet Shutdown Is Costing Iran Between 2 To 3 Trillion Tomans Daily ($28M-$42M USD). He Added That The Damage Extends Beyond Financial Losses, Warning Of “Tangible Negative Effects” On User Trust, Iran’s International Standing, And The Increasing “Migration Of Elites,” Or Brain Drain.

Losing 3 trillion tomans ($27.2M USD) every single day is a staggering blow for an economy already crippled by international sanctions. It shows how the Iranian government continues to prioritise regime survival and security over the basic economic livelihood of its own people, The Caspian Post reports, citing foreign media.

The head of the ICT Guild stated that this daily damage figure is incomplete and "certain parts have not yet been calculated." According to Hakim-Javadi, "the actual damage is certainly far beyond this estimate."

Iranian media reported on Sunday, January 25, that the internet shutdown has disrupted the livelihoods of at least one million people in the fashion and apparel industry alone. A fashion sector activist told local outlets that the blackout has thrown both major brands and small “online shops” into chaos, disrupting their production and sales cycles.

Unlike many countries where e-commerce happens on dedicated websites (like Amazon), a massive portion of Iran's private sector relies on Instagram. Small businesses, particularly in fashion, home decor, and food, use the platform for marketing and sales because it bypasses the need for complex web hosting and expensive licenses. Cutting the internet effectively "shuts the doors" on millions of self-employed individuals and small household businesses.

The Islamic Republic shut down the internet and communication channels on the evening of Thursday, January 8, as protests erupted across the country and thousands were killed or wounded. At the time, officials said the blackout was imposed by security agencies. Later, they shifted blame, claiming that “armed terrorists” were responsible for the killing of civilians.

Spending 3 trillion tomans ($28M-$42M USD) a day on an internet blackout is a staggering cost for an economy already crushed by sanctions. It underlines how the Iranian government continues to put regime survival and security above the basic economic livelihood of its citizens.

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Economic Hit: Iran Loses $42 Million a Day Amid Internet Blackout

Ali Hakim-Javadi, Head Of The ICT Guild Organization (A Semi-Governmental Body Representing The IT Sector), Stated That The Internet Shutdown Is Costing Iran Between 2 To 3 Trillion Tomans Daily ($28M-$42M USD). He Added That The Damage Extends Beyond Financial Losses, Warning Of “Tangible Negative Effects” On User Trust, Iran’s International Standing, And The Increasing “Migration Of Elites,” Or Brain Drain.