Collapse in Iran: the economy is collapsing due to war and the blockade of the Strait of Hormuz

Iran's economy is going through a deep crisis. The impact of the war and the US-led blockade hits all fronts

The deterioration is no longer temporary. Analysts warn that the recovery could take more than a decade

The rial plummets and inflation soars

The Iranian currency fell to historic levels. The rial is around 1.32 million per dollar

Depreciation exceeds 60% in a few months. The government responded by issuing higher-denominated banknotes

Inflation also accelerated.

Food recorded increases of more than 100% year-on-year.

Commodities such as bread, oils and cereals show extreme increases.

The Strait of Hormuz was key to Iranian trade. More than 90% of its exports were dependent on that route

The lockdown drastically reduced revenues. A drop of up to 70% in exports is estimated.

This directly impacts the ability to import essential goods.

The siege also affects the global energy market, given that nearly 20% of the world's oil circulates through this route.

The United States reinforced its sanctions strategy. The objective is to limit the funding of the regime.

The threat of sanctions against banks that operate with Iran deepens isolation.

In addition, attacks on energy infrastructure compounded economic damage.

Losses exceed $200 billion, according to private estimates.

The International Monetary Fund projects a 6.1% drop in GDP in 2026

Inflation could reach almost 70%. This places Iran among the world's most deteriorating economies

The economic system is facing a critical combination: recession, inflation and fiscal deficit.

The economic collapse impacts the population. The loss of purchasing power and the deterioration of basic services are alarming

Experts warn of a possible humanitarian crisis in the short term.

Without access to funding or strong allies, the regime's room for maneuver is dwindling.

The US strategy combines blockade, sanctions and diplomatic pressure

The objective is to force structural changes in the Iranian regime.

Meanwhile, the economy is still in free fall.

The picture is clear: without profound change or international agreement, the Iran crisis will continue to worsen in the coming years.