Iran's Internet Shutdown Is Crushing Businesses
Tehran. At her studio in Iran's capital, Amen Khademi prepared a fashion shoot for a jacket she designed with Persian-inspired motifs. But even as she applied lipstick to the model, she was distracted, worrying if her business would survive after four months without its main link to customers -- the internet.
Iran's 90 million people have been cut off from the internet for most of 2026, one of the world's longest and strictest national shutdowns. That is devastating for an online economy that had long defied government restrictions and international sanctions. From fashion to fitness, to advertising and retailers, many have seen their incomes evaporate.
Khademi hasn't made a sale in months. “The internet outage in the past four months has completely destroyed not only my business, but many online businesses," she said.
Despite an uneasy truce with the United States and Israel, Iran’s rulers have refused to reverse the shutdown they have depicted as a wartime necessity. But they are facing an outcry as it adds to mass job losses from strikes on key industries and an ongoing US blockade.
Before January, Iranians could access the internet, but authorities blocked a large amount of content. Now, all access to the global web has been shut down. Some workarounds exist, but they have become enormously expensive, out of reach for most Iranians.
The internet cutoff costs the economy an estimated $30-40 million daily, with indirect losses likely twice that much, a member of Iran’s Chamber of Commerce, Afshin Kolahi, told a local newspaper. About 10 million people have jobs that depend on internet connectivity, according to the communications minister, Sattar Hashemi.
An Unprecedented Shutdown Guts an Online Economy
Throughout years of economic turmoil in Iran brought on by sanctions and mismanagement, platforms like Instagram and WhatsApp helped small businesses to find customers, and people to earn extra income to afford skyrocketing prices for basic goods.
Iranian authorities first shut down the internet in January during mass anti-government protests. That cutoff was just starting to ease when the government imposed a complete internet blackout on Feb. 28 as the US and Israel launched the war.
Mahsa Alimardani, an expert on internet censorship, said Kashmir and Myanmar have had longer blocks affecting specific regions or platforms. Countries like China, with its “Great Firewall,” and North Korea have always strictly limited access to the global internet.
“What makes Iran’s shutdown unprecedented is the combination of scale and severity: an entire country of 90 million people with a developed digital economy deliberately reverted to a controlled national intranet,” said Alimardani, an associate director for technology threats and opportunities at the rights group Witness.
A flagship company of Iran’s digital economy, online retailer DigiKala, recently said it was laying off 200 people, about 3% of its workforce. The pain extends to “production, foreign trade and even traditional business,” Reza Olfatnasab, head of a national group representing digital businesses, said in comments published in Iranian media.
Khademi's shopfront is on Instagram. But her studio’s page -- with more than 30,000 followers -- is now inactive. She was doing the photo shoot to save the pictures for later, hoping to find an alternative.
Her model, Farnaz Ojaghloo, is also a fitness coach. The shutdown has dried up both her modeling gigs and the online courses she ran for people inside Iran and abroad.
“Psychologically, it really hits hard,” Ojaghloo said. “All the plans you had for six months or a year ahead get pushed aside, and your only concern becomes surviving in the moment.”
The Alternatives Are ‘Terrible’
For years, authorities in Iran have enforced filters and policed content on platforms like YouTube and Instagram. But before the war, Iranians could bypass restrictions with cheap virtual private networks, known as VPNs, and other easy workarounds.
Now, the shutdown has stoked high prices for black-market VPNs. Iranian state media routinely report arrests of people for using illegal VPNs or the American satellite system Starlink, which was banned last year.
Senior government officials are awarded “white” SIM cards, granting them access to the global internet. Under pressure to alleviate the economic harm, the government is now allowing less-restricted internet access to a small number of professions, businesses, and media.
An e-commerce trade group in Tehran condemned the tiered system in Iranian media on Wednesday, calling it “an abuse of an obvious need of every citizen.” It said the outage threatens “the destruction of the country’s infrastructure at the hands of our own decision-makers.”
The vast majority of people have no choice but Iran’s national network.
A Tehran resident who works in advertising said sponsors have little interest in paying for content that can’t be posted on major platforms like Instagram, where he has tens of thousands of followers. He said his income is down to near zero since the war began.
A gamer in Isfahan -- also with a large following on YouTube and Instagram -- said Iran’s domestic network “is terrible” -- slow, insecure, and full of bugs. He, too, has lost almost all his income from sponsors and donations.
Iran has its own social media platforms modeled on services like WhatsApp and YouTube, but content is closely monitored and often censored.
“Nobody really wants to use these platforms, but there is no other option,” the gamer said. Both he and the advertising worker spoke on condition of anonymity out of security concerns.
A Growing Number of Street Vendors
The shutdown has piled new pressures on Iran’s once large and educated middle class, already struggling in the face of a prewar currency crash.
Economic decline in Iran has spurred waves of anti-government protests, most recently in December. Now, more Iranians are thinking of emigrating, a software developer said.
The developer -- likewise speaking on condition of anonymity out of safety fears -- said the internet shutdown has wiped out remote work. He lost his own job when his former company laid off almost all its employees in recent weeks, he said.
The consequences are visible in the rising number of street peddlers in Tehran. Reza Amiri, a 32-year-old former employee of an internet provider, now sells hats and umbrellas by a metro stop. He lost his job after the war started and has not received his last month’s salary, he said.
Monireh Pishgahi sells ornaments and accessories on the capital’s famed Vali Asr Street. She said her tailoring business used to supply three online shops. As business dried up, she shut down and laid off her five employees.
One downtown shopkeeper, Mohammad Rihai, said he had given up on trying to persuade street vendors to stop blocking the sidewalk outside his store. “After the war, you see them all along the sidewalk. I cannot fight them anymore.”
Tags: Keywords:Related Articles
US and Iranian Negotiators Reach Tentative Deal to Extend Ceasefire
Washington and Tehran have repeatedly accused each other of violating the seven-week ceasefire and have traded strikes throughout the week.Drone Strike Sparks a Fire Near UAE's Nuclear Power Plant
Iran has been increasingly threatening the UAE over recent days as the country hosted Israeli Iron Dome missile defenses and troops.Israel Deploys Iron Dome Batteries to UAE: Envoy
The United Arab Emirates diplomatically recognized Israel in 2020. That drew criticism from Iran, long Israel's main regional enemy.Kuwait Accuses Iran's Revolutionary Guard of Attacking Its Island
Bubiyan Island is home to Mubarak Al Kabeer Port, which is under construction as part of China’s “Belt and Road” initiative.Iran Warns the US Against Attacks on Its Oil Tankers, Britain Deploys Warship to Mid East
Iranian TV reported the warning a day after the United States struck two Iranian oil tankers, casting doubt on the month-old ceasefire.China's Top Envoy Tells Iran ‘Comprehensive Ceasefire’ Is Needed
The comments could inject new energy into stalled efforts to push for an agreement between the US and Iran that would end the war.US Says It Reopened Mine-Free Lane Through Strait of Hormuz
US military helicopters sank six of the small boats, Cooper said, adding that “each and every” threat had been defeated.2 American-Flagged Merchant Ships Successfully Transited Strait of Hormuz: US Military
Trump previously announced a new initiative to help guide ships through the critical waterway for global energy.Iran's Internet Shutdown Is Crushing Businesses
Iran's 90 million people have been cut off from the internet for most of 2026, one of the world's longest and strictest national shutdowns.Trump Calls off Dispatching US Negotiators to Pakistan
“You’re not going to be making any more 18-hour flights to sit around talking about nothing.”The Latest
Rupiah Hits Rp 17,926 Against US Dollar Amid Oil Surge and Geopolitical Risks
Rupiah fell to Rp 17,926 per US dollar as rising oil prices, Middle East tensions, and strong dollar demand weighed on sentiment.Indonesia to Cut Royalty Income Tax for Writers to 1.5%
The tax cuts will be available for authors who publish work with a clear International Standard Book Number (ISBN).Shinhan Bank Indonesia Launches Flazz Top-Up Feature on SOL Indonesia Application
Shinhan Bank Indonesia enables seamless Flazz top-ups via the SOL Indonesia mobile banking app.Prosecutors Confirm Raid on National Nutrition Agency Office
Indonesian prosecutors confirmed a raid on the National Nutrition Agency a day after President Prabowo replaced its leadership.Indonesia’s C-130 Hercules Repair Center to See Progress by 2028
Washington has picked Indonesia to be Asia’s hub for maintenance, repair, and overhaul (MRO) of the C-130 Hercules.Most Popular
