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Iran Economy Falters After Internet Shutdown Hurts Business

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Nationwide Blackout Deepens Economic Strain

One of the longest state-imposed internet shutdowns in modern history has hurt Iran’s economy a lot. The blackout started on January 8 during protests across the country and affected more than 90 million people. Partial connectivity has come back, but heavy filtering still keeps people from freely accessing the global internet.

The long-lasting disruption has made economic problems worse, such as sanctions, inflation, and currency instability. Companies that relied on digital communication suddenly couldn’t reach their customers or suppliers. The result has been a lot of lost income and businesses that can’t work.

Source: ABC News/Website

Partial Restoration Doesn’t Help With Pressures

Authorities have slowly brought back phone calls, text messages, and internet access across the country. But access to the global internet is still limited, so many people have to use VPNs and proxy tools. A lot of the time, these workarounds are expensive, unreliable, and don’t last long.

The limited restoration has not been enough to bring back large-scale business activity. A lot of businesses still don’t have access to the international platforms that are important to their operations. Even though technology has gotten better, economic activity is still low.

Government Admits To Huge Money Losses

During the blackout, Iran’s Information and Communications Technology Ministry said that the economy lost at least 50 trillion rials every day. Officials admitted that the real financial damage is probably much worse than what has been made public. Behind closed doors, other ministers are said to have given more dire estimates.

These losses include both obvious drops in revenue and damage that won’t show up for a long time. It’s hard to put a number on things like broken supply chains, lost contracts, and customers leaving. Analysts say that it could take months for things to get back to normal, even after full connectivity is restored.

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Online Businesses Face Immediate Collapse

The shutdown hurt small and medium-sized online businesses the most. Travel agencies, immigration companies, and e-commerce sites lost access to international systems overnight. Many had to stop doing business or let people go.

Business owners said that flights were canceled, bookings were frozen, and application deadlines were missed. Businesses that needed to talk to people across borders couldn’t do their jobs. For a lot of people, the shutdown wiped out years of slow progress in just a few days.

National Intranet Proves Inadequate

During the blackout, Iran’s National Information Network couldn’t connect to the rest of the world. The intranet was slow, not always working, and not available to many businesses. Even businesses that were linked to it only kept a small number of their customers.

Officials said that it is not possible to replace the global internet with a domestic one. The minister of communications said that calls for full reliance on the intranet were not realistic. The state had to restore bandwidth in the end to stay in business.

Trade And Logistics Severely Disrupted

Business leaders say that the shutdown made it very hard to import and export goods. Stable internet access is necessary for trade talks, sending invoices, coordinating transportation, and checking documents. The blackout stopped foreign trade from happening.

Food items were hit the hardest because of time-sensitive logistics. International partners were hesitant to depend on Iranian suppliers because they weren’t sure what would happen. The shutdown hurt trust and long-term business relationships.

Public Anger And Personal Hardship Intensify

The shutdown made a lot of Iranians angry, not just because of the money they lost. Freelancers, teachers, digital workers, and small business owners all of a sudden lost their jobs. After reconnecting with some people, many turned to social media to ask for help and support.

People were angry that the state could cut off communications whenever it wanted. Families said that things they did online every day were called “non-essential.” The blackout made people even more afraid about their rights, stability, and the future of digital life in Iran.

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Krypton Today Staff

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