Military tensions and regional conflicts have severely damaged the Iranian economy. Hundreds of factories stopped working, and thousands of employees lost their jobs, which exacerbated the country’s living and productivity crisis.
The ongoing escalation has led to the collapse of supply chains and difficulty obtaining raw materials, forcing many factories to close. Manufacturing industries were particularly affected by falling exports and declining domestic purchasing power, turning entire industrial regions into idle centres.
As a result of factory closures, large numbers of workers were laid off, causing unemployment rates to rise to dangerous levels and increasing pressure on the public sector. In addition, uncertainty has led to capital flight and halted new investments, threatening Iran’s productive base and making economic reconstruction a long-term and complex task.
