Iran’s Monthslong Internet Shutdown Is Crushing Businesses in an Already Battered Economy

A man uses his smartphone while riding the subway in Tehran, Iran, Tuesday, Dec. 24, 2024. (AP)
A man uses his smartphone while riding the subway in Tehran, Iran, Tuesday, Dec. 24, 2024. (AP)
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Iran’s Monthslong Internet Shutdown Is Crushing Businesses in an Already Battered Economy

A man uses his smartphone while riding the subway in Tehran, Iran, Tuesday, Dec. 24, 2024. (AP)
A man uses his smartphone while riding the subway in Tehran, Iran, Tuesday, Dec. 24, 2024. (AP)

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 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 US 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.

Fashion designer Amen Khademi works on her laptop with model Farnaz Ojaghloo, left, at her studio in Tehran, Iran, Thursday, April 23, 2026. (AP)

“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 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, business 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 net.

Two women use a smartphone in northern Tehran, Iran, Sept. 28, 2025. (AP)

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 net “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 numbers 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.”



UN Convention Boosts Confidence in Saudi Arabia’s Cross-Border E-Commerce Transactions

 Riyadh, Saudi Arabia (SPA)
Riyadh, Saudi Arabia (SPA)
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UN Convention Boosts Confidence in Saudi Arabia’s Cross-Border E-Commerce Transactions

 Riyadh, Saudi Arabia (SPA)
Riyadh, Saudi Arabia (SPA)

Saudi Arabia’s Cabinet, chaired by Custodian of the Two Holy Mosques King Salman bin Abdulaziz, has approved the Kingdom’s accession to the United Nations Convention on the Use of Electronic Communications in International Contracts, bolstering the legal standing of cross-border digital transactions and electronic contracts in international trade.

The 2005 New York convention, drafted by the United Nations Commission on International Trade Law (UNCITRAL), aims to ensure that electronic contracts and communications used in international trade receive the same legal recognition and enforceability as paper-based documents.

The Cabinet decision gives Saudi companies and their international partners a clearer, more reliable legal framework, helping ease digital trade, cut procedural costs and strengthen the competitiveness of Saudi Arabia’s business environment globally.

Legislative environment

The move builds on Saudi Arabia’s efforts to modernize its business legislation and align it with international best practices and standards.

It is expected to make electronic communications easier to use in international contracts and commercial transactions, while increasing trust and legal certainty over their validity and enforceability.

Commerce Minister and Chairman of the Saudi Center for Competitiveness and Business Dr. Majid Al-Qasabi said the Cabinet’s ratification of the UN convention on the reliable use of electronic communications and transactions in international contracts would facilitate global trade and support business competitiveness and its legislative frameworks.

Legal certainty

International trade expert Dr. Fawaz Al-Alami told Asharq Al-Awsat that the significance of the step went beyond recognizing electronic contracts and communications, saying it marked a shift in how trust is built in international trade.

“Today, the speed of completing a transaction is no longer the only measure of competitiveness. Clear legal rules governing it, and the ability of parties in different countries to operate within a common and understandable framework, have become key factors in commercial decision-making,” he said.

Al-Alami said joining the international framework would give Saudi companies greater confidence to operate in global markets, particularly as digital trade and electronic services expand rapidly.

Faster deals

The move also sends an important signal to foreign investors and trading partners that Saudi Arabia is not simply keeping pace with digital transformation, but is building a legal framework suited to modern trade, Al-Alami said.

Its value, he added, would ultimately depend on implementation.

“The clearer, more reliable and less complex electronic procedures become, the more they will reduce the cost of doing business and speed up dealmaking, and in turn strengthen the competitiveness of the Saudi economy,” he said.

Al-Alami said the measure might appear technical, but was fundamentally part of Saudi Arabia’s shift toward an economy that is more open, digital and connected to global markets.

Automated systems

The government’s move is also expected to strengthen trust between Saudi companies and their foreign counterparts.

Negotiations, offers, acceptances and document exchanges can take place electronically under a clearer international legal framework, reducing administrative time and costs, reliance on paper documents and traditional correspondence, disputes over the evidentiary value of electronic communications, and legal uncertainty when dealing with companies abroad.

The convention also addresses key issues, including the time and place at which an electronic communication is sent and received.

It also sets out rules for contracts formed through automated systems without human review at any stage, an increasingly important issue as digital trade and automation expand.


OPEC Further Lowers 2026 Global Oil Demand Growth Forecast

FILE PHOTO: People walk past an installation depicting barrel of oil with the logo of Organization of the Petroleum Exporting Countries (OPEC)  in Baku, Azerbaijan November 19, 2024. REUTERS/Maxim Shemetov/File Photo
FILE PHOTO: People walk past an installation depicting barrel of oil with the logo of Organization of the Petroleum Exporting Countries (OPEC) in Baku, Azerbaijan November 19, 2024. REUTERS/Maxim Shemetov/File Photo
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OPEC Further Lowers 2026 Global Oil Demand Growth Forecast

FILE PHOTO: People walk past an installation depicting barrel of oil with the logo of Organization of the Petroleum Exporting Countries (OPEC)  in Baku, Azerbaijan November 19, 2024. REUTERS/Maxim Shemetov/File Photo
FILE PHOTO: People walk past an installation depicting barrel of oil with the logo of Organization of the Petroleum Exporting Countries (OPEC) in Baku, Azerbaijan November 19, 2024. REUTERS/Maxim Shemetov/File Photo

OPEC on Wednesday lowered its forecast for world oil demand growth in 2026 to 580,000 barrels per day, a copy of its monthly report showed, marking the fourth straight downward revision.

The producer group continues to see a smaller impact on consumption since the Iran war started than other forecasters such as the International Energy Agency, which expects demand to decline in 2026, Reuters reported.

The Organization of the Petroleum Exporting Countries also raised its forecast for 2027 oil demand growth, according to the report on OPEC's website.


Bank of America Pledges $250 Billion for US Infrastructure Financing

Signage is seen at the Bank of America Tower in Manhattan, New York City, New York, US, November 2, 2022. (Reuters)
Signage is seen at the Bank of America Tower in Manhattan, New York City, New York, US, November 2, 2022. (Reuters)
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Bank of America Pledges $250 Billion for US Infrastructure Financing

Signage is seen at the Bank of America Tower in Manhattan, New York City, New York, US, November 2, 2022. (Reuters)
Signage is seen at the Bank of America Tower in Manhattan, New York City, New York, US, November 2, 2022. (Reuters)

Bank of America said on Wednesday it plans to deploy $250 billion by July 2027 to support US digital and infrastructure projects, a move it says will boost the country's economic growth and help create tens of thousands of jobs.

The Wall Street bank said its "Critical Infrastructure Finance Initiative," launched on the heels of the nation's 250th anniversary celebrations, will provide primary market lending, investments, ‌capital markets services, ‌and banking and advisory offerings.

The announcement underscores how ‌major ⁠US financial institutions are seeking ⁠to capitalize on rising demand for AI data centers, critical minerals and energy infrastructure upgrades.

It comes days after Morgan Stanley said it would facilitate roughly $1.5 trillion over the next decade to finance technology and infrastructure projects.

Last year JPMorgan Chase launched a $1.5 trillion plan to facilitate, finance and invest in industries deemed critical to the US national security and economic resilience, including defense, ⁠energy and advanced manufacturing.

BOOSTING GROWTH, CREATING JOBS

Bank of ‌America's financing will target three areas: ‌digital infrastructure, including data centers and computing; energy and power infrastructure, including renewable generation ‌and energy storage; and core infrastructure such as transportation and natural gas.

"Meeting ‌America's growing infrastructure needs requires mobilizing capital at scale across increasingly interconnected sectors," said Karen Fang, global head of infrastructure and sustainable finance at Bank of America.

"Delivering these projects requires integrated financing solutions spanning corporate and project-level capital in both public ‌and private markets."

The $250 billion target will be measured over an 18-month period from January 1, 2026, to July ⁠4, 2027, ⁠the bank said.

"If we all do our job right, we should be deploying more capital," said Fang, who is also co-head of global capital solutions at BofA, when asked about potential deployment of more capital after July 2027.

Many projects require new infrastructure to be built before becoming operational, she said.

In the United States, infrastructure construction loans typically have terms of five to seven years. Once projects are completed and operating, they are often refinanced with longer-term debt lasting 10, 15 or 20 years, Fang said.

She said greater infrastructure investment would help drive economic growth and create long-term jobs.

"Infrastructure spending will lead to economic growth and prosperity," she said.