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.”



Nepal Floods Could Cost Insurers Over $130 Mln Even Before Death, Injury Claims

People hold onto a cage on a makeshift zip line as they cross the Trishuli River from Koloni following deadly flash floods that damaged bridges and temporarily stranded residents, in Nuwakot district, Nepal, September 4, 2026. REUTERS/Adnan Abidi
People hold onto a cage on a makeshift zip line as they cross the Trishuli River from Koloni following deadly flash floods that damaged bridges and temporarily stranded residents, in Nuwakot district, Nepal, September 4, 2026. REUTERS/Adnan Abidi
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Nepal Floods Could Cost Insurers Over $130 Mln Even Before Death, Injury Claims

People hold onto a cage on a makeshift zip line as they cross the Trishuli River from Koloni following deadly flash floods that damaged bridges and temporarily stranded residents, in Nuwakot district, Nepal, September 4, 2026. REUTERS/Adnan Abidi
People hold onto a cage on a makeshift zip line as they cross the Trishuli River from Koloni following deadly flash floods that damaged bridges and temporarily stranded residents, in Nuwakot district, Nepal, September 4, 2026. REUTERS/Adnan Abidi

The devastating flood in Nepal last week could result in commercial insurance losses exceeding 20 billion Nepali rupees ($132.3 million), with hydropower projects accounting for most claims, according to a top official at one of the country's leading insurers.

The insurance cover, when paid out, covers losses borne by the operators of the power plants.

Life insurance, personal accident and workers' compensation claims are expected separately as authorities verify deaths and missing persons in inaccessible areas.

The disaster on Nepal's border with China's Tibet region caused an estimated $2.56 billion in economic losses in the Himalayan nation of 30 million people, the country's disaster authority chief told Reuters on Friday, leaving more than 1,200 dead and many more missing.

Eleven ⁠Nepali hydropower projects ⁠lie in the affected region, some covered by standard commercial insurance policies that are still being assessed, Toton Chakraborty, CEO of Oriental Insurance Company Nepal, told Reuters.

Oriental Insurance Nepal, a unit of the New Delhi-based Indian insurer, is among the leading insurers in the region.

"Hydropower projects along the affected river corridor have suffered the largest damage. In many cases, access roads and above-ground infrastructure have been washed away," he said.

Projects including Rasuwagadhi, Upper Trishuli-3A, Chilime and Devighat, were directly affected, ⁠while assessments at five others are ongoing, he said.

Data from the Nepal Insurance Authority show the regulator has so far received 583 flood-related claims worth 25.87 billion Nepalese rupees ($171.13 million) as of August 31.

Chakraborty said these figures largely reflect insured exposure rather than final claims, which will only be clear once detailed surveys are completed.

Claims could rise further if repairs delay project commissioning, as some policies compensate developers for lost revenue resulting from postponed commercial operations, he said.

Nepal's non-life insurance market is small by global standards. The country's 14 non-life insurers generated premiums of about 5.3 billion Nepali rupees ($35.06 million) during July-August, regulatory data showed, compared with 314 billion Indian rupees ($3.3 billion) written by Indian insurers during a similar period.

The market is supported by domestic reinsurers ⁠Nepal Re and Himalayan ⁠Re, alongside international players including India's GIC Re and Germany's Hannover Re.

The floods could have lasting implications for insurance coverage of Himalayan infrastructure, four industry executives said.

The Himalayan region faces severe risks from earthquakes and any future glacial floods, a senior UN official told Reuters this week.

"The recent mountain floods in South Asia may lead insurers to further review hydropower and infrastructure risks, particularly in highly exposed locations," said Benjamin Ng, power leader for Asia at Aon, an international insurance broker.

Insurers may increasingly impose exclusions, lower sub-limits and narrow coverage, resulting in higher premiums and more selective underwriting, Ng said.

Other recent Himalayan catastrophes include the 2023 glacial lake outburst flood in India's Sikkim and the flash flood in the northern Indian state of Uttrakhand in 2021.

The latest floods could reshape industry views on risk accumulation and glacial lake outburst flood exposure, said Sanjay Mokashi, chief underwriting officer at Indian state-owned reinsurer GIC Re.


Gold Heads for Modest Weekly Gain as Investors Await US Payrolls Data

Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
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Gold Heads for Modest Weekly Gain as Investors Await US Payrolls Data

Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)
Gold jewelry is displayed at an exhibition in Kabul, Afghanistan, 03 September 2026. (EPA)

Gold prices were steady on Friday and poised for a modest weekly gain, as traders' attention turned to key US payrolls data for clues on the Federal Reserve's next interest rate decision.

Spot gold held its ground at $4,469.26 per ounce, as of 0633 GMT. Prices jumped 2% on Thursday as traders scaled back expectations for a September rate ‌hike after Fed ‌Governor Christopher Waller said he would support ‌leaving ⁠rates unchanged if data ⁠continued to show inflation pressures moderating.

US gold futures for December delivery fell 0.5% to $4,515.70.

Traders are pricing in an about 50% chance of a Fed rate hike later this month, according to the CME FedWatch Tool.

The US nonfarm payrolls report is due at 1230 GMT.

"Weak figures and a ⁠rise in unemployment could weaken the case for ‌a rate hike. In ‌this case, gold could recover. However, the metal could remain exposed to ‌changing sentiment, with inflation data releases coming next week," ‌said Ross Maxwell, global strategy operations lead, VT Markets.

"The market continues to benefit from central bank demand, which could limit the extent of any decline."

Though gold is often viewed as an inflation ‌hedge, elevated interest rates tend to weigh on the non-yielding asset.

Data on Thursday showed the ⁠number of ⁠Americans filing claims for unemployment benefits rose marginally last week amid low layoffs, pointing to stable labor market conditions.

Meanwhile, US Vice President JD Vance said the fighting between Washington and Tehran was not a war and declined to provide a timeline for when the conflict would be over, underscoring the challenge the Trump administration faces as the hostilities enter their seventh month and mid-term elections loom.

Among other metals, spot silver fell 0.5% to $66.59 per ounce. Platinum lost 1.2% to $1,803.53 and palladium declined nearly 1.3% to $1,403.03, with both metals on track for slight weekly declines.


Oil Set for Steepest Weekly Gain Since Mid-July, Fueled by US-Iran Clashes

A worker refuels a car at a gas station in Caracas on September 3, 2026. (AFP)
A worker refuels a car at a gas station in Caracas on September 3, 2026. (AFP)
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Oil Set for Steepest Weekly Gain Since Mid-July, Fueled by US-Iran Clashes

A worker refuels a car at a gas station in Caracas on September 3, 2026. (AFP)
A worker refuels a car at a gas station in Caracas on September 3, 2026. (AFP)

Oil prices rose on Friday, heading for their steepest weekly gain since mid-July, as rising tension and renewed US-Iran hostilities heightened concerns over Middle East supply risks.

Brent crude futures rose 54 cents, or 0.6%, to $96.06 a barrel by 0100 GMT, while US West Texas Intermediate crude futures climbed 80 cents, or 0.9%, to $92.10.

On a weekly basis, Brent rose 7.6% and WTI was 10.4% higher, set for the highest gains since the week ended July 20.

US attacks this week that ‌killed and wounded ‌dozens, including Iranian civilians, marked the fiercest ‌clashes ⁠between the two countries ⁠since July. The war, which began with US-Israeli strikes in late February, is now in its seventh month.

Israeli Defense Minister Israel Katz renewed warnings that Israel would "cripple" Iran's military and civilian infrastructure, including energy facilities.

ANZ analysts raised their Brent crude forecast on Friday to $95 a barrel in the short term, with ⁠upside risk if the Middle East conflict intensifies.

"The ‌market is entering a delicate ‌adaptation phase. Elevated inventories helped absorb the initial supply crisis, but the ‌challenge is now to keep the market balanced as ‌those buffers diminish," the analysts said.

US Vice President JD Vance told reporters on Thursday that Washington does not plan to hold talks with Iran unless Tehran stops attacking commercial shipping in the Strait of ‌Hormuz.

Capping oil's advance, however, Russian President Vladimir Putin said there remained a path to a ⁠deal to ⁠end the war in Ukraine, adding that both the US and China were prepared to support a peace settlement.

Meanwhile, Iran expanded its list of vessels it deems non-compliant and subject to fines, confiscation or detention if they attempt to transit the strait. Iraqi ships remain among the few vessels Tehran has cleared to pass through Hormuz.

Iraq increased its oil exports to around 2.34 million barrels per day in August from about 1.35 million bpd in July, two Iraqi energy officials said on Wednesday, with September exports also expected to increase as heavy discounts and Iranian approvals for Iraqi tankers encouraged buyers.