TEHRAN, January 19, 2026 – Iran‘s already fragile economy is hemorrhaging money-an estimated $2.8 million to $4.3 million each day-as the nation endures what officials are calling the most extensive internet shutdown in it’s history.The disruption, intended to quell widespread anti-government protests, is rapidly escalating economic anxieties.
Economic Fallout Mounts as Internet Access Remains Cut
The ongoing internet blackout is exacerbating existing economic woes in Iran, with daily losses potentially reaching $37 million, according to monitoring groups.
- A nationwide internet shutdown began on January 8 in response to protests.
- The Iranian government estimates daily economic losses between $2.8 million and $4.3 million.
- NetBlocks, an internet monitoring group, suggests losses could be as high as $37 million per day.
- The value of the Iranian rial has plummeted, fueling inflation and public discontent.
Ehsan Chitsaz,a deputy minister of communications and details technology,stated that the internet shutdown,which commenced on January 8,is costing the country millions of dollars in lost commerce revenue each day. NetBlocks, which analyzes the impact of internet restrictions, warns that the actual financial toll could soar to $37 million daily.
the Islamic Republic initiated the nationwide communications shutdown on January 8 as a strategy to suppress the escalating anti-government protests that have gripped the country. Currently, there is no indication of when internet access will be restored, leaving businesses and citizens grappling with the consequences.
the economic pressures predate the internet shutdown. The Iranian rial experienced a significant crash last month, falling to over 1.4 million to the US dollar. This devaluation has fueled inflation and increased the cost of essential goods for ordinary iranians.
Background on the Protests-Changes in gasoline prices ignited public outrage against the regime, sparking the mass protests that began on December 28. These economic grievances, coupled with broader political frustrations, have created a volatile situation.
Businesses in Tehran are already feeling the pinch. One pet shop owner, speaking anonymously for fear of reprisal, reported a 90% drop in business since the protests and subsequent crackdown. “Without access to the internet, I’ve lost a valuable tool to sell and promote my products,” she explained.
The owner of an upscale tailor shop in Tehran echoed this sentiment, stating, “Those who pass by our shops don’t show any appetite for shopping. We are just paying our regular expenses, electricity and staff… but in return, we don’t have anything.”
This isn’t the first time Iran has resorted to internet shutdowns during periods of unrest. During the widespread protests in 2022 following the death of Mahsa Amini in police custody,a similar internet outage cost the country an estimated $1.6 billion, according to dara Conduit, a lecturer at the University of Melbourne in Australia.
