Blackout Pushes Iran's Economy To Breaking Point Arabian Post

(MENAFN- The Arabian Post) clearfix">More than 70 days of near-total internet disruption have left millions of Iranians cut off from work, customers, banking tools and relatives abroad, turning a state security measure into a nationwide economic emergency.

The shutdown, imposed after a fresh phase of unrest and intensified following military escalation in late February, has become one of the longest and most sweeping digital blackouts recorded in a major economy. Connectivity has at times fallen to a fraction of normal levels, leaving most households dependent on a state-controlled domestic network that cannot replace global platforms, payment systems, advertising tools, cloud services or secure messaging.

Business owners say the impact has moved beyond inconvenience. Online retailers, freelancers, software firms, digital marketing agencies, tutors, delivery operators and home-based sellers have lost customers almost overnight. Many small enterprises that survived sanctions, inflation and currency volatility are now facing closure because their sales channels, supplier contacts and payment gateways no longer work reliably.

Estimates of the economic damage vary sharply. Direct losses cited by business groups have ranged from tens of millions of dollars a day, while broader assessments that include disrupted trade, lost productivity, halted advertising, blocked exports, delayed logistics and unpaid freelance contracts have put the daily cost as high as $250 million. Even the lower estimates point to a heavy burden on an economy already weakened by sanctions, high inflation, energy shortages and a battered rial.

The blackout has hit informal and small-scale commerce hardest. Instagram and Telegram had become essential marketplaces for clothing shops, food vendors, beauty salons, handicraft sellers and private tutors. Many of these businesses lack physical storefronts or access to formal export channels. Without stable internet, owners cannot display products, process orders, answer clients or receive payments. Some say sales have fallen by more than half; others report that revenue has all but disappeared.

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Authorities have defended the restrictions on security grounds, arguing that foreign platforms and encrypted services can be used to organise unrest, circulate disinformation and endanger national stability during a period of conflict. Officials have also promoted limited access schemes for approved companies, including a controlled service commonly described as“Internet Pro”, intended to help selected businesses resume some activity.

That approach has deepened public anger. Access to the wider internet is increasingly seen as a privilege granted to institutions, insiders and larger firms, while ordinary citizens remain trapped behind filters and intermittent domestic services. The two-tier system has exposed a widening divide between those with official clearance, costly circumvention tools or satellite connections, and the majority who cannot afford or safely use them.

Digital rights advocates and technology specialists say the shutdown reflects a long-running shift towards a closed national network, where access to outside information can be narrowed or restored according to political need. Iran has spent years developing domestic alternatives to global services, but the latest disruption has shown the limits of that model. Local platforms cannot support the same level of trade, research, finance, education, software development or international communication.

The human cost is also mounting. Families abroad say they struggle to contact relatives inside the country. Students have been unable to attend online courses or submit applications. Patients and caregivers face difficulty accessing medical information and arranging consultations. Freelancers who worked for overseas clients have lost contracts because they cannot meet deadlines or maintain secure communication.

The blackout has arrived alongside wider economic distress. Inflation has eroded purchasing power, imported goods remain costly, and energy shortages have disrupted industry. The loss of internet access has added another layer of pressure by weakening one of the few sectors where young Iranians could earn income without relying on state-linked employment. Technology workers and entrepreneurs say years of investment in start-ups, e-commerce platforms and digital services are being reversed.

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Circumvention remains risky and uneven. Virtual private networks are unreliable, many are blocked, and sellers of access tools have faced pressure. Satellite internet is available only to a small minority and can expose users to legal danger. For most people, the practical choice is between a restricted domestic network and no meaningful connection at all.

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