The ongoing internet shutdown in Iran, now in its third month, is exacerbating the country's already strained economy, which has been affected by war and sanctions. More than 1 million people have lost their jobs as online sales, international transactions, and remote work have come to a standstill.
According to the Wall Street Journal on May 20, Iran's internet connectivity has remained at just 1-2% of its total capacity in recent weeks, a stark decline from 90-100% before anti-government protests erupted last year.
Alp Toker, founder of the internet monitoring group NetBlocks, described the situation as “the most extensive and prolonged shutdown in modern internet history.” The Iranian government began imposing access restrictions on January 8, eased them on January 23, but then tightened them again after the U.S. and Israel launched attacks against Iran on February 28.
The impact is particularly severe for businesses and freelancers. Merchants who relied on international clients have lost contact, while online retailers have lost both orders and marketing channels. Software developers and freelancers are also struggling to continue their remote work.
The employment crisis could worsen. Mohammad Reza Farzanegan, a Middle East economic expert at Philipps-Marburg University in Germany, estimates that around 10 million jobs are directly or indirectly linked to Iran's digital economy. He noted that large-scale connectivity restrictions diminish productivity and weaken business confidence.
The Iranian government defends the measures as necessary due to wartime conditions. Iran's Minister of Communications, Sattar Hashemi, stated earlier this month through state media that the internet restrictions are a response to the war situation.
However, the government is also expanding selective access systems alongside the full shutdown. The so-called 'Internet Pro' system allows some users to regain limited access. The state-owned Iran Mobile Communications Company has been providing partial internet access and international IP connectivity through 'white SIM cards' since March.
Experts warn that these restrictions could leave a lasting burden on Iran's economy even after the conflict ends, as countries with potentially restricted internet access are viewed as high-risk markets for investment and trade.
* This article has been translated by AI.
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