Iran’s economy was in a dire state before the war. Now millions face job losses and poverty

 

A cloud of smoke rises above a business district in Tehran after an airstrike on March 2. 

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Asal, a freelance designer in her 30s living in Tehran, used to get projects from abroad all the time.

But after nearly two months without the internet, she told CNN by phone, “no new projects, no replies. It’s like everything just stopped overnight.”

On the verge of tears, she said her income doesn’t even cover her basic expenses anymore. She and others who spoke with CNN for this story asked only to use their first name for privacy reasons.

Asal is one of several million Iranians for whom Iran’s conflict with the United States and Israel is deeply personal. They have lost their work and are being pushed into poverty.

Few sectors have been spared. Among the legions of newly unemployed are refinery and textile workers, truck drivers, flight attendants and journalists.

Iran’s economy was in a dire state before the conflict. National income per person had fallen from about $8,000 in 2012 to $5,000 in 2024, ravaged by inflation, corruption and sanctions.

The outlook is even worse. Up to 4.1 million more people could fall into poverty due to the conflict, according to the United Nations Development Programme (UNDP).