Photo: Collected
Iran’s economy has taken a big blow because of the ongoing war in the Middle East. An official Iranian statistic said the country’s economy has contracted by more than 10 percent as a result.
The war in Iran began with attacks by the United States and Israel in late February.
News agency AFP reported this.
According to data from the Statistical Centre of Iran released on Sunday, the country’s gross domestic product (GDP) fell by 10.1 percent year on year in the period from late March to the end of June. In Iran’s Persian calendar, this period is counted as the first quarter of the year.
A major military operation began after Iran’s supreme leader and several of the country’s top military officials were killed in attacks by the United States and Israel in late February. Since then, Iran has been embroiled in a war with the United States.
In response to those attacks, Iran shut down shipping in the Strait of Hormuz. As this important global oil transport route was paralysed, fuel oil prices rose in the international market. Later, the conflict spread to different areas of the Middle East.
Apart from the impact of the war, Iran’s economy has long been suffering from a crisis of very high inflation and currency depreciation. The economic sanctions imposed on the country are cited as one of the main reasons for this.
