Iran’s economy contracts by more than 10% during US war, official data shows

People walk past a billboard about the Strait of Hormuz, on a building in Tehran. Iran’s economy has long struggled with hyperinflation and devaluation of its currency, caused in large part by economic sanctions.

TEHRAN - Iran’s economy contracted by more than 10 per cent during the Middle East war, which began with US-Israeli attacks in late February.

The country’s gross domestic product (GDP) shrank by 10.1 per cent year-on-year from late March to late June, a period known in Iran as the first quarter of the Persian calendar, according to the Statistical Center of Iran on Sept 20.

Iran has been at war with the United States since late February, when US-Israeli strikes killed the Islamic republic’s supreme leader and senior military officials at the start of a vast offensive.

The strikes sparked Tehran’s retaliation in blocking the Strait of Hormuz – causing global oil prices to surge – as the conflict spread in the Middle East.

Aside from this, Iran’s economy has long struggled with hyperinflation and devaluation of its currency, caused in large part by economic sanctions. AFP