The Escalating Impact of Iran-Israel
Here is a complete explanation of its impacts from several perspectives:
๐ฆ 1. Direct Impact on Domestic Economy
๐ป Inflation & Currency Devaluation
Food and basic necessities inflation has risen drastically (35โ40%), exacerbated by shortages of imported goods due to sanctions and logistical disruptions.
The Iranian Rial continues to weaken, due to political uncertainty and market speculation regarding the possibility of large-scale conflict.
๐ก Energy Crisis & Production
Power outages are becoming more frequent, disrupting factory production, logistics cooling, and small business activities.
The oil and gas sector is disrupted by airstrikes and sabotage, reducing exports and national revenue.
๐ฐ 2. Impact on Investment and Markets
โ Foreign Capital Withdrawal & Loss of Investor Confidence
Tensions with Israel and new sanctions from the West have led international investors to avoid Iran, including investors from previously neutral countries (such as India and Turkey).
Infrastructure and industrial projects are stagnant due to a lack of international financing.
๐ Iranian Stock Market (TSE) and Local Commodities
The Tehran Stock Exchange (TSE) has experienced a sharp decline โ industrial, energy, and logistics companies are the most affected.
Prices of local commodities such as wheat, meat, and domestic fuel have surged sharply due to disrupted supply.
๐ 3. Regional & Global Effects
๐ซ Disruption of Iranian Oil Exports
The Strait of Hormuz has again become a flashpoint โ the potential for disruption triggers volatility in global oil prices.
Although Iran is increasing energy cooperation with China and Russia, their export routes are now at high risk of being attacked.
๐ฐ๏ธ Effects on Neighboring Countries
Neighboring countries such as Iraq, UAE, and Pakistan face economic uncertainty due to disrupted regional trade.
๐งฉ Conclusion
Iran is currently under dual economic pressure:
From within: inflation, energy crisis, and social protests.
From abroad: new sanctions, financial isolation, and the risk of regional conflict.
