Iran's unprecedented internet shutdown is crushing businesses

Key Points:

• Iran has experienced one of the world's longest and strictest internet shutdowns in 2026, cutting off its 90 million people from the global web for most of the year and severely damaging its online economy.
• The shutdown, imposed during anti-government protests and intensified after the U.S. and Israel launched a war, has caused massive income losses across sectors like fashion, fitness, advertising, and retail, with daily economic costs estimated at $30-40 million.
• Many Iranians, including small business owners and freelancers, have lost their primary income sources due to the blackout, with limited and costly workarounds like VPNs being largely inaccessible or illegal.
• The government allows restricted internet access to select professions, but the majority rely on a slow, insecure national intranet that is heavily censored and unpopular, further stifling digital commerce and communication.
• The economic fallout has pushed many Iranians, especially the middle class, into informal street vending and increased emigration considerations, reflecting broader social and economic distress amid ongoing sanctions and conflict.