The Hormuz get out of jail card turned to a grave

Key Points:

• Iran’s prolonged internet outage, lasting over 1,100 hours, has severely disrupted the digital economy, causing widespread job losses and financial strain among freelancers, students, and online businesses reliant on global connectivity.
• The shutdown has led to substantial economic damage, with daily losses estimated between $37 million and $80 million, contributing to an overall contraction in GDP and affecting multiple sectors including technology, media, and trade.
• Iran faces compounded economic challenges from a US naval blockade on maritime trade routes through the Strait of Hormuz, further disrupting exports and imports and potentially costing billions monthly in lost economic activity.
• The cumulative damage from war, sanctions, internet shutdown, and trade disruptions is estimated between $150 billion and $300 billion, equivalent to $1,600 to $3,250 per capita, representing a significant setback to Iran’s economic growth and infrastructure development.
• Despite the hardships, strong cultural and religious ties between Iran and regions like Kashmir persist, with ongoing donation drives and ideological support, though some experts warn of potential risks related to political radicalization and regional security.