Iranian Businesses Buckle Under Strain of Record Internet Shutdown

A prolonged nationwide blackout amid war has crippled commerce, spurred layoffs and forced innovations under duress

Iran’s unprecedented internet shutdown—now over 70 days—has inflicted staggering economic losses, disrupted digital and informal sectors, and forced the government to roll out selective access schemes such as “Internet Pro.” This article examines the shutdown’s toll on small businesses, the broader economy, and the human cost, while exploring emerging coping strategies and the risks of normalization of controlled connectivity.

A Record-Breaking Blackout and Its Economic Toll

Iran’s internet blackout, initiated on February 28, 2026 in response to military strikes by the U.S. and Israel, has entered its 70‑plus day mark, making it the longest recorded national shutdown in a connected society . NetBlocks estimates the economic cost has exceeded $2.6 billion . Meanwhile, Iran’s Chamber of Commerce places direct daily losses at $30–40 million, with indirect losses pushing the total to $70–80 million per day . The digital economy—responsible for roughly 5–6% of Iran’s GDP—has been particularly hard hit .

Small Businesses and the Human Impact

In Tehran, fashion designer Amen Khademi has seen her online sales vanish. “The internet outage in the past four months has completely destroyed not only my business, but many online businesses,” she laments . Freelancers, travel agents, and immigration services report forced leave, layoffs, and lost contracts: a travel agent told Al Jazeera they could no longer book international flights or hotels; an immigration firm put 46 staff on leave, unable to reach foreign clients or embassies . The shutdown has also driven many into street vending—like a former ISP employee who now sells hats and umbrellas in Tehran’s metro stations .