Trump's naval blockade pushes Iran's economy toward collapse: retirees unpaid for five months, prices refresh by the hour

According to a France 24 report, since the Trump administration imposed a naval blockade on Iran in the Persian Gulf on April 13, 2026, Iran's economy has rapidly slid into an abyss under the dual pressures of wartime conditions and sanctions. Iranian President Pezeshkian acknowledged on August 29 that the blockade has cost Iran approximately 35% of its import-export trade.

This is the latest wound left by the war that began on February 28, launched by a US-Israeli coalition. France 24, citing multiple estimates, pointed out that the proportion of Iran's population living below the absolute poverty line has risen from 34% before the war to at least 40%, with another 40% teetering on the edge of poverty. In August 2026, Iran's annual inflation rate was estimated at around 80%, with food inflation climbing to 130%.

In the Iranian capital Tehran, 75-year-old retiree Amir has now been forced to return to his old trade — driving for a ride-hailing platform. He told France 24 that his pension does not even last through the first week of each month; he has sold his car and bought a cheaper one to pay for his wife's medical expenses. He and his wife are now planning to sell their house and buy two small apartments in a cheaper neighborhood — one to live in, and one for their daughter — because their daughter, despite working full-time, can no longer afford rent.

Amir said he counts himself as "lucky" — because he still receives a pension each month. According to the head of Iran's Retirees' Union, as of September 7, the Iranian government had not paid retirees their pensions for five consecutive months.

The speed of inflation has penetrated every crevice of commercial activity. A small business owner using the pseudonym "Sirvan" told France 24 that after the war began he was forced to lay off all 12 of his employees and now runs the operation alone. He described how one morning a machine was quoted at 180 million toman (approximately 660 euros), but by noon when he was ready to place the order, the price had risen to 220 million toman (approximately 814 euros), and the customer cancelled the order as a result.

"Prices used to change monthly, weekly; now they change by the hour, and I'm not exaggerating at all," Sirvan said. He stated bluntly in the interview: "Doing business under these conditions is impossible. If I sell a certain item now, I cannot restock it at the same price."

A video obtained by France 24 shows a mobile phone seller on September 7 documenting the entire process of prices going wild: the same phone saw its wholesale price updated three times within 15 minutes, and he ultimately completed the transaction with virtually no profit. Six hours later, the wholesale price for that model had risen by several million toman more.

The roots of this crisis extend beyond the war itself. The United Arab Emirates has refused to allow Iranian ships into its ports, forcing all imported goods to travel overland — through neighboring countries' warehouses, then by truck or rail into Iran. Sirvan said: "Importing anything has become a game of chess, where every move means extra costs, warehousing expenses, and hefty transportation overhead." He added that the continued depreciation of the Iranian toman against the US dollar has further compounded the difficulty of importing, with the end result being that "almost no one can actually do business."

The soaring cost of prices is borne by the most vulnerable groups. Nilou, a young graphic designer, told France 24 that she does design work for three companies simultaneously and also works as a saleswoman at a shop, holding down four jobs. She has gradually sold off her accumulated gold bars and dollar savings just to pay her bills. She described that a small portion of fruit costs 1.5 million rials (about 5.5 euros), a small amount of chicken and meat about 8 million rials (about 29.7 euros), and a bottle of shampoo and conditioner about 6 million rials (about 22 euros). "I'm tired. I'm depressed. I can't see a future," Nilou said. "In a few months, when I've used up all my savings, I won't be able to maintain this life. I may have to move back into my parents' apartment. This is not living."

France 24 noted that since the summer, Iranian retirees, nurses, workers, teachers, and students have continued to hold sit-ins and protests nationwide, with the vast majority taking to the streets despite severe security risks. On September 9, the Iranian University Professors' Union warned in an open letter that if the government cannot fulfill its economic commitments and raise professors' salaries, they will not participate in teaching for the academic year beginning September 23.

Repression and protest run in parallel. According to the Norway-based Iran Human Rights organization, over the past eight months the Iranian regime has executed at least 54 prisoners on political charges, including 31 protesters from the mass anti-government demonstrations in January. The organization noted that authorities have continued to arrest journalists, artists, activists, and athletes simply for expressing dissenting views in public or on social media.

This crisis was not caused by a single factor: decades of sanctions, mismanagement, and corruption had already weakened Iran's economy, while the war that erupted in early 2026 and the subsequent naval blockade have pushed ordinary Iranians to the breaking point. Nilou stated bluntly: "If the situation continues like this, people will definitely organize mass protests again, even though we just experienced a massacre a few months ago."