Iran Faces Higher Prices and Job Losses After U.S. and Israel Strikes

Iranian residents are coping with sharp increases in food prices and job losses after weeks of U.S. and Israeli strikes on Iranian targets. Official data show the price of Iranian rice rose 174 percent and edible oils increased 375 percent. Iran's Ministry of Labor estimates war-related job losses have reached 2 million.

A Tehran homemaker said prices have doubled or tripled since the strikes began. She described buying fewer groceries and noted that the price of plastic bags has tripled after attacks on petrochemical sites. Inspections of 41,000 retail stores in March found 12 percent involved cases of price gouging or hoarding, according to the semiofficial Mehr News Agency.

Labor unionist Hamid Haj-Esmaili estimates actual job losses are between 3 million and 4 million. He stated there are no protection schemes for the newly unemployed. A power engineer in Tehran warned that further strikes on energy infrastructure could lead to food scarcity.

An internet blackout has compounded uncertainty for residents. Student counselor Naimeh said she and her husband have taken second jobs to cover groceries and bills. She stated that the couple works longer hours and fears the war could resume. Esfandyar Batmanghelidj, CEO of the Bourse & Bazaar Foundation, said damage to industrial sites and the prolonged internet shutdown will affect economic performance.

He noted that a smaller economy could still allow continued harassment of shipping in the Strait of Hormuz. Parliamentary speaker Mohammad Baqer Qalibaf blamed external pressure for the economic difficulties and urged the public to reduce consumption.