Iran's internet shutdown costing economy over $20 million daily

2026-01-25 - 21:05

Iran's ongoing nationwide internet restrictions are inflicting significant daily financial damage on the country's economy, with a leading technology association estimating direct losses surpassing $20 million each day. Economic Impact on Digital Sectors Ali Hakim-Javadi, head of the Iran Computer Engineers Organization, stated on Sunday that digital companies and IT service providers have been the hardest hit since the shutdown began on January 8. He explained that businesses dependent on global connectivity have seen transactions plummet, with some forced to suspend operations entirely. The estimated direct loss stands at approximately $20.6 million daily. Wider Indirect Damages Excluded Hakim-Javadi emphasized that this substantial figure only accounts for immediate, direct losses. It does not include the potentially more severe indirect consequences, such as eroded investor confidence, a decline in Iran's international technological rankings, capital flight, and the acceleration of skilled professional emigration, or "brain drain." Context of Protests and Internal Appeals The internet restrictions were implemented amid widespread protests that erupted in late December, initially in Tehran over the plummeting value of the Iranian rial and deteriorating economic conditions before spreading to other cities. In response to the economic toll, President Masoud Pezeshkian last week submitted recommendations to the Supreme National Security Council calling for the restrictions to be lifted "as soon as possible." Meanwhile, Tehran has accused the United States and Israel of exploiting the unrest to justify external pressure and intervention.