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Iran internet shutdown causes over $370M in direct economic losses

A protester holds a placard of Iranian opposition figure and son of the last Shah of Iran, Reza Pahlavi, during a rally in central London, Jan. 11, 2026. (AFP Photo)
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A protester holds a placard of Iranian opposition figure and son of the last Shah of Iran, Reza Pahlavi, during a rally in central London, Jan. 11, 2026. (AFP Photo)
January 25, 2026 04:01 PM GMT+03:00

A prolonged internet shutdown across Iran, triggered by anti-government protests that began on Dec. 28, 2025, has inflicted more than $370 million in direct economic losses, according to estimates by the Iranian Organization of Computer Engineering and IT Industry Professionals.

The blackout, initiated by authorities on Jan. 8 amid escalating protests in Tehran, has severely impacted the country’s digital ecosystem. The organization calculates daily losses between 2 and 3 trillion Iranian tomans, equivalent to roughly $20.6 million per day, using an exchange rate of 145,000 tomans per U.S. dollar.

Digital businesses, IT services hardest hit

Iran’s IT sector and digital enterprises have borne the brunt of the shutdown. Many companies that rely heavily on uninterrupted global internet access have seen their operations shrink dramatically. Some have been forced to halt activities altogether.

The industry group stressed that the reported $370 million figure only reflects direct losses and does not account for indirect effects such as declining investor confidence, drops in global competitiveness rankings, capital flight, and the acceleration of brain drain.

The Iran Chamber of Commerce also issued a written statement warning that merchants and businesspeople continue to face serious internet access issues.

The organization reported that while a few systems were installed at its own facilities to provide limited connectivity, these have proven insufficient for the country’s large trading community.

"Communicating with international partners and clients has become extremely difficult, and portions of the country's trade have effectively ground to a halt," the statement said.

Line chart shows internet connectivity in Iran between Jan. 1 and Jan. 24, 2026. (Chart via NetBlocks)
Line chart shows internet connectivity in Iran between Jan. 1 and Jan. 24, 2026. (Chart via NetBlocks)

Over 40,000 arrested, 5,400 killed in Iran protests

The internet blackout in Iran followed a surge in nationwide demonstrations that began in Tehran’s Grand Bazaar.

The protests, initially driven by the rapid devaluation of the Iranian rial and worsening economic conditions, soon turned into broader anti-government unrest that spread across the country.

Although Iranian officials have not released casualty figures, the U.S.-based Human Rights Activists News Agency (HRANA) reported that at least 5,459 people were killed and over 40,800 arrested during clashes that accompanied the unrest.

According to figures from NetBlocks, internet connectivity in Iran dropped to just 1% of normal levels starting January 8, 2026, as authorities imposed a near-total nationwide shutdown that lasted for over two weeks.

January 25, 2026 04:01 PM GMT+03:00
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