Iran’s economy contracts over 10% as war takes toll

Profit reported that Iran's output has fallen by more than a tenth during the regional conflict. Official figures from the Statistical Center of Iran, released on Sunday, put gross domestic product 10.1 per cent lower than a year earlier. The measurement covers late March to late June, which the Persian calendar treats as the first quarter.

The conflict with the United States started in late February 2026, when US-Israeli strikes killed Iran's top leader and several senior commanders. Iran answered by obstructing the Strait of Hormuz, a move that lifted global oil prices while hostilities widened through the region.

Iran's economy was also struggling with hyperinflation and a devalued currency during this period. Those pressures were largely the result of sanctions, according to the same report.