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DIPLOMACY, POLITICS, AND POLICY — UP CLOSE

War Deepens Economic Hardship for Iranians

- August 17, 2026, 07:20 AM ET

Voice Desk, 17 August– The ongoing war involving Iran, the United States and Israel has taken a heavy toll on Iran’s economy,leaving many people struggling to afford basic necessities, according to a report by Al Jazeera.

For residents of Tehran, the economic situation has become increasingly difficult. Saeed, a 26-year-old primary school teacher, said he was shocked by his current financial condition and is looking for a better-paying job to support his household.

Speaking to Al Jazeera on Sunday, Saeed said Iran’s job market is also in poor shape, with many people unable to find work despite actively searching for employment.

“Whether online or in person, you only need to look at the current job market to understand why many young people now feel that even looking for work is pointless,” he said.

According to Saeed, teachers, cashiers and sales workers currently earn around 200 million Iranian rials, equivalent to about $107, per month. Some jobs pay as little as 166 million rials, or roughly $88 a month—less than Tk 15,000.

The rising cost of essential goods has further squeezed household budgets. Al Jazeera reported that buying just one kilogram of mutton can consume around 10 percent of a typical worker’s monthly income, including wages and government assistance. Purchasing 10 kilograms of Iranian rice can account for about one-fifth of monthly income.

Housing costs have also risen sharply. At the same time, households are facing higher electricity and gas bills, transportation expenses and medical costs.

The combination of stagnant wages, rising living costs and a weak job market is placing growing financial pressure on ordinary Iranians, with young workers and low-income households particularly vulnerable to the worsening economic conditions.

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