Iran’s shopkeepers struggle as war dims demand

Struggling shopkeepers in Tehran face dwindling demand as the ongoing war between the United States and Iran drags on. Iran's GDP contracted by 10.1% year-on-year between late March and late June, according to official figures. The conflict, which began in February with US-Israeli attacks and an American blockade of Iran's ports, has exacerbated the nation's economic woes.

Rising inflation, nearly 90% year-on-year in September, and erratic currency exchange fluctuations have pushed up the cost of everyday items, with food prices more than doubling since last year.

Nasir, a 61-year-old shopkeeper at a Tehran bazaar, laments the decline in sales due to the soaring prices caused by the war. Customers who once purchased nuts by the kilogram now settle for half a kilogram or less. Nasir urges authorities to stabilize the currency to help businesses plan ahead. The rial has weakened to 2.7 million to the dollar on the unofficial market, compared to about 1.7 million before the war. The minimum monthly wage has plummeted from US$120 to US$65.

Ali Nowruzi, a 36-year-old sportswear shop owner, reports his business struggling to find customers. Manufacturers are going bankrupt, laying off staff, and closing shops, affecting the daily lives of the remaining customers. Many shoppers, whose purchasing power has weakened since the war's onset, leave the bazaar without making a purchase. Azadeh, a 45-year-old woman currently unemployed, visits the bazaar merely to "watch the shops."

Car mechanic Mojtaba Rezaei notes a dramatic drop in customers, with his clientele reduced to a tenth of what it once was. Goods now cost two or three times the amount, making it challenging for people to afford even essential items. The war has forced many to cut down on luxuries, such as dining out, going out for leisure, and purchasing clothes.