Iran’s digital economy has taken a massive hit, losing an estimated $170 million in just one month due to widespread internet shutdowns and cyberattacks during its recent 12-day conflict with Israel. According to Communications Minister Sattar Hashemi, the disruptions caused the nation’s digital economy to contract by 30%, devastating nearly 10 million Iranians who depend on digital jobs and online platforms for their livelihoods.
Hashemi revealed to parliament on July 22 that every two days of restrictions inflicted 10 trillion rials in economic losses, totaling 150 trillion rials — a sum comparable to the annual budgets of major government ministries. He clarified that the Ministry of Communications was not responsible for imposing the blackouts, attributing them to intelligence and security agencies who acted for national security purposes.
The shutdowns coincided with a surge of over 20,000 cyberattacks targeting Iran’s financial infrastructure. Critical banking systems, including those of Bank Sepah and Bank Pasargad, were knocked offline, delaying salary payments for military personnel and causing further disruptions. Hacktivist groups like Predatory Sparrow and Tapandegan claimed responsibility for several of the attacks, some of which reportedly erased cryptocurrency assets and contributed to a 12% devaluation of the rial.
Lawmakers are now questioning the government’s internet policies, accusing authorities of enabling a “class-based internet” that grants unrestricted access to insiders while imposing severe censorship on the public. MP Salman Es’haghi warned that Iran’s digital future cannot rely on filtered, fragmented networks and demanded greater transparency over who benefits from unrestricted connectivity.
The crisis has spotlighted the growing vulnerability of Iran’s digital economy, underscoring the need for resilient infrastructure, equitable access, and stronger cybersecurity measures to safeguard the livelihoods of millions in a time of conflict.
