Iran says economy is still functioning after 100 days of US-Israel strikes and Hormuz closure
Iran is still operating after more than 100 days of US and Israeli bombing, according to the supplied material, even as the conflict has killed senior military and political figures and damaged military infrastructure across land, sea and air. The rows say Tehran has suffered a $347 billion loss and that the United Nations expects the economy to contract by 6.1% this year. They also say the closure of the Strait of Hormuz has added pressure on oil exports and global energy markets.
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The material says the strikes have choked off access to oil revenue, but that Iran has not been fully decimated because the effects of the disruption are taking time to feed through. It says the country has experience of prolonged economic isolation and embargoes, including during Donald Trump's first term, when the United States left the nuclear deal and reimposed sanctions. The rows also say Iran shut the Strait of Hormuz after a joint US-Israeli attack in February, a move that was expected to hurt dependent countries as well as Iran itself.
The Strait of Hormuz is described as a key maritime chokepoint for around a fifth of global fuel trade, which is why any closure has implications far beyond Iran. The supplied material says the shutdown was expected to severely hinder Iran's crude exports, but that Tehran had built a buffer before the closure by accelerating shipments to buyer countries. It also says the government has used shell companies and so-called dark fleets to move oil, including by switching off transponders and transferring crude at sea to avoid detection.
The economic significance is immediate because the conflict is no longer only a military confrontation. It is also a test of how long Iran can sustain state finances, imports and domestic support under pressure from war damage, sanctions and reduced oil income. The rows say the government has imposed strict bans on several essential goods, including items linked to agriculture, steel and petrochemicals, while boosting exports in other sectors that do not rely on the same channels.
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That suggests a wartime economy trying to preserve basic functioning while absorbing major losses. The broader background is a long period of sanctions, isolation and attempts by Tehran to keep trade moving despite restrictions. The supplied material says Iran has endured decades of war, economic isolation and embargoes, and has developed methods to work around them.
Those methods now appear central to how the country is still financing its military and providing for citizens after the latest round of strikes. The rows also place the current situation in the context of earlier pressure from Washington. During Trump's first term, the United States withdrew from the international nuclear deal and restored harsh sanctions, which had already reduced Iranian oil revenue.
The current conflict has intensified that strain, while the closure of Hormuz has widened the consequences to energy prices and supply chains outside Iran. The supplied material says the World Bank has cut its 2026 global growth forecast to 2.5% and warned of higher inflation and borrowing costs, underscoring the wider economic backdrop. What remains unclear is how long Iran's buffers can last and how much of the reported damage has yet to show up in trade, prices and state finances.
The supplied material does not give a timeline for when the full effects of the Hormuz closure will be felt, or how much oil is still moving through alternative channels. It also does not say whether the military campaign is continuing at the same intensity, or whether there are any signs of a change in strategy by the parties involved.
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