War and blockade deepen Iran's economic strain as prices rise and wages lag

Months of war with the United States and a naval blockade of Iranian ports are intensifying economic pressure across Iran, according to a report published on 16 August. In Tehran, residents described a labour market with few attractive openings, low pay and worsening living costs. The report said the strain is being felt most sharply by workers trying to cover basic expenses while searching for better-paid jobs.

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One Tehran resident, Saeed, said he was looking for work beyond his current elementary school teaching job because the available postings offered poor conditions and little security. He said many employers were offering monthly salaries of less than 200 million rials, or about $107 at the current exchange rate, while some jobs fell below the basic monthly minimum wage of about 166 million rials, or $88. He also said some employers were not offering insurance and were demanding 12-hour shifts, sometimes six days a week, while deducting pay whenever possible.

The report said the cost of food is adding to the pressure on households. It cited figures showing that 1 kilogram of lamb can consume about 10% of a minimum-wage worker's monthly income, while 10 kilograms of Iranian rice can take more than one-fifth. Housing, utilities, transport and healthcare were also described as rising rapidly.

For workers on minimum wage, the gap between earnings and basic living costs appears to be widening further. The economic strain matters because it comes during an active conflict that is already reshaping daily life and business conditions. A blockade of ports can disrupt imports, exports and shipping flows, while war typically adds uncertainty to prices, employment and access to goods.

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In Iran's case, the report linked the current hardship to both the conflict and the broader weakness of an economy already burdened by years of corruption and mismanagement. The article also said the government approved a 60% increase in the basic minimum wage at the end of the previous Iranian calendar year in March. That move was described as carrying the risk of more money being printed and inflation rising further.

At the time, the cost of a subsistence package for an average worker household of 3.3 people was estimated at 430 million rials, or about $230, which was far above the minimum wage level cited in the report. The report placed the current hardship against a wider backdrop of economic shockwaves from the United States-Israel war on Iran and two state-imposed internet shutdowns. One of those shutdowns took place during nationwide protests in January, when thousands of people were killed, according to the report.

Those disruptions were said to have compounded existing structural problems rather than creating them from scratch. For many Iranians, the immediate issue is not only inflation but the lack of viable work. Saeed said people with university degrees are now looking for any job they can find, regardless of their field of study or experience, because putting food on the table has become much harder.

The report suggests that low wages, weak labour protections and rising prices are combining to reduce real incomes and narrow household choices. What remains unclear is how long the war and blockade will continue, and whether the authorities can slow inflation or improve pay conditions without adding to monetary pressure. The report does not provide official government comment on the labour market figures it cites.