https://www.telegraph.co.uk/gift/39e9c66fae66c46c
As the Iranian economy and people suffer, Trump is smelling blood in the water, hence his insistence on keeping the US blockade and Strait closed.
The 38-year-old factory worker in northern Iran earns one million tomans per day, the average daily salary nationwide, which is about £5.60 at current falling market rates.
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At current wages, Mohsen and millions of Iranians must work an entire day to afford one chicken.
His employer has already laid off dozens of workers. The survivors work rotating shifts – one group today, another tomorrow – paid only for days actually worked. There is no salary for days spent at home.
Daily life returns following the ceasefire but Iranians are faced with a cost of living crisisCredit: Anadolu/Getty Images
Iran’s economy is in severe decline. Even before the war, Iran’s parliamentary research centre said about 26 million Iranians, or 30 per cent of the population, were living in absolute poverty.
Economic frustration prompted mass cost-of-living protestsin January.
Then, Israeli and US bombs shattered the country’s infrastructure and halted economic activity. Although the bombs are not falling now, there is little money coming in because of Donald Trump’s blockade of the Strait of Hormuz.
Mr Trump said the blockade was costing Iran £370m a day. Analysts agreed that it was estimated to be around £300m.
Many companies have already announced layoffs. Others simply stopped paying workers and told them to stay home indefinitely – a shadow termination that doesn’t appear in official unemployment statistics.
Since the ceasefire, things in Iran have only worsened with war damage, soaring prices and a surge in unemployment Credit: Atta Kenare/AFP via Getty Images
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“Things are getting more expensive by the hour,” said Jalal. “I don’t have much money. Even if I can find it, I want to wait for prices to get down and they sign a peace deal. But it does not happen.
“My life and young years are just burning in front of my eyes and I cannot do anything about it. There is a feeling of depression among the people I know and the war made it worse. We cannot do or plan anything.”
Iranians are struggling with the impact of a severe economic crisis and high inflation, fuelled by the geopolitical tensions between US, Israel and the Middle East Credit: Abedin Taherkenareh/Shutterstock
Jalal participated in January protests over rising prices – demonstrations that preceded the war by weeks. Those earlier grievances seem smaller in comparison now.
“We were not living in heaven before the war, either,” he said. “Now we are in the worst situation under a blockade.”
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“We are living in a stranded situation, not knowing when they would bomb us again,” said Jalal.
The Iranian government has offered increased unemployment benefits and working capital provision, but implementation has been slow Credit: Abedin Taherkenareh/Shutterstock
The broader economic devastation extends far beyond tech workers and students.
DigiKala, Iran’s largest e-commerce platform, announced 200 job cuts. Steel sector workers face similar layoff
Petrochemical workers were sent on forced leave with no clarity about whether their jobs would remain.
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The Tehran Chamber of Commerce has pleaded with businesses to treat job cuts as a “last priority”, appealing to patriotism and “responsibility that goes beyond corporate governance”.
But with revenue vanishing and costs soaring, many employers see no alternative.
Small and medium businesses are faced with especially severe pressure.
Unlike large state-connected enterprises that can access preferential credit or government contracts, smaller operators must survive on revenue alone. When that disappears, they are forced to close.
The government has offered increased unemployment benefits and has discussed tax deferrals, low-interest loans and working capital provision. But implementation has been slow, and amounts are inadequate.