Iran’s economy contracted by 10.1% year-on-year during the first quarter of the Persian calendar, as the country faced the economic impact of the Middle East war.
The Statistical Center of Iran reported on Sunday that gross domestic product (GDP) fell 10.1% from late March to late June. The figures cover the first quarter of the Persian calendar and include the oil sector.
The contraction came after US-Israeli attacks began in late February, with the conflict subsequently spreading across the region.
Conflict weighs on Iran’s economy
The attacks killed Iran’s supreme leader and senior military officials at the start of a major offensive, according to the report.
Tehran responded by blocking the Strait of Hormuz, contributing to a surge in global oil prices as the conflict widened across the Middle East.
The economic impact came as Iran was already facing longstanding economic difficulties.
Sanctions add to economic pressure
Iran’s economy has for years struggled with hyperinflation and a sharp depreciation of its currency.
Economic sanctions have been a major factor behind those pressures, adding to the challenges facing the country’s economy.
