Iranian retailers face mounting losses as conflict and sanctions squeeze economy
Iran's shopkeepers are struggling with weak demand as years of sanctions and a conflict that began in February with US-Israeli attacks and a US port blockade weigh on the economy. Official figures show inflation reached nearly 90 percent year-on-year in September, while currency swings have raised prices. Food costs have more than doubled compared with last year, according to the report.
Iranian retailers are contending with weak customer demand as prolonged sanctions and a conflict that started in February with US-Israeli strikes and a US blockade of Iran's ports add pressure to daily commerce. Official data cited in the report put September inflation at almost 90 percent year-on-year.
Currency volatility has also pushed up prices, while food costs have more than doubled from a year earlier, according to the same account. The report, issued 11 October 2026, focuses on retailers' difficulties as conflict further weakens demand.
The strain on retailers may ripple through Iranian society, affecting shop owners, employees, and households that depend on affordable goods. If demand remains weak and prices keep climbing, smaller businesses could close or cut staff, while consumers may face reduced choices and greater financial pressure. The situation could also deepen informal trading or reliance on informal networks, though the extent may depend on how long conflict and sanctions persist.