Elahe Amani
Iran’s internet shutdown and its economic cost on women and the informal economy.
While global headlines today are dominated by the U.S. naval blockade of Iranian ports, the escalating standoff in the Strait of Hormuz, a fragile and uncertain ceasefire, and mounting tensions from Washington to the Vatican over the expanding conflict involving the United States, Israel, and Iran, this article is not about these issues.
It is also not about the depth of devastation caused by war in Iran: the innocent elementary school children in Minab who lost their lives and never returned home; the civilians in Iran, Israel, and across the region who have been killed; the historical sites, hospitals, and universities of Iran that have been damaged or ruined; or the civilian infrastructure reduced to rubble. Nor is it about the more than three million displaced Itanian from their homes. These tragedies are undeniable and demand their own reckoning.
Instead, this article focuses on a less visible yet profoundly consequential dimension of this war: the shutdown of the internet and its far-reaching economic and social impacts. It examines how prolonged digital disruption functions as a form of economic and social paralysis—deepening inequality and widening existing gaps. The consequences are especially severe for those already on the margins: workers in the informal economy, small-scale entrepreneurs, and, most acutely, women whose livelihoods often depend on digital access for income, networking, and survival. As connectivity is severed, jobs disappear, markets collapse, and fragile sources of independence are lost, pushing many into deeper economic insecurity and social isolation.
On April 11th, the 44th day of the internet shutdown during one of the most sensitive periods in Iran’s contemporary history the government-imposed restrictions on access to global networks surpassed 1,000 hours.
While this is not the first instance in which authorities have disrupted internet access for Iranian citizens, the current episode is unprecedented in both scope and duration, constituting the longest and most severe nationwide shutdown on record over a 44-day period. The restrictions, which began on February 28, 2026, rank among the most extensive cases of internet disruption globally. Throughout this period, amid a devastating war, internet access has been largely cut off for the majority of Iran’s population. This condition has been described as a form of “garrisoned internet,” whereby access is currently restricted to approximately 700,000 selectively approved users placed on a “whitelist,” typically individuals affiliated with centers of power, IRGC and state institutions. For years, a privileged circle has had access to so-called “white SIM cards,” enabling unrestricted and unfiltered connection to the global internet.
The shutdown of internet access constitutes not only a clear violation of citizens’ fundamental human rights but also imposes severe economic consequences on digital businesses and essential communication systems. Given the high level of internet penetration in Iran, the economic burden of such disruptions falls heavily on citizens, particularly women, who are often disproportionately affected by constraints on digital livelihoods and access to information.
At the beginning of 2026, approximately 73.8 million people in Iran had access to the internet, representing a penetration rate of 79.6 percent of the total population. Although Iran, due to its large population, has one of the highest absolute numbers of internet users in the Middle East, its penetration rate remains moderate compared to regional counterparts. Countries such as Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, and Bahrain have achieved near-universal internet penetration rates of 99 to 100 percent. Similarly, Oman (95 percent), Jordan (93 percent), and Israel (88 percent) exhibit high levels of connectivity. Iran (79.6 percent), alongside Egypt (73–75 percent) and Iraq (81.5 percent), falls within the mid-range of regional internet access.
Despite the relatively large user base, the quality of internet access in Iran faces significant structural challenges, including issues related to what is termed “network resilience.” The Internet Society has assigned Iran a resilience score of 45 percent, citing weaknesses in provider diversity and only moderate capacity to withstand disruptions. Even prior to the imposition of severe restrictions, Iranian internet users faced substantial barriers. Due to extensive state filtering and censorships, approximately 71.3 percent of users rely on virtual private networks (VPNs) to circumvent government controls. Most citizens are effectively confined to the “domestic internet,” known as the National Information Network, an internally controlled system separated from the global internet while international connectivity is frequently slowed or blocked. It is also notable that, out of Iran’s estimated population of over 93 million in 2026 (93,168,497), approximately 73.8 million access the internet via mobile devices, reflecting the same 79.6 percent penetration rate.
Moreover, according to 2026 reports, possession of tools designed to bypass these restrictions, such as Starlink terminals, may be punishable by death in Iran. Monitoring organizations, including NetBlocks, have characterized the current internet restrictions as the most extensive and prolonged nationwide shutdown in contemporary history.
Officials of the Islamic Republic typically frame internet shutdowns during wartime or periods of widespread unrest as emergency security measures. For instance, Foreign Minister Abbas Araghchi has stated in international media interviews that such disruptions are solely intended to “protect the public during wartime.” However, the underlying motivations appear to be more complex. Efforts to suppress widespread protests particularly over the past decade and to manage information flows and competing narratives, especially during the 12-day war and the current disastrous conflict, suggest that restricting internet access has become a strategic prerequisite for achieving broader political objectives.
This pattern is not unique to Iran; it is observable in other contexts of crisis management and social unrest globally. Data and analysis from Access Now (2025) confirm a troubling global trend: the use of internet shutdowns by authoritarian and dictatorial regimes is on the rise, with devastating consequences for civilian populations. In 2025 alone, there were 313 documented internet shutdowns across 52 countries—a new record that continues an upward trajectory observed since 2020.
These statistics underscore a critical reality: contemporary conflicts are no longer confined to physical battlefields or airspace, but are simultaneously waged across digital infrastructures and the domain of public opinion.
The Impact of War on Women in Informal Economy
The devastating and destructive economic impacts of war on Iran encompass deep recession, rising inflation, and disruption of productive activities, leading to increased layoffs, unemployment exceeding two million people, declining purchasing power, and worsening the already high poverty rate. The closure of industries and digital businesses, alongside currency fluctuations and economic uncertainty, has further deteriorated people’s livelihoods, pushing the situation into a critical and catastrophic state.
According to statistics published up to May 2025 in Iran, home-based businesses in Iran have become a key pillar of employment. To date, more than 2.112 million licenses have been issued for such activities, and this sector accounts for about 20 percent of total employment in the country. The diversity of activities has also increased significantly, with the number of home-based occupations rising from 335 to 515 fields—growth that reflects the expansion of micro- and home-scale economic opportunities. A substantial portion of these businesses operates in the digital space and relies on access to the internet to function.
Women play a central role in this sector, constituting around 80 percent of those engaged in home-based businesses—a figure that exceeds the global average of women’s participation in the informal sector of economy, which stands at approximately 60 percent. Some reports estimate this share in Iran to be as high as 90 percent. The distribution of these jobs shows that 47 percent are in industry, 43 percent in services, and 10 percent in agriculture. This breadth has made home-based businesses an important platform for women’s economic participation, particularly in a context where access to the formal labor market is restricted by gender-engineering policies of Islamic Republic of Iran for the last 47 years.
In recent years, government support policies though limited and modest have focused on developing this sector. Two types of licenses have been defined for home-based businesses: independent permits for individual activities and permits linked to specific categories. Accordingly, financial facilities of up to 150 million tomans are allocated for independent businesses and up to 300 million tomans for certain specialized categories. The importance of this sector is further amplified in conditions where the economy faces constraints on large-scale investment, making home-based businesses a flexible and low-cost pathway for broader population participation—especially for women in economic activity.
Within this context, internet disruption or shutdown in Iran particularly during crises and wartime functions far beyond a communication restriction; it has become a tool for paralyzing economic lifelines. Estimates indicate that such disruptions inflict daily losses of between $37 million and $80 million (approximately 5 trillion tomans) on the country’s macroeconomy. In addition, direct damage to digital infrastructure and operators is estimated at around 500 billion tomans per day, while over longer periods, total economic losses have exceeded 215 trillion tomans ( As of mid-April 2026, the Iranian Rial (IRR) has experienced significant depreciation, trading at roughly 130,000 to 160,000 toman per U.S. dollar on the open market).
The consequences of this situation have directly affected the labor market and people’s livelihoods. Approximately 10 million people in Iran are engaged in internet-dependent jobs, placing their livelihoods at serious risk. Among them, nearly 2.5 million are owners of online businesses who, due to restricted access to international platforms, have experienced sharp income declines—sometimes up to 80 percent—or a complete halt in their activities. Furthermore, disruptions to essential tools such as maps, navigation systems, and international communication platforms have impaired the operations of service-sector jobs, knowledge-based companies, and freelancers. Given the limited resilience of internet-based businesses (around 20 days), the risk of widespread closures, rising unemployment, and deepening economic crisis has become increasingly acute.
Ultimately, cutting off internet access for citizens during wartime is not merely a technical or security measure; it is a tool with profound economic, social, and human consequences. By disrupting the flow of information and economic activity, it disproportionately harms the most vulnerable segments of society and exacerbates existing gender inequalities. Women active in the informal economy are among the first to be affected, as they lose access to markets and support networks, undermining their sources of livelihood.
Any analysis of the consequences of war that fails to account for the vital role of the internet—and the impacts of its disruption on women’s livelihoods within the informal economy—remains fundamentally incomplete. In contexts where millions depend on digital access for income, communication, and survival, restricting connectivity is not a peripheral issue but a central axis of economic and social harm. For women in particular, whose participation in the labor market is already shaped by structural inequalities, the loss of access to online spaces translates directly into the erosion of fragile livelihoods and support networks.
Restoring free, stable, and open access to the internet is therefore not merely a technological imperative; it is integral to the protection of human rights, human dignity, and the possibility of rebuilding lives fractured by conflict. Access to information, communication, and digital markets constitutes a lifeline in times of crisis, enabling individuals and communities to sustain themselves, document realities, and remain connected to broader networks of solidarity and support.
Any analysis of the consequences of war that fails to account for the vital role of the internet and the impacts of its disruption on women’s livelihoods within the informal economy remains fundamentally incomplete. In contexts where millions depend on digital access for income, communication, and survival, restricting connectivity is not a peripheral issue but a central axis of economic and social harm.
For women in particular, whose participation in the labor market is already shaped by structural inequalities, the loss of access to online spaces translates directly into the erosion of fragile livelihoods and support networks.
Restoring free, stable, and open access to the internet is therefore not merely a technological imperative; it is integral to the protection of human rights, human dignity, and the possibility of rebuilding lives fractured by conflict. Access to information, communication, and digital markets constitutes a lifeline in times of crisis, enabling individuals and communities to sustain themselves, document realities, and remain connected to broader networks of solidarity and support.
In the end, this moment demands a principled refusal on multiple fronts: a rejection of war as a means of resolution; a rejection of internet shutdowns as instruments of control; and a rejection of the suppression and criminalization of Itanian people protesting for dignity and rights for 47 years. War not only devastates lives and infrastructure it also constrains the very conditions necessary for collective organizing and social transformation. Under such conditions, meaningful civic mobilization is stifled, and the voices of those most affected are driven further into silence. Ultimately, neither side in this conflict advances the well-being, dignity, or long-term interests of the people. Ultimately, as Martin Luther King Jr. said “ The arc of the moral universe is long, but it bends toward justice.”
The opinions expressed here are solely the author’s and do not reflect the opinions or beliefs of the LA Progressive.