More than 93 million people in Iran live under the shadow of war that could erupt again at any time. Many Iranians now fear difficult days ahead.
Following failed peace talks between the United States and Iran in Pakistan, Washington began blockading Iranian ports and ships in the Strait of Hormuz.
The move is aimed at cutting into Iran’s oil export revenues and preventing Tehran from charging tolls for passage through the strategic sea route. The blockade also means goods are no longer reaching Iranian ports.
was hitting hard working Iranians the hardest
“The continuation of the war – whether at the military level or in the form of blockades and regional tensions – puts the greatest pressure on ordinary people, especially workers, teachers and salarymen,” trade unionist Ismail Abdi wrote in response to an inquiry from DW.
The teacher and human rights activist was a member of the executive board of the Iranian Teachers Union when he came to the attention of Iranian authorities 11 years ago because of his commitment to protecting teachers’ rights. Accused of “propaganda against the political system”, he spent several years in prison.
After international pressure – particularly from trade unions around the world – he was eventually released. Since March 2025 he has been living in exile in Germany, where he continues his work for educational rights and freedom of expression.
“In recent weeks, we have received shocking reports about the suffering of the working class in Iran under wartime conditions,” he said.
“When factories, workshops or service projects close or scale down, the first to suffer are contract workers, daily wage laborers and those engaged in informal employment. This process weakens the bargaining power of workers and pushes wages towards a complete collapse.”
The war has had devastating consequences on Iran’s economy, which has long suffered from mismanagement, corruption, and sanctions.
Tehran has already put the war damage at about €229 billion (about $270 billion), according to a preliminary estimate given by Iranian government spokesman Fatemeh Mohajerani in an interview with Russia’s state news agency RIA Novosti on April 14.
However, the true extent of the damage caused to the country’s largest industrial facilities, which serve as the engine of the economy, is not yet fully known.
Thousands of daily wage laborers were sent home
The Mobarakeh Steel Company in Isfahan was forced to halt operations completely after the second US-Israeli attack.
The US and Israel said the attacks had weakened Iran’s military capabilities. Steel is a major raw material for the production of military goods such as missiles, drones and ships.
Additionally, it plays an important role in the automotive supply chain, home appliance production, and civil industries, including the packaging and canning industry. Steel is also indispensable in the construction sector.
The steel industry is considered one of the main driving forces of Iran’s economy. according to World Steel AssociationIran was one of the world’s 10 largest steel producers in 2025 – along with countries such as China, the United States and Germany – exporting about 31.8 million tonnes of steel annually. Between March 2025 and January 2026, export revenues were $860 million (€741 million).
With production suspended, thousands of workers were sent home, but it is unclear for how long. At least 10,000 workers in the steel industry are daily wage labourers.
Shutting down production could also set off a chain reaction, forcing dozens of other companies that depend on these facilities to halt their operations.
Attacks on petrochemical plants would also have a massive impact on the labor market, says Umoud Shoukry, an energy strategist and senior visiting fellow at George Mason University.
Attacks on major petrochemical centers in Asluyeh (southern Pars), Mahshahr and Shiraz caused significant damage and shutdown of many facilities.
In industrial centers like Mahshahr, where more than 30,000 people are employed, many are now facing sudden job losses and pay cuts, Shokri wrote in response to an inquiry from DW.
“The damage goes beyond the facilities, affecting supply chains, state revenues and people’s livelihoods,” he said.
“Even under optimal circumstances, assessments based on comparable industrial complexes suggest that it could take about two years to restore a major center like Mahshahr,” he said. This will require better access to foreign technology, capital, spare parts and technical know-how – conditions that are hardly attainable under the current sanctions regime.
Mass layoffs and falling wages
The loss of jobs in the industrial sector has already created widespread insecurity. On 14 April, the Iranian Labor News Agency (ILNA) dismissed all of its journalists and transferred their employment to freelance contracts.
There is news of mass layoffs starting in many other companies as well. One example is the digital services sector, including platforms such as Snap, often described as the “Iranian Uber”.
Despite Internet restrictions imposed by authorities since the beginning of the war to prevent potential protests, such services continue to operate in the country. However, due to the war fewer people are moving, and many can no longer use them.
Trade unionist Abdi said, “Just because of Internet restrictions, thousands of freelancers, programmers and content producers have lost their ability to work. They are now being pushed back into the traditional, already fragile labor market.” “In the short term, this situation leads to falling real incomes and increasing poverty among workers. In the longer term, there is a risk of an exploited, less skilled and more dependent society emerging.”
Trade unionist Ismail Abdi has not given up the dream of political change in Iran. But he warned that the war was primarily causing rising poverty and increasing insecurity for disadvantaged sections of the population. “This war must end before its human and social costs become irreversible,” he said.
However, it appears that little attention has been paid to the Iranian population, neither by the leadership of the Islamic Republic, whose priority is to remain in power, nor by the US President, despite promises of support.
According to US-based human rights organization HRANA, 3,636 people were killed in Iran from the start of the war on February 28 to April 8, when a fragile ceasefire was agreed. Of those, 1,701 were civilians, including at least 254 children.
This report was originally written in German.