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Iran's Internet shutdown inflicts economic losses

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Iran's Internet shutdown inflicts economic losses

2026-01-17 17:53 Last Updated At:01-19 23:59

Iran's nationwide internet blackout has inflicted significant economic losses, severely disrupting online businesses and digital livelihoods.

Following the escalation of protests in dozens of cities, the Iranian government on Jan. 8 implemented measures to suspend international internet connectivity and block international phone calls.

The local economy suffered substantial damage during the period of internet disconnection.

"We have clients who specialize in attracting international patients to Iran's health sector. They handle all aspects of their medical travel -- from consultation and scheduling to logistics and coordination. However, due to the internet blackout, these operations have been halted entirely," said Mohammad Nematzadeh, an IT manager.

Over the past decade, high unemployment has remained a persistent challenge for Iran's economy. In response, many young Iranians have increasingly turned to social media and digital platforms to establish online enterprises and generate income. However, internet restrictions have already cost this rapidly expanding digital sector hundreds of millions of dollars per day.

"According to government statistics, the daily revenue for Iran's internet-based businesses reached 36 million dollars in 2022. That figure has now grown to more than 80 million dollars per day, demonstrating the rapid expansion of the digital economy," Nematzadeh said.

In Iran, communications and cyberspace policies are shaped through a coordinated process involving multiple government institutions, including the Supreme Cyberspace Council, which brings together representatives from across the state.

Iran's Internet shutdown inflicts economic losses

Iran's Internet shutdown inflicts economic losses

Saudi Arabia and Pakistan have reaffirmed that they will not seek normalization of ties with Israel, rejecting U.S. President Donald Trump's call for the two countries to join the Abraham Accords.

Saudi Arabia's position on the Palestinian issue remains unchanged, a Saudi source told Al Arabiya TV on Monday.

The source affirmed the need for "an irreversible pathway to a Palestinian state".

The remarks came after U.S. President Donald Trump urged Muslim-majority and regional countries to normalize relations with Israel and join the Abraham Accords before the U.S. reaches a peace agreement with Iran.

Saudi Arabia has repeatedly said it would not normalize relations with Israel without the establishment of a Palestinian state.

Pakistani Defense Minister Khawaja Asif said on Tuesday that Pakistan will not join any agreement to normalize ties with Israel, adding that the country will not accept any deal that "conflicts with its fundamental ideologies".

Trump on Monday urged Saudi Arabia, Qatar, Egypt, Jordan, Turkey and Pakistan -- countries involved in mediating U.S.-Iran talks -- to immediately join the Abraham Accords, warning that otherwise they should not participate in the mediation.

He added that if a U.S.-Iran deal is reached, Iran should also join the agreement.

The Abraham Accords, brokered by the United States in 2020 during Trump's first term, were established between the Israeli government and Arab countries including the United Arab Emirates, Bahrain, Sudan and Morocco, aimed at rapidly advancing the normalization of relations between Israel and Arab countries.

Before the outbreak of the latest round of Israeli-Palestinian conflict in October 2023, the United States had been pushing for normalization between Saudi Arabia and Israel.

After the conflict erupted, Saudi Arabia suspended normalization talks with Israel.

Saudi Arabia, Pakistan reject Trump's Abraham Accords demand

Saudi Arabia, Pakistan reject Trump's Abraham Accords demand

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