For years, Iran's economy has struggled as international sanctions and administrative mismanagement took their toll. Since US and Israeli air strikes hit the country on February 28, the situation has grown markedly worse.

Already decrepit infrastructure has been targeted in the strikes, knocking out factories, steel mills, bridges, and ports. Even worse, oil and gas facilities have been struck, while a US blockade on all traffic calling at Iranian ports still functioning has all but cut off Tehran's main lifeline: oil money.

With the currency at historic lows against the dollar and an Internet shutdown crippling businesses, analysts say Iran's economy is now in uncharted territory.

"So, unless the regime seeks concessions from the US to lift the blockade, the economy will have to remain extremely depressed," said Jason Tuvey, deputy chief Emerging Markets economist at the London-based Capital Economics.

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"But ultimately, this comes down to the degree of economic pain that the Iranian regime is willing to bear to achieve its military and geopolitical objectives," he added.

The situation has become so bad, senior officials can no longer deny the damage.

Iran's central bank governor, Abdolnaser Hemmati, has reportedly urged President Masud Pezeshkian to take urgent steps to stabilize the economy, including restoring full Internet access and pursuing a peace agreement with Washington.

Government spokesperson Fatemeh Mohajerani has put total damage to infrastructure and residential and commercial property from the war at $270 billion -- roughly nine times Iran's entire 2025 public budget, and equivalent to around 60 percent of the country's economic output, according to the economic news site Eghtesad News.

Iranian officials are estimating reconstruction costs at around $300 billion in damages for civilian infrastructure alone, while further costs will come from other disruptions to the economy such as lost business and the need for increased social payments.

According to Gholamhossein Mohammadi, Iran's deputy minister of labor, preliminary estimates show that the conflict has resulted in the loss of more than one million jobs and left two million people directly or indirectly unemployed.

The timing of the war has compounded the devastation to Iran's labor market.

According to Iranian economic daily Donya-e Eqtesad, spring is traditionally peak hiring season -- job platform Iran Talent says a typical spring month sees around 65,000 vacancies. This year, available positions collapsed by 80 percent. For every five jobs that existed last spring, four are now gone.

On the demand side, the numbers are just as stark. On May 5, job platform Jobvision recorded a single-day record of 318,000 rsums submitted by job-seekers -- 50 percent above the platform's previous all-time high of 212,000. The gap between those looking for work and the work available has never been wider.