The Iranian stock market took a deep hit since their assault on Israel

IRGC's Missile Strike On Israel Sparks Economic Worry Amongst Iranians

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The Judean Staff
International

As celebrations from supporters of the Islamic Republic echo through the streets following Saturday’s missile attack on Israel, a pervasive sense of anxiety grips the broader Iranian populace, concerned about the economic fallout and the looming threat of a full-scale war.

The response was immediate and palpable when Iran declared its deployment of drones and missiles, with the projectiles expected to reach Israeli territory shortly thereafter. In the wake of this announcement, panicked citizens formed extensive queues at gas stations across several cities, signaling a collective fear of impending conflict.

Amid these scenes of distress, small clusters of government loyalists, numbering from tens to a few hundreds, initiated "celebrations" in various urban locales. However, the broader public sentiment was one of apprehension, rather than triumph.

This anxiety was mirrored in the economic sphere, where the Iranian rial plummeted precipitously against the dollar, reaching lows of over 700,000 even before the missiles had approached Israeli airspace. In an attempt to stabilize the currency, Tehran authorities reportedly took drastic measures, including injecting dollars into the market and imposing severe threats of closure on exchange bureaus and online traders. These interventions led to a partial recovery of the rial to about 660,000 to the dollar by Sunday, a slight improvement from its nadir.

The Tehran Stock Exchange also experienced volatility, dropping by approximately 0.5 percent, or 11,000 points, by Sunday’s close. It recouped about half of those losses by midday Monday.

The Iranian government's response extended to the realm of information control, as at least two journalists and two newspapers were prosecuted for allegedly threatening the public's psychological security by expressing concerns about the political and economic repercussions of the escalation. The government has also encouraged citizens to report any pro-Israel sentiments shared on social media.

The general populace remains largely observant and cautious, awaiting further developments. According to Saman, a 47-year-old retailer in Tehran, "There is a lack of patriotism and national pride for the attack, which was more extensive than anticipated. Most people I know expected any 'hard revenge' to be confined to a symbolic strike, perhaps targeting an Israeli embassy in a nearby country like Georgia, Armenia, or Azerbaijan."

Economic concerns dominate public discourse, with citizens particularly worried about the impact of the crisis on foreign exchange rates, the cost of housing, and general inflation, which could exacerbate the already challenging living conditions.

Adding to these voices are statements from labor and teachers' unions, which highlight the economic strain on ordinary Iranians caused by the government's military expenditures. The Coordination Council of Teachers Associations issued a statement emphasizing that the real victims of the attack are the Iranian people, burdened by the costs of the missile and drone arsenal and its broader consequences.

Moreover, the Independent Iranian Workers Union described the strike as reckless "adventurism" and warned of catastrophic consequences if the conflict escalates further.

A distinct faction within Iran, consisting of those favoring the restoration of the monarchy, has openly supported Israel on social media. Their messages and graffiti, both in Persian and English, express solidarity with Israel and call for regime change in Iran should Israel retaliate.

Meanwhile, the reformist opposition has treaded carefully, largely avoiding outright condemnation of the strike while expressing concerns about further escalation. Mohammad Ali Abtahi, a prominent reformist and former presidential aide, acknowledged the attack as a defensive response to Israeli actions but advocated for de-escalation and peace.

In summary, while some segments of the Iranian government and its supporters hail the missile strike as a bold defense against Israeli aggression, the wider Iranian community remains deeply concerned about the potential for an escalating conflict and its devastating economic and human consequences.

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