Iran’s Internet Blackout Costs Economy $1.56 Million Every Hour Amid Protests
TEHRAN, Iran — Iran is hemorrhaging an estimated $1.56 million every hour due to a government-imposed internet blackout that began amid widespread protests in January, according to internet privacy analyst Simon Migliano. The blackout, which has disrupted communication for more than 90 million Iranians, has inflicted severe economic damage on the country already grappling with a deepening economic crisis.
“The current blackout is costing Iran an estimated $37.4 million per day,” Migliano, head of research at PrivacyCo, told Fox News Digital. “The full internet blackout itself cost Iran more than $780 million, and the subsequent strict filtering continues to have a significant additional economic impact.”
Authorities in Tehran cut internet access in an effort to quell protests that erupted over economic hardships and political grievances, leading to a dramatic 579% surge in virtual private network (VPN) usage as citizens sought to bypass restrictions. Despite partial restoration of connectivity, the government continues to enforce stringent filtering and censorship measures that hinder the free flow of information and commerce.
The economic toll is compounded by the disruption to businesses, financial institutions, and international trade, all of which rely heavily on stable internet access. Iran’s economy, already strained by sanctions and inflation, faces further setbacks as digital services and e-commerce suffer interruptions.
Experts note that internet blackouts not only stifle political dissent but also undermine economic resilience. The National Telecommunications and Information Administration highlights the critical role of internet connectivity in supporting economic growth and innovation. Similarly, the U.S. Government’s Internet Policy underscores the importance of open access to digital infrastructure for global commerce.
International observers have expressed concern over Iran’s approach, warning that prolonged restrictions could deepen social unrest and further isolate the country economically. The U.S. Department of State has frequently condemned internet shutdowns as violations of human rights and impediments to free expression.
Meanwhile, Iranian citizens continue to rely on VPNs and other circumvention tools to access blocked websites and communicate with the outside world. The surge in VPN usage reflects both the population’s resilience and the severity of the government’s information controls.
As Iran navigates a complex geopolitical landscape, including ongoing nuclear negotiations and regional tensions, the economic damage from internet disruptions adds another layer of challenge. Analysts warn that without restoring full and open internet access, Iran’s economic recovery prospects remain bleak.
For more on the economic impact of internet restrictions and global connectivity policies, visit the Federal Communications Commission and the World Bank’s digital development resources.
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