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Iran’s Internet Blackout Costs Economy $1.56 Million Per Hour Amid Ongoing Unrest
Iran is losing an estimated $1.56 million every hour due to its state-imposed internet blackout, according to an internet privacy analyst. The prolonged disruptions, which began amid widespread protests in January, are draining the country’s struggling economy and disrupting daily life for more than 90 million people.
“The current blackout is costing Iran an estimated $37.4 million per day, or $1.56 million every hour,” Simon 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.”
Migliano noted that Iran has already drained $215 million from its economy in 2025 by disrupting internet access. These figures were calculated using the NetBlocks COST tool, an economic model that measures the immediate impact on a nation’s GDP when its digital economy is forced offline.
The model draws on data from several international organizations, including the World Bank, the International Telecommunication Union, Eurostat and the U.S. Census Bureau, to assess direct losses to productivity, online transactions, and remote work.
The crisis began when Iranian authorities abruptly cut off communications on January 8 amid escalating protests against the clerical regime. While officials have since restored much of the country’s domestic bandwidth, as well as local and international phone calls and SMS messaging, most Iranians remain unable to freely access the internet due to heavy state filtering.
“The recent 579% surge in VPN demand reflects a scramble for digital survival,” Migliano explained. Even when access is briefly restored, the internet remains “heavily censored and effectively unusable without circumvention tools such as VPNs.”
Digital footprints show that when connectivity temporarily returns, users immediately seek VPN services to access global platforms like WhatsApp and Telegram, which otherwise remain blocked. According to Migliano, “Sustained demand—averaging 427% above normal levels—indicates Iranians are stockpiling circumvention tools in anticipation of further blackouts.”
This has created what Migliano describes as a “cat-and-mouse game” between users and authorities, with “the government blocking individual VPN servers and providers rotating IP addresses to stay ahead of the censors.” Citizens typically download multiple free tools and cycle between them to maintain some level of connectivity.
The economic toll has become so significant that Iran’s own minister of information and communications technology, Sattar Hashemi, has acknowledged it publicly. According to Iran International, Hashemi stated that recent outages were inflicting roughly “5,000 billion rials” daily in losses to the digital economy and nearly 50 trillion rials on the wider economy.
This tactical internet shutdown represents a growing trend among authoritarian regimes facing internal dissent. By cutting communications, governments can limit the spread of protest information and reduce coordination among demonstrators. However, such measures come with enormous economic costs in increasingly digitized economies.
“Iran’s three-week internet blackout may have been lifted, but connectivity remains severely disrupted still,” Migliano stated. “Access is still heavily filtered. It is restricted to a government-approved ‘whitelist’ of sites and apps, and the connection itself remains highly unstable throughout the day.”
The ongoing restrictions highlight the Iranian regime’s continued concern about the protest movement that sparked the initial blackout. While attempting to maintain control through digital restrictions, the government is simultaneously inflicting significant damage on an economy already struggling under international sanctions and domestic mismanagement.
As this digital standoff continues, millions of ordinary Iranians find themselves caught between a government determined to control information flow and the economic consequences of being disconnected from the global digital economy.
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18 Comments
It’s concerning to see the immense financial toll of Iran’s internet blackouts. Losing over $37 million per day is a huge blow to an already struggling economy. Restoring reliable connectivity should be a top priority.
The figures on Iran’s internet-related economic losses are truly alarming. Disrupting digital infrastructure at this scale has far-reaching impacts that the government needs to carefully weigh.
This highlights the vital role of the internet in powering modern economies. Iran’s decision to restrict access is having severe financial consequences that could compound the country’s broader economic challenges.
It’s concerning to see the substantial financial impact of Iran’s internet blackouts. Disrupting digital infrastructure has wide-ranging consequences that the government needs to carefully consider.
Exactly. The economic losses from lost productivity, disrupted commerce, and reduced investment are likely compounding Iran’s economic troubles. Finding a sustainable solution is crucial.
The economic impact of Iran’s internet restrictions is staggering. $1.56 million per hour is a huge blow to an already struggling economy. Disrupting the digital economy has far-reaching consequences.
Agreed. The prolonged blackouts and strict filtering are draining Iran’s resources at a critical time. Restoring reliable internet access should be a top priority to support businesses and daily life.
The economic toll of Iran’s internet blackouts is staggering. $1.56 million per hour is an enormous financial loss that the country can ill afford during this crisis. Restoring connectivity should be a key priority.
The figures on Iran’s internet-related economic losses are truly alarming. Disrupting digital infrastructure at this scale has far-reaching impacts that the government needs to carefully weigh.
This highlights the essential role of the internet in modern economies. Cutting off access has cascading effects across sectors. Iran needs to find a balance between security and enabling economic activity.
Absolutely. Maintaining open internet access is crucial for Iran to participate in the global digital economy. Finding a sustainable solution is key to mitigating these enormous financial losses.
These figures demonstrate the critical importance of the internet for modern economies. Iran’s internet restrictions are inflicting major financial damage that could have lasting effects.
Agreed. The government must balance security concerns with the need to maintain connectivity and enable economic activity. Restoring reliable internet access should be a top priority.
Losing over $37 million per day due to internet restrictions is staggering. Iran must carefully weigh the tradeoffs between internet control and economic stability during this crisis.
Agreed. The economic toll could severely undermine Iran’s ability to address the broader challenges it faces. Restoring reliable connectivity should be a top priority for the government.
This highlights the vital role of the internet in powering modern economies. Iran’s decision to restrict access is having severe financial consequences that could compound the country’s broader economic challenges.
The economic impact of Iran’s internet blackouts is truly staggering. $1.56 million per hour is an enormous loss that the country can ill afford during this crisis. Restoring reliable connectivity should be a key focus.
These estimates demonstrate the critical importance of the internet for Iran’s economy. The government’s decision to restrict access is inflicting substantial financial damage that could have long-term consequences.