Iran’s Minister of Communications on Tuesday reported a 30% drop in the digital economy and a 150 trillion rial (about $170 million) loss in just one month, attributing the blow to widespread internet restrictions imposed during the country’s 12-day conflict with Israel.
"Roughly 10 million Iranians earn a living directly or indirectly through the digital economy," said Sattar Hashemi during a session of the Iranian parliament on Tuesday. "During the war, employment in this sector fell by 30%."
Hashemi added that every two days of the conflict inflicted about 10 trillion rials in damage to Iran’s digital economy, totaling 150 trillion rials over the month. "This figure is equivalent to the annual budget of some ministries," he said, blaming the deliberate disruption of internet access.
Hashemi distanced his ministry from the decisions behind the internet restrictions. "These limitations were imposed by relevant authorities and intelligence and security agencies," he said, referring to measures officially justified as “necessary for national security.”
The restrictions, however, have triggered sharp backlash from civil society and digital rights activists, especially amid revelations about an emerging "class-based internet" system that appears to provide full, uncensored access for government insiders while heavily filtering usage for the general public.
Cyberattacks compound digital crisis
Compounding the crisis were over 20,000 cyberattacks during the war, many of which, according to Hashemi, were successfully mitigated. “These attacks coincided with field operations by the enemy and aimed to shut down online services and disrupt public access,” he told parliament.
The banking sector was hit particularly hard. Bank Sepah’s online platforms, including mobile services, went dark, paralyzing payroll functions for military personnel. Bank Pasargad and Bank Melli also reported widespread outages, although some official media denied the extent.
Hacktivist groups like “Predatory Sparrow” and “Tapandegan” claimed responsibility for multiple attacks.
On July 3, Tapandegan claimed to have hacked Bank Mellat, leaking data from over 32 million accounts. On July 18, nationwide disruptions hit payment terminals across Iran, compounding financial chaos.
The Wall Street Journal reported that Israeli-aligned cyber operatives wiped $90 million in crypto assets tied to the Islamic Revolutionary Guard Corps (IRGC), targeting Bank Sepah and Iran's top crypto exchange, Nobitex.
The hack disabled military salaries and ignited public panic, leading to a 12% drop in the rial and a temporary halt to trading on the Tehran Stock Exchange.
Iran ranks among the world’s most restricted digital environments. Freedom House listed the country as the third most repressive globally in terms of internet censorship.
"The country’s digital future cannot be built on filtered networks and unequal access," said lawmaker Salman Es’haghi, calling for full transparency on which individuals or institutions benefit from unrestricted internet access. "People deserve to know who is exempt from the restrictions they endure every day."
