War Sparks Economic Collapse and Medical Crisis in Iran

Economic Strain and Currency Collapse

Iran’s economy has faced severe strain due to the ongoing conflict, with inflation reaching 32.5% in 2024 and the International Monetary Fund (IMF) projecting a 42.4% increase in 2025. The rial, Iran’s currency, has plummeted to record lows on the black market, eroding savings and making essential goods unaffordable. Food prices surged by 60% in the year before the war, and the conflict has intensified this trend, with shortages of fuel and fertilizer driving up grocery costs. Commercial activity along the Strait of Hormuz, a critical energy trade route, has dropped to 90% below pre-war levels, disrupting global supply chains and increasing costs for energy and agricultural inputs. A shopkeeper in Tehran noted, We cannot afford even basic food. What’s in our pockets does not match market prices.

Healthcare System Overwhelmed

“We cannot afford even basic food. What's in our pockets does not match market prices.”

The conflict has severely strained Iran‘s healthcare system, with hospitals and clinics struggling to meet demand amid a surge in casualties and supply shortages. The World Health Organization (WHO) reported 1,300 deaths and 9,000 injuries in Iran as of early March 2026, alongside 18 verified attacks on healthcare facilities since February 28. These attacks killed 8 health workers and left others injured or displaced, straining an already overburdened system. A nurse in a hospital outside Tehran described the chaos: The shortage is not yet widespread, but it is starting. The most important issue is that this war must not reach hospitals. If the conflict continues and infrastructure is targeted, we will face very serious problems.

Global Supply Chain Disruptions

The WHO‘s Dubai hub faces backlogs on over 50 emergency requests for 1.5 million people across 25 countries, including $18 million in supplies for Gaza, Lebanon, and others. In Iran, attacks on healthcare facilities and supply chain disruptions have left hospitals scrambling to treat the wounded. “We saw smoke rising into the sky, but we didn’t know what place had been targeted,” recalled Setareh, describing the moment she and her colleagues fled their office during an air strike. “After that, everyone working in the company panicked.” This sense of helplessness has become a defining feature of life in Iran, where the war has not only taken lives but has also destroyed the systems meant to save them.

International Sanctions and Regional Tensions

Iran’s economic and humanitarian crisis is closely tied to international sanctions imposed by the United States, European Union, and other nations. The European Commission sanctioned 15 individuals and six entities for Iran’s repression of protesters, including asset freezes, travel bans, and restrictions on financial resources. The EU also extended a ban on exporting components and technologies for drones and missiles to Iran, which are being supplied to Russia to target Ukrainean civilians and infrastructure. These measures reflect a broader strategy to isolate Iran economically and politically, but they have deepened the suffering of ordinary Iranians.

Prolonged Conflict and Psychological Impact

“The shortage is not yet widespread, but it is starting. The most important issue is that this war must not reach hospitals. If the conflict continues and infrastructure is targeted, we will face very serious problems.”

The war has left a profound impact on the psychological well-being of Iranians. Studies show that nearly 22% of people in conflict-affected areas have developed mental disorders such as anxiety, depression, and post-traumatic stress disorder (PTSD). UNICEF reports that 40% of children and adolescents in conflict-affected parts of Iran require mental-health and psychosocial support, highlighting the acute psychological burden on the younger generation. These figures are derived from a 2025 study published in the Journal of Mental Health and Behavior and a 2026 UNICEF report on children in conflict zones.

Displacement and Humanitarian Crisis

The war has displaced 100,000 people within Iran, according to WHO data, as attacks on infrastructure and civilian areas force families to flee their homes. These internally displaced persons (IDPs) face severe challenges, including limited access to shelter, clean water, and medical care. The situation is compounded by the government’s failure to provide adequate support, leaving communities to fend for themselves. As Behnam, a former political prisoner, explained, ‘We all grew up knowing someone talented in our family—cousin, uncle, aunt—whose future was destroyed just because another relative had been involved in banned political activity.‘ The war has not only deepened Iran‘s isolation but has also intensified the risks it faces from global powers.