Iran's Economy Hit by 10.1% Contraction Amid Conflict
The conflict between Iran, the United States, and Israel has had severe economic consequences for the Iranian economy. According to official figures released by the Statistical Center of Iran, the country's gross domestic product (GDP) declined 10.1% year-over-year in the first quarter of the Persian calendar.
The period covered much of the conflict that began with US and Israeli strikes on Iran on February 28. The largest contraction was recorded in oil and natural gas extraction, which fell 26.4% year-on-year during the quarter.
The sharp decline in energy-sector activity had a substantial impact on overall GDP and widened the difference between the headline contraction and the decline in the non-oil economy. The services sector also recorded a significant decline, contracting 4.8% year-over-year during the quarter.