Majid Doustali, a member of Iran’s parliamentary planning and budget committee, called on citizens to cut back on electricity, water, and fuel consumption.
By Ailin Vilches Arguello, The Algemeiner
As talks with the United States over a possible deal to end the war remain uncertain, Iran’s economy is under mounting strain, with prolonged water shortages, pressure on energy infrastructure, and slowing industrial output deepening what authorities describe as an “economic war.”
With Iran entering the summer months amid a deepening water and electricity crisis, government officials estimate that around 35 million people will face water shortages, intensifying concerns over deteriorating living conditions, mounting economic strain, and daily hardship across the country.
On Monday, Issa Bozorgzadeh, a spokesman for the country’s water industry, reported that rainfall has fallen “below normal” levels across 11 provinces, warning that Tehran is among the worst affected as it enters its sixth consecutive year of drought.
Now, Iranian authorities are urging citizens to cut consumption and adopt stricter usage habits, pointing to deep structural failures in the water and power sectors as public frustration rises over supply disruptions, mismanagement, and declining living standards.
Officials have also announced planned summer power outages, warning that the deepening energy crisis could lead to factory shutdowns, reduced industrial output, rising unemployment, and higher prices.
On Sunday, Arash Najafi, head of the Energy Commission of Iran’s Chamber of Commerce, noted that household, commercial, and office blackouts are likely to continue daily throughout the summer, while the industrial sector will continue to be targeted for power cuts” or “will continue to bear the brunt of power cuts.
Given the damage to several petrochemical facilities in Israeli and US strikes and their reliance on electricity from the national grid, Najafi said most available power would now be directed toward keeping these complexes operational around the clock.
“The Islamic Republic will be forced to impose electricity consumption restrictions for about 120 days, and given the lack of effective means for people to significantly reduce usage, this will result in widespread blackouts,” the Iranian official said in a statement.
Amid growing public frustration over the ongoing crisis, Majid Doustali, a member of Iran’s parliamentary planning and budget committee, called on citizens to cut back on electricity, water, and fuel consumption as part of the country’s resistance efforts in what he described as an “economic war.”
“Every effort by the public to save resources represents a direct challenge to the enemy’s economic conspiracy,” Doustali said.
Even as the crisis continues to weigh heavily on the Iranian people, a nationwide internet blackout remains in place, having exceeded 1,728 hours as of Monday, after authorities imposed the shutdown more than two months ago, effectively isolating millions of Iranians from independent reporting on the war and access to global news.
Across much of the country, unstable internet forces many people to rely on illegal black-market virtual private networks (VPNs) — tools that bypass government censorship — to stay connected beyond Iran’s borders, with access costing millions, and users risking imprisonment and national security charges.
According to a CNN estimate, Iranians have spent roughly $1.8 billion on internet access over the past two months.
Soaring costs and crumbling infrastructure have also forced businesses to cut jobs on a massive scale, leaving many workers unemployed and intensifying social and economic pressures across the country, The New York Times reported.
Dozens of major companies have reportedly laid off hundreds of employees across multiple industries, with the industrial sector alone potentially putting up to 3.5 million workers at risk, as the country’s economy reels from the impact of a US naval blockade on Iranian ports that began in mid-April.
The US blockade has prevented the regime from exporting energy through the Strait of Hormuz — a critical global energy chokepoint through which about one-fifth of the world’s oil supply passes.
With companies sharply reducing or freezing production amid shutdowns and mass layoffs, the private sector downturn is further threatening the regime by reducing tax revenues, which the government has come to rely on heavily amid mounting sanctions and trade restrictions.
Iran’s new supreme leader, Ayatollah Mojtaba Khamenei, has attempted to contain the fallout by urging companies to avoid layoffs “to the extent possible.”
But the regime’s internet shutdown alone has cost businesses and companies an estimated $80 million in daily losses, The New York Times reported.
As the Iranian currency continues to plunge and inflation peaks near 60 percent, senior official Gholamhossein Mohammadi said the war has already cost around one million jobs, alongside “the direct and indirect unemployment of two million people.”
Meanwhile, Iran’s energy sector is also under severe strain, with exports falling sharply, storage capacity nearing its limits, and infrastructure under growing pressure.
According to data from commodity analytics firm Kpler, Iran could exhaust its oil storage capacity within 25 to 30 days if the crisis continues, prompting cuts in output at several oil fields to ease pressure.
Amid an export collapse exceeding 70 percent, the government now faces a critical decision between shutting wells to manage storage constraints or risking long-term damage to key oil fields.
Even though Kpler’s report estimates Tehran may not feel the full revenue hit for another three to four months due to payment delays and pre-existing sales flows, the regime is expected to face a heavy blow, with losses potentially reaching $200–250 million per day.
With domestic tensions rising and the internal economic crisis worsening, Iranian officials are increasingly wary that renewed protests could erupt in the coming days, further destabilizing an already volatile situation.
