Iran sees mass redundancies from war with US and Israel

The standoff risks worsening what is already seen as the most severe supply disruption, alongside unresolved tensions over Iran’s nuclear programme and Israel’s military actions in Lebanon.

Oil markets continue to react sharply to shifting expectations around a potential deal and the security of shipping through the Strait of Hormuz.

Donald Trump said Vice President JD Vance is ready to travel to Pakistan for negotiations, and warned that military action could resume if Iran fails to reach an agreement. He told CNBC that the US is ‘ready to go’.

Iran has yet to confirm its participation in a second round of talks ahead of a ceasefire deadline on Wednesday, April 22, 2026.

Birol had warned earlier that current conditions in global energy markets could surpass the combined severity of the crises of 1973, 1979 and 2022.

The disruption adds to the ongoing impact of Russia’s war in Ukraine, which had already cut off significant gas supplies to Europe.

The escalation in the Middle East disrupted maritime traffic through the Strait of Hormuz, a key route carrying roughly one-fifth of global oil and LNG supplies.

Fatih Birol told France Inter that the crisis is 'the biggest crisis in history.' He said the crisis could be huge when combining petrol, gas, and Russia-related effects, potentially surpassing crises of 1973, 1979 and 2022.

Oil prices surged nearly 6% on Monday, with Brent crude hovering near $95 a barrel.

In March 2026, the International Energy Agency agreed to release a record 400 million barrels of oil from strategic reserves in response to rising oil prices traced to the US-Israel war with Iran.

The article notes 52 days of internet shutdown since the start of the war and cites negative effects on the tech and digital sectors. Official inflation rose to over 50% in March 2026. The government announced a loan scheme of 440 million rials per worker for small businesses, to be repaid in six months with an interest rate of 18% to 35%, depending on redundancies. The article highlights impacts on female earners (only one in nine working-age women were in work before the war) and reports ongoing redundancies across sectors, including the textile sector and others that rely on imports.

Gholamhossein Mohammadi, Iran's Deputy Work and Social Security Minister, said that two million people had lost their jobs because of the war.

The war's impact extends beyond factories hit by air strikes to other manufacturers, retailers, import/export businesses, and the digital sector. The disruption in the Strait of Hormuz has forced some factories to shut and dismiss workers. The car manufacturing sector, which directly or indirectly employs about a million people, faces layoffs across its supply chain.

In late March 2026, the United States and Israel hit two of Iran's largest petrochemical plants, in Asaluyeh and Mahshahr, as well as two of the largest steel manufacturers, Mobarakeh Steel and Khuzestan Steel.

Iran's Information and Communication Technology Minister, Sattar Hashemi, said that every day of internet blackout cost the economy at least 50 trillion rials.