How oil, gas losses have shrunk Iran’s GDP by 10 percent during war

The oil and gas sector shrank 26 percent, new official data shows, pointing to the costs of the US-Israel war on Iran.

x whatsapp-stroke copylink google Add Al Jazeera on Google info People go shopping in a bazaar in southern Tehran, Iran, September 14, 2026 [Abedin Taherkenareh/EPA] By Usaid Siddiqui Published On 21 Sep 2026 21 Sep 2026 Amid the US-Israel war on Iran, the country’s economy has suffered a sharp contraction, with its crucial oil and gas sector taking the biggest hit as the United States tightens its economic and military pressure on Tehran.

Data released by the government-administered Statistical Center of Iran showed gross domestic product (GDP) shrank by 10.1 percent year-on-year between March 21 and June 20, the first quarter of the Persian calendar.

The period covers the opening months of the US-Israel war on Iran, which began on February 28.