Internet Blackout Costs Iran Over $1.5 Million Every Hour
Iran is currently suffering significant economic losses due to a state-imposed internet blackout that is draining an estimated $1.56 million every hour. This disruption affects the daily lives of more than 90 million Iranians and is having a devastating impact on the country’s economy, according to an analysis by Simon Migliano, head of research at PrivacyCo.
The blackout began on January 8 amid widespread protests and has led to daily losses that total around $37.4 million. Despite partial restoration of internet access, the situation remains grim with heavy filtering still in place. “The full blackout has already cost Iran over $780 million, and ongoing restrictions continue to inflict additional financial damage,” Migliano noted.
According to Migliano, Iran has lost around $215 million due to disruptions in internet access alone in 2025. His estimates are based on the NetBlocks COST tool, which evaluates the economic impact of cutting off a nation’s internet on its gross domestic product (GDP).
The connectivity issues arose when Iranian authorities cut off communications during protests against the regime. Although some local and international phone services were restored, many people still cannot access the internet freely due to stringent government controls.
The demand for Virtual Private Networks (VPNs) has surged by 579%, reflecting people’s need to find ways around digital restrictions. As soon as connectivity returns, users are quickly seeking VPNs to access global platforms like WhatsApp and Telegram, which are not normally available.
Migliano stated, “Sustained demand for VPNs suggests that many Iranians are preparing for future internet outages.” The ongoing struggle involves finding reliable circumvention tools as the government actively blocks certain VPN servers.
Iran’s Minister of Information and Communications Technology, Sattar Hashemi, acknowledged the severe economic impact of the blackout, stating that it costs around “5,000 billion rials” daily to the digital economy and nearly 50 trillion rials across the entire economy.
While some internet access has been restored, the situation is still concerning. The connection remains highly unstable and heavily filtered, limiting users to government-approved sites and applications.
Overall, the internet blackout has not only disrupted daily life but significantly strained Iran’s economy, raising urgent questions about the future of internet freedoms in the country.
