Nearly three weeks of war have severely affected Tehran’s grand bazaar, leaving its bustling alleys unusually quiet and forcing many shops to shut, while prices rise sharply for Iranians already struggling under years of economic sanctions.
The period leading up to the Persian New Year, Nowruz, and the Muslim Eid al-Fitr holidays would normally see traders finalizing deals and families shopping for gifts. However, despite some browsing, “fewer than usual were out buying,” according to witnesses on Wednesday.
“How can we afford to buy anything?” said Nisrin, 40, who only provided her first name, while searching for jeans for her two children. She recalled that before Nowruz, her mother would fill multiple shopping bags with clothes and gifts for the family—a luxury now unattainable even for middle-class households like hers.
With a monthly salary of around $130 from working at a dental clinic, Nisrin had been able to afford some new clothing despite soaring inflation, which reached 36% for much of 2025. “Then the war came,” she added.
Under heavy Israeli and U.S. bombardments, which have killed Iran’s supreme leader and other senior officials, the government has not released updated economic figures since the assault began on February 28. Traders and shoppers in the bazaar reported that the conflict has pushed prices even higher than the already high inflation rate.
Businesses and Buildings Impacted
Spanning the heart of Tehran, the bazaar is a city within a city, hosting wholesalers and retail shops across areas for clothes, food, spices, carpets, electronics, and more. It has long served as an economic mainstay and an important political constituency in the city.
The war has also caused physical damage to some buildings. “Danger, danger!” a shopkeeper shouted as pedestrians passed by, pointing to rubble from a collapsed ceiling.
Pouria Rahbar-Yektashenaei, who has owned a clothes shop for nearly 14 years, explained that his business had only recently begun recovering from a prolonged economic slump before the war. “Everything fell apart,” he said, noting that he had closed for two weeks due to fears of airstrikes and had only just reopened. He gestured at the many nearby shops still closed and the nearly empty alleyways, illustrating the sharp economic impact the conflict has inflicted on Tehran’s iconic bazaar.
