As political tensions in the Middle East rise, Iran’s stock market is facing one of its sharpest declines in recent years. The escalating conflict in the Middle East has severely impacted Iran’s economy, causing significant volatility in its financial markets. On Monday, September 30, the Tehran Stock Exchange (TSE) witnessed another plunge, marking the third consecutive day of steep losses, further deepening the country’s economic crisis.
The TSE’s main index fell by 6,366 points, closing at 2,131,605. The equal-weighted index also dropped significantly by 860 points to 702,823. Over 800 billion tomans (approximately $12.9 million) were withdrawn from the market, a major blow to investors.
Attempts by Iranian authorities to stabilize the market through artificial means, such as limiting stock price fluctuations to 1%, have done little to stem the tide of market collapse. Investors, both domestic and international, are becoming increasingly wary of the regime’s ability to handle the growing political dissent within the country. The Iranian government’s persistent instability and lack of transparency have fostered a deep distrust among investors, who are pulling their funds out of a regime that appears more vulnerable than ever.
#Iran News in Brief
According to state media, today, the total index of the Tehran Stock Exchange dropped by 122,000 units to 2,317,000, experiencing the biggest drop in the history of its entire 56-year period of activity.https://t.co/b9fYGdf2MK pic.twitter.com/hkZxIpzwSq— NCRI-FAC (@iran_policy) May 8, 2023
Further complicating the situation, Iran’s currency, the rial, has sharply depreciated, with the U.S. dollar trading as high as 62,000 tomans on October 2. Inflation, compounded by sanctions and internal economic mismanagement, has intensified the country’s financial woes, leading to rising gold prices and record-breaking transactions in gold-related assets.
Meanwhile, panic over fuel shortages has gripped major Iranian cities. Long queues of cars have been reported in Tehran, Mashhad, Esfahan, and smaller cities like Ilam and Shaf, as fears of further disruptions in fuel supplies continue to grow. These fuel lines, exacerbated by the recent missile attacks on Israel, reflect the wider panic spreading across the country.