How Iran’s Internet Blackout Is Crippling Its Economy, and the Fight Over Fruit-Flavored Vapes
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I'm Valerie Hopkins. I cover Russia for The New York Times. It's pretty difficult to report from Russia. Often I'm the only New York Times reporter in the country. I keep working in Russia because what happens here matters, and our audience deserves to get a broad perspective of the world that they live in. If you want to make sure we can keep doing this work, subscribe to The New York Times.
From The New York Times, it's The Headlines. I'm Tracy Mumford. Today's Tuesday, May 12th. Here's what we're covering.
I've been hearing from a lot of Iranians over the past month or so. And I think for those who at one point supported some kind of military action, whether by the U.S. or by Israel, because they opposed the government and wanted to see the government fall, there's been a lot of despondency at sort of what the last couple months have brought to Iran. They have come to the conclusion that military action has only kind of made their situation worse inside Iran.
My colleague Yagina Torbati has been speaking with Iranians about what life is like on the ground there now. She's been able to reach people through text messages and voice memos in the brief windows when they can get an internet connection. She says people who oppose the regime say the government has only become more hardline and more entrenched since the war began, and the conditions in their everyday lives are deteriorating.
Job losses have started in the country, layoffs that are a direct result of both the damages of war and also the way the government has responded to war by shutting down the internet. A lot of Iranians depend on the internet for their livelihoods. They sell things on Instagram. They advertise on Instagram. You know, Iran once upon a time had a really flourishing tech sector. That sector has been brought to its knees by this internet shutdown. And that is all resulting in layoffs. Food prices are through the roof. People brought up the price of chicken, of cooking oil. A couple people we spoke with raised the possibility that if they got to a point where they could not afford to feed their families, they would steal and that they had heard from others around them that that would happen, that they would do the same as well.
And so I think that for us to hear was a little bit chilling to think that, you know, that kind of disorder and chaos might come to Iran as a result of the pressure that people are under.
Iran's economy was already struggling even before the war. That's what fueled widespread protests earlier this year, which the regime suppressed with a deadly crackdown. Now the increased economic pressure is part of the U.S. 's plan to force Iran into submission. Recently, when asked about Iran's economy, President Trump told reporters, I hope it fails. You know why? Because I want to win. Iranian officials, meanwhile, insist the pressure will not work. Now, three quick updates on the Trump administration. First… How long are you going to suspend that tax for then?
Until it's appropriate, yeah. It's a small percentage, but it's still money.
President Trump said yesterday he's in favor of suspending federal gas taxes to try and give Americans a little relief as the war keeps driving up fuel costs. The move would save Americans somewhere between 18 and 24 cents a gallon, which even Trump admitted is not much since the average cost of gas is now around $4.50 a gallon.
How is Iran's economy affected by internet blackouts?
That's a roughly 50% hike since the start of the war. Congress would need to approve any tax suspension. Back in 2022, President Biden called on lawmakers to do that after the war in Ukraine drove gas prices way up. Republicans called it a gimmick, and Congress did not sign off. Also, the Food and Drug Administration is moving to allow tobacco and vape companies in the U.S. to begin selling flavored e-cigarettes. For years, the FDA has only allowed companies to sell menthol or tobacco-flavored vapes over concerns that candy and fruit flavors appealed to children. Illicit products made it through, though, and now the FDA says it's cracking down on those while opening the door for major companies to sell more flavors legally.
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