Iran's economy shattered by US$270 billion war damage

Three months of war have inflicted an estimated US$270 billion in damage on Iran, equivalent to nearly 73% of its 2025 GDP of US$371 billion. The destruction is comparable in scale to the entire Iran-Iraq War of the 1980s, according to economists. Four million citizens have been plunged into poverty. A fragile ceasefire is now in place, and negotiators are meeting in Switzerland. The question is whether economic collapse can achieve what decades of sanctions and military pressure could not. US Vice President J.D. Vance spoke to the media after high-level talks in Switzerland on Monday.