Iran in February 2026: the most important developments in economy
Iran's economy in February 2026 was overshadowed at month end by US and Israeli military strikes on Iran on 28 February. Oil markets turned to the security of the Strait of Hormuz, with analysts warning that a disruption to shipping could push prices to $110 a barrel. Airlines cancelled or suspended flights to and over the Middle East after Iran, Iraq, Kuwait and the UAE closed or restricted airspace, and Dubai International Airport shut, stranding hundreds of thousands of travellers. Iran's internet access was reported cut. The International Atomic Energy Agency reported no radiological effects at Iran's nuclear facilities, and OPEC+ was reportedly considering a larger increase in oil output.
Oil prices moved through the month with the state of US-Iran diplomacy. They fell over 4% on 1 February as tensions eased, then rose to a six-month high, with Brent above $71, on 19 February on fears of a military conflict. They stood near seven-month highs on 25 February, fell on 26 February as talks began, and rose more than 2% on 27 February when the talks were extended. Gold prices rose on safe-haven demand, and global stock markets weakened at times.
The United States kept up economic pressure. On 6 February it sanctioned 15 entities and 14 ships tied to Iranian oil exports, and President Donald Trump signed an order authorizing tariffs on countries that do business with Iran. The Wall Street Journal reported that Washington was weighing seizures of tankers carrying Iranian oil, and India's Coast Guard seized three Iran-linked, US-sanctioned tankers. On 25 February the US announced a further round of sanctions on Iran's oil sector and weapons programmes. A New York Times investigation reported that Binance employees identified over $1.7 billion in transactions to Iranian entities.
Iran meanwhile pursued other partners. It finalized talks with Russia on joint oil field development, agreed with Pakistan on a target of $10 billion in trade by 2028, signed a memorandum with Azerbaijan, and restarted natural gas exports to Iraq. Iran shut down private businesses following protests, and its economy was described as in freefall.
by WorldBrief & Maksim Micheliov | AI-generated summary
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