Soaring inflation and plummeting economy test Iran's ability to withstand war and US blockade

In Iran and the wider region on 13 May 2026, the war and a US blockade are testing Iran’s economy, with soaring inflation, according to the Associated Press and Euronews. Al Arabiya wrote that 70% of Iran’s oil wells are threatened with closure for a long time.

The IEA says oil inventories are falling at a record pace and global oil supply will plunge below demand this year, and it widened its 2026 oil deficit forecast as the war cuts production. In the United States, costs are rising with higher energy prices and inflation, US crude and gasoline inventories continue to fall, and producer prices posted their biggest jump since 2022. Gold rose despite inflation data and the US-Iran impasse, undersea internet cable projects are getting tangled in the war, and Pakistan’s growth accelerated even as the war raises risks.