Iran economy · May 2026

Soaring inflation and a plummeting economy test Iran's ability to withstand war and the US blockade, as the country faces its highest inflation rate in nearly three years. Japanese snack packages are turning black-and-white as the Iran war depletes ink supply, with Calbee’s switch to monochrome packaging bringing home the impact of the conflict. The Iran war is making energy more expensive for everyone, with oil prices rising and the conflict expected to increase the cost of oil changes for cars. India raises effective gold import tax to 15% to curb the impact of the Iran crisis, as the country races to shield its economy from the Iran war-driven oil shock and capital stress. Asia stocks turn green as AI cheer trumps Iran and inflation gloom, while the KOSPI Volatility Index surges to its third-highest point since the Iran war started.