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How Iran has staved off economic collapse despite the US-Israeli war

Government cash transfers and subsidies helped cushion sanctions and war, while spring 2026 GDP fell just 0.21% from a year earlier, officials said.

Nearly six months after the U.S. and Israel launched an operation to overthrow the Iranian government, it’s fair to say their assault hasn’t exactly gone according to plan. Still, the ensuing war has followed a clear, predictable logic.After decades of sanctions failed to persuade Iranians to overthrow the regime, Israel and the U.S. resorted to war; after that failed too, they turned to a naval blockade. Each escalation has had an impact, addin…

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KAYHAN LIFE broke the news on Monday, August 17, 2026.
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