Iran’s daily grind: Six months of war, economic collapse, and a new escalation

The US-Israel war on Iran is now in its seventh month, and for the country’s 90 million people, life has become a daily struggle for survival. The latest military flare-up – a US strike on IRGC rocket launchers on Larak Island on August 31, followed by an Iranian attack on US bases in Jordan – has brought the conflict back to the front pages. But the real story, for those who live through it, is the grinding economic and social deterioration that has taken hold across the country since the war began on February 28, 2026.

What happened on the battlefield this week

On August 31, US Central Command said its forces bombed two rocket launchers belonging to Iran’s Islamic Revolutionary Guard Corps (IRGC) on Larak Island, a small island in the Persian Gulf. The IRGC retaliated by attacking US bases in Jordan, according to Al Jazeera. The next day, President Donald Trump vowed to strike Iran “hard” – the first direct clash between the two sides in a month. The exchange underscores that the war, far from winding down, remains volatile and unpredictable.

The civilian toll: a nation under siege

While the military skirmishes grab headlines, the daily reality for most Iranians is far more mundane and brutal. Al Jazeera reported that the quality of life has deteriorated across the board. The war began with the assassination of Supreme Leader Ayatollah Ali Khamenei and key IRGC commanders, but the regime has held together. His son, Mojtaba Khamenei, was selected as the new Supreme Leader, though he remains out of public view. The government has not made any major ideological concessions, but the economy is in ruins.

Sanctions, disrupted trade routes, and the constant threat of air strikes have pushed inflation into triple digits. The rial has collapsed. Basic goods – bread, cooking oil, medicine – are increasingly scarce or unaffordable. The Strait of Hormuz, a critical chokepoint for global oil shipments, has seen traffic drop to a trickle of pre-war levels due to Iranian and US attacks. Iran says it has reached an understanding with Oman to open a transit route, but the Trump administration reportedly opposes the deal and wants the strait fully reopened. The result is a double blow: Iranians suffer from shortages at home, while global energy markets remain on edge.

Internal divisions and strategic stakes

Within the Iranian establishment, there is a split between those pushing for a diplomatic resolution and those who want to fight until the US backs down. But according to Al Jazeera, all factions agree on one thing: no “capitulation” to the United States and Israel. This ideological rigidity, combined with the new leadership’s obsession with survival, means any ceasefire is unlikely in the near term.

For European readers, the strategic implications are clear. The ongoing disruption of Gulf energy supplies – and the prospect of a wider conflagration involving US bases in Jordan, Iraq, and the Gulf states – threatens to push oil prices higher and destabilise an already fragile global economy. The war is no longer a regional sideshow; it is a structural factor in global security and energy markets.

What comes next

Trump’s vow to strike Iran “hard” leaves little room for de-escalation. The IRGC’s attack on US bases in Jordan was a direct challenge to American forces, and Washington’s response will likely be disproportionate. Meanwhile, the Iranian people continue to bear the brunt of a conflict they never chose. The war has become a test of endurance, and for now, the regime is betting that it can outlast the pressure. The question is whether the Iranian population can do the same. Al Jazeera notes that international mediators are still trying to revive talks, but with both sides digging in, a diplomatic breakthrough seems as distant as ever.