Jono Maryono
Tehran, Iran – Iran has formally demanded substantial compensation for the extensive destruction wrought by what it describes as "United States and Israel’s attacks," asserting that the nation has sustained direct and indirect damages estimated at approximately $270 billion since February 28. As regional powers intensify mediation efforts to de-escalate the burgeoning conflict, Tehran remains resolute in its stance, with its envoy to the United Nations stating on Tuesday that five unnamed regional countries should bear financial responsibility. This demand is predicated on accusations that their territories were allegedly utilized as launchpads for assaults targeting Iran.
Adding to its demands, Iran has proposed a novel mechanism for recouping these losses: a "Strait of Hormuz protocol." This protocol, as outlined by government officials, would involve levying a tax on all maritime traffic transiting this strategically vital waterway. The proposal underscores Iran’s determination to leverage its geographical position and control over a crucial global chokepoint to secure reparations for the economic devastation it claims to have suffered.
The staggering figure of $270 billion was revealed by Iranian government spokeswoman Fatemeh Mohajerani in an interview with Russia’s RIA Novosti news agency, published on Tuesday. While Mohajerani did not provide a detailed breakdown of the damages, she confirmed that the issue of compensation was a central point of discussion during recent negotiations between Tehran and Washington held in Pakistan. She indicated that Iran intends to press this demand in any future diplomatic engagements with the United States and other mediating parties.
The Iranian government has been engaged in a comprehensive assessment of the damage inflicted upon the nation’s critical infrastructure. Reports indicate that oil and gas facilities, petrochemical companies, steel plants, and aluminum factories, alongside military installations, have been repeatedly targeted. The rebuilding of these vital economic and defense assets is projected to take years. Beyond industrial and military targets, the conflict has also impacted civilian infrastructure, with reports of damage or destruction to bridges, ports, railway networks, universities, research centers, power plants, and water desalination facilities. A significant number of hospitals, schools, and residential homes have also been affected, underscoring the widespread impact of the hostilities on the Iranian populace.
Economic Realities and Civilian Hardship
The economic fallout from the attacks is profoundly affecting ordinary Iranians. Spokeswoman Mohajerani acknowledged to state media earlier this week that "existing economic realities" mean the government currently lacks the financial capacity to adequately compensate citizens whose homes have been damaged or destroyed. This admission highlights the immense strain placed upon Iran’s economy, exacerbated by years of sanctions and now by direct conflict.
The aviation sector has been particularly hard-hit. Maghsoud Asadi Samani, secretary of the Association of Iranian Airlines, reported that 60 civilian aircraft have been rendered inoperable, with 20 completely destroyed. This leaves Iran with a significantly diminished fleet, operating with approximately 160 passenger aircraft. Many of these remaining planes are aging, and maintaining their airworthiness has become increasingly challenging due to shortages of spare parts and services, a direct consequence of stringent U.S. sanctions.
Airlines have also suffered substantial revenue losses, particularly during the Nowruz (Persian New Year) holidays in late March, a period of peak travel and economic activity. Samani estimated that accumulated losses for airlines during the initial 40 days of the war exceeded 300 trillion rials, equivalent to roughly $190 million at current exchange rates. The damage extends to key international airports, including those in Tehran, Tabriz, Urmia, and Khorramabad, with runways, control towers, and hangars bearing the brunt of numerous attacks.
Despite the scale of the destruction and the imposition of a U.S. naval blockade on Iranian ports, which commenced on Monday, Iranian authorities have signaled an unwillingness to make significant concessions in ongoing negotiations. This unwavering stance applies to crucial areas such as its nuclear enrichment program. Ebrahim Rezaei, spokesperson for the National Security and Foreign Policy Commission of the hardline-dominated parliament, took to social media to advocate against extending the two-week ceasefire that was announced last week. He argued that any extension would provide the U.S. and Israel with an opportunity to resupply their forces and improve their offensive capabilities. Rezaei declared, "They must either recognize Iran’s rights, including our control over the Strait of Hormuz, or return to war," articulating a maximalist position that rejects compromise.
Iran’s defense budget, while substantial, faces significant constraints. According to the Stockholm International Peace Research Institute (SIPRI), Iran allocated close to $8 billion for military spending in 2024. Following missile exchanges with Israel in October 2024, officials pledged to triple this budget. However, the government has contended with a prolonged budget crunch, attributed to domestic mismanagement and corruption, compounded by the crippling effects of U.S. sanctions.
Internet Shutdown Exacerbates Economic Woes
The near-total internet shutdown, imposed by the state for the seventh consecutive week, is further compounding Iran’s economic difficulties and fueling public frustration among its population of over 90 million. The blackout has led to widespread layoffs and a significant loss of business opportunities. In response to mounting criticism, the government has disclaimed direct authority over the shutdown, attributing responsibility to the Supreme National Security Council.
Afshin Kolahi, head of a commission within the Iran Chamber of Commerce, highlighted the devastating economic impact of the internet blackout during a video conference with business executives. He estimated the daily direct and indirect economic damages to be as high as $80 million. Kolahi drew a stark parallel, stating, "We are losing [the equivalent of] four B1 bridges every day. We are losing two medium-capacity power plants every day, and we are doing this ourselves." This statement implicitly criticizes the government’s actions, even as it acknowledges the context of the U.S.-Israeli bombing of a major bridge near Tehran earlier this month.
The Ministry of Information and Communications Technology has reposted videos of such comments on its social media channels. This comes in the wake of a 20-day near-total internet shutdown in January, which coincided with widespread anti-establishment protests. At that time, the ministry had warned that many online businesses could not survive without internet access for more than three weeks. With no immediate prospect of a full internet reconnection, the ministry is reportedly advancing plans to implement a tiered internet system.
This week, the ministry announced that several business representatives, nominated by their respective communities, have been granted access to a global internet connection. The broader population, however, remains confined to a limited local intranet. Telecommunications companies are now offering a new service, "Internet Pro," to select customers deemed eligible by the state. While this service is priced higher than standard data packages, it reportedly provides less filtered access to the global internet. Some users have reported making payments and are awaiting activation of the service.
The pervasive impact of the internet restrictions is evident even in the limited online spaces available to Iranians. On the website of the Fars news agency, affiliated with the Islamic Revolutionary Guard Corps (IRGC), calls for "internet freedom" are among the most prominent hashtags. On Monday, security authorities reportedly ordered Digiato, a prominent technology-focused media outlet, to remove a countdown clock from its website that was meticulously documenting the duration of Iran’s digital blackout. A thriving black market persists, with individuals selling Virtual Private Networks (VPNs) and other circumvention tools that offer a potential, albeit precarious, link to the outside world.
Background and Chronology of Escalation
The current demands for compensation stem from a period of heightened tensions and direct military engagements that began on February 28. While the exact nature and attribution of all attacks remain contested, Iranian officials have consistently blamed the United States and Israel for significant infrastructural damage.
February 28, 2026: Iran alleges widespread attacks commenced, targeting critical infrastructure.
Early March 2026: Initial assessments of damage begin, with preliminary figures suggesting substantial economic losses.
Mid-March 2026: Iran proposes the Strait of Hormuz protocol as a mechanism for compensation.
Late March 2026: Nowruz holidays witness significant disruption to airline revenues due to the ongoing conflict.
April 8, 2026: U.S. naval blockade on Iranian ports reportedly begins.
April 9, 2026: Negotiations between Tehran and Washington take place in Pakistan, with compensation reportedly a key agenda item.
April 11, 2026: Spokeswoman Fatemeh Mohajerani reveals the estimated $270 billion in damages to RIA Novosti.
April 12, 2026: Iran’s UN envoy demands compensation from five regional countries.
April 14, 2026: Hardline parliamentarian Ebrahim Rezaei calls for an end to the ceasefire and a return to hostilities if Iran’s rights are not recognized.
Broader Implications and Geopolitical Context
The Iranian government’s demands for compensation and its assertive stance in negotiations underscore the complex geopolitical landscape of the region. The proposed Strait of Hormuz protocol, if implemented, could have significant implications for global trade and maritime security, potentially leading to increased shipping costs and heightened tensions with international powers reliant on the waterway.
The extensive damage to Iran’s infrastructure, particularly its energy and industrial sectors, coupled with the severe economic impact of the prolonged internet shutdown, poses a substantial challenge to the country’s economic stability. The government’s inability to provide financial support to citizens whose homes have been destroyed highlights the acute domestic pressures it faces.
The hardline faction’s call for an end to the ceasefire suggests a segment of the Iranian political establishment favors a more confrontational approach, potentially viewing diplomatic concessions as a sign of weakness. This dynamic could complicate mediation efforts and prolong the period of instability in the region. The international community, while seeking de-escalation, faces the challenge of navigating Iran’s demands and the complex web of regional rivalries that have contributed to the current crisis. The outcome of these negotiations and Iran’s pursuit of compensation will likely shape the future trajectory of regional security and economic relations.
