Iran’s stock market rises amid rial’s decline — Jerusalem Post

Iran’s stock market has risen recently, although the country is facing energy supply disruptions, a shortage of foreign currency and the depreciation of the rial. The Jerusalem Post reports this, citing Iran International. The publication gives two possible reasons for the inflow of funds into the market: investors may be counting on a swift agreement between Tehran and Washington, or seeking a way to preserve their savings.

Pressure on the economy

According to Farau, the main factors putting pressure on Iran’s economy are the shortage of foreign currency, the energy deficit and uncertainty related to the war. According to the Jerusalem Post, Iranian oil exports have effectively stopped because of the United States’ blockade of the Strait of Hormuz, reducing the country’s foreign-currency revenues.

Iran’s energy sector, according to the publication, was underfunded even before the war began, while strikes on energy infrastructure further complicated production. Companies dependent on imported goods face higher operating costs and more limited access to foreign currency.

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Seeking protection from depreciation

Rouydad24 believes that market participants are expecting an agreement and a subsequent expansion of Iran’s access to international markets. At the same time, other assessments cited by Iran International indicate that stock market growth does not necessarily mean optimism about the economy’s prospects.

Against this backdrop, domestic shares may attract investors because of limited alternatives: the rial is losing value, real estate is becoming cheaper, and bank deposits are losing purchasing power. The International Monetary Fund forecasts that Iran’s economy will contract by 7.6% in 2026, compared with a 5.4% decline expected in July.