Iran stock market to reopen after 80-day war closure

Tehran, Iran – Iran's stock market is expected to reopen this week after an 80-day closure due to war with the United States and Israel. While not the main engine of economic financing in sanctions-hit Iran, the reopening could offer insight into the country's economic situation and allow authorities to gauge investor confidence and market liquidity.

Stocks, equity funds, and equity-related derivatives will resume trading on Tuesday and Wednesday, ahead of Iran's weekend holiday. Trading hours will be extended by one hour to allow major companies to disclose critical information after sustaining war damage, as well as companies that held shareholder meetings during the suspension.

The stock market, isolated from global indices by Western sanctions, has been closed since February 28, when the US and Israel launched missiles targeting Tehran and other parts of the country.

Hamid Yari, deputy of the Securities and Exchange Organization (SEO), told state media earlier this week the move aims to "protect investor assets, prevent emotional behavior, and facilitate market trading with more accurate and transparent information."

While the initial closure may have prevented disorderly panic selling, it also trapped portfolios, piled pressure on anxious investors wanting to sell, and created a growing credibility problem for the capital market.

The TEDPIX, main index of the Tehran Stock Exchange, hit a record high near 4.5 million points in early 2026 but crashed after thousands were killed in nationwide protests culminating on January 8 and 9, followed by a state-imposed 20-day internet shutdown.

Rising expectations of war with the US and Israel then further panicked investors, causing capital flight and leaving the TEDPIX at nearly 3.7 million points at the last market snapshot before closure.

Although this week's reopening may provide clues about the market's ability to generate liquidity, many continue to hold savings in foreign currency, gold, housing, cars, cryptocurrencies, or other assets.

Banks, along with the state, remain the biggest financiers of economic activity in Iran, a country grappling with fundamental problems such as chronic inflation and harsh sanctions.

Iran's central bank routinely prints money to fill budget holes and keep the economy afloat, but this also keeps inflation elevated and erodes Iranians' purchasing power.

Economic problems worsened due to the war and a US naval blockade imposed on Iran's ports on April 13, despite a fragile ceasefire agreed five days earlier.

During the war, US and Israeli fighter jets also extensively bombed Iran's economic infrastructure, including petrochemical firms, steel producers, and mining and transport companies — top performers in the capital market.

It remains unclear how much information Iranian companies will be allowed to disclose about war damage, given ongoing security risks and the threat of renewed hostilities.

According to Donya-e Eqtesad, Iran's largest financial newspaper, some items could be considered "trade secrets," including maps, production processes, and designs. In such cases, the disclosing company could submit sensitive data to the SEO in advance while avoiding full public disclosure online.

SEO Chairman Hojatollah Seyyedi told the government-run IRNA news agency last month that companies will be divided into three categories for the reopening: those directly damaged by the war, such as petrochemical and steel producers; those affected through suppliers, customers, or subsidiaries; and companies impacted by the general environment.

Bijan Khajehpour, managing partner at Vienna-based international consultancy Eurasian Nexus Partners, told Al Jazeera the stock exchange reopening would have to be "tightly controlled" because of "serious" concerns that investors "will engage in panic selling to generate liquidity."

Khajehpour acknowledged the government is under "heavy fiscal pressure" but called for building support measures to "prevent panic selling."

Under limits previously set by Iranian authorities to curb volatility in the nascent market, most stocks on the Tehran Stock Exchange and the over-the-counter Fara Bourse can move no more than 3% up or down from their previous closing price in a single trading session. This could help slow a steep decline, but it could also trap selling pressure.

What happened to the relatively small market during a two-week closure due to war with Israel in June 2025 may also provide clues about what could happen after this week's reopening.

In the weeks after that so-called 12-day war, the main index of the Tehran exchange fell over 15%, before hitting new record highs in early 2026.

But the strong nominal recovery was largely a byproduct of rising inflation and asset revaluation based on the rising value of the US dollar in the local market, not a sign of significant investment growth.