The controlled reopening ends the long-term shutdown of the Iranian market | US-Israel War on Iran News

Tehran, Iran The nearly three-month shutdown of the stock market in Iran has ended with two days of controlled reactivation among other restrictions on investors.

Although on Tuesday and Wednesday sessions of the Tehran Stock Exchange allowed investors to make money, financial problems were also evident.

A little more than a third of the major players in the market were absent, allegedly to protect their owners from the consequences of the United States-Israel war.

A total of 42 shares of companies representing about 36 percent of the market were offline, deputy director of the Securities and Exchange Organization Hamid Yari told state media, adding that trading windows were extended by one hour on both days to reopen.

While Yari said he hoped for an end to the long-term closure of the market, this would not be possible if threats resurfaced and the authorities were forced to intervene.

Absent from the reopening were oil giants Fajr and Mobin, steel giants Khuzestan and Mobarakeh, utilities and investment firms that held a large share of their capital. construction which was developed by the US and Israel.

The participation of equity funds with 35 percent of their capital invested in the most affected companies will also be suspended until further notice. The stated aim was to “prevent further pressure to sell and support the market”.

The measures that are put in place before the start of the war to avoid serious economic problems it means that two-thirds of the market players can go up or down by only 3 percent.

Iran’s stock market remains underdeveloped due to US sanctions and isolation from global financial markets. It also accounts for a smaller share of the economy than banks and the government but still serves as an important instrument for maintaining investor confidence and short-term liquidity.

The market opens up for a sideways change

Overall, the signs were positive in the two days of reopening. Buy lines continue to sell lines while the equal-weighted index, which gives each listed company the same weight to allow investors to better judge the stock’s performance, has also changed little.

TEDPIX, the main index of the Tehran Stock Exchange, made small gains on Tuesday and added another 44,000 points on Wednesday to stand above 3,758,000 at the end of the week.

The index peaked in early 2026 at around 4,500,000, but the market has declined since then. national protests It started at the end of December with the collapse of the economy and the advent of war which brought the stock market to a standstill.

Economist Mehdi Haghbaali told Al Jazeera that authorities are facing difficulties in reopening the market, especially since security concerns mean companies are prevented from disclosing damage to their facilities and production facilities.

“Business enterprises, especially small ones, are also facing big challenges,” Haghbaali said. “Many traders became senior positions through debt, especially traders whose contracts expired during the closing of the market, leaving them with no clear path.”

Government officials have temporarily barred businesses from forcing investors to raise capital and collateral or sell stocks if they fall below a required level.

Does this mean real growth?

Haghbaali said the two-day re-opening went better than expected but this could be due to the bad economy rather than a positive sign.

With inflation plaguing Iran in recent months, the real value of shares has been reduced. The sharp decline in the value of the Iranian rial against the US dollar has also made export-oriented companies look attractive as their earnings often translate into higher domestic currency.

But there are reasons to be cautious, Haghbaali said, as investors may need to discount to invest in risky shares.

“Trade will be severely disrupted, exporters will face difficulties in keeping jobs and the rise in inflation will also prevent real value creation, which will be reflected in the valuation of goods,” said the economist.

The inflation rate was more than 70 percent at the end of April, according to the most recent figures, and the situation has only worsened as the US imposed a blockade on Iran’s southern ports.

Looking at a large budget deficitthe government’s response room has been limited, providing affected families with limited aid penalties and e-coupons for essential items while reducing reservations and raising prices.

In previous periods of financial crisis, Iran has tried to reduce the shortage of foreign currency, which can lead to inflation, by reducing imports of certain consumer goods.

In order to deal with rising prices, the government may be forced to restart such processes, said Haghbaali, although there is a need to import equipment to repair war-damaged weapons. In any case, there will be no easy elections for the government, said Haghbaali.

“Naturally, the peace agreement between the US and Iran can change the mood, improve the expectations of the market and give relief to the enemy,” he said.