Western sanctions have almost halted the sale of Iran's famous Persian carpets.
Modern.az reports that, according to the Carpet and Handicrafts Commission of the Iran Chamber of Commerce, the country's carpet exports could fall below $40 million by March 2026.
It should be noted that in 1990, Iran earned $2 billion annually from carpet exports.
Representatives of the carpet industry told the FT publication that the US withdrawal from the nuclear deal with Iran in 2018, followed by the imposition of sanctions, marked a major turning point. This was followed by a requirement for exporters to sell a portion of their foreign currency earnings to the central bank at the official exchange rate, which made carpet exports economically unviable. As a result, Iran's ties with nearly 80 countries to which it once shipped products were severed, and competitors such as Turkey, India, and China gained prominence in the markets.
Domestically, inflation, reduced purchasing power, and changing consumer tastes have weakened demand for traditional Persian carpets. According to experts, only about 3 percent of carpets produced today are used within the country. In an industry that once employed millions, the number of weavers is currently less than 700,000.
Although official Tehran has promised new mechanisms to support exports, most sector representatives do not believe the situation will change soon. In their opinion, unless sanctions are lifted and international relations are restored, it will be difficult for Persian carpets to regain their former position in the global market.
