Iran stock market reopens after near-three-month closure

Tehran, Iran – Iran’s stock market reopened on a controlled basis Tuesday and Wednesday after a nearly three-month closure, allowing investors to generate some liquidity but also revealing underlying economic strains.

More than a third of the market’s main players were absent from trading, reportedly to shield shareholders from the effects of the U.S.-Israeli war.

A total of 42 ticker symbols representing about 36 percent of the market were offline, Securities and Exchange Organization Deputy Supervisor Hamid Yari told state media, adding that trading windows were extended by one hour on both days to facilitate the reopening.

Yari said he hopes for an end to lengthy market closures but acknowledged that might not be possible if attacks resume and authorities are forced to intervene.

Absent companies included petrochemical giants Fajr and Mobin, steel giants Khuzestan and Mobarakeh, utility firms and investment companies with large portfolios invested in infrastructure targeted by the United States and Israel.

Involvement of equity funds with more than 35 percent of their portfolios invested in the most affected companies also remained suspended until further notice, with the stated goal of “preventing additional selling pressure and support the market.”

Pre-war measures to prevent major financial shocks meant shares in the remaining two-thirds of market players could rise or fall only by 3 percent.

Iran’s stock market remains relatively underdeveloped due to U.S. sanctions and isolation from global financial markets. It accounts for a smaller share of financial activity than banks and the state but still serves as an important barometer of investor confidence and short-term liquidity generation.

Overall, signs during the two-day reopening were positive. Buy queues outpaced sell queues, while the equal-weight index, which gives each listed company roughly the same weight to help judge stock movement, also improved marginally.

TEDPIX, the main Tehran Stock Exchange index, saw modest gains Tuesday and added another 44,000 points Wednesday to stand at more than 3,758,000 heading into the weekend.

The index reached an all-time high of nearly 4,500,000 at the start of 2026, but the market has been in decline since nationwide protests erupted in late December, with deteriorating economic conditions and the outbreak of war leading to the stock market’s suspension.

Economist Mehdi Haghbaali told Al Jazeera that authorities faced challenges in reopening the stock market, particularly as security considerations prevent companies from fully disclosing the extent of damage at their facilities and production sites.

“Brokerage firms, particularly smaller ones, are also facing significant difficulties,” Haghbaali said.

“Many traders held leveraged positions through credit lines, especially options traders whose contracts expired during the market closure, leaving them without clear recourse.”

Authorities temporarily barred brokers from forcing investors to add cash or collateral or sell shares if they fell below required position thresholds.

Haghbaali said the two-day reopening went better than expected but suggested that could be more rooted in how bad the economy already was rather than a genuinely positive sign.

With steep inflation plaguing Iran in recent months, the real price of shares has been reduced. A sharp fall in the value of the Iranian rial against the U.S. dollar has also made export-oriented companies appear more attractive, as revenues often translate into higher domestic currency earnings.

But there are reasons to be cautious, Haghbaali said, with investors possibly needing discounts to invest in riskier shares.

“Trade has been severely disrupted, exporters will face difficulties maintaining operations and rising inflation will further hinder the creation of real value, which will be reflected in stock valuations,” the economist said.

The inflation rate was more than 70 percent in late April, according to the latest available official figures, and the situation has worsened with the United States imposing a naval blockade of Iran’s southern ports.

Facing a huge budget crunch, the government has limited room to respond, offering families hit by sanctions only meager subsidies and e-coupons for essential goods while cracking down on hoarding and price gouging.

During previous economic hardships, Iran has tried to mitigate foreign currency shortages, which can lead to inflation, by limiting imports of certain consumer goods.

To deal with the current wave of inflation, authorities could be forced to introduce such measures again, Haghbaali said, despite the need for imported materials to help rebuild war-damaged infrastructure. Either way, there will be no easy decisions for the government, Haghbaali said.

“Naturally, a peace agreement between the US and Iran could fundamentally change the outlook, improve market expectations and provide relief to the enemy,” he added.