Tehran stock market opens deep in the red after 12-day Israel war

Tehran’s stock market reopened after a 12-day conflict between Iran and Israel with a sharp collapse, as investor anxiety triggered a sweeping sell-off.

Over 99 percent of listed companies dropped in value, triggering an unprecedented 350 trillion-rial (approximately $416.7 million) sell-off queue.

By the close on Saturday, total sell orders reached 350 trillion rials. The main index fell 62,503 points, or 2.1 percent, to 2,922,101. The equal-weight index lost 15,522 points, ending at 908,163.

The market’s sensitivity to political and security developments deepened investor distrust and anxiety this time. Tehran’s stock market had previously declined amid Tehran’s risky foreign ventures.

In prior crises such as earlier missile strike operations on Israel and after the death of former president Ebrahim Raisi, the Securities and Exchange Organization curtailed daily trading limits to contain losses. Normally, Iran’s daily price fluctuation limit is five percent.

“It was expected the market would start negatively after nine days of closure. Officials tried to control the fallout from Israel’s attack but failed,” economic journalist Arash Hassannia told Iran International.

The market reopened amid crisis signals. Within 90 minutes, over 99 percent of stocks traded in the red. The main index dropped about one percent to 2,957,000 points. The equal-weight index slid nearly 3,800 points, nearing 920,000.

Trade volume in the first 90 minutes exceeded 20 trillion rials ($23.8 million), with nearly 12 trillion rials ($14.3 million) withdrawn by individual investors. Banks and investment firms led trading values with 6.6 trillion rials ($7.85 million) and 2.8 trillion rials ($3.33 million), respectively.

Economy news outlets described the market situation as “a full-scale crisis.” One warned that the military conflict’s end failed to calm the market; instead, uncertainty deepened, with investors fearing new fighting. Analysts see this drop as potentially signaling a longer-term crisis.

Massive sell queues, scarce buyers, broad liquidity outflows, and widespread losses are signs of what analysts call “the start of a psychological and structural crisis.”