Tehran stock index drops as snapback pressure adds to investor concerns

Tehran’s main stock index fell by more than 35,000 points on Saturday, closing at around 2.395 million, as the market reacted to the formal launch of the UN snapback process by France, Germany and Britain.

Mehr News Agency, a semi-official outlet, said the announcement has added a “wave of psychological anxiety” to a market already under “chronic selling pressure.” While analysts quoted by the agency believe the snapback may not have major operational effects under current sanctions, they said it casts a “dark cloud over the trading floor.”

“What we are seeing now is more of an overreaction than a reflection of real economic impact,” Mehr quoted one analyst as saying. Some added that a short-term rebound is possible if the market finds support levels and the effects of the mechanism are clarified, but noted that “sustainable recovery still depends on fresh capital inflows,” which remain absent.

The drop follows months of market volatility. In early July, after the 12-day war with Israel, the market saw historic outflows. On July 2, investors pulled nearly $145 million in a single day, and the index fell by 57,000 points. The selloff was intensified by cyberattacks on major banks and ongoing concerns about economic mismanagement and financial instability.