Iran’s handwoven carpet industry — once a global cultural icon and one of the country’s most valuable non-oil exports — has fallen to its lowest level on record, crippled by US sanctions, restrictive currency regulations, and heightened regional instability, the Financial Times reported.
According to the Carpet and Handicrafts Commission of Iran’s Chamber of Commerce, export revenues are expected to drop below $40 million in the year ending March 2026, compared with $41.7 million last year. For six consecutive years, exports have remained under $100 million, a dramatic collapse from the industry’s peak of over $2 billion three decades ago. Commission chair Morteza Haji Aghamiri described the figures as “so meagre we can say it is practically zero.”
Sanctions and Currency Rules Cripple Export Incentives
The sharp decline accelerated after 2018, when the US reimposed sweeping sanctions under former president Donald Trump. Iran’s foreign currency shortage led the government to force exporters to sell a portion of their hard-currency earnings to the central bank at the artificial official rate, instead of the higher market rate.
“It completely paralysed the sector,” said Abdollah Bahrami, head of the National Union of Handwoven Carpet Co-operatives. “None of them have any motivation to stay active in global markets.”
Also Read: Iran’s Handwoven Carpet and Gabbeh Exports Reach $41.7 Million in 2024
Weavers Struggle With Rising Costs and Falling Returns
For artisans like Akram Fakhri, a 45-year-old weaver in Kashan, the economics no longer add up. She told the FT she must invest $250 in wool and silk and spend an entire year weaving a carpet that may only sell for just over $600 — all without social protections, assistants, or financial support.
“I work with constant back and leg pain. But hiring an assistant is beyond my means,” she said.
Global Competitors Fill the Void
Iranian carpets were once exported to nearly 80 countries, but today sales are mostly confined to the UAE, Germany, Japan, the UK, and Pakistan. As Iran’s presence faded, Turkey, India, China, and Afghanistan seized market share.
After the US market closed, some traders began rerouting Persian carpets through third countries, stripping them of their identity and further damaging Iran’s brand reputation, said Mohsen Shojaei, a carpet trader in Mashhad.
Regional Instability Deepens the Crisis
Ongoing geopolitical tensions — including airspace disruptions following Iran’s conflict with Israel — have further undermined foreign buyers’ confidence. Shojaei said recent instability caused many international traders to “lose confidence” in doing business with Iran.
A Bleak Outlook
Despite government promises of support, industry leaders remain deeply pessimistic.
“The future? The future is gone,” one expert said, underscoring the despair felt across a sector that once symbolized Iran’s artistry, identity, and economic resilience.
