Crypto has become one of Iran’s most practical economic tools as war, sanctions, and financial isolation continue to squeeze the country’s access to global markets.
The pressure intensified again on May 4, 2026, after Iran claimed it fired missiles at a US Navy vessel near the Strait of Hormuz.
Washington denied the strike and said Tehran had fired only warning shots. The clash came as the US launched “Project Freedom,” a naval operation to guide ships through the strait with destroyers, aircraft, drones, and about 15,000 service members.
Oil prices surged, with Brent crude hitting $120. Bitcoin, meanwhile, reclaimed $80,000.
Sanctions Turned Crypto Into Iran’s Payment Rail
For Iran, this is the broader point. Oil remains central to state revenue, but crypto has become central to daily business survival.
Ebrahim Mello, an Iran and Middle East expert and member of the BRICS+ Consortium Business Council, told BeInCrypto that it’s now difficult to imagine Iranian domestic or foreign trade without cryptocurrency.
Sanctions, the lack of Visa and Mastercard, and limited access to SWIFT have pushed businesses and individuals toward digital assets.
According to Mello, many Iranians can convert rials from local bank accounts into crypto and send funds abroad.
Payments can move to Russia, Turkey, the Arab states, and even North America through wallet transfers. Bitcoin prices now appear on exchange boards, while some high-end restaurants in Tehran accept crypto payments.
“Sanctions and restrictions pushed people to look for creative solutions. Iranians found alternative channels, and crypto became one of them. At one point, everyone in Iran was mining. Mining equipment appeared in factories, schools, and even mosques. Electricity was cheap, but the pressure became so large that the country started facing serious power shortages,” Ebrahim Mello told BeInCrypto
Mining also grew because of Iran’s cheap electricity, backed by its oil and gas reserves. Mello estimated that mining one Bitcoin in Iran can cost roughly $1,000 to $1,500.
That created incentives for mining in factories, schools, mosques, and private buildings.
However, the boom created pressure on the power grid. The government has tried to control illegal mining, but enforcement remains difficult across homes, businesses, and industrial sites.
Crypto Moves Money, But It Cannot Replace Trust
Still, crypto does not remove Iran’s trade problems. Mello said Iranian firms often rely on handshakes, cash, pro-forma invoices, and wallet transfers.
That creates friction in markets such as Russia, where contracts, labeling rules, certificates, and formal banking trails matter.
The result is clear. Crypto helps Iranian businesses move money when formal systems are blocked. But it cannot replace legal structure, market knowledge, or trust in cross-border trade.
