TEHRAN, Iran — Iran’s nearly three-month closure of its stock market ended with a two-day controlled reopening of trading accompanied by a series of restrictions for investors.

Although trading sessions on the Tehran Stock Exchange on Tuesday and Wednesday provided investors with some liquidity, the country’s underlying economic problems were also evident. More than one-third of the market’s key participants remained absent, reportedly to shield shareholders from the effects of the war between the United States and Israel.

A total of 42 company tickers, representing around 36% of the market, were suspended from trading, Deputy Head of the Securities and Exchange Organization Hamid Yari told state media. He added that trading hours were extended by one hour on both days to facilitate the reopening process.

While Yari expressed hope that prolonged market closures would not continue, this may prove impossible if attacks resume and authorities are forced to intervene again.

Among the companies absent during the reopening were petrochemical giants Fajr and Mobin, steel producers Khuzestan and Mobarakeh, utility companies, and investment firms whose portfolios were heavily concentrated in infrastructure targeted by US and Israeli strikes.

Participation by equity funds with more than 35% of their portfolios invested in the most heavily affected companies will also remain suspended until further notice. Officials stated that the goal of the measure is to “prevent additional selling pressure and support the market.”

Measures introduced before the war to prevent major financial shocks mean that shares of the remaining two-thirds of market participants could rise or fall by no more than 3%. Iran’s stock market remains relatively underdeveloped due to US sanctions and isolation from global financial markets. Nevertheless, it continues to serve as an important indicator of investor confidence and short-term liquidity generation.

Market Reopens With Slight Improvement

Overall, the first two days after reopening showed positive signs. Buy queues exceeded sell queues, while the equal-weight index also recorded a modest improvement. TEDPIX, the main index of the Tehran Stock Exchange, posted a slight gain on Tuesday and climbed another 44,000 points on Wednesday, surpassing 3,758,000 ahead of the weekend.

Earlier in 2026, the index reached a historic peak of nearly 4.5 million points. However, the market trajectory turned downward after nationwide protests erupted in late December. Worsening economic conditions and the outbreak of war ultimately led to the suspension of stock market operations.

Economist Mehdi Haghbaali told Al Jazeera that authorities faced major difficulties in reopening the exchange. In particular, security considerations prevent companies from fully disclosing the scale of damage inflicted on their facilities and production sites.

“Brokerage firms, especially smaller ones, are also facing serious challenges,” Haghbaali said. “Many traders maintained margin positions through credit lines. This particularly affected options traders whose contracts expired while the market was closed, leaving them without clear legal mechanisms for resolution.”

Authorities temporarily prohibited brokers from forcing investors either to provide additional cash and collateral or to sell shares when their positions fall below required threshold levels.

Does This Signal Real Growth? Haghbaali noted that the two-day reopening performed better than expected, but this may reflect how weak the economy already was rather than a genuinely positive signal.

Due to soaring inflation that has plagued Iran in recent months, the real value of shares has declined. The sharp depreciation of the Iranian rial against the US dollar has also made export-oriented companies more attractive, since their foreign currency revenues often translate into higher earnings in local currency terms.

However, Haghbaali warned that investors may still require significant discounts to invest in riskier assets.

“Trade has been severely disrupted, exporters will face difficulties maintaining operations, and rising inflation will continue to hinder the creation of real value, affecting stock valuations,” the economist emphasized.

According to the latest available official data, inflation exceeded 70% at the end of April, and the situation worsened further after the United States imposed a naval blockade on Iran’s southern ports.

Faced with a massive budget deficit, the government has limited room to respond. Families affected by sanctions are being offered only modest subsidies and electronic coupons for essential goods, while authorities continue efforts to combat speculation and artificial price increases.

During previous periods of economic hardship, Iran attempted to ease foreign currency shortages — which can fuel inflation — by restricting imports of certain consumer goods.

According to Haghbaali, authorities may once again be forced to introduce similar measures to combat the current wave of inflation, despite the need to import materials required for rebuilding war-damaged infrastructure.

“Naturally, a peace agreement between the United States and Iran could fundamentally change the outlook, improve market expectations, and bring relief to the economy,” he added.