According to Francine Pickup, a representative of the United Nations Development Programme (United Nations Development Programme), recent military escalation in the Middle East has significantly worsened poverty in Iran and Lebanon, reversing years of development progress in a short time.
The remarks were made during a discussion titled “The Middle East Crisis and its Impacts on Global Housing and Urban Development” at the 13th session of the World Urban Forum (WUF13) in Baku.
Key findings
- Iran and Lebanon are among the most affected countries in the region.
- The impact extends across the Middle East, Arab states, and parts of Asia-Pacific.
- Decades of human development gains are being eroded within weeks of escalation.
Iran-specific impact
- Iran’s poverty rate reportedly increased from 36% to 41.5%
- This translates to about 5.1 million additional people falling into poverty
- The crisis has reversed roughly 1.5 years of development progress
Contributing factors
Even before the escalation, Iran faced:
- Economic pressure from sanctions
- High inflation
- Declining purchasing power
The report suggests that military escalation has intensified these structural vulnerabilities.
Outlook
UNDP officials warned that even if a ceasefire is reached soon, the economic and social impacts will persist for a long time due to the depth of disruption.







