Final answer:
During the war, Iran's economy suffered due to various factors including the nationalization of the oil industry and the loss of oil shipments to the United States. The Iran-Iraq War further strained Iran's economy through high costs and casualties.
Step-by-step explanation:
During the war, Iran's economy suffered due to various factors. The Iranian Revolution in 1979 led to the nationalization of the oil industry and the seizure of assets of Western oil companies. As a result, Iranian shipments of oil to the United States abruptly ended, which intensified the energy crisis and caused oil prices to double. This had a negative impact on Iran's economy as oil and gas revenues make up a significant portion of the state's income.
The Iran-Iraq War from 1980 to 1988 further strained Iran's economy. Both countries experienced heavy casualties and incurred high costs during the war. Iran's manufacturing base was also affected, as its resources were diverted towards the war effort. Additionally, the war led to increased foreign debt for Iraq, hampering its economy.
Overall, the combination of the Iranian Revolution and the Iran-Iraq War had a significant negative impact on Iran's economy.