Iran's stock market reopens with strict bans on energy and steel firms.

Iran's stock market has ended a nearly three-month shutdown with a controlled reopening under strict restrictions.

Companies severely damaged by recent US and Israeli strikes were excluded from the initial trading sessions.

Energy and steel firms, along with utility providers, did not participate in Tuesday or Wednesday's sessions.

This absence reportedly protects shareholders from the ongoing effects of the conflict between the US and Israel.

A total of 42 ticker symbols, representing roughly 36 percent of the market, remained offline.

Securities and Exchange Organization deputy supervisor Hamid Yari confirmed the absence of these major market players.

Trading hours were extended by one hour on both days to help facilitate this cautious return to business.

Equity funds holding more than 35 percent of their portfolios in affected companies also faced suspension.

Authorities stated this measure aims to prevent selling pressure and support the fragile market environment.

Remaining shares were restricted to a maximum 3 percent daily movement to avoid major financial upsets.

Iran's market remains underdeveloped due to international sanctions and isolation from global financial systems.

Despite these limitations, the exchange still serves as a key barometer for investor confidence.

Buy orders exceeded sell orders during the two days of trading, signaling a marginal improvement.

The equal-weight index rose slightly, giving investors a clearer view of stock movements.

The main TEDPIX index gained 44,000 points on Wednesday to stand above 3,758,000.

This recovery follows a sharp decline that began after nationwide protests erupted in late December.

Economist Mehdi Haghbaali told Al Jazeera that security concerns prevent companies from fully disclosing facility damage.

"Brokerage firms, particularly smaller ones, are also facing significant difficulties," Haghbaali explained regarding the situation.

Many traders held leveraged positions through credit lines when contracts expired during the market closure.

These investors found themselves without clear recourse after their contracts ended without trading opportunities.

Authorities temporarily barred brokers from forcing investors to add cash or sell shares below thresholds.

Haghbaali suggested the reopening might reflect economic desperation rather than genuine market strength.

With steep inflation plaguing the country, the real price of shares has effectively been reduced.

The market's ability to recover depends heavily on whether new attacks force authorities to intervene again.

A dramatic drop in the Iranian rial's value against the dollar has made export-focused firms look more appealing, since their earnings convert into stronger domestic currency amounts.

However, Haghbaali warns investors to proceed with caution, noting that riskier stocks may require significant price discounts to attract capital.

"The trade sector has suffered severe disruption," the economist stated, explaining that exporters will struggle to keep operations running while rising inflation erodes real value in stock prices.

Official data from late April showed inflation exceeding 70 percent, a situation that has worsened further after the United States imposed a naval blockade on Iran's southern ports.

With a severe budget shortfall limiting the state's response options, families affected by sanctions receive only small subsidies and digital coupons for essential items while the government cracks down on hoarding.

In past economic crises, Iran attempted to curb inflation caused by foreign currency shortages by restricting imports of specific consumer goods.

Haghbaali suggests authorities might be forced to reintroduce these measures now, even though imported materials are desperately needed to repair war-damaged infrastructure.

"Either way, there will be no easy decisions for the government," he remarked, highlighting the difficult balance between controlling prices and rebuilding the nation.

He added that a peace agreement between the US and Iran could fundamentally shift market expectations and provide much-needed relief to the region.