Iranian businesses are increasingly turning to discounts and installment payments to keep customers shopping, as sanctions and the economic fallout from the US-Israeli war squeeze household budgets, RT’s Salman Khujuri reports.

The trend comes nearly six months after the US and Israel launched the war against Iran in late February. Large-scale fighting has subsided under a series of temporary agreements, but efforts to reach a lasting settlement have stalled as Washington ramps up economic pressure on Tehran.

Businesses in the Iranian capital are adapting to soaring prices and falling purchasing power, with some allowing customers to spread purchases over several payments.

Bobak Shirpour, who runs a large clothing retail business in Tehran, told RT on Thursday that worsening economic conditions after the war and years of sanctions prompted his company to seek suppliers offering better prices and quality. With many larger families unable to pay in cash, the retailer also introduced discounts and installment plans.

“People have welcomed it, they come in with a smile and leave with a smile,” Shirpour said, adding that despite the narrower profit margins, business remains steady.

Shoppers interviewed by RT said installment plans have become increasingly useful as household budgets come under pressure. “They allow people to buy things they can’t afford to pay for in cash and pay in four installments instead. It gives people some peace of mind and helps them meet some of their basic needs despite these difficult circumstances,” one customer said.

Iranian households have been cutting spending on food and other essentials as inflation and the falling rial erode purchasing power, according to recent media reports. Installment shopping has also expanded to Iranian companies offering deferred-payment services as consumers struggle with the rising cost of living, the Financial Times reported earlier this month. 

Watch RT’s full report below: