Cyberattacks Disrupt Iran's Bread Distribution, Payments Remain Frozen

Iran’s subsidized bread distribution system remains crippled two weeks after cyberattacks targeted major banks, leaving bakers unable to access payments and forcing authorities to reimpose restrictions on bread sales.

The disruption affects the nationwide Nanino electronic payment system, which is connected to Sepah Bank - the institution responsible for processing all wheat-related transactions in Iran.

While bakers can continue to sell bread using Nanino devices, they are unable to withdraw their earnings, according to Mohammad Javad Karami, head of the Flour and Bread Working Group at Iran’s Chamber of Guilds.

“Some bakers are calling to say they don’t have money to pay for flour because their bread sale revenues are blocked,” Karami said.

The outages began with cyberattacks on Bank Mellat and have since spread to other financial institutions.

Sepah Bank oversees the entire wheat supply chain, from procurement to the sale of flour and bread across the country.

Due to the centralized structure of the system, bakers are unable to switch to alternative payment methods without risking automatic reductions in their flour quotas.

In response, authorities have reinstated restrictions on subsidized bread sales, similar to those imposed before last month’s 12-day war. Flour quotas for government bakeries have also been reduced.

The cyberattacks have further delayed planned bread price hikes, which had been postponed due to the war.

Although four months have passed in the current Persian year, updated pricing has not yet been implemented in the Nanino devices, creating price disparities across bakeries.

Karami described the situation as “a test” requiring immediate solutions to prevent future disruptions in the country’s bread distribution system.