How Iran’s Internet Blackout Is Crippling Its Economy, and the Fight Over Fruit-Flavored Vapes

Summary

Podcast Summary: The Headlines (The New York Times)

Episode: How Iran’s Internet Blackout Is Crippling Its Economy, and the Fight Over Fruit-Flavored Vapes
Date: May 12, 2026
Host: Tracy Mumford

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Overview

This episode explores two major themes: the profound impact of Iran's ongoing internet blackout on its population and economy, and the U.S. Food and Drug Administration's shift toward allowing flavored e-cigarettes. Additional segments include updates on U.S. fuel policy, an unusual federal contract at the Lincoln Memorial, Israel's prosecution of October 7 suspects, and the proliferation (and fatigue) of consumer subscription services. Times journalists offer firsthand insights, memorable moments, and analysis of why these developments matter now.

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Iran’s Internet Blackout & Economic Crisis

Key Insights & Discussion

• Civilian Hardship and Despondency

  • Reporter Yegana Torbati relays the despair among Iranians who once supported military intervention against their government, noting that such actions have led to worse conditions rather than regime change.
  • "There's been a lot of despondency at sort of what the last couple months have brought to Iran. They have come to the conclusion that military action has only kind of made their situation worse."
    — Yegana Torbati (00:43)

• Job Losses and Economic Spiral

  • Shutting down the Internet as a wartime measure has devastated Iran’s once-vibrant tech sector and squeezed small businesses that rely on Instagram and online commerce.
  • Layoffs are rife, with some Iranians contemplating theft as food prices soar.
  • "A lot of Iranians depend on the Internet for their livelihoods… Iran once upon a time had a really flourishing tech sector. That sector has been brought to its knees by this Internet shutdown, and that is all resulting in layoffs."
    — Yegana Torbati (01:30)
  • "If they got to a point where they could not afford to feed their families, they would steal… that was a little bit chilling to think that, you know, that kind of disorder and chaos might come to Iran…”
    — Yegana Torbati (01:58)

• Protest Roots and U.S. Pressure

  • Iran’s preexisting economic instability fueled protests, which were put down violently by the regime.
  • U.S. economic leverage continues, with President Trump quoted as hoping Iran’s economy fails "because I want to win.” (02:27)

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U.S. Policy and Political Updates

Federal Gas Tax Suspension (03:08)

• Relief Proposal
  • President Trump favors suspending the federal gas tax to offset surging prices, saving Americans eighteen to twenty-four cents per gallon, though he admits it "is not much.”
    — Tracy Mumford (03:17)
  • Congressional approval is required; similar measures failed in 2022.
  • Average gas prices have risen to $4.50/gal—a 50% increase since the war’s outset.

Flavored E-Cigarettes Legalization (03:45)

• FDA Move
  • The FDA plans to permit legal sales of flavored vapes beyond menthol or tobacco, arguing it can now regulate illicit products proliferating in the market.
  • Tobacco companies, major GOP donors, benefit directly. The Trump White House has championed the change.

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Federal Project Oversight: The Reflecting Pool Controversy (04:40)

• Contract Irregularities
  • A contractor, personally chosen by Trump from his previous business ties, was awarded the Reflecting Pool rehab and American flag paint job for the 250th jubilee.
    • Trump initially announced a $2 million deal, but costs ballooned to $14 million.
    • Normal bid requirements were bypassed for “urgency,” though no clear threat or injury was explained.
  • "It has not said publicly what that injury would be. Instead, the administration has cited Trump's desire to get the work done before the country's 250th anniversary celebrations on 4 July."
    — Tracy Mumford (04:43)

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Israel's October 7 Prosecutions (05:50)

• Legislative Developments
  • Israel will prosecute Palestinians accused in the October 7 Hamas attack; new law allows military trials and live broadcasts of courtroom proceedings.
  • The court can override evidence rules; rights groups worry due process will be further diminished.
  • "The real goal isn't to hang anyone in the town square. It's to prevent the next disaster."
    — Anonymous Israeli bereaved (07:41)

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The Subscription Economy & Consumer Fatigue

Proliferation and Targeting

• "Almost 75% of companies that sell directly to consumers now offer a subscription. And for the companies, it's not just about the steady income stream."
  — Tracy Mumford (08:08)

• Data Harvesting

  • Companies value subscriptions as a source of rich, ongoing consumer data:
    • “When you subscribe to a company, you're giving them information about yourself... about purchase history, when you buy, what you buy, how often you buy..."
      — Sopan Deb (08:27)

• Cancellation and Fatigue

  • Many subscriptions are hard to cancel, prompting political attention during Joe Biden’s administration, though resulting FTC rules were blocked.
  • "We have now actually reached the point where you can subscribe to a subscription manager to help you manage your subscriptions." — Tracy Mumford (09:13)

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Notable Quotes & Timestamps

• “There's been a lot of despondency... They have come to the conclusion that military action has only kind of made their situation worse.”
  — Yegana Torbati (00:43)
• “Iran once upon a time had a really flourishing tech sector. That sector has been brought to its knees by this Internet shutdown.”
  — Yegana Torbati (01:30)
• "I hope it fails. You know why? Because I want to win."
  — President Trump, re: Iran’s economy (02:27)
• "It has not said publicly what that injury would be. Instead, the administration has cited Trump's desire to get the work done before the country's 250th anniversary..."
  — Tracy Mumford (04:43)
• “The real goal isn't to hang anyone in the town square. It's to prevent the next disaster.”
  — Bereaved Israeli relative (07:41)
• "When you subscribe to a company, you're giving them information about yourself..."
  — Sopan Deb (08:27)
• "We have now actually reached the point where you can subscribe to a subscription manager to help you manage your subscriptions."
  — Tracy Mumford (09:13)

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Timeline of Key Segments

| Timestamp | Segment | |-----------|-------------------------------------------------------| | 00:43 | Iran: Despondency and the consequences of war | | 01:30 | Iran: Economic fallout and internet shutdown effects | | 02:27 | Iran: U.S. pressure and Trump’s comments | | 03:08 | U.S. gas tax debate | | 03:45 | FDA’s move on flavored vapes | | 04:40 | Reflecting pool contract controversy | | 05:50 | Israel: October 7 prosecutions begin | | 08:08 | Rise of subscriptions in the consumer economy | | 08:27 | Sopan Deb on data and the subscription business | | 09:13 | Subscription fatigue and management tools |

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Conclusion

This episode of The Headlines offers a sharp look at how major policy decisions and regulatory shifts are affecting real lives on the ground, from the markets of Tehran to consumer wallets in the U.S. Not only does it inform listeners about current events, but it also provides context, memorable quotes, and expert insights that connect the headlines to larger global trends.

Transcript

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[Tracy Mumford]

From the New York Times, it's the headlines. I'm Tracy Mumford. Today's Tuesday, May 12th. Here's what we're covering.

[Yegana Torbati]

I've been hearing from a lot of Iranians over the past month or so. And I think for those who at one point supported some kind of military action, whether by the US or by Israel, because they opposed the government and wanted to see the government fall, there's been a lot of despondency at sort of what the last couple months have brought to Iran. They have come to the conclusion that military action has only kind of made their situation worse. Inside Iran.

[Tracy Mumford]

My colleague Yegana Torbati covers Iran, where she's been able to reach people through text messages and voice memos in the fleeting windows when they can get an Internet connection. She says people who oppose the regime say the government's only become more hardline and more entrenched since the war began, and the conditions in their everyday lives are deteriorating.

[Yegana Torbati]

Job losses have started in the country, layoffs that are a direct result of both the damages of war and also the way the government has responded to war by shutting down the Internet. A lot of Iranians depend on the Internet for their livelihoods. They sell things on Instagram. They advertise on Instagram. You know, Iran once upon a time had a really flourishing tech sector. That sector has been brought to its knees by this Internet shutdown, and that is all resulting in layoffs. Food prices are through the roof. People brought up the price of chicken, of cooking oil. A couple people we spoke with raised the possibility that, you know, if they got to a point where they could not afford to feed their families, they would steal and that they had heard from others around them that that would happen, that they would do the same as well. And so I think that for us to hear was a little bit chilling to think that, you know, that kind of disorder and chaos might come to Iran as a result of the pressure that people are under.

[Tracy Mumford]

Iran's economy was already struggling before the war. That's what fueled widespread protests earlier this year, which the regime suppressed with a deadly Crackdown now. The increased economic pressure is part of the U.S. s plan to force Iran into submission. Recently, when asked about Iran's economy, President Trump told reporters, I hope it fails. You know why? Because I want to win. Iranian officials, meanwhile, insist the pressure will not work. Now, three quick updates on the Trump administration. First, how long are you going to

[Unnamed Interviewee / Expert]

suspend that tax for then? Till it's appropriate. Yeah, it's a, it's a, you know, it's a small percentage, but it's, you know, it's still money.

[Tracy Mumford]

President Trump said yesterday he's in favor of suspending federal gas taxes to try and give Americans a little relief as the war keeps driving up fuel costs. The move would save Americans somewhere between 18 and 24 cents a gallon, which even Trump admitted is not much since the average cost of gas is now around four and a half dollars a gallon. That's a roughly 50% hike since the start of the war. Congress would need to approve any tax suspension. Back in 2022, President Biden called on lawmakers to do that after the war in Ukraine drove gas prices way up. Republicans called it a gimmick, and Congress did not sign off. Also, the Food and Drug Administration is moving to allow tobacco and vape companies in the US to begin selling flavored e cigarettes. For years, the FDA has only allowed companies to sell menthol or tobacco flavored vapes over concerns that candy and fruit flavors appealed to children. Illicit products made it through, though, and now the FDA says it's cracking down on those while opening the door for major companies to sell more flavors legally. The move delivered a win for tobacco companies, who have donated tens of millions of dollars to support President Trump and other Republicans, according to people familiar with the plan. The White House has been pushing for this change for months, and we can

[Unnamed Interviewee / Expert]

do it for maybe a million and a half to $2 million.

[Tracy Mumford]

Last month, President Trump announced that he'd handpicked a contractor to repair the Lincoln Memorial reflecting pool and paint it American Flag blue. He said he knew the company from work it did on swimming pools at one of his golf clubs and that he was getting taxpayers a deal. It was going to cost a little under $2 million, but the Times has learned that the actual cost is now seven times that. How the company got the contract in the first place is also unusual. Similar projects require competing bids from contractors, but the administration bypassed that in this case, saying the timing was urgent and that any delay could cause serious injury to the government. It has not said publicly what that injury would be. Instead, the administration has cited Trump's desire to get the work done before the country's 250th anniversary celebrations on 4 July. In Israel, more than two and a half years after October 7, the country is now preparing to begin prosecuting Palestinians suspected of taking part in the attack. More than 1200 people were killed that day when Hamas led militants from Gaza into southern Israel and some 250 hostages were taken. The attack ignited the war in Gaza, during which Israel killed more than 70,000 Palestinians, according to Gaza's Health ministry. Now, legislators in Israel have enacted a law to paving the way for military trials for the October 7 suspects. One lawmaker said at least 350 prisoners could face charges, though Israel has already killed most of the accused masterminds of the attack during the war. The legislation, which was passed yesterday, calls for parts of the trials to be broadcast live, which could be the first time the public sees the identities of the detainees or the exact allegations against them. For these trials, the court will be empowered to override certain rules of evidence and other procedures, which the authors of the law say is necessary because of how complex the cases are and the huge volume of evidence. Rights groups, however, say parts of the new law will undercut what are already minimal due process rights for Palestinians and that the judges will face overwhelming public pressure to convict. For some in Israel, including many relatives of those who were killed on October 7, the focus on these trials misses the more fundamental question of accountability. They say that justice can happen only when Israeli leaders are held accountable for their failure to prevent the attack. A woman whose brother was killed told the Times, quote, the real goal isn't to hang anyone in the town square. It's to prevent the next disaster. And finally, for American consumers, subscriptions have become ubiquitous. You've got your recurring payments for your streaming subscriptions. Amazon Prime, Costco. But it's more than that. Cloud storage, dating apps, Ink for your printer. Some subscriptions out there are absurdly niche, like regular shipments of earthworms to feed your salamander. Or they're for things you didn't even realize you'd ever need a subscription for, like how some car companies offer a subscription for improved horsepower. Obviously, subscriptions aren't new, but their rapid expansion into all corners of the economy means they're really piling up. A study from Harvard Business School a few years ago found that almost 75% of companies that sell directly to consumers now offer a subscription. And for the companies, it's not just about the steady income stream.

[Soapand Deb]

Companies like subscriptions because when you subscribe to a company, you're giving them information about yourself. You're giving them information about purchase history, you're giving them information about when you buy, what you buy, how often you buy, and you're doing it every month by paying them. And so it gives them more information on how to target you with products, ads, et cetera.

[Tracy Mumford]

My colleague Soapand Deb has been looking at the rise of subscriptions and the rise of many consumers fatigue over them.

[Soapand Deb]

Subscriptions have caused frustrations for customers, especially because they're really hard to get rid of for some companies, and this has become fodderhood. Politicians, for example, under Joe Biden's presidency, the Biden administration tried to actually make it easier for you to cancel your subscriptions under the ftc. But a federal court blocked that rule as of last year. And since then there's been no action on this.

[Tracy Mumford]

Sopan says that with no end in sight for the subscription trend, we have now actually reached the point where you can subscribe to a subscription manager to help you manage your subscriptions. Those are the headlines. I'm Tracy Mumford. The show will be back tomorrow with my colleague Will Jarvis.

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