This article considers how state-mandated veiling and unveiling reinforce modern capitalism. State regulations regarding veiling incorporate the female body into the political economy of the commodity form. In addition to serving as an empty signifier to be filled with exchange value for the male observer, the veil operates as an ideological apparatus of the state. In showing through fieldwork conducted in Iran how the fault lines of political agency are inscribed into the veil, I argue that subverting its commodity function (...) radically relativises its meaning. Because the veil is an empty signifier lacking intrinsic content, its meaning must be determined contingently. By combining a critique of secular discrimination against veiling with a critique of state-mandated veiling, I show how European and Iranian societies incorporate the veil into the capitalist world-system and use it to suppress women’s agency. (shrink)