The Economy of Iran
Oil, Gas and Dependence
Oil and gas earn most export income and government revenue, making Iran vulnerable to price swings and sanctions.
The energy backbone.
Reserves
Iran has some of the world’s largest oil and gas reserves.
South Pars
A giant gas field shared with Qatar, but underdeveloped due to sanctions and lack of technology.
Domestic use
Cheap fuel drives high domestic consumption, cutting exports.
Budget
Government spending depends heavily on energy revenue.
A fuel subsidy
Petrol sold at very low prices encourages heavy driving and smuggling.
Assuming reserves equal revenue
Sanctions and investment constraints limit output.
Key takeaways
- Energy dominates revenue.
- South Pars is shared with Qatar.
- Subsidies increase consumption.
- The budget depends on energy.
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