Iran's Economy Under Sanctions

Introduction

Iran has one of the world's largest reserves of oil and natural gas and a population of nearly 90 million. Yet its economy has struggled for decades, largely because of international sanctions and internal challenges.

Oil Wealth

Oil exports have long been Iran's main source of income. The country has the third-largest proven oil reserves and the second-largest natural gas reserves in the world. In theory, these resources should make Iran very wealthy.

The Impact of Sanctions

The United States and other countries have placed sanctions on Iran since 1979, with tougher measures added over concerns about its nuclear program. Sanctions limit Iran's ability to sell oil, access global banks, and buy foreign technology. A 2015 nuclear deal eased sanctions briefly, but the U.S. withdrew in 2018 and reimposed them.

Life Under Pressure

Sanctions, along with mismanagement, have contributed to high inflation, a falling currency, and unemployment. Many Iranians have seen their savings lose value. The country has turned to trade with China and others, often selling oil at discounts. Iran has a young, educated population that could power growth if conditions improved.

Conclusion

Iran's economy shows how politics and sanctions can hold back even a resource-rich nation. Its future depends heavily on decisions made both at home and abroad!