Iranian energy after the reimposition of US sanctions
Iran is once more confronted with sanctions. Since November 2018, in an attempt to impose “maximum economic pressure” on the country, the US has been targeting the Iranian energy industry and other sectors of the economy. Sanctions also apply to energy trade and economic relations between Iran and third countries.
The effects of US sanctions on Iran’s energy sector are profound. Amongst others, Tehran’s oil exports have fallen sharply (already by more than half) and IOCs have abandoned the country for the time being. The reimposition of US sanctions marks a turning point, reversing the (complicated and gradual) return of Iran to international energy.
Against this backdrop, the paper reviews recent developments in Iranian energy. It examines the impact of sanctions, discusses Iran’s difficulties in advancing international co-operation between the conclusion of the nuclear deal in 2015 and the reimposition of US sanctions 2018, and seeks to assess the question what is ahead as the industry attempts to cope with sanctions.