Iranian President Masoud Pezeshkian attends a press conference in Tehran
Iran’s energy dominoes on the brink
The country’s widening energy deficit could have a knock-on effect on energy-intensive industries
Iran is facing a significant and growing energy deficit. Low prices for fossil fuels, with the cost of gasoline at ¢2–5/l, have encouraged consumption among Iranian consumers and facilitated systematic fuel smuggling. In 2020, it was estimated that illegal mining operations led to more than 2,000MW of electricity being siphoned from the grid, not accounting for systematic cryptocurrency mining to bypass sanctions. The gas sector faces similar challenges, compounded by high waste from heating systems and significant energy losses from inefficient thermal power plants. As a result, the country is threatened by a domino effect that could lead to the collapse of energy-intensive industries—parti
Also in this section
8 December 2025
The Caribbean country’s role in the global oil market is significantly diminished, but disruptions caused by outright conflict would still have implications for US Gulf Coast refineries
5 December 2025
Mistaken assumptions around an oil bull run that never happened are a warning over the talk of a supply glut
4 December 2025
Time is running out for Lukoil and Rosneft to divest international assets that will be mostly rendered useless to them when the US sanctions deadline arrives in mid-December
3 December 2025
Aramco’s pursuit of $30b in US gas partnerships marks a strategic pivot. The US gains capital and certainty; Saudi Arabia gains access, flexibility and a new export future
