Tehran makes a virtue of necessity

Iran aims to channel the fruits of accelerating upstream oil development into refining and petchems integration

Iran’s share of oil producers’ current price windfall may be constrained by sanctions and heavy discounts, but it still exists. And, like many of its regional peers, Tehran is ploughing the cash into boosting upstream capacity—resurrecting field development projects long stymied by international investor ostracism and chronic fiscal strain. But, despite a snap early-August resumption of stalled talks with the US, the prospect of the hardline political elite making the concessions necessary for sustained readmission to mainstream global crude trade appears slim. Iran aims instead to push further and faster downstream, funnelling more oil production beyond simple refining into higher-value pet