Iran’s Oil Sector Witnesses 292% Surge in First Nine Months

The Iranian oil sector’s growth increased from 5.7% in first nine months of 1401 (March 21, 2022 to December 22, 2023) to 22.4%, the Iranian oil ministry’s data show.

The oil and gas industry makes up a large portion of Iran’s economy and its role in increasing the country’s economic growth is undenible. 

Following the US withdrawal from the Iran nuclear deal known as the Joint Comprehensive Plan of Action(JCPOA) in May 2018 and the reimposing of sanctions on Iran, the oil and gas sector plunged and subesequently, the country’s economic growth rate went down below zero during the previous Iranian administration.

Iran’s oil exports recorded a 40% hike soon after the current government came to power while the sanctions had remained in place, signaling an economic recovery.

In 2022, the increase in oil production and exports made Iran’s economic growth positive and inflation was brought under control.

One of most notable economic impact of of the oil and gas sector’s growth was the elimination of budget deficit the 13th administration inherited from the previous government. By increasing the sale of Iranian oil to traditional customers and new markets, the budget deficit was made up for without increasing new liquidity in the economy, which could push the inflation rate high.

The International Monetary Fund (IMF) said that Iran’s economy saw a 5.4% growth last year compared to the previous year of 2022 which was 3.8%.

The IMF has also updated its estimate of Iran's economic growth in 2024 to 3.7% from its previous report in October 2023 which had predicted a 2.5% growth for this year.

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