Editing Economy of Iran (section)

== International trade ==
{{See also|Economy of the Middle East|Economic Cooperation Organization|D-8 Organization for Economic Cooperation{{!}}Developing 8 Countries|Colombo Plan|China-Iran trade relations}}

Iran is a founding member of [[OPEC]] and the [[Gas Exporting Countries Forum|Organization of Gas Exporting Countries]].<ref>[http://english.farsnews.com/newstext.php?nn=8810271643 Iran to Join Gas Exporters Club Soon] {{webarchive |url=https://web.archive.org/web/20120329131936/http://english.farsnews.com/newstext.php?nn=8810271643 |date=March 29, 2012 }}. Fars News Agency, January 17, 2010. Retrieved January 22, 2010.</ref> [[Petroleum industry in Iran|Petroleum]] constitutes 56% of Iran's exports with a value of $60.2 billion in 2018.<ref name="OPEC 2019">{{cite web |url=https://www.opec.org/opec_web/en/about_us/163.htm |title=Iran facts and figures |publisher=OPEC |access-date=July 28, 2019}}</ref> For the first time, the value of Iran's non-oil exports is expected to reach the value of imports at $43 billion in 2011.<ref>[https://archive.today/20121209015333/http://www.mehrnews.com/en/newsdetail.aspx?NewsID=1497809 VP predicts Iran's non-oil trade balance would reach zero next year]. Mehr News Agency, December 31, 2011. Retrieved January 19, 2012.</ref> [[Pistachio]]s, liquefied propane, methanol (methyl alcohol), [[Persian carpet|hand-woven carpets]] and [[Iranian automobile industry|automobiles]] are the major non-oil exports.<ref>{{Cite web |last= |date=2021-09-05 |title=Trade With Neighbors Accounts for 50% of Total Commercial Exchanges |url=https://en.eghtesadonline.com/news/786954/Trade-With-Neighbors-Accounts-for-50-of-Total-Commercial-Exchanges |access-date=2023-10-19 |website=اقتصاد آنلاین |language=en}}</ref> [[Mining in Iran#Copper|Copper]], [[Mining in Iran#Cement|cement]], [[Iranian leather industry|leather]], [[Industry of Iran#Textiles and apparel industry|textiles]], [[Fruit in Iran|fruits]], [[saffron]] and [[caviar]] are also export items of Iran.

Technical and engineering service exports in FY 2007 were $2.7 billion of which 40% of technical services went to Central Asia and the Caucasus, 30% ($350 million) to Iraq, and close to 20% ($205 million) to Africa.<ref>[http://www.nitc.co.ir/iran-daily/1387/3278/html/ Engineering Service Exports Improve]{{Dead link|date=June 2023 |bot=InternetArchiveBot |fix-attempted=yes }}. ''Iran Daily'' November 24, 2008. Retrieved July 23, 2010.</ref>
[[List of companies of Iran|Iranian firms]] have developed [[energy in Iran|energy]], pipelines, irrigation, dams and [[list of power stations in Iran|power generation]] in different countries. The country has made non-oil exports a priority<ref name="AFP"/> by expanding its broad industrial base, educated and motivated workforce and favorable location, which gives it proximity to an estimated market of some 300 million people in [[Caspian Sea|Caspian]], Persian Gulf and some [[Economic Cooperation Organization|ECO countries]] further east.<ref>[http://www.unido.org/index.php?id=5035 An Overview of the Economy of the Islamic Republic of Iran] {{webarchive |url=https://web.archive.org/web/20100806131137/http://www.unido.org/index.php?id=5035 |date=August 6, 2010 }}. United Nations Industrial Development Organization (UNIDO). Retrieved September 24, 2010.</ref><ref name="ECO-20120120">{{Cite web |url=http://www.ecosecretariat.org/Statistics/Stat_02_01.htm |title=Population in ECO Member States |website=[[Economic Cooperation Organization]] |access-date=September 28, 2010 |url-status=usurped |archive-url=https://web.archive.org/web/20120120034657/http://www.ecosecretariat.org/Statistics/Stat_02_01.htm |archive-date=January 20, 2012 }}</ref>

Total import volume rose by 189% from $13.7 billion in 2000 to $39.7 billion in 2005 and $55.189 billion in 2009.<ref>[[Nader Habibi]] (May 5, 2005): [http://www.payvand.com/news/06/may/1046.html "The Cost of Economic Sanctions on Major Exporters to Iran"] {{Webarchive|url=https://web.archive.org/web/20110709163548/http://www.payvand.com/news/06/may/1046.html |date=July 9, 2011 }}. Payvand. Retrieved January 23, 2008.</ref> Iran's major commercial partners are [[China–Iran relations|China]], [[France–Iran relations|France]], [[Germany–Iran relations|Germany]], [[India–Iran relations|India]], [[Iran-Italy relations|Italy]], [[Iran–Japan relations|Japan]], [[Iran-Russia relations|Russia]], and [[Iran–South Korea relations|South Korea]]. From 1950 until 1978, the [[Iran–United States relations|United States]] was Iran's foremost economic and military partner, playing a major role in infrastructure and industry modernization.<ref name="documentary">{{YouTube|ek8IXhh-kII|Iran's Industrial Progresses (Part I)}}. Iran National Film Center (circa 1975). Retrieved January 20, 2010.</ref><ref name="documentary2">{{YouTube|lXSeOVZUphQ|Iran's Industrial Progresses (Part II)}}. Iran National Film Center (circa 1975). Retrieved January 20, 2010.</ref> It is reported that around 80% of machinery and equipment in Iran is of German origin.<ref>[http://tehrantimes.com/economy-and-business/117115-german-businesses-should-seize-lucrative-opportunities-in-iran-numov-ceo German businesses should seize lucrative opportunities in Iran: NUMOV CEO] {{webarchive |url=https://web.archive.org/web/20140810111042/http://tehrantimes.com/economy-and-business/117115-german-businesses-should-seize-lucrative-opportunities-in-iran-numov-ceo |date=August 10, 2014 }}. ''Tehran Times'', July 19, 2014. Retrieved July 24, 2014.</ref> 
In March 2018, Iran had banned Dollar in trade.<ref>[https://en.radiofarda.com/a/iran-bans-imports-based-on-us-dollars/29071168.html Ramin Mostaghim, Iran Bans Import Purchase Orders Based On US Dollars], [[Radio Farda]], March 1, 2018. Retrieved May 20, 2023.</ref> In July 2018, France, Germany and the UK agreed to continue trade with Iran without using Dollar as a medium of exchange.<ref>[https://financialtribune.com/articles/economy-business-and-markets/89445/france-germany-uk-agree-on-non-dollar-trade-with-iran France, Germany, UK Agree on Non-Dollar Trade With Iran], [[Financial Tribune]], July 9, 2018. Retrieved May 20, 2023.</ref>

{| class="wikitable collapsible collapsed" 
|-
! colspan="2" | Top Trading Partners for Iran for 2016<ref>{{Cite web |url=http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113392.pdf |title=Archived copy |access-date=October 2, 2017 |archive-date=October 31, 2017 |archive-url=https://web.archive.org/web/20171031204734/http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113392.pdf }}</ref>
|-
|
{| class="wikitable sortable" style="text-align:right"
|-
! colspan="5" class="unsortable" | Imports into Iran 2016
|- style="text-align:center;"
! Ranking || Country || Value (MM&nbsp;USD) || % 
|-
| style="text-align:center;" |   || style="text-align:center;" | World || 57,955 || 100.0
|-
| style="text-align:center;" | 1 || style="text-align:center;" | UAE || 15,958 || 27.6
|-
| style="text-align:center;" | 2 || style="text-align:center;" | EU 28 || 7,755 || 13.4
|-
| style="text-align:center;" | 3 || style="text-align:center;" | China || 7,604 || 13.1
|-
| style="text-align:center;" | 4 || style="text-align:center;" | Turkey || 4,462 || 7.7
|-
| style="text-align:center;" | 5 || style="text-align:center;" | South Korea || 2,510 || 4.3
|-
| style="text-align:center;" | 6 || style="text-align:center;" | Russia || 2,298 || 4.0
|-
| style="text-align:center;" | 7 || style="text-align:center;" | Switzerland || 2,110 || 3.6
|-
| style="text-align:center;" | 8 || style="text-align:center;" | India || 1,307 || 2.3
|-
| style="text-align:center;" | 9 || style="text-align:center;" | Singapore || 689 || 1.2
|-
| style="text-align:center;" | 10 || style="text-align:center;" | Brazil || 664 || 1.1
|}
|
{| class="wikitable sortable" style="text-align:right"
|-
! colspan="5" class="unsortable" | Exports from Iran for 2016
|- style="text-align:center;"
! Ranking || Country || Value (MM&nbsp;USD) || % 
|-
| style="text-align:center;" |   || style="text-align:center;" | World || 42,685 || 100.0
|-
| style="text-align:center;" | 1 || style="text-align:center;" | China || 12,715 || 29.8
|-
| style="text-align:center;" | 2 || style="text-align:center;" | India || 7,061 || 16.5
|-
| style="text-align:center;" | 3 || style="text-align:center;" | EU 28 || 5,181 || 12.1
|-
| style="text-align:center;" | 4 || style="text-align:center;" | South Korea || 4,074 || 9.5
|-
| style="text-align:center;" | 5 || style="text-align:center;" | Turkey || 4,006 || 9.4
|-
| style="text-align:center;" | 6 || style="text-align:center;" | Japan || 2,864 || 6.7
|-
| style="text-align:center;" | 7 || style="text-align:center;" | Afghanistan || 1,737 || 4.1
|-
| style="text-align:center;" | 8 || style="text-align:center;" | UAE || 829 || 1.9
|-
| style="text-align:center;" | 9 || style="text-align:center;" | Taiwan || 631 || 1.5
|-
| style="text-align:center;" | 10 || style="text-align:center;" | Oman || 541 || 1.3
|}
|}

Since the mid-1990s, Iran has increased its economic cooperation with other [[developing country|developing countries]] in "[[South–South cooperation|South–South integration]]" including [[Arab League–Iran relations#Syria|Syria]], India, [[China–Iran trade relations|China]], [[Iran-South Africa relations|South Africa]], [[Cuba–Iran relations|Cuba]], and [[Iran–Venezuela relations|Venezuela]]. Iran's trade with India passed $13 billion in 2007, an 80% increase within a year.{{citation needed|date=July 2021}} Iran is expanding its trade ties with [[Iran-Turkey relations|Turkey]] and [[Iran-Pakistan relations|Pakistan]] and shares with its partners the common objective to create a common market in West and Central Asia through [[Economic Cooperation Organization|ECO]].{{citation needed|date=July 2021}}

Since 2003, [[Iran]] has increased investment in neighboring countries such as Iraq and Afghanistan. In [[Dubai]], [[Arab League–Iran relations#United Arab Emirates|UAE]], it is estimated that [[Iranian diaspora|Iranian expatriates]] handle over 20% of its domestic economy and account for an equal proportion of its population.<ref>{{cite web|url=http://iran-daily.com/1384/2481/html/economy.htm |title=Domestic Economy (Islamic WTO proposed) |access-date=December 3, 2006 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20071017220758/http://iran-daily.com/1384/2481/html/economy.htm |archive-date=October 17, 2007 }}. ''Iran Daily'', January 22, 2006.</ref><ref>{{cite web|url=http://iran-daily.com/1385/2528/html/economy.htm |title=In 2005: Import Bill From Dubai $28.7b |access-date=December 16, 2008 |archive-url=https://web.archive.org/web/20080219133355/http://iran-daily.com/1385/2528/html/economy.htm |archive-date=February 19, 2008 }}. ''Iran Daily'', April 4, 2006.</ref> Migrant Iranian workers abroad remitted less than $2 billion home in 2006.<ref>{{cite web|url=http://iran-daily.com/1386/2971/html/economy.htm |title=Overseas Workers Remit Over $2b |access-date=June 2, 2010 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20080225040145/http://iran-daily.com/1386/2971/html/economy.htm |archive-date=February 25, 2008 }}. ''Iran Daily'', October 22, 2007.</ref> Between 2005 and 2009, trade between Dubai and Iran tripled to $12 billion; money invested in the local real estate market and import-export businesses, collectively known as the ''[[Bazaar]]'', and geared towards providing Iran and other countries with required consumer goods.<ref>Kambiz Foroohar (January 25, 2010): [https://www.bloomberg.com/apps/news?pid=20601102&sid=av5smtYe_DDA "Dubai Helps Iran Evade Sanctions as Smugglers Ignore U.S. Laws"] {{webarchive |url=https://web.archive.org/web/20100321165747/http://www.bloomberg.com/apps/news?pid=20601102&sid=av5smtYe_DDA |date=March 21, 2010 }}. Bloomberg. Retrieved January 26, 2010.</ref> It is estimated that [[Smuggling in Iran|one third of Iran's imported goods and exports]] are delivered through the [[black market]], underground economy, and illegal jetties, thus [[Smuggling in Iran#Damage to the economy|damaging the economy]].<ref name="RAND1">Wehrey, Frederic (2009): [http://rand.org/pubs/monographs/2008/RAND_MG821.pdf "The Rise of the Pasdaran"]. [[RAND Corporation]]. Retrieved June 10, 2010.</ref>

=== Foreign direct investment ===
{{Main|Foreign direct investment in Iran}}
{{See also|Assalouyeh|Tehran International Fair|Iranian citizens abroad}}
[[File:FDI Stock- Iran.png|thumb|right|[[Foreign direct investment in Iran|FDI stock in Iran (1980–2010)]]]]
In the 1990s and early 2000s, indirect oilfield development agreements were made with foreign firms, including [[Foreign Direct Investment in Iran#Buy-back|buyback contracts]] in the oil sector whereby the contractor provided project finance in return for an allocated production share. Operation transferred to [[National Iranian Oil Company]] (NIOC) after a set number of years, completing the contract.<ref>{{cite web |url=http://www.atiehbahar.com/Resources/Oil&Gas.htm |title=Iran{{Snd}} Oil and gas |access-date=September 28, 2007 |archive-url=https://web.archive.org/web/20070928000413/http://www.atiehbahar.com/Resources/Oil%26Gas.htm |archive-date=September 28, 2007 }}. Atieh Bahar Consulting (2003).</ref>

Unfavorable or complex operating requirements and [[Sanctions against Iran|international sanctions]] have hindered [[Foreign Direct Investment in Iran|foreign investment]] in the country, despite liberalization of relevant regulations in the early 2000s. Iran absorbed $24.3 billion of foreign investment between the [[Iranian calendar]] years 1993 and 2007.<ref>[http://www.payvand.com/news/07/may/1313.html Iran attracted $24.3 billion foreign capital in 16 years] {{Webarchive|url=https://web.archive.org/web/20070929120459/http://www.payvand.com/news/07/may/1313.html |date=September 29, 2007 }}. Mehr News Agency, May 27, 2007. Retrieved January 23, 2008.</ref> The [[Economist Intelligence Unit|EIU]] estimates that Iran's net FDI will rise by 100% between 2010 and 2014.<ref name="EIU2">[http://english.aljazeera.net/focus/2010/05/201052271814825709.html The tragicomedy of Iran sanctions]. Aljazeera, May 22, 2010. Retrieved May 22, 2010.</ref>

Foreign investors concentrated their activities in the energy, vehicle manufacture, copper mining, construction, utilities, petrochemicals, clothing, food and beverages, telecom and pharmaceuticals sectors. Iran is a member of the World Bank's [[Multilateral Investment Guarantee Agency]].<ref>{{cite web|url=http://www.redorbit.com/news/science/258875/irans_third_development_plan_an_appraisal/index.html |title=Iran's Third Development Plan: an Appraisal |access-date=July 26, 2010 |last=Dr. Amuzegar |first=Jahangir |date=March 20, 2005 |archive-url=https://web.archive.org/web/20111129212318/http://www.redorbit.com/news/science/258875/irans_third_development_plan_an_appraisal/index.html |archive-date=November 29, 2011 }}</ref> In 2006, the combined net worth of [[Iranian citizens abroad]] was about 1.3 trillion&nbsp;dollars.<ref>{{cite web|url=http://www.iran-daily.com/1385/2781/html/economy.htm |title=Expats Worth $1.3 Trillion |access-date=March 30, 2007 |archive-url=https://web.archive.org/web/20071230222828/http://www.iran-daily.com/1385/2781/html/economy.htm |archive-date=December 30, 2007 }}. ''Iran Daily'', February 14, 2007.</ref>

According to the head of [[Ministry of Economic Affairs and Finance (Iran)#Organization for Investment Economic and Technical Assistance|the Organization for Investment, Economic and Technical Assistance of Iran (OIETAI)]], in 2008 Iran ranked 142 among 181 countries in working conditions. Iran stands at number 96 in terms of business start-ups, 165 in obtaining permits, 147 in employment, 147 in asset registration, 84 in obtaining credit, 164 in legal support for investments, 104 in tax payments, 142 in overseas trade, 56 in contract feasibility and 107 in bankruptcy.<ref>{{cite web|url=http://www.iran-daily.com/1387/3265/html/economy.htm |title=Working Conditions to Improve |access-date=November 8, 2008 |archive-url=https://web.archive.org/web/20090603071606/http://www.iran-daily.com/1387/3265/html/economy.htm |archive-date=June 3, 2009 }}. ''Iran Daily'', November 9, 2008.</ref> Firms from over 50 countries invested in Iran between 1992 and 2008, with Asia and Europe the largest participants as shown below:<ref>{{cite web|url=http://www.iran-daily.com/1387/3289/html/economy.htm |title=$34b Foreign Investment in 16 years |access-date=February 19, 2016 |archive-url=https://web.archive.org/web/20081210233037/http://www.iran-daily.com/1387/3289/html/economy.htm |archive-date=December 10, 2008 }}. ''Iran Daily'', December 7, 2008.</ref>

{| style="margin:1em; background:#f9f9f9; border:1px #aaa solid; border-collapse:collapse; font-size:90%; float:center"
|- style="background:lightblue;"
! Continent of origin !! Leading countries investing in Iran (1992–2008)!! Number of projects !! Total amount invested
|-
|Asia || India, United Arab Emirates (UAE), Singapore, Indonesia and Oman || 190 ||$11.6 billion
|-
|Europe || Germany, the Netherlands, Spain, UK, Turkey, Italy and France (20 countries in total) || 253 ||$10.9 billion
|-
| Americas ||Canada, Panama, the US and Jamaica ||7 ||$1.4 billion
|-
| Africa|| Mauritius, Liberia and South Africa || {{N/A}}||$8 billion
|-
| Australia|| Australia || 1 || $682 million
|}

The economic impact of a partial [[Joint Comprehensive Plan of Action|lifting of sanctions]] extends beyond the energy sector; ''[[The New York Times]]'' reported that "consumer-oriented companies, in particular, could find opportunity in this country with 81 million consumers, many of whom are young and prefer Western products".<ref name="Krauss">Clifford Krauss, [https://www.nytimes.com/2015/07/15/business/international/iran-nuclear-deal-oil-prices.html A New Stream of Oil for Iran, but Not Right Away], ''The New York Times'' (July 14, 2015).</ref> The consumer-goods market is expected to grow by $100 billion by 2020.<ref>{{cite news |title = P&G's Road Map to Business in Iran |author = John Letzing |newspaper = Wall Street Journal |date = July 15, 2016 |page = B1 }}</ref>

In 2015, Iran was considered "a strong [[emerging market]] play" by investment and trading firms.<ref name="Krausws">[https://www.nytimes.com/2015/07/15/business/international/iran-nuclear-deal-oil-prices.html Clifford Krauss: A New Stream of Oil for Iran, but Not Right Away] ''The New York Times'', July 14, 2015. Retrieved September 18, 2015.</ref> Opening Iran's market place to [[Foreign direct investment in Iran|foreign investment]] could also be a boon to competitive multinational firms operating in a variety of manufacturing and service sectors, worth $600 billion to $800 billion in new investment opportunities over the next decade.<ref name=WSJ3>[https://blogs.wsj.com/middleeast/2014/03/12/post-sanctions-iran-could-be-a-turkey-size-win-for-investors/ Asa Fitch: Post-Sanctions Iran Could Be A Turkey-Size Win for Investors]. ''The Wall Street Journal'', March 12, 2014. Retrieved March 13, 2014.</ref><ref name=NFTC>Dean A. DeRosa & Gary Clyde Hufbauer: [http://www.nftc.org/default/trade/NFTC%20Iran%20Normalizaton%20Book.pdf "Normalization of Economic Relations"]. (U.S.) [[National Foreign Trade Council]]. November 21, 2008. Retrieved March 30, 2012.</ref><ref>[https://www.washingtonpost.com/world/middle_east/us-investors-begin-to-imagine-a-return-to-iran/2014/05/27/c5cda6d7-0c8a-442a-8577-a0726f494199_story.html Jason Rezaian: U.S. investors begin to imagine a return to Iran]. ''The Washington Post'', May 28, 2014. Retrieved June 1, 2014.</ref><ref>{{cite news |url = https://www.wsj.com/articles/oil-auto-companies-make-plans-to-invest-in-iran-if-sanctions-ease-1404257812 |title = Oil, Auto Companies Make Plans to Invest in Iran if Sanctions Ease |author = Jay Solomon |newspaper = Wall Street Journal |date = July 1, 2014 |access-date = July 5, 2014 }}</ref>

=== World Trade Organization ===
{{Main|Iran and WTO|Group of 15}}
{{See also|Taxation in Iran#Customs|Middle East economic integration|Intellectual property in Iran|l1=Trade policy and customs in Iran}}
[[File:Economic Cooperation Organization map.svg|thumb|A map of the [[Economic Cooperation Organization]] (ECO) member states]]

Iran has held observer status at the [[World Trade Organization]] (WTO) since 2005. Although the United States has consistently blocked its bid to join the organization, observer status came in a goodwill gesture to ease nuclear negotiations between Iran and the international community.<ref>{{cite web|url=http://iran-daily.com/1386/2817/html/focus.htm |title=WTO Membership |access-date=April 9, 2010 |url-status=bot: unknown |archive-url=https://web.archive.org/web/20080215030351/http://iran-daily.com/1386/2817/html/focus.htm |archive-date=February 15, 2008 }}. ''Iran Daily'', April 15, 2007.</ref> With exports of 60 products with revealed [[comparative advantage]], Iran is the 65th "[[Economic complexity index|most complex country]]".<ref name="MIT">[http://atlas.media.mit.edu/en/profile/country/irn/ Atlas: Iran]. [[M.I.T]] (The Observatory of Economic Complexity). Retrieved December 15, 2016.</ref>

Should Iran eventually gain [[Iran and WTO|membership status in the WTO]], among other prerequisites, [[Iran and copyright issues|copyrights]] will have to be enforced in the country. This will require a major overhaul. The country is hoping to attract billions of dollars' worth of foreign investment by creating a more favorable investment climate through freer trade. [[Free trade zone]]s such as [[Qeshm]], [[Chabahar Free Trade-Industrial Zone|Chabahar]], and [[Kish Island]] are expected to assist in this process. Iran allocated $20 billion in 2010 to loans for the launch of twenty trade centers in other countries.<ref>[http://english.farsnews.com/newstext.php?nn=8810261289 Iran Plans to Open Trade Centers Abroad] {{webarchive |url=https://web.archive.org/web/20120301004459/http://english.farsnews.com/newstext.php?nn=8810261289 |date=March 1, 2012 }}. Fars News Agency, January 16, 2010. Retrieved January 18, 2010.</ref>

=== International sanctions ===
See also [[Economic recession in Iran|Economic Recession in Iran]]

{{Main|Sanctions against Iran|l1=International sanctions against Iran|Joint Comprehensive Plan of Action}}
After the [[Iranian Revolution]] in 1979, the United States ended its [[U.S.-Iran relations|economic and diplomatic ties with Iran]], banned Iranian oil imports and froze approximately $11 billion of its assets.<ref>Suzanne Maloney (2010): [https://web.archive.org/web/20101028103217/http://iranprimer.usip.org/resource/revolutionary-economy "The Revolutionary Economy"]. United States Institute of Peace. Retrieved November 17, 2010.</ref> In 1996, the [[U.S. Government]] passed the [[Iran and Libya Sanctions Act]] (ILSA) which prohibits U.S. (and non-U.S.) companies from investing and trading with Iran in amounts of more than $20 million annually.<ref>Kenneth Katzman (2003): [https://fpc.state.gov/documents/organization/23591.pdf "The Iran-Libya Sanctions Act (ILSA)"] {{Webarchive|url=https://web.archive.org/web/20161219020121/https://fpc.state.gov/documents/organization/23591.pdf |date=December 19, 2016 }}. CRS Report for Congress. Retrieved January 23, 2008.</ref> Since 2000 exceptions to this restriction have been made for items including [[Health care in Iran#Pharmaceuticals|pharmaceuticals]] and [[Health care in Iran#Medical equipment|medical equipment]].<ref>[https://www.nytimes.com/2010/12/24/world/24sanctions.html?pagewanted=all U.S. Approved Business With Blacklisted Nations]. ''The New York Times'', December 23, 2010 (subscription required). Retrieved February 2, 2011.</ref>

[[Iran's nuclear program]] has been the subject of contention with the West since 2006 over suspicions of its intentions. The [[UN Security Council]] imposed sanctions against select companies linked to the nuclear program, thus furthering the country's [[Foreign relations of Iran|economic isolation]].<ref name="WSJ2">Farnaz Fassihi: [https://www.wsj.com/articles/SB10001424052748703735804575535920875779114 Iran's Economy Feels Sting of Sanctions]. ''The Wall Street Journal'', October 12, 2010. Retrieved October 13, 2010.</ref> Sanctions notably bar nuclear, missile and many military exports to Iran and target investments in [[Petroleum industry in Iran|oil, gas and petrochemicals]], exports of refined petroleum products, as well as the [[Islamic Revolutionary Guard Corps]], [[Banking and insurance in Iran|banks, insurance]], [[Central Bank of Iran#Payment systems|financial transactions]] and [[Iran Shipping Lines|shipping]].<ref>[http://www.france24.com/en/20101130-iran-nuclear-talks-back-geneva-next-week Iran nuclear talks back on, in Geneva next week] {{dead link|date=November 2016}}. Agence France Presse (AFP), November 30, 2010. Retrieved December 2, 2010.</ref>

In 2012, the [[European Union sanctions against Iran|European Union]] tightened its own sanctions by joining the [[U.S. sanctions against Iran|three decade-old US oil embargo against Iran]].<ref>{{cite news |url=https://www.reuters.com/article/us-iran-idUSTRE8031DI20120104 |title=Exclusive: EU agrees to embargo on Iranian crude |work=Reuters |access-date=September 28, 2012 |date=January 2012 |archive-date=September 19, 2012 |archive-url=https://web.archive.org/web/20120919203735/http://www.reuters.com/article/2012/01/04/us-iran-idUSTRE8031DI20120104 |url-status=live }}</ref><ref name="Embargo WSJ">{{cite news |url=https://www.wsj.com/articles/SB10001424052702303649504577496463851879258 |title=EU Embargo on Iran Oil Takes Effect |work=The Wall Street Journal |date=July 1, 2012 |access-date=September 28, 2012}}</ref> In 2015, Iran and the [[P5+1]] reached a [[Joint Comprehensive Plan of Action|deal on the nuclear program]] that will remove the main sanctions by early 2016.<ref>[http://www.al-monitor.com/pulse/originals/2015/07/job-creation-highest-priority-post-sanctions-iran.html#ixzz3h73T6PXa Bijan Khajehpour: Preventing Iran's post-sanctions job crisis] {{Webarchive|url=https://web.archive.org/web/20160811125700/http://www.al-monitor.com/pulse/originals/2015/07/job-creation-highest-priority-post-sanctions-iran.html#ixzz3h73T6PXa |date=August 11, 2016 }}. [[Al-Monitor]], July 17, 2015. Retrieved July 27, 2015.</ref> Even though Iran can trade in its own currency some problems subsist mainly due to the fact that it cannot transact in [[United States dollar|US dollars]] freely.<ref>{{cite news |url=https://www.wsj.com/articles/obama-administration-further-eases-financial-sanctions-on-iran-1475942805?emailToken=JRr8cf19YXWVhtY2Z8w73lQtZ%2BwBB%2BqIQFLMMGrDJknLsjnbvPi9x6gvwta%2Bum60AEh74dkC5G82QXjKiWxhQM6WnaU6llHhemNUqNSdjVLWaxiBzBbX |title=Obama Further Eases Financial Sanctions On Iran News|author= Jay Salomon|newspaper=The Wall Street Journal |date=October 8, 2016 |access-date=October 9, 2016}}</ref> {{citation needed span|text=Given its large [[Oil reserves in Iran|reserves of oil]] and [[Natural gas reserves in Iran|gas]], the [[Iranian rial]] could become a [[world reserve currency]] if parity is established with [[GECF|oil and gas]].|date=September 2016}}<ref>{{cite web|url=http://www.payvand.com/news/18/aug/1038.html|title=Sanctions Buster? Iran Eyes Cryptocurrency To Blunt U.S. Deterrents|website=Payvand.com|access-date=July 21, 2019|archive-date=August 8, 2018|archive-url=https://web.archive.org/web/20180808184608/http://www.payvand.com/news/18/aug/1038.html}}</ref>

In 2018, the [[United States government]] unilaterally withdrew from the [[JCPOA]] agreement and re-imposed its sanctions on [[Petroleum industry in Iran|Iran's oil sales]], [[National Petrochemical Company|petrochemicals]], [[Iran Shipping Lines|shipping]], [[Mining in Iran|metals trading]] and [[Central Bank of Iran|banking transactions]].<ref>{{Cite news|url=https://www.bbc.com/news/world-middle-east-46075179|title=Trump re-imposes Iran sanctions: Now what?|work=BBC News|date=November 3, 2018}}</ref>

==== Effects ====
{{See also|Resistive economy#Iran|l1=Iranian resistance economy|Humanitarian impacts of U.S. sanctions against Iran}}
[[File:Iran Air Airbus, At Imam Khomeini International Airport Refuling, loading cargo and catering during March 2016.jpg|thumb|The [[Joint Comprehensive Plan of Action]] allows Iran [[Airlines of Iran|to purchase new planes]].]]
According to U.S. Undersecretary of State [[William J. Burns (diplomat)|William J. Burns]], Iran may be losing as much as $60 billion annually in energy investment.<ref name="Bloomberg 01.12.2010">{{cite news |url=https://www.bloomberg.com/news/2010-12-01/sanctions-cost-iran-60-billion-in-oil-investments-burns-says.html |title=Sanctions Cost Iran $60 Billion in Oil Investments, Burns Says |author=Flavia Krause-Jackson |date=December 1, 2010 |work=Bloomberg |access-date=February 13, 2012 |archive-url=https://web.archive.org/web/20120901104826/http://www.bloomberg.com/news/2010-12-01/sanctions-cost-iran-60-billion-in-oil-investments-burns-says.html |archive-date=September 1, 2012 }}</ref> Sanctions are making imports 24% more costly on average.<ref>[http://www.france24.com/en/20111219-iran-admits-pain-sanctions Iran admits the pain of sanctions] {{webarchive |url=https://web.archive.org/web/20120211065520/http://www.france24.com/en/20111219-iran-admits-pain-sanctions |date=February 11, 2012 }}. Agence France Presse (AFP), December 19, 2011. Retrieved January 7, 2012.</ref> In addition, [[National Defense Authorization Act for Fiscal Year 2012#Sanctions targeting the Iranian Central Bank|the latest round of sanctions]] could cost Iran annually $50 billion in lost [[Ministry of Petroleum (Iran)#Revenues from crude oil|oil revenues]].<ref>Una Galani: (March 30, 2012) [https://web.archive.org/web/20120330155406/http://blogs.reuters.com/breakingviews/2012/03/30/sanctions-could-cost-iran-50-bln/ Sanctions could cost Iran $50 bln]. Reuters. Retrieved March 30, 2012.</ref> Iran is increasingly using [[barter trade]] because its access to the international dollar payment system has been denied. According to Iranian officials, large-scale withdrawal by international companies represents an "opportunity" for [[List of Iranian companies|domestic companies]] to replace them.<ref>[https://www.google.com/hostednews/afp/article/ALeqM5jlwi1NKpiUaV0FrKpeIGQFF2d-NQ?docId=CNG.87edb35a8d312b35562231e10b3cddfa.201 Sanctions an 'opportunity' for local companies: Iran] {{webarchive |url=https://web.archive.org/web/20130318211447/https://www.google.com/hostednews/afp/article/ALeqM5jlwi1NKpiUaV0FrKpeIGQFF2d-NQ?docId=CNG.87edb35a8d312b35562231e10b3cddfa.201 |date=March 18, 2013 }}. Agence France Presse (AFP), October 14, 2010. Retrieved March 30, 2012.</ref><ref>[http://www.tehrantimes.com/index_View.asp?code=227661 Sanctions should be taken as opportunity: Larijani]. ''Tehran Times'', September 30, 2010. Retrieved March 30, 2012.</ref>

The IEA estimated that Iranian exports fell to a record of 860,000&nbsp;bpd in September 2012 from 2.2 million&nbsp;bpd at the end of 2011. This fall led to a drop in revenues and clashes on the streets of Tehran when the local currency, the [[Iranian rial|rial]], collapsed. September 2012 output was Iran's lowest since 1988.<ref name="oil exports">{{cite news |url=http://www.jpost.com/IranianThreat/News/Article.aspx?id=287607 |title=IEA: Iran's oil exports fell, may slip further |newspaper=The Jerusalem Post |agency=Reuters |date=October 12, 2012 |access-date=October 14, 2012 }}</ref>

The economic impacts of sanctions have been severe. Based on research, the sanctions resulted in welfare losses across all income groups in Iran, with wealthier groups suffering greater losses compared to poorer groups.<ref>{{Cite journal |last=Oryoie |first=Ali Reza |date=2024-06-06 |title=The impact of international sanctions on income mobility: Evidence from Iran |url=https://onlinelibrary.wiley.com/doi/10.1111/rode.13123 |journal=Review of Development Economics |language=en |volume=28 |issue=4 |pages=1695–1717 |doi=10.1111/rode.13123 |issn=1363-6669}}</ref><ref>{{Cite journal |last1=Oryoie |first1=Alireza |last2=Abbasinejad |first2=Hossien |date=2017-12-01 |title=The Rise and Fall of Top Incomes in Iran 1985-2015 |url=https://ier.ut.ac.ir/article_64104.html |journal=Iranian Economic Review |language=en |volume=21 |issue=4 |pages=941–968 |doi=10.22059/ier.2017.64104 |issn=1026-6542}}</ref> Additionally, income concentration and share within top income groups declined post-sanctions.<ref>{{Cite journal |date=2021-11-18 |title=On average, differences in perceived income inequality across socio-demographic groups are slight |url=http://dx.doi.org/10.1787/6ab3fc2a-en |journal=Does Inequality Matter? |doi=10.1787/6ab3fc2a-en|isbn=978-92-64-77595-4 }}</ref>

According to the U.S. Iran could reduce the world [[oil price|price of crude petroleum]] by 10%, saving the United States annually $76 billion (at the proximate 2008 world oil price of $100/bbl).<ref name=NFTC />

According to [[National Iranian American Council|NIAC]], sanctions cost the United States over $175 billion in lost trade and 279,000 lost job opportunities.<ref name=NIAC>[http://tehrantimes.com/economy-and-business/117072-iran-sanctions-cost-us-over-175b-in-lost-trade-study Iran sanctions cost U.S. over $175b in lost trade: study] {{webarchive |url=https://web.archive.org/web/20140726000726/http://tehrantimes.com/economy-and-business/117072-iran-sanctions-cost-us-over-175b-in-lost-trade-study |date=July 26, 2014}}. ''Tehran Times'', July 15, 2014. Retrieved July 24, 2014.</ref> Between 2010 and 2012, sanctions cost the [[European Union|E.U. states]] more than twice as much as the United States in terms of lost trade revenue. Germany was hit the hardest, losing between $23.1 and $73.0 billion between 2010 and 2012, with Italy and France following at $13.6-$42.8 billion and $10.9-$34.2 billion respectively.<ref name=NIAC />

GDP growth turned negative in 2013 (−5%). The unofficial unemployment rate was 20% by mid-2012. [[Petroleum industry in Iran|Oil exports]] dropped to 1.4 million&nbsp;bpd in 2014 from 2.5 million&nbsp;bpd in 2011. By 2013, Iran had $80 billion in [[Central Bank of Iran#Foreign reserves|foreign exchange reserves frozen overseas]]. [[Iranian cars|Automobile production]] declined 40% between 2011 and 2013.<ref>[https://www.bloomberg.com/news/articles/2015-03-02/what-sanctions-have-done-to-iran-s-economy Mark Glassman: What Sanctions Have Done to Iran's Economy]. Bloomberg LLP, March 2, 2015. Retrieved March 3, 2015.</ref> According to the U.S. government in 2015, Iran's economy has reached a point where it is "fundamentally incapable of recovery" without a nuclear accommodation with the West.<ref>{{Citation |last1=Solomon |first1=Jay |last2=Mauldin |first2=William |title=U.S. Treasury's Sanctions Czar Says Iran, Russia, Islamic State Weakened |journal=Wall Street Journal |url-access=subscription |date=February 1, 2015 |url=https://www.wsj.com/articles/u-s-treasurys-sanctions-czar-says-iran-needs-nuclear-deal-for-economy-1422824699 |access-date=February 7, 2015}}</ref>

<blockquote>The tentative rapprochement between [[United States-Iran relations|Iran and the US]], which began in the second half of 2013, has the potential to become a world-changing development, and unleash tremendous [[New world order (politics)#Recent political usage|geopolitical]] and [[business opportunity|economic opportunities]], if it is sustained […] if Iran and the US were to achieve a diplomatic breakthrough, geopolitical tensions in the [[Middle East]] could decline sharply, and Iran could come to be perceived as a promising [[emerging market]] in its own right.<ref>{{cite web |title=Iran-US Rapprochement: Historic Opportunities Beckon |publisher=Business Monitor International |date=January 10, 2014 |url=http://store.businessmonitor.com/iran-us-rapprochement-historic-opportunities-beckon.html |archive-url=https://web.archive.org/web/20140521083824/http://store.businessmonitor.com/iran-us-rapprochement-historic-opportunities-beckon.html |archive-date=May 21, 2014 }}</ref></blockquote>

In January 2019, President [[Hassan Rouhani]] blamed the US for Iran's declining economy. Following the US pullout from an international nuclear deal with Iran and re-imposed sanctions, Iran faced the toughest economic situation in 40 years.<ref>{{cite news|url= https://www.nytimes.com/2019/01/30/world/middleeast/iran-economy.html|title=Iran Faces Worst Economic Challenge in 40 Years, President Says|newspaper=The New York Times|date=January 30, 2019 |access-date=January 30, 2019|last1=Erdbrink |first1=Thomas }}</ref> According to [[Majlis]], this has caused damages estimated between 150 and 200 billion dollars to the Iranian economy.<ref>{{Cite web|url=https://www.tehrantimes.com/news/454945/U-S-Europe-should-pay-Iran-200-billion-in-compensation-over|title=U.S., Europe should pay Iran $200 billion in compensation over JCPOA failure: Senior MP|date=November 22, 2020}}</ref>

In August 2024, an Iranian group called IRLeaks attacked Iranian banks. [[Politico]] described the attack as the "worst cyberattack" in Iranian history.<ref name=":12">{{Cite web |date=2024-09-04 |title=Iran pays millions in ransom to end massive cyberattack on banks, officials say |url=https://www.politico.eu/article/iran-millions-ransom-massive-cyberattack-banks/ |access-date=2024-09-09 |website=POLITICO |language=en-GB}}</ref><ref>{{Cite web |title=Iran interrogating software firm at epicenter of 'worst-ever' bank hack |url=https://www.iranintl.com/en/202409048166 |access-date=2024-09-09 |website=Iran International |date=September 6, 2024 |language=en}}</ref> According to [[Politico]], the Iranian government was forced to pay millions of dollars to IRLeaks in ransom.<ref name=":12" /> Politico reported that 20 out of about 29 Iranian credit institutions fell in the attack.<ref>{{Cite web |title=List of Banks in Iran |url=https://www.globalbankingandfinance.com/list-of-banks-in-iran/ |website=Global Banking and Finance review|date=June 13, 2012 }}</ref><ref name="Asharq Al Aswat">{{Cite news |date=6 September 2024 |title=Iran Pays Millions in Ransom to End Cyberattack on Banks |url=https://english.aawsat.com/world/5058187-iran-pays-millions-ransom-end-cyberattack-banks |work=Asharq Al Aswat}}</ref><ref name=":12" /> The Iranian supreme leader blamed Israel and the United States without mentioning the cyberattack on the banking system. Politico remarked it was plausible Israel or the US were involved because of tensions with Israel as well as the Americans having accused Iran of intervening in the American 2024 elections.<ref>{{Cite news |last=Sebin |first=Sam |date=16 August 2024 |title=Iran is now the biggest foreign threat to the 2024 elections |url=https://www.axios.com/2024/08/16/iran-foreign-interference-2024-presidential-election |work=Axios}}</ref><ref>{{Cite web |last=Watts |first=Clint |date=2024-08-09 |title=Iran Targeting 2024 US Election |url=https://blogs.microsoft.com/on-the-issues/2024/08/08/iran-targeting-2024-us-election/ |access-date=2024-09-09 |website=Microsoft On the Issues |language=en-US}}</ref> Politico also remarked that the group was made of freelance hackers and the attack was likely carried out for monetary gain.<ref name=":12"/> TechCentral said the attack was probably carried out by freelance hackers.<ref name=":022">{{Cite web |last=Kitson |first=Niall |date=2024-09-06 |title=Cyber attack on Iran's banking system exposes sensitive data |url=https://www.techcentral.ie/cyber-attack-on-irans-banking-system-exposes-sensitive-data-a-risk-to-stability/ |access-date=2024-09-09 |website=TechCentral.ie |language=en-GB}}</ref> An Iranian firm paid the hackers no less than $3 million to IRLeaks to stop the attack and retrieve data.<ref name=":12" />