Editing Economy of Iran (section)

=== 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" />