Economy of Iran

Iran has a mixed, centrally planned economy with a large public sector.^{[needs update]} It consists of hydrocarbon, agricultural and service sectors, in addition to manufacturing and financial services, with over 40 industries traded on the Tehran Stock Exchange. With 10% of the world's proven oil reserves and 15% of its gas reserves, Iran is considered an "energy superpower". Nevertheless since 2024, Iran has been suffering from an energy crisis.

Since the 1979 Islamic revolution, Iran's economy has experienced slower economic growth, high inflation, and recurring crises. The 8-year Iran–Iraq War (1980–1988), increased Corruption in Iran, and subsequent international sanctions severely disrupted development. In recent years, Iran's economy has faced stagnant growth, inflation rates among the highest in the world, currency devaluation, rising poverty, water and power shortages, and low rankings in corruption and business climate indices. The brief war with Israel in June 2025 further exacerbated economic pressures, causing billions in damage and loss of revenues. Despite possessing large oil and gas reserves, Iran's economy remains burdened by structural challenges and policy mismanagement, resulting in limited growth and a decline in living standards in the post-revolution era.

A unique feature of Iran's economy is the reliance on large religious foundations called bonyads, whose combined budgets represent more than 30 percent of central government spending.^{[citation needed]}

In 2007, the Iranian subsidy reform plan introduced price controls and subsidies particularly on food and energy. Contraband, administrative controls, widespread corruption, and other restrictive factors undermine private sector-led growth. The government's 20-year vision involved market-based reforms reflected in a five-year development plan, 2016 to 2021, focusing on "a resilient economy" and "progress in science and technology". Most of Iran's exports are oil and gas, accounting for a majority of government revenue in 2010. In March 2022, the Iranian parliament under the then new president Ebrahim Raisi decided to eliminate a major subsidy for importing food, medicines and animal feed, valued at $15 billion in 2021. Also in March 2022, 20 billion tons of basic goods exports from Russia including vegetable oil, wheat, barley and corn were agreed.

Iran's educated population, high human development, constrained economy and insufficient foreign and domestic investment prompted an increasing number of Iranians to seek overseas employment, resulting in a significant "brain drain". However, in 2015, Iran and the P5+1 reached a deal on the nuclear program which removed most international sanctions. Consequently, for a short period, the tourism industry significantly improved and the inflation of the country was decreased,^{[citation needed]} though US withdrawal from the JCPOA in 2018 hindered the growth of the economy again and increased inflation.^{[citation needed]}

GDP contracted in 2018 and 2019, but a modest rebound was expected in 2020. Challenges include a COVID-19 outbreak starting in February 2020, US sanctions reimposed in mid-2018, increased unemployment due to the sanctions, inflation, food inflation, a "chronically weak and undercapitalized" banking system, an "anemic" private sector, and corruption. Iran's currency, the Iranian rial, has fallen, and Iran has a relatively low rating in "Economic Freedom", and "ease of doing business". Recently, Iran faces severe economic challenges resulting from long conflict with Israel and the war that broke between the two states, which resulted in a destruction of investments of more than 3 trillion USD.

In 546 BC, Croesus of Lydia was defeated and captured by the Persians, who then adopted gold as the main metal for their coins. There are accounts in the biblical Book of Esther of dispatches being sent from Susa to provinces as far out as India and the Kingdom of Kush during the reign of Xerxes the Great (485–465 BC). By the time of Herodotus (c. 475 BC), the Royal Road of the Persian Empire ran some 2,857 km from the city of Susa on the Karun (250 km east of the Tigris) to the port of Smyrna (modern İzmir in Turkey) on the Aegean Sea.

Modern agriculture in Iran dates back to the 1850s when Amir Kabir undertook a number of changes to the traditional agricultural system. Such changes included importing modified seeds and signing collaboration contracts with other countries. Polyakov's Bank Esteqrazi was bought in 1898 by the Tsarist government of Russia, and later passed into the hands of the Iranian government by a contract in 1920. The bank continued its activities under the name of Bank Iran until 1933 when incorporating the newly founded Keshavarzi Bank.