The Oil Ministry under the 14th administration made strengthening energy diplomacy a top priority from its first months in office. Over the past two years, despite unprecedentedly intensified sanctions and even imposed wars, the ministry has recorded significant achievements, from record oil exports to the signing and extension of strategic gas agreements with neighboring countries and a stronger presence in international energy forums.

Expanding Energy Cooperation With Neighbors and the Region

From its first year, the Oil Ministry held intensive negotiations with neighboring and regional countries, including Russia, Iraq, Azerbaijan, Turkmenistan and Tajikistan, on gas imports, exports and swaps.

One of the major achievements was the launch in March 2025 of a Turkmenistan-to-Turkey gas swap through Iran, strengthening Iran’s position as a regional energy hub. At the same time, following the signing of a memorandum of understanding with Turkmenistan in September 2024, a working group was established to revive the gas import agreement with the country. Existing gas export contracts with Turkey and Armenia also continued without interruption.

Iran-Russia energy cooperation also advanced. The 18th Iran-Russia Joint Economic Commission was held in Moscow in May 2025, where the two sides agreed to use a land route through Azerbaijan to transport Russian gas to Iran.

The process entered a new phase in the second year with the 19th Iran-Russia Joint Economic Commission, held Feb. 16-18, 2026, at Tehran’s Koushk International Conference Center. The meeting included 17 specialized working groups and concluded with the signing of a memorandum of understanding by Iranian Oil Minister Mohsen Paknejad and Russian Energy Minister Sergei Tsivilev. Oil Ministry officials said about 75% of the 193 provisions agreed upon by the 18th commission have so far been implemented.

Cooperation with Iraq also entered a new phase during the oil minister’s visit to Baghdad in April 2025, when the two sides signed four major memorandums of understanding.

Engagement with Tajikistan was also pursued at various levels, from a meeting between Iranian Oil Ministry and Tajik Energy and Water Resources Ministry officials on June 22, 2025, to a direct meeting between Paknejad and Tajikistan’s ministers of energy and water resources and transport on Aug. 15, 2025.

Iran Extends Gas Export Contract With Iraq Through 2028

During Paknejad’s April 2025 visit to Baghdad, the most significant of the four agreements signed was the extension of Iran’s gas export contract with Iraq through 2028. The contract is estimated to be worth about $14 billion annually.

Other agreements covered the participation of Iranian companies in Iraq’s offshore exploration projects and the recovery of associated gas, with investment expected to come from Iran’s private sector.

The extension, coupled with Iraq’s position as one of Iran’s most important energy partners, provides a basis for maintaining one of the country’s most stable sources of export revenue in the coming years.

Key Terms of Russian Gas Import Deal Finalized

The strategic project to import gas from Russia has been one of the key files on Iran’s energy diplomacy agenda over the past two years.

During the first year, Iran and Russia signed an agreement covering annual imports of 55 billion cubic meters of gas, equivalent to about 150 million cubic meters per day. On the sidelines of the BRICS summit in Kazan and the May 2025 Joint Economic Commission meeting in Moscow, a land route through Azerbaijan was identified as the main option for transporting the gas.

The process made further progress in the second year. On Feb. 18, 2026, during the 19th Iran-Russia Joint Economic Commission, Saeed Tavakoli, managing director of the National Iranian Gas Co., said the technical, contractual and legal provisions of the gas import agreement had been finalized.

He said the delivery point, timing and duration of the contract had been determined and made operational. Because Iran and Russia do not share a land border, the gas would be imported through a third country. Only the price and payment mechanism remained unresolved, he said.

Tsivilev, Russia’s energy minister, also told Paknejad that the main provisions of the agreement had been finalized and that a final deal would be signed in the near future.

Oil Exports and Foreign Currency Revenues Continue Despite War

Perhaps the most notable achievement of the past two years has been the preservation — and even expansion — of Iran’s crude oil and condensate exports amid intense sanctions pressure and wartime conditions.

Paknejad said in January 2025 that Iran had broken a 10-year record for oil exports.

During the first four months of 2025, Iran’s crude oil and condensate exports averaged 21,000 barrels per day more than during the same period a year earlier. This came as the U.S. government imposed 14 new sanctions packages against Iran during the period, covering 465 sanctions.

The sanctions campaign continued into the second year. On July 30, 2025, the United States imposed its 14th sanctions package, consisting of 147 sanctions largely targeting the transportation sector. It was described as Washington’s largest oil-related sanctions package against Iran since 2018.

International data also supported the increase in exports. Preliminary data from energy intelligence firm Kpler showed that Iran’s oil exports to China reached 1.81 million barrels per day in March 2025, more than 22% above the 2024 average.

The International Energy Agency reported in June 2025 that Iran’s crude oil and condensate exports had averaged about 1.7 million barrels per day from the beginning of the year through that month.

The figures indicate that Iran’s oil industry, relying on active diplomacy, alternative markets and stronger ties with China — its traditional largest oil buyer — was able to maintain the country’s foreign currency revenue stream even under wartime conditions.

Petrochemical Exports Boost Foreign Currency Earnings

Alongside oil and gas, the petrochemical industry has become another pillar of economic diplomacy and foreign currency generation.

According to announced figures, Iran’s petrochemical exports were worth about $11.9 billion in 2025, underscoring the sector’s growing role in meeting the country’s foreign currency needs and reducing the economy’s reliance on crude oil exports.

The export performance, along with petrochemical companies’ commitment to returning foreign currency earnings from overseas sales to the domestic economy, formed part of the Oil Ministry’s broader strategy to complete the value chain and increase the share of higher-value products in Iran’s export basket.

The strategy has also included efforts to attract foreign investment at international oil, gas, refining and petrochemical exhibitions and present investment opportunities to industry participants.

Active Role in OPEC, GECF and BRICS

Over the past two years, the Oil Ministry has also made extensive use of international organizations to advance Iran’s energy diplomacy.

Paknejad was elected OPEC president during his first year in office, while Iran hosted the 26th Ministerial Meeting of the Gas Exporting Countries Forum, or GECF, in fall 2024.

In the second year, Iran took an active part in the 27th GECF Ministerial Meeting in Doha, Qatar, on Oct. 23, 2025. On the sidelines, Paknejad met with the oil and energy ministers of Nigeria, Libya, Algeria and Qatar to discuss expanding bilateral cooperation in gas, petrochemicals and technology transfer.

Iran’s multilateral energy diplomacy also extended to BRICS. During a July 2026 visit to India to attend the 11th BRICS Energy and Oil Ministers Meeting, Paknejad met with India’s power and oil ministers and attended the inauguration of the BRICS Digital Excellence Center for smart grids and energy storage.

He also proposed a “BRICS Energy Security Partnership” aimed at protecting members’ critical energy infrastructure.

Energy Diplomacy Set to Continue

A review of the 14th administration’s first two years in energy diplomacy shows that the Oil Ministry, despite unprecedentedly intensified sanctions and wartime pressures, has advanced on several fronts simultaneously: maintaining and increasing oil exports, extending and finalizing strategic gas agreements with Iraq and Russia, expanding cooperation with neighboring and regional countries, and strengthening Iran’s position in international energy organizations ranging from OPEC and GECF to BRICS.

The push to strengthen energy diplomacy, however, is continuing. The full implementation of agreements still under negotiation — particularly the price and payment mechanisms for the Russian gas import deal — could open a new chapter in Iran’s energy diplomacy.