With energy’s growing significance in international relations, "energy diplomacy" has emerged as a key focus for policymakers. This approach involves diplomatic tools to manage energy resources, ensure energy security, and foster cross-border cooperation.
For Iran, energy diplomacy is not just an economic tool but a strategic lever to enhance political influence, safeguard national security, and counter international challenges amid sanctions and regional competition.
No time to wait:Iran’s proactive energy diplomacy
The Ministry of Oil’s agenda, outlined during its parliamentary confirmation, emphasizes energy diplomacy as a top priority. The plan calls for:
- Attracting foreign investment through diverse channels
- Expanding participation in overseas refineries and petrochemical projects
- Leveraging international organizations like OPEC, GECF, and BRICS
- Strengthening strategic gas partnerships with neighboring countries
Oil Minister Mohsen Paknejad, during his confirmation hearing (Aug. 20, 2024), stressed regional energy diplomacy, stating:"With the world’s largest oil and gas reserves, Iran can serve as an energy hub connecting Eastern, Western, and Southern neighbors. We must reclaim our standing in OPEC."
Seven months into the administration, the ministry has taken concrete steps toward these goals.
Iran’s push to become a regional gas hub
Aligned with the Seventh Development Plan (2024-28), the government is prioritizing Iran’s role in regional gas trade. Experts note that cooperation with Russia could enhance Iran’s position in global energy markets, boosting its economic and geopolitical influence.
With neighboring countries facing gas shortages and Russia constrained by export challenges, Iran is positioning itself as a key intermediary. Over 12 technical meetings were held in the administration’s first 100 days to advance a gas import deal with Russia.
During Russian Prime Minister Mikhail Mishustin’s Tehran visit (Sept. 2024) and the BRICS summit in Kazan, negotiations progressed. Russian President Vladimir Putin later announced (Jan. 2025) a phased gas supply agreement, starting with 2 billion cubic meters annually, potentially scaling to 55 billion.
Beyond gas, Russian firms have invested over $7.5 billion in Iranian oil and gas fields, with further opportunities under discussion.
Turkmen gas exports to Turkey via Iran
Early in its term (Aug. 28, 2024), the administration signed a gas cooperation agreement with Turkmenistan. By late February 2025, Paknejad confirmed the operationalization of a deal to transport Turkmen gas to Turkey through Iran, reinforcing Iran’s role as a regional energy corridor.
Tehran hosts major gas exporters amid regional tensions
The 26th GECF Ministerial Meeting (Dec. 8, 2024) in Tehran underscored Iran’s stability despite Middle East tensions. The gathering, attended by GECF Secretary-General Mohamed Hamel and delegates from 12 member states, also addressed geopolitical concerns, including condemnation of Israeli actions in Gaza.
Iran assumes OPEC presidency
Paknejad was elected OPEC Conference President (Dec. 10, 2024), a rotating role effective January 2025. He pledged to "strengthen OPEC’s unity and progress" amid volatile global markets.
Ongoing energy diplomacy efforts
Additional engagements include talks with Azerbaijan, Tajikistan, and Iraq. As the ministry continues its energy diplomacy push, further milestones are expected in the coming months.
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