Oil is the most critical economic commodity, deeply intertwined with political and international shifts. In fact, politics and oil have always been closely linked—whenever Iran’s domestic political climate and, more importantly, its international relations have improved, the oil industry has seen significant growth.

Given its technological nature, the oil industry urgently needs partnerships with global corporations and access to major capital. Projections indicate Iran requires around $250 billion in investment to develop its upstream and downstream oil sectors, with half aimed at boosting oil and gas production.

Although the growth of knowledge-based and tech firms in recent years has helped meet some domestic technological needs, sanctions on the oil industry have hindered access to foreign financing. To prevent disruptions in this key economic sector, Iran is leveraging domestic resources—such as the National Development Fund, capital markets, public funds and bonds—to sustain development.

  14th administration: Advancing politics and economics in tandem 

Nearly eight months into its term, the 14th government has prioritized oil sector investment, scheduling the "Transformation in Investment and Development in Iran’s Upstream Oil and Gas" event for April 22, 2025. The event will showcase over 200 investment opportunities by the National Iranian Oil Company.

While significant on its own, the timing of this event—coinciding with renewed nuclear talks between Iran and the U.S. and potential sanctions relief—adds to its importance. Initial talks in Muscat, Oman, were described by both sides as positive and progressive, raising hopes for a lasting, mutually beneficial agreement.

For Iran’s oil industry, a deal could be transformative, boosting both production and exports. Lifting sanctions would enable Iran to ramp up oil and gas output and restore exports to previous levels.

The Oman negotiations are a political win for Iran, showcasing successful diplomacy, while the oil investment opportunities serve as an economic advantage—potentially stimulating broader growth. Oil and politics have never been separate.