Iran’s energy dominoes on the brink

January 2, 2025/in /by Rudolf Huber

Iran faces a problem that astonishingly many oil exporters face. If your country makes a living by selling what the soil produces, it does not need the taxes its population produces so much. This means the regime has little interest in encouraging entrepreneurs. But it goes further – people still are restive so they need to be bought off, which is done through the very stuff they use to make cash—cheap fuel and energy. At the same time, innovation and investment from abroad must be carefully nurtured as this keeps the hen laying the golden eggs alive. But when this fails, supply goes down and consumption that does not make cash goes up. Can’t work for long.

The country’s widening energy deficit could have a knock-on effect on energy-intensive industries

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