The Impact Of Sanctions On Iran’s Oil And Natural Gas Exportation: Swot Analysis


Volume 2, Issue 4, Number 4, Pages 63-75, Published Online October 20, 2014

Full-Text PDF


Davood Behboudi, Hossein Panahi and  Taghi Zamzam


Iran holds the world’s fourth-largest proven oil reserves and the world’s second-largest natural gas reserves. International sanctions are redefining the Iranian energy sector, and the lack of foreign investment and technology is affecting the sector profoundly. In 2012, Iran saw unprecedented drops in its oil exports as sanctions by the United States (U.S.) and European Union (EU) were tightened, targeting Iranian oil export revenues. Oil and gas revenues play a vital role in Iranian government’s performance. That is why we decided to have a glance on efficacies of recent sanctions on Iran’s oil and gas exportation. The purpose of this paper is to outline how the Western sanctions have affected Iran’s oil and gas sector. Our studies show that, international embargoes have negatively affected this sector. Of course, Iran is not reactive and strikes back. Furthermore, in this study, through Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis, we concluded that some of the top priorities for Iran to thwart the impact of sanctions are: develop its Natural Gas fields, reduce unrefined oil sales and enhance its exportation of petroleum products, correct internal mismanagements, and also reduce its annual budget reliance on crude oil revenues by non-oil export development and using tax monies.


Sanction, Iran, U.S., EU, oil and gas sector, Hormuz Strait, SWOT.


BP Statistic Review of World Energy. (2012).
Carstenius, V. (2013), ―Country Risk Analysis: Iran, Sanctions Isolating Iran.‖ The Swedish Export Credits Guarantee Board, ekn.
Carter, S. G. (2014). ―Iran, natural gas and Asia’s energy needs: A spoiler for sanctions?‖ Middle East Policy, 21 (1): 41-61.
eia, (2013). ―Independent Statistics & Analysis: Iran.‖ U.S. Energy Information Administration. <>
eiu, (2012). ―Oil sanctions on Iran: Cracking under pressure?‖ The Economist Intelligence Unit, A Special Report From the Economist Intelligence Unit.
Gal, Y. and Minzili, Y. (2011). ―The Economic Impact of International Sanctions on Iran.‖ The Eleventh Annual Herzliya Conference, February 6-9, 2011.
GAO, (2013). ―Iran: U.S. and international sanctions have adversely affected the Iranian economy.‖ United States Government Accountability Office: report to the chairman, committee on homeland security and governmental affairs, U.S. senate, February 2013.
Habibi, N. (2008). ―The Iranian Economy in the Shadow of Economic Sanctions.‖ Middle East Brief, Crown Center for Middle East Studies, Brandeis University, October 2008, No. 31.
Hufbauer, G. C., Schott, J. J., and Elliot, K. A. (1985). ―Economic Sanctions Reconsidered: History and Current Policy.‖ Washington, D.C.: Institute for International Economics (IIE).
Hufbauer, G. C., Schott, J. J., and Elliot, K.A. (1990). ―Economic Sanctions Reconsidered: History and Current Policy.‖ 2nd ed., 2 vols., Washington, D.C.: Institute for International Economics (IIE).
Jalilvand, D. R. (2013). ―Iran’s gas exports: can past failure become future success?‖ The Oxford Institute for Energy Studies, June 2013, NG 78.
Jorjani, A., Khaki, A. M., Enayati, B., and Sadati Baladehi, S. H. (2013). ―The Impacts of Sanctions on Iran from the Viewpoint of Human Security Doctrine.‖ Switzerland Research Park Journal, 102 (11): 1327-1344.
Katzman, K. (2014). ―Iran sanctions.‖ Congressional Research Service: informing the legislative debate since 1914, March 18, 2014.
Kitous, A., Saveyn, B., Gervais, S., Wiesenthal, T., and Soria, A. (2013). ―Analysis of the Iran oil embargo.‖ JRC (Joint Research Centre) scientific and policy reports, European Commission.
Lu, S. M., Huang, M. Y., Su, P. T., Tseng, K. T., and Chen, F. (2013). ―Development strategy of green energy industry for Taipei- A modern medium-sized city.‖ Energy Policy, 62: 484-492.
Meshkat, K. A. (2013). ―The burden of economic sanctions on Iranian-Americans.‖ Georgetown Journal of International Law, Vol. 44: 915-972.
Pape, R. A. (1997). ―Why Economic Sanctions Do Not Work?‖ International Security, 22(2): 90-136.
Rogers, E. S. (1996). ―Using Economic Sanctions to Control Regional Conflicts.‖ Security Studies, 5 (4): p. 72.
Weihrich, H. (1982). ―the TOWS matrix-a tool for situational analysis.‖ Long Range Planning, 15 (2): 54-66.
Yong, W. and Hajihosseini, A. (2013). ―Understanding Iran Under Sanctions: Oil and the National Budget.‖ The Oxford Institute for Energy Studies, Oxford Energy Comment, January 2013.



No comments

Be the first one to leave a comment.

Post a Comment



Events 2016


Events 2016