Iran holds the world’s third-largest proven crude oil reserves yet faces renewed pressure to import fuel as domestic demand exceeds refinery output. President Masoud Pezeshkian has urged reduced consumption and removed his jacket during a government meeting to highlight scarcity. These developments echo 2019 gasoline price increases that triggered nationwide protests.
“Iran faces a new energy imbalance, but its options are limited”
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Western sanctions over nuclear issues prevent Iran from using its oil reserves, forcing imports and austerity that burden ordinary households.
“External pressures and inequality”
Chronic mismanagement and centralized control explain why a resource-rich country must import fuel and resort to symbolic gestures.
“Regime incompetence and subsidy distortions”
State control over production and pricing prevents market signals from expanding capacity or rationing demand efficiently.
“Command-and-control failures versus voluntary exchange”
All three views overlook technical crude quality issues, natural-gas demand, smuggling networks, and the limited reformist context after the 2024 election.
“Omitted technical and institutional details”
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