Iran’s energy dominoes on the brink

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

Iran is facing a significant and growing energy deficit. Low prices for fossil fuels, with the cost of gasoline at ¢2–5/l, have encouraged consumption among Iranian consumers and facilitated systematic fuel smuggling. In 2020, it was estimated that illegal mining operations led to more than 2,000MW of electricity being siphoned from the grid, not accounting for systematic cryptocurrency mining to bypass sanctions. The gas sector faces similar challenges, compounded by high waste from heating systems and significant energy losses from inefficient thermal power plants. As a result, the country is threatened by a domino effect that could lead to the collapse of energy-intensive industries—parti