TEHRAN – Iran is in the throes of an unprecedented energy crisis, marked by nationwide office closures, online-only education, power outages, and near-halted industrial activity. Despite being one of the world’s largest producers of natural gas and crude oil, the country faces a crippling shortage due to years of sanctions, outdated infrastructure, inefficient consumption, and escalating geopolitical conflicts.
President Masoud Pezeshkian, addressing the nation in December, acknowledged the critical state of Iran’s energy sector, citing “dire imbalances in gas, electricity, energy, water, money, and the environment.” The crisis has led to power rationing, with 17 power plants offline and the remaining operating at minimal capacity.
The shortage has been exacerbated by a 350-million-cubic-meter daily deficit in gas supply, intensified by plunging temperatures and surging demand. To avoid cutting off residential heating—a primary source of warmth for most Iranians—the government has opted to reduce gas supplies to power plants, resulting in widespread electricity outages.
Compounding the crisis is the aftermath of a covert attack in February when Israel reportedly sabotaged two key gas pipelines in Iran. To mitigate the fallout, Iranian authorities tapped emergency reserves, but this temporary solution has pushed the country further into an energy deficit.
The ongoing disruptions are taking a toll on both ordinary citizens and industrial sectors, with losses estimated in the tens of billions of dollars. Amid widespread frustration, Iranian officials have yet to present a clear strategy to stabilize the situation, underscoring the challenges of navigating a complex web of domestic inefficiencies and international tensions.