Newly released official figures indicate Iran's oil and gas sector contracted by 26 percent, contributing to a 10 percent fall in the country's GDP during the war with the US and Israel.
Key facts
- Iran's oil and gas sector shrank by 26 percent, according to new official data.
- The losses helped cut Iran's overall GDP by 10 percent.
- The contraction is linked to the costs of the US-Israel war on Iran.
- The figures come from new official data, as reported by Al Jazeera.
Iran’s economy has taken a significant hit as its vital oil and gas sector contracted sharply during the country’s war with the United States and Israel, according to new official data reported by Al Jazeera.
The data shows the oil and gas sector shrank by 26 percent. This decline pointed directly to the economic costs imposed by the US-Israel war on Iran, according to the report.
The scale of the downturn in the energy sector has had a broad impact on the wider economy. Overall, Iran’s GDP has fallen by 10 percent, reflecting how central oil and gas remain to the country’s economic output.
Al Jazeera reported that the figures come from newly released official data, underscoring the tangible financial toll the conflict has taken on Iran’s most important export industry.
The energy sector’s steep contraction highlights the vulnerability of an economy heavily reliant on oil and gas revenues during a period of sustained military conflict.
Why it matters
Oil and gas are central to Iran's economy and government revenues, so a 26 percent contraction in the sector has significant consequences for the country's finances and population. The 10 percent drop in overall GDP illustrates the broad economic cost of the war on Iran.
Frequently asked questions
How much did Iran's oil and gas sector shrink?
According to new official data reported by Al Jazeera, Iran's oil and gas sector shrank by 26 percent.
How much has Iran's GDP fallen?
Iran's overall GDP has fallen by 10 percent, driven in part by losses in the oil and gas sector.
What is causing the economic decline?
The contraction points to the costs of the US-Israel war on Iran, according to the report.