As the world’s six major powers negotiate a nuclear deal with Iran, US and European oil companies are already eyeing the potential benefits of reinvesting in the country’s petroleum sector. If sanctions are eased, they are well positioned to provide the advanced technology and equipment Iran needs to further develop its oil and gas industries.
Iran has major potential because it holds the world’s fourth largest oil reserves and second largest natural gas reserves. The Islamic Republic is highly dependent on petroleum resources for government revenues. Growth has been crippled, however, by the costs of an eight-year war with Iraq, periods of low oil prices, and international sanctions.
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