Why is petroleum Iran's most important economic activity?

The extraction and processing of petroleum is Iran’s most important economic activity primarily because it generates the country's most significant revenue. This massive income from petroleum exports has historically been essential for maintaining a favorable annual balance of trade, helping to offset the high costs of necessary imports such as foodstuffs, machinery, and transport equipment.12

The industry is managed by the government-operated National Iranian Oil Company, which oversees production for both domestic consumption and global export via the Persian Gulf. Despite the government's long-term goals of achieving economic independence and diversifying its infrastructure, the nation remains highly dependent on the extraction of petroleum and natural gas as its primary industrial pillar. This reliance persists even as the country faces significant economic challenges, including international isolation and sanctions that have restricted foreign investment and access to high technology.13