Economy

Iran's economy is heavily dependent on the international market for petroleum and petroleum products. After World War II, especially during the 1960's and 1970's, much was done by the government to transform Iran into a modern, industrial nation. The rapid rise in world petroleum prices in the 1970's and large Iranian oil exports provided the nation with enormous amounts of money to invest. Industrial growth and rapid change resulted in social and religious unrest and a revolution in 1979. During the 1980's growth of the economy slowed considerably, mainly because of a prolonged war with Iraq (1980–88). Iran's economy began to recover in the early 1990's.

Iran's basic currency unit is the Iranian rial.

Farming provides a livelihood for about a quarter of the workforce and accounts for about a fifth of the gross domestic product. Agricultural output is relatively low, mainly because of obsolete farming methods and equipment and a scarcity of water. The construction of dams and irrigation systems has been a major under taking by the government.

Wheat, barley, rice, and other grains are Iran's chief crops. Sugar beets and sugarcane are also grown in large amounts, as are vegetables and fruits. Other crops include cotton, tea, and tobacco. After poultry, the most numerous farm animals are sheep, goats, and cattle.

Fishing is of increasing importance. Caviar, processed from the roe of Caspian Sea sturgeon, and shellfish, from the Persian Gulf, are the main products.

Petroleum and natural gas are Iran's principal mineral resources. Iran has between 5 and 9 per cent of the world's petroleum reserves and has long been one of the world's leading producers. Natural gas reserves are second only to those of Russia, but production is still relatively low. Crude and refined petroleum account for most of Iran's foreign exchange. Production is mostly from wells in or near the head of the Persian Gulf. Many other minerals, including coal and ores of iron, chromium, copper, lead, and zinc, are beginning to be mined on a large scale.

contribute substantially to the economy. The chief manufacturing activities are petroleum refining and the making of petrochemicals. Other important industries include the manufacture of automobiles, machine tools, pharmaceuticals, and steel, and the making of textiles and carpets, one of Iran's oldest industries. Important services include banking and insurance.

Rugged mountains and barren deserts make transportation difficult in Iran. There are few roads or railways in the east; most of the transport network focuses on Tehran. From there, railways and roads extend to the principal cities and the Persian Gulf. Pipelines link the major oil fields and refineries and serve the chief domestic markets. Khark Island is the site of one of the Persian Gulf's main petroleum export terminals. Iran Air, owned by the government, is an international airline. Tehran and Abadan have the two main international airports.