Iran Is The Second Most Noticeable Economy In The Middle

Iran ranks second globally in natural gas reserves and fourth in proven crude oil reserves (Penn Wharton). In 2014, oil accounted for 20% of Iran’s GDP, so government expenditures count heavily on their oil exports and prices heavily. Since the 1950’s, the U.S. has played a major role in manipulating Iran’s oil and their dependance on oil. The United States’ foreign policies and relationships in Iran have seemed to be created to take advantage of Iran’s oil-rich markets. Not only that, but new sanctions that have been put on Iran’s nuclear program which has severely hurt them because these sanctions have costed them to lose over $500 billion in oil revenues through the sanctions, research, construction, and operation. Although the U.S. has hurt Iran financially, it is very important that they stay involved with them because they are one of our main sources to get petroleum from and if the U.S. can stay on good terms with them, it will benefit both nations economies.

Khuzestan is an oil rich region in the southwestern Iran, which is highly populated with Arabs who are culturally ethnically different from the Persians. The inhabitants of the region also call it “Arabistan”. Khuzestan is the primary source of the Iran’s wealth and power because of its oil resources. The region is very important for Iran; Iran would be powerless country in the Middle East without Khuzestan’s oil.

It is estimated that 1.3 trillion barrels of oil reserve is left in the world’s major fields (Institution of Mechanical Engineers 2015). At present rates of consumption this will be enough oil to last approximately 40 years. By 2040, it is intended for production levels may be down to 15 million barrels per day which is approximately 20% of the amount of oil which is currently being consumed (Institution of Mechanical Engineers 2015). It is likely by the year 2040 that the world’s population will be twice as large (United States Census Bureau 2015). Additionally, it is likely that more of the world will be industrialized and therefore more dependent upon oil.

Throughout the 19th and 20th century Iran saw not only the changing of three regimes, but also the coming, and going of classical imperialists in Britain and Russia, but also late comers to the game in the United States. In each instance however, Iran was on a road to appeasement. In some instances such as with the Qajar’s, Iran’s Imperial family was trying to get more money for the betterment of itself. In the event of the Pahlavi’s, Iran was trying to modernize based off of a western model of success. In both instances the carving out of resources was involved in which Iran stood to lose the most by giving up very lucrative state industries to

Mohaddesa, Kamiar, and Hashem Pesaran. "One Hundred Years of Oil Income and the Iranian Economy: A Curse or a Blessing?" (2013): University of Cambridge. Web. .

The Iranian government only received 25% of the profits (Zaya, n.d.). As oil is one of Iran’s biggest export this seizure of the oilfields was a topic of great consternation. The conditions for the Anglo-Persian Iranian workers were dismal as the account in “All the Shah 's Men: An American Coup and the Roots of Middle East Terror” illustrates. American author, Stephan Kinzer writes, “Wages were 50 cents a day. There was no vacation pay, no sick leave, no disability compensation. The workers lived in a shanty town called Kaghazabad, or Paper City, without running water or electricity” (Kinzer, 2003). As this is a primary source, it can be assumed that this is an accurate account on the conditions for the workers. This mistreatment of the Iranians and their government was the beginning of the distrust and aversion to the West in Iran.

They remember Greeks, Arabs, Mongols, Turks, and most recently Saddam Hussein’s forces, all invaded their homeland. Iranians also remember that the British and Russian empires exploited them economically, subjugated them politically, and invaded and occupied their country in two World Wars (Ramazani 2009). Through this all, Iran’s geographical area and its people identity have remained more or less the same. The vast land– three times the size of France and twenty times that of the Czech Republic – is demarcated to the North by the Caspian Sea (740 km of coastline) and to the South by the Persian Gulf and the Gulf of Oman (2,440 km of coastline). Three-fifths of the country, especially the central plateau, lacks the rainfall to sustain permanent agriculture. Farming is confined to rain-fed Azerbaijan, Kurdistan, and the Caspian coast, to irrigated villages and oases scattered throughout the county, especially at the foot of the mountain ranges (See Map 1 & 2) (Abrahamian 2008, p. 1). Iran is a neighbour to seven countries (Turkmenistan, Afghanistan, Pakistan, Iraq, Turkey, Armenia, Azerbaijan), which makes it a natural crossroad of civilizations and trade flows. Its rich history shows that for many centuries Iran has been a key land bridge between Europe and Asia through the renowned Silk Road and Spice Route (Central Intelligence Agency 2015, Thompson 1983, UNESCO

Oil has been used by domestic and foreign governments in the development of the Middle East both domestically and in foreign policy since 1940 by using it as a bartering item because it is such a valid and precious resource that can fuel homes, towns, and countries. The Middle East has had many ups and downs throughout its development as a country, but its abundant supply of oil made it a country that outsiders wanted to either friend or control. The D’Arcy Concession in the early 1900’s were rights created for the people of the D’Arcy, to search and dig for oil within Iran. When given this opportunity they found

The revolution of 1979 marked the beginning of Iran’s economic decay and even further economic instability. Before the revolution, Iran had one of the Middle East’s most advanced economies. Petroleum exports, which make up about 85 percent of government revenues, have decreased over the years after the revolution (Trading Economics). In fact, petroleum exports declined to 1.5 million barrels per day in 2012 from 2.5 million barrels per day in 2011 (Trading Economics). The Iranian government’s dependence on oil revenues has resulted in persistent financial instability. Because of this financial instability, Iran’s inflation rate was greatly affected. The inflation rate is the rate of change of prices calculated on a monthly or annual basis. In January 2014,

Thirty years after the notorious Islamic Revolution of 1979, the United States has become a haven to “the largest and most prosperous population of Iranians” (Bagherpour). A constant amount of Iranians immigrated to the U.S. during the 1980s, but the number reached its climax in the 1990s (Bagherpour). When Iranians migrated to the United States, they thought it would be a temporary sojourn, but that was not the case. The Iranian society has gradually changed in the last thirty years. Iranians are now a part of American life, and they are continuing to prosper and adapt. This loss of accomplished people has greatly affected Iran’s socioeconomic status negatively.

Iran and the United States always had major tension regarding oil. American and British corporations had control over Iran’s petroleum reserves for a long time. In 1951, Iran’s Prime Minister had a plan to nationalize the oil industry. Due to this, America and Britain formed a plan to overthrow the Prime Minister and replace him with someone who would better suit their needs and interests. A new government was then installed in 1953 and in exchange for a lot of money; they gave America and Britain 80% of the oil reserves. This made people in Iran very angry because their government was spending too much money on American weapons making their own economy chaotic. Later on November 4, 1979 after the Shah arrived in New York, a group of

Iran, known as the Republic of Iran located in the Middle East, has been in economic and political downturn since its 1979 revolution. Led by supreme leader named Ayatollah Ali khamenei, who is responsible for their actions and supervision. It is a complex government, very islamic, the problems they are facing is economic development, transforming their government into a stable consolidated democracy and defining their national identity. Iran changed the Middle East by spreading its idea 's and forms of government through more bad than good, especially war and sponsoring military allies. Many factors led to this complicated government and dealing with the Islamic Republic. The challenges and aspects inside its government is its widespread powerful nuclear program, support for extremists, rising repression and a authoritarian like regime government that has created a sense of growing crisis both all throughout the Middle East. Politically, Iran has been the most complicated and controversial country with trying to maintain Islam and democracy at the same time, it is far from over as it continues in its domestic political crisis. The outcome of its situation could affect the Islamic world as the revolution did. Iran, having one the largest armed forces and powerful nuclear programs in the Middle East is a threat that needs to be watched and maintained, even though the majority of Iran 's weaponry is low quality or gone. It has also armed military allies all the way to

Iran, known as Persia until 1935, became an Islamic republic in 1979 after the ruling shah was driven out by a widespread revolution. Also known as the Islamic Republic of Iran, it borders the Gulf of Oman, the Persian Gulf, the Caspian Sea, and is located between Iraq and Pakistan. It also shares borders with Afghanistan, Armenia, Azerbaijan, Turkey, and Turkmenistan. Iran is roughly 1,648,195 square feet, the eighteenth largest country in the world with a population size of 82,801,633. It is governed as a theocratic republic, which is their legal system based on Islamic law. The judiciary system of Iran follows some aspects of Sharia law, but is also mixed with civil law that is authorized and overseen by Parliament. Alongside Parliament is their president, Hassan Ruhani, who has held office since August 2013, however; the Supreme Leader, Ayatollah Ali Khamenei, is at the very top of Iran’s configuration of power. Khamenei controls Iran’s domestic and foreign policies, serves as commander in chief of their armed forces, and directs the republic’s intelligence and security operations. Iran’s economy is characterized by its reliance on oil and gasoline exports. Their Gross National Income is 1.209 trillion per capita (PPP). Petroleum, natural gas, coal, chromium, and copper are some of their largest natural resources and their biggest export is petroleum (80%) to China, India, Turkey, and Japan. Industrial supplies, capital goods, and technical services from the UAE, China,

A middle-eastern country of over seventy-five million people (“World”), the country of Iran has undergone many government reforms in the past century and been a major force in international relations.

The financial system of Qatar depends heavily “on gas and oil, which accounts for half of the gross domestic product, eighty-five percent of export earnings and seventy percent of government revenue” (“Economic Overview,” n.d.). Because of oil, the gross domestic product per capita of Qatar is ranked thirty-four in the world. The proven oil reserves of the country have far surpassed twenty-five million casks aiding in the