The importance of Iran

Iran is one of the most energy rich countries in the world and a major player on the energy markets. Oil and natural gas reserves in Iran are among the largest on Earth. When oil prices were climbing to well over $100 a barrel, President Mahmoud Ahmadinejad had full coffers to carry out populist policies, pursue nuclear technology and fund its geo-political proxies like Hezbollah and the Iraqi Medhi Army.

Not much of those oil profits were invested in maintaining infrastructure or building new reserve capacity that would have been a wise long term investment when demand fell (which it did in the second half of 2008). Economic mismanagement and an antagonistic approach to foreign affairs were the pillars of the Ahmadinejad tenure in office from 2005-2009.

Examiner