An Examination of the Cycle of Sanctions, Technology Transfer, and Crisis Management in Iran’s Oil Industry

Document Type : Research Paper

Authors

1 PhD Candidate, Department of Political Science, Zahedan Branch, Islamic Azad University, Zahedan, Iran

2 Assistant Professor, Department of Political Science, Takestan Branch, Islamic Azad University, Takestan, Iran

10.22081/psq.2025.77262

Abstract

One of the most critical and complex aspects of the oil industry is the issue of technology transfer. The present study aims to examine the impact of international sanctions on Iran’s oil industry. Without technology transfer, operations in this sector become extremely limited and costly. This vulnerability has made the imposition of oil industry sanctions a highly practical and prioritized tool in international conflicts between oil-producing countries and the major powers that structure the international system. International sanctions, as envisaged in the United Nations Charter, serve as a powerful instrument capable of restraining the relative advantages of targeted actors. A sanctioned country’s access to technology and industrial advancement—especially in a sector crucial to its government’s revenues—can significantly alter its behavioral patterns by restricting its choices and reshaping its foreign policy courses. This study seeks to answer the following question: What effects did the international oil sanctions from 2010 to 2020 have on the transfer of technology to Iran’s oil industry? The research hypothesis is that international sanctions on the oil sector led to a natural decline in oil production, reduced Iran’s global oil sales, and created substantial challenges for foreign investment in the industry. The findings reveal that pressure on Iran’s oil revenues, severe financial constraints, foreign investment obstacles, barriers to the import of new technologies, the forced withdrawal of international companies, and inefficient management—especially during 2010 to 2020—contributed to the deterioration of technology across all sectors, including the oil industry. Nevertheless, the Iranian government managed to mitigate some negative consequences by supporting domestic experts and knowledge-based enterprises specializing in oil industry technologies. This theoretical research was conducted using a descriptive-analytical method, with data collected through note-taking from library resources and international documents.

Keywords

References

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