OPEC's second-biggest oil producer. Potential for related industries and increased production of traditional exports: carpets, pistachio nuts and caviar.
Weaknesses
Theocratic government restricts contact with West, blocking acquisition of vital technology. Years of economic stagnation. High unemployment, inflation and foreign debts. Oil revenue vulnerable to market fluctuations.
Profile
Iran has few industries other than oil. The chronic shortage of foreign exchange and the costs of the long war with Iraq have accelerated a decline in living standards in the past decade.
