Commentary
Iran is experiencing a systemic energy crisis. While many times in the past, Iran has had gas shortages or refined product shortages, this time Iran is undergoing an energy meltdown, with parallel shortages of electricity, natural gas, and refined products. The Iranian energy crisis can affect regime stability. The lack of ability to provide basic energy needs to the public is an indicator of significant regime weakness. Iran’s gas trade with its neighbors—Turkey and Iraq—has also been disrupted. There is no quick fix to Iran’s energy shortages, which will continue to limit economic activity.