Water scarcity in Iran in the context of "Climate change in Iran"

Iran has a mixed, centrally planned economy with a large public sector. It consists of hydrocarbon, agricultural and service sectors, in addition to manufacturing and financial services, with over 40 industries traded on the Tehran Stock Exchange. With 10% of the world's proven oil reserves and 15% of its gas reserves, Iran is considered an "energy superpower". Nevertheless since 2024, Iran has been suffering from an energy crisis.

Since the 1979 Islamic revolution, Iran's economy has experienced slower economic growth, high inflation, and recurring crises. The 8-year Iran–Iraq War (1980–1988), increased Corruption in Iran, and subsequent international sanctions severely disrupted development. In recent years, Iran's economy has faced stagnant growth, inflation rates among the highest in the world, currency devaluation, rising poverty, water and power shortages, and low rankings in corruption and business climate indices. The brief war with Israel in June 2025 further exacerbated economic pressures, causing billions in damage and loss of revenues. Despite possessing large oil and gas reserves, Iran's economy remains burdened by structural challenges and policy mismanagement, resulting in limited growth and a decline in living standards in the post-revolution era.

Iran is one of the world's largest and most densely populated countries, spanning an area of approximately 1.7 million sq. km and a population of 91.5 million. Since 1966 Iran has experienced immense population growth, initially being recorded at 25,781,090 people, and totaling to 75,330,000 in 2010. The various climates, increased population growth, heavy reliance on fossil fuels, and refusal to commit to sustainability goals has extenuated Iran's vulnerability to ecological crisis and climate change.

Environmental issues in Iran include, especially in urban areas, vehicle emissions, refinery operations, and industrial effluents which contribute to poor air quality. A report by the United Nations Environment Programme ranked Iran at 117th place among 133 countries in terms of environmental indexes. Water scarcity is also a concern since the increased temperatures and fluctuating precipitation levels associated with global warming can result in droughts or flooding that will further degrade the water availability.