A study of the impact of international sanctions on Iran's oil industry: From a supply chain perspective

Abstract

International sanctions have profoundly impacted Iran's oil industry a critical component of its economy, by disrupting supply chain dynamics. This study examines these effects from a supply chain perspective, focusing on procurement, production, logistics, and market access. Employing a mixed-methods approach, including econometric analysis and qualitative case studies, the research identifies key disruptions such as restricted access to technology, reduced foreign investment, and shifts in trade patterns. Novel contributions include a supply chain resilience framework tailored to sanctioned environments and an analysis of Iran's adaptive strategies, such as import substitution and shadow fleet operations. Findings reveal that sanctions have increased costs, reduced production capacity, and forced reliance on alternative markets like China, while fostering domestic innovation. Two original tables and figures illustrate the quantitative impact on oil exports and supply chain costs, alongside a conceptual model of resilience. The study concludes with policy recommendations for mitigating sanctions' adverse effects while enhancing supply chain robustness.