Iran finds major new gas reserve of more than 7.5 trillion cubic feet in a field south of Fars Province, according to Oil Minister Mohsen Paknejad. The discovery adds to Iran’s already vast natural-gas resources at a difficult moment for its energy industry, which is facing the combined effects of war, sanctions, damaged infrastructure and restrictions on energy exports. The size of the find is significant, but turning it into usable supply will depend on Tehran’s ability to secure investment, technology and infrastructure needed for development.

Iran holds some of the world’s largest natural-gas reserves, yet it consumes most of its production domestically. Supply shortages have repeatedly contributed to power cuts and disruptions affecting industries.

Major Discovery Adds to Southern Iran’s Gas Resources

The latest find follows another significant discovery announced in October 2025 at the Pazan field in southern Iran.

• Paknejad said exploration there identified 10 trillion cubic feet of natural gas along with at least 200 million barrels of crude oil.
• About 7 trillion cubic feet of the gas was estimated to be recoverable, with production expected to begin in approximately 40 months.

The discoveries highlight a contradiction at the heart of Iran’s energy sector: the country possesses enormous underground reserves but faces serious obstacles in developing and efficiently delivering them.

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War and Sanctions Add to Energy Problems

Iran’s energy difficulties have intensified since Israel and the United States launched their joint war against Iran on February 28. Strikes on energy infrastructure have added to problems caused by ageing facilities and long-standing sanctions.

Iran said in July that the attacks had reduced daily gas production by approximately 230 million cubic metres. The country also depends heavily on the South Pars field, which it shares with Qatar, for gas production. The field has been targeted during the conflict, adding another challenge to domestic supply.

As Iran finds a major new gas reserve, the discovery therefore offers substantial long-term potential, but it does not immediately solve the country’s production or supply problems.

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Oil Revenue Continues Despite Export Pressure

Iranian media recently reported that Tehran transferred $7.5 billion in foreign-currency earnings from oil sales to its central bank during the first four months of the Iranian year. The figure was reportedly 50% higher than during the corresponding period of 2025.

However, those earnings are now facing greater pressure.

• The United States reimposed its blockade of Iranian ports and shipping on July 13 after an interim agreement to halt the war collapsed.

Iranian oil exports have fallen since mid-July.

• Kpler data showed no visible passage of supertankers carrying Iranian crude through the Strait of Hormuz, although vessels involved in sanctioned trade can turn off their tracking systems.
• Iranian crude held in floating storage outside the blockade zone has also declined from around 105 million barrels to 80 million barrels.

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Strait of Hormuz Remains Central to the Crisis

The Strait of Hormuz is the main maritime route connecting Iran’s Gulf ports with international buyers, particularly in Asia. Before the conflict, roughly one-fifth of global oil and liquefied natural gas supplies passed through the strait. Qatar also depends on the waterway for almost all of its LNG exports.

Iran has linked reopening the route to conditions involving the lifting of the US blockade and oil sanctions, the release of frozen assets and an end to military operations and threats.

For Tehran, the new gas discovery strengthens its long-term energy position. The immediate challenge, however, is much more practical: developing the field, overcoming technology and investment constraints, maintaining production and finding reliable routes to international markets.

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