Key facts
- Iran has discovered over 7.5 trillion cubic feet of natural gas in a field in Fars Province.
- Nearly 5.7 trillion cubic feet of gas is expected to be recoverable from the new field.
- The discovery occurs amidst ongoing war, sanctions, and a US blockade impacting Iran's energy sector.
- A previous discovery in October 2025 at the Pazan field identified 10 trillion cubic feet of gas and 200 million barrels of crude oil.
- Iran reported transferring $7.5 billion in oil revenue to its central bank between March and July 2026.
- Iranian oil exports have decreased since mid-July due to a US blockade.
Iran has announced the discovery of over 7.5 trillion cubic feet of natural gas in a field located south of its Fars Province, according to Oil Minister Mohsen Paknejad. This significant find adds to Iran's already substantial gas reserves, even as the country grapples with an ongoing war, international sanctions, and a US blockade that are straining its energy sector.
Paknejad stated that approximately 5.7 trillion cubic feet of gas can be commercially extracted from this new field, representing a recovery rate of 72% to 73%. This discovery comes at a critical time for Iran, which has faced disruptions to its energy infrastructure, including strikes that reportedly cut daily gas production by about 230 million cubic meters in July. The country holds the world's second-largest proven gas reserves after Russia, but struggles with domestic consumption, recurring shortages, and power cuts.
The recent announcement follows another major discovery in southern Iran in October 2025, where the Pazan field yielded an estimated 10 trillion cubic feet of gas and at least 200 million barrels of crude oil. Despite these resource wealth discoveries, Iran faces challenges in development due to restricted foreign investment and limited access to modern technology, exacerbated by decades-old infrastructure.
The latest gas discovery was reported shortly after Iranian media indicated that the nation had transferred $7.5 billion in foreign currency earnings from oil sales to its central bank between March and July 2026, a 50% increase from the same period in the previous year. However, these revenues are now under pressure following the United States' reimposition of a blockade on Iranian ports and shipping in mid-July, aimed at curtailing oil exports. Visible supertanker traffic carrying Iranian crude through the Strait of Hormuz has ceased, and the volume of Iranian crude in floating storage has decreased significantly.