Watching the home front

The growing international controversy about Iran’s nuclear ambitions as well as internal unrest may stall foreign investment in the country’s energy sector in a way that US sanctions have failed to do. Maria Kielmas reports

Iran’s relative success in recent years in attracting foreign investment to its energysector may be coming to an end. The international community’s concern overthe country’s nuclear ambitions and internal unrest is causing companiesto think twice before pledging capital.

Over the past six years, Iran has reached agreements with foreign companies fora cumulative $20 billion of capital investment in the oil and natural gas sector,despite US sanctions. The Iran-Libya Sanctions Act (ILSA), first