Economy of Iran

Just as it has the eighteenth largest population in the world and is the eighteenth largest country by geographic area, Iran has the eighteenth largest economy in the world, according to Wikipedia.

The country achieved prosperity in the twentieth century due to its exports of oil and gas. Approximately 80% of Iran's profit from exports comes from oil. Iran has the world's third largest oil reserves, next to Saudi Arabia and Canada, according to the U.S. Energy Information Administration. 10% of the world's known oil is within Iran's borders.

The oil industry is in the hands of Iran's government, via the National Iranian Oil Company, which is also in charge of natural gas. The British-owned Anglo-Iranian Oil Company, which later became British Petroleum, controlled Iran's oil production from 1908, when oil was first discovered, until 1951, when Prime Minister Mohammed Mossadegh nationalized the oil industry.

Even after Mossadegh was overthrown in 1953, in a coup sponsored by British and American intelligence agencies, the Anglo-Iranian Oil Company could not return to collecting its former share of Iran's oil wealth, since national opinion was against this. Instead, a new company was formed, and Britain, which sat on its board of directors, had a 40% share. This agreement was annulled after the 1979 revolution.

Additionally, Iran has the world's second largest reserve of natural gas, next to Russia. In spite of this, Iran imports natural gas for its own use from Turkmenistan. 

Iran also exports 30% of the world's carpets, maintaining its centuries-old tradition of master carpet weaving. The crafts industry accounts for 3% of the nation's economy. Iran has a small tourism industry as well, primarily welcoming tourists from Central Asia.

However, Iran's economy is starting to suffer. Like many economies around the world, it took a hit during the financial crisis of 2008-2009. Its unemployment rate is officially 12%, but is estimated to be closer to 20%.

Furthermore, several governing bodies in the international community have imposed sanctions on Iran, hindering its economic development. These sanctions target the holdings of the Islamic Revolutionary Guard Corps, or the Army of the Guardians of the Islamic Revolution, who control about a third of the nation's economy. (Another large chunk of the economy is held by clerical organizations.) The sanctions also affect banks, the oil industry and, of course, the nation's military imports.

Iran's president, Mahmoud Ahmadinejad, has stated that the sanctions have had no effect on his government's determination to pursue nuclear power.