Iran finds 7.5 trillion cubic feet of gas as US blockade squeezes energy exports

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(File Photo: AP)India Today World DeskNew Delhi,UPDATED: Aug 23, 2026 17:58 ISTEdited By: Aprameya Rao .ai_assist_bar2 { top:30px } Amid its ongoing war with the United States, Iran has discovered more than 7.5 trillion cubic feet of natural gas in a field south of Fars Province, Oil Minister Mohsen Paknejad said on Sunday. The discovery adds to Iran’s already vast gas reserves even as the conflict, sanctions and a US blockade strain its energy sector. Its commercial value, however, will depend on Tehran’s ability to secure the investment and technology needed to develop the field. Iran, which holds some of the world’s largest gas reserves, consumes most of its output and has faced recurring shortages, power cuts and industrial disruptions. The pressure has intensified since Israel and the US launched their joint war against Iran on February 28. Tehran said in July that strikes on energy infrastructure had cut daily gas production by about 230 million cubic metres. Sunday’s announcement follows another major discovery in southern Iran in October 2025. Paknejad said exploration at the Pazan field had identified 10 trillion cubic feet of gas and at least 200 million barrels of crude oil. The field lies in southern Fars Province and extends towards Bushehr Province. Iran estimated that about 7 trillion cubic feet of the gas could be recovered, with production expected to begin in about 40 months. The discoveries underscore Iran’s energy wealth as well as its difficulty in exploiting it. Sanctions have restricted foreign investment and access to modern technology, while much of the country’s infrastructure is decades old. Iran also depends on the South Pars field, shared with Qatar, for most of its gas production. The field has been targeted during the conflict.OIL EARNINGS RISE AS EXPORTS COME UNDER PRESSURE The latest discovery comes days after Iranian media reported that Tehran had 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 amount was 50 per cent higher than in the corresponding period of 2025, the semiofficial Fars news agency reported, citing Oil Ministry data. Officials expect it to meet the government’s foreign currency requirements until late December. The figures cover part of the period after the war began, showing that Iran continued to earn heavily from oil despite attacks and shipping restrictions. That revenue is now under pressure. The United States reimposed its blockade of Iranian ports and shipping on July 13 after an interim agreement to halt the war collapsed. The measure seeks to cut off oil exports, Tehran’s main source of hard currency. Iranian exports have fallen since mid-July. Kpler data showed no visible passage of supertankers carrying Iranian crude through the Strait of Hormuz, although many vessels involved in sanctioned trade turn off their tracking systems. Iranian crude held in floating storage outside the blockade zone has fallen from about 105 million barrels to 80 million barrels. Trade sources estimated that only around 30 million barrels remained in Asian waters, half the usual volume.HORMUZ CLOSURE DEEPENS EXPORT SQUEEZE At the centre of the supply disruption is the Strait of Hormuz, the main maritime route connecting Iran’s Gulf ports with buyers in Asia. Iran has linked its reopening to the conditions of an interim agreement signed with the United States on June 17. Iranian negotiator Mohammad Baqer Qalibaf said the strait would remain closed until Washington lifted its blockade and oil sanctions, released Tehran’s frozen assets and ended military operations and threats. The agreement collapsed over control of the waterway. US President Donald Trump declared it “over” on July 7, and Iran suspended it a week later. Tehran has since allowed some Iraqi oil tankers to pass following requests from Baghdad, but wider commercial traffic remains severely restricted. Before the war, about a fifth of the world’s oil and liquefied natural gas passed through the Strait of Hormuz. Major Gulf producers depend on the route, while Qatar sends almost all its LNG through it. Iran’s latest discovery offers long-term potential. Its more immediate challenge is bringing its reserves into production and getting its oil and gas to buyers.- EndsPublished By: Aprameya RaoPublished On: Aug 23, 2026 17:46 IST Also WatchPregnancy, abortion, alleged cruelty: What happened during Twisha's final days?Health 360: Maharashtra FDA cracks down on surrogate ads, unhealthy dining risksMQ-9 SeaGuardian Lease aircraft system sparks cheap drones vs HALE UAVs debateAdvertisement.ad_300_100 .adtext{display:none;}Read ThisChild coughs for 10 days, Indian woman in New Zealand told to wait a week for doctorVideo: Cops attacked with chilli powder, sticks after bike seized over documentsWhy Turkish military planes made repeated Pakistan trips in 3 daysAdvertisement window.addEventListener("message", function (event) { if (event.data?.type === "sharelink" && event.data.shareurl) { console.log("Received sharing links and details", event.data.shareurl); window.open(event.data.shareurl, "_blank"); } }); if (itViewPort === 'mobile') { window.googletag = window.googletag || { cmd: [] }; 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