Lines of cars have become a common sight at gas stations across Iran in recent weeks, with motorists often waiting late into the night to fill their tanks amid dwindling fuel supplies. The shortages come as Iran faces mounting economic pressures compounded by a protracted regional conflict and a U.S. naval blockade affecting its ability to import gasoline.

Despite being rich in crude oil reserves, Iran's refining capacity has long been insufficient to meet domestic gasoline demand. According to government figures, the country typically imports over 10% of its daily gasoline consumption to fill the gap. However, the ongoing U.S. blockade of southern Iranian ports has largely halted these imports. Officials also report that domestic production has declined due to damage sustained at Iranian refineries during strikes related to the conflict involving Israel.

In cities including Tehran, Isfahan, Bandar Abbas, and Mashhad, residents have reported long queues at fuel stations, with some gas pumps temporarily closed. Many Iranians express concern about the possibility of fuel price increases, a move the government is cautious to avoid due to the risk of sparking renewed unrest. A sharp gasoline price hike in 2019 triggered widespread protests that were met with violent crackdowns, and earlier this year, economic grievances contributed to nationwide demonstrations.

Iranian officials acknowledge the difficulties but emphasize resilience amid what they describe as a state of war. President Masoud Pezeshkian noted the impact of external “enemies” targeting Iran’s oil and gas sectors, contributing to reduced production. He has called on citizens to conserve fuel and energy, exemplifying this by reducing his own electricity usage. Supreme Leader Ayatollah Mojtaba Khamenei has recognized the economic and livelihood challenges but urged officials not to highlight government weaknesses publicly, warning against attempts by foreign adversaries to create division within the country.

Subsidized fuel prices remain heavily subsidized, with some gasoline costing less than one cent per liter at favorable exchange rates. The government sets consumption quotas for these subsidized rates, but recent weeks have seen reductions in quota allocations. While the government has resisted increasing base prices, consumers exceeding their quotas may face higher costs, potentially up to twice the subsidized price. Analysts indicate that these measures may change the distribution of available fuel but are unlikely to resolve the shortage itself.

Complicating the situation, subsidized gasoline priced well below that of neighboring countries encourages smuggling for profit, a problem officials have struggled to curb due to entrenched political interests. Additionally, reliance on private vehicles persists in large cities due to inadequate public transportation systems, intensifying fuel demand.

The economic crisis extends beyond fuel shortages. Inflation has soared—official figures cite around 80% year-on-year—while unemployment has increased amid the war and government-imposed internet restrictions. The blockade has also restricted oil exports, further depriving the economy of revenue. Some Iranian officials and analysts suggest that the government may eventually need to pursue diplomatic avenues to alleviate economic pressures rather than continue with confrontation.

Calls from paramilitary leaders emphasize reducing petrol consumption by 10% as a form of patriotic resistance to sanctions. However, these appeals underscore a broader sense of urgency as Iran grapples with sustaining basic services and managing growing public discontent amid ongoing geopolitical tensions.