Iran holds some of the world’s largest untapped reserves of lithium, copper, and rare earth elements — the very materials Europe needs for its EV battery transition. But sanctions lock EU companies out while China and Russia absorb the supply.
Iran is pouring billions into solar farms to fix its power crisis. Germany is spending hundreds of billions on offshore wind to end its dependence on Russian gas. Two parallel energy revolutions, driven by the same diagnosis, kept apart by sanctions.
Paracetamol prices have doubled in some English pharmacies. Air freight costs for medicines have surged. The connection: a blocked Strait of Hormuz, disrupted petrochemical supplies, and a sanctions regime that has left Europe’s medicine supply chain dangerously exposed.
When the E3 triggered the JCPOA snapback in September 2025, Europe gambled that reimposing UN sanctions would pressure Iran. Instead, it permanently surrendered a €27 billion trade relationship to China and Russia.
Iran’s closure of the Strait of Hormuz has removed 13 million barrels of daily oil supply from world markets, pushing Europe toward its worst energy crisis since the 1970s. The country Europe sanctioned into economic irrelevance now holds the key to the continent’s energy future.
Siemens AG has maintained a presence in Iran since 1868, transferring turbine technology, building railway infrastructure, and supplying energy equipment. Sanctions shattered the partnership but the industrial foundation remains.
Renault built a 15-year industrial partnership in Iran, only to abandon it when US sanctions returned in 2018. Chinese automakers are filling the gap — and Europe’s window is closing.
In 2011, the EU and Iran exchanged €27 billion in goods. By 2025, that figure had fallen to €3.72 billion. As China fills the vacuum, Europe’s decade-long economic retreat from Iran looks less like strategy and more like surrender.
Eni’s history with Iran dates back to the 1950s, but its absence is now leading to significant losses for both the company and the EU.
Lufthansa Technik’s missed opportunities in the Iranian aviation market and what it is missing out on.