BAKU, Azerbaijan, December 27. This year has been one of the most turbulent in Iran's political and economic history, with significant events in both foreign policy and the economy that have had a profound impact on the country's regional and international standing.
In foreign policy, the main focus has been Iran's nuclear program. While Iran continued discussions with the European trio (Germany, France, and the UK) and the U.S. regarding the nuclear program, these negotiations did not yield positive results. Iran and the U.S. held five rounds of indirect nuclear talks.
On June 12, a resolution against Iran was adopted at the International Atomic Energy Agency (IAEA) Board of Governors. Just a day later, on June 13, Israeli airstrikes against Iran began, and missile and airstrikes continued for 12 days. In the final stages of the conflict, the U.S. targeted three of Iran's nuclear facilities and declared their destruction.
Following the war, Iran passed a law minimizing cooperation with the IAEA. Under the new decision, cooperation with the agency is only possible with the approval of the Supreme National Security Council. By the end of the year, the "snapback" mechanism was activated, allowing the restoration of UN Security Council resolutions against Iran, at the initiative of the European trio. As a result, Iran halted its nuclear dialogue with the European trio and set several conditions for possible negotiations with the U.S., particularly focusing on the preservation of its nuclear program and continuing uranium enrichment within the country.
At the same time, the development of relations with neighboring countries emerged as a more successful direction in Iran's foreign policy. Removing existing obstacles in relations with Azerbaijan, expanding bilateral cooperation, and strengthening ties with Russia were highlighted. Iran placed special emphasis on economic, trade, transit, cargo transportation, and energy cooperation with neighboring countries.
The implementation of a free trade agreement with the Eurasian Economic Union, the increase in cargo transportation within the framework of the North-South and East-West international transport corridors, and the revival of the Islamabad-Tehran-Istanbul railway route were among the key outcomes of this policy.
Serious steps were taken toward the construction of the Rasht-Astara railway line, located on the western route of the North-South International Transport Corridor, which spans 160 kilometers. The project is expected to begin in the coming year. Once completed, Iran expects to transport 15 million tons of cargo annually in the initial phase. Although the railway line is not yet operational, agreements have been reached with neighboring countries to transport cargo from the Astara County of Gilan Province to Rasht by road, and from there by railway to southern ports.
Meanwhile, the eastern route of the North-South Corridor passing through Iranian territory was activated, with a focus on increasing cargo transportation in cooperation with Central Asian countries.
Regarding economic indicators, 2025 was a difficult year for Iran's economy. Inflation and the devaluation of the national currency continued as in previous years. At the beginning of the year, inflation was about 31%, and by November 20, this figure had risen to 49.4%.
Significant changes also took place in the currency market. At the beginning of the year, the official exchange rate of the U.S. dollar was 575,000 rials, while the black market rate was 800,000 rials. Now, the official exchange rate stands at 748,000 rials, and the black market rate has risen to 1.35 million rials. Inflation and devaluation have negatively impacted all sectors of the country's economy.
The Iranian government has focused on increasing the authority of provinces to stimulate economic growth. The goal is for provinces to establish direct economic relations with neighboring countries to ensure regional development.
However, challenges persist in the energy sector. Due to sanctions, Iran is forced to sell crude oil mainly through the "gray market". Although natural gas production exceeds one billion cubic meters per day, high domestic consumption severely limits gas exports. In some months, gas shortages are even observed. A similar situation arises in electricity generation: a sharp increase in consumption during the summer months causes electricity shortages. As a result, Iran needs to import gas and electricity from some neighboring countries.