Country profile · Middle East

Iran

Israel and the United States went to war with Iran on February 28, 2026. The first strike killed Supreme Leader Ali Khamenei, and his son Mojtaba Khamenei replaced him. A ceasefire in April collapsed in July. Iran has kept the Strait of Hormuz closed since March. It is the world's third-largest natural gas producer and seventh-largest oil producer.

Updated September 2026 · Data from the UN, IMF, SIPRI and IISS

The Azadi Tower in Tehran under a blue sky Map of the Middle East and Central Asia with Iran highlighted
Azadi Tower, Tehran. Photo: Bernard Gagnon, Wikimedia Commons, CC BY-SA 4.0

Where Iran ranks

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Who runs Iran?

The Supreme Leader holds the most power in Iran. He commands the armed forces and has no fixed term. Supreme Leader Ali Khamenei was killed in the first strike of the war, on February 28, 2026. The Assembly of Experts chose his son Mojtaba Khamenei on March 8. It was the first time the office passed from father to son. Mojtaba Khamenei, born in 1969, fought in the Iran-Iraq War and taught Islamic law in Qom. His wife was killed in the same strike as his father. He has not appeared in public since. President Masoud Pezeshkian runs the government but does not command the armed forces.

Mojtaba Khamenei
Mojtaba Khamenei
Supreme Leader since 2026
Shia cleric

Portrait (2023): Mostafa Tehrani, Tasnim News Agency, CC BY 4.0

Who are Iran's allies and rivals?

Russia signed a 20-year partnership treaty with Iran in January 2025. The treaty has no mutual defense clause. China buys most of Iran's crude oil. Iran leads the Axis of Resistance, which includes Hezbollah in Lebanon, the Houthis in Yemen and Shia militias in Iraq. Israel killed Hezbollah's leader Hassan Nasrallah in September 2024. Syria's government fell in December 2024. That cut Iran's land route to Hezbollah. The United States and Israel went to war with Iran in February 2026. Iran also fired missiles at Saudi Arabia and the United Arab Emirates, its rivals across the Gulf.

Allies and partners

  • Russia20-year treaty, no mutual defense clause
  • ChinaBuys most of Iran's crude oil
  • HezbollahArmed ally in Lebanon since 1982
  • The HouthisArmed ally in Yemen, fighting Saudi Arabia
  • Iraqi Shia militiasGrouped in the Popular Mobilization Forces

Rivals

  • United StatesNo relations since 1980, at war since February 2026
  • IsraelFought wars with Iran in 2025 and 2026
  • Saudi ArabiaIran struck Saudi targets, March 2026
  • United Arab EmiratesHalted all trade with Iran, August 2026
Map of the Middle East: Iran, its partners Russia and Iraq, and its rivals Israel, Saudi Arabia and the United Arab Emirates
  1. Abu Musa and the Tunbs Seized by Iran in 1971, claimed by the UAE
  2. Strait of Hormuz Closed to most shipping by Iran since March 2026
  • Iran
  • Partner
  • Rival

Who does Iran trade with?

In the year to March 2026, Iran exported $51.7 billion of non-oil goods and imported $58.0 billion. China was the largest market for these goods, with 24.3%. The UAE was the largest source of imports, with 30.2%. Crude oil is separate. Vortexa estimates Iran exported 1.5 to 1.7 million barrels a day in 2025, mostly to China. Kpler estimates loadings fell to 287,000 barrels a day in August 2026 under the US blockade. The UAE halted trade with Iran in August 2026.

Sells to

Share of Iran's exports

  1. China24.3%
  2. Iraq17.6%
  3. United Arab Emirates14.3%
  4. Turkey12.6%
  5. Afghanistan4.6%

Buys from

Share of Iran's imports

  1. United Arab Emirates30.2%
  2. China27.4%
  3. Turkey16.1%
  4. India3.2%
  5. Germany2.9%

Non-oil goods trade, March 2025 to January 2026. Crude oil is not included. Islamic Republic of Iran Customs Administration.

How strong is Iran's military?

SIPRI estimates Iran spent $7.4 billion on its military in 2025, 38th in the world. SIPRI says parts of the missile and drone programs are paid off the official budget and are not in that figure. The IISS counts about 610,000 active troops. Iran runs two militaries. The Revolutionary Guards run the missile force and direct allied militias abroad. CSIS estimates a Shahed-136 drone costs $20,000 to $50,000. The air force still flies American jets bought before 1979.

Military spending, 2025

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  1. Saudi Arabia est.$83.2bn
  2. Israel$48.3bn
  3. Turkey$30.0bn
  4. Kuwait$8.1bn
  5. Iran$7.4bn
  6. Iraq$6.4bn

SIPRI Military Expenditure Database, 2026 edition

Does Iran have nuclear weapons?

Iran is not known to have a nuclear weapon. Before the June 2025 strikes the IAEA estimated Iran had 440.9 kg of uranium enriched to 60%, enough for about 10 weapons if enriched further. The IAEA cannot verify the stockpile now. Ali Khamenei issued a fatwa against nuclear weapons. Mojtaba Khamenei has not addressed it. In September 2026 the IAEA's board referred Iran to the UN Security Council. A bill to leave the Non-Proliferation Treaty was submitted to parliament.

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