Energy Diplomacy

After the Soviet Union fragmentation, the Caspian basin, containing considerable resources especially oil and gas reserves, has gained more geopolitical importance. Iran enjoys a distinguished position in the Caspian region, while deprived from advantages of this position. US tends to isolate the Islamic Republic of Iran because its anti-dominance struggle prevents Iran from enjoying its geo-strategic and geo-economic privileged op-portunities including its unique transit situation. Iran's energy diplomacy in the Caspian basin has failed because of Iran-US antagonism and US efforts to reduce Iran's geostra-tegic position by exerting pressure on the Caspian states to transport energy from routes other than Iran.In this article, we intend to examine which of these two are more impor-tant and influential. The hypothesis we are going to discuss in this paper is: The discre-pancy of Caspian states’ diplomacy and discourse has been one of the main factors of the failure in Iran’s energy diplomacy. Therefore, the main question is: Why Iran's energy diplomacy has not been successful in Caspian Basin?

The Iran Petroleum Contract (IPC) framework represents a significant shift in Iran's approach to attracting foreign investment in its oil sector while advancing its foreign policy interests. Drawing upon resource nationalism theory, foreign direct investment theory, and economic statecraft theory, this study addresses the central research question: How does the IPC framework aim to balance attracting foreign investment in Iran's oil sector with advancing its foreign policy objectives? Employing a descriptive-analytical approach, the research utilizes qualitative analysis, comparative analysis, and scenario planning to assess the IPC's implications. The findings highlight the IPC's potential to enhance technology transfer, boost oil production capacity, and foster regional cooperation. However, challenges arising from political risks, international sanctions, and domestic opposition must be addressed with targeted policy measures. The study offers recommendations to enhance the IPC's effectiveness, including streamlining bureaucratic processes, offering competitive fiscal terms, strengthening legal frameworks, enhancing transparency, and developing local capabilities. Moreover, aligning the IPC with Iran's foreign policy goals requires diversifying investment partnerships, leveraging the framework for regional cooperation, and integrating it with national development objectives. The insights provided contribute to understanding the complex interplay between contractual frameworks, foreign investment, and strategic interests in Iran's oil sector, informing policymakers, industry stakeholders, and researchers in their decision-making processes. The IPC's successful implementation will be crucial in shaping Iran's economic development and foreign policy trajectory in the years to come.