Iran's oil minister proposes redefining the trade model for gas exports to Armenia

Iran's oil minister on Saturday, 25 July 2026, proposed redefining the commercial model for gas exports to Armenia, emphasising turning Armenia into a gas trading intermediary on a scale beyond its own borders.

Iran's gas exports to Armenia have for years run on a barter mechanism of gas for electricity: Iran sends gas and receives in return the power generated from it. The new proposal implies moving beyond that bilateral model and using Armenian territory to carry Iranian gas to other markets.

The proposal comes as Iran's southern energy export routes through the Strait of Hormuz face serious disruption, making northern overland routes, from the Caucasus through Central Asia, lower-risk alternatives for foreign-currency revenue. Realising such a plan, however, requires legal agreements and transmission infrastructure, and is not a short-term prospect.