The Conversation via Reuters — For several decades, Iran has devoted substantial financial, institutional and political resources to military expansion. It has invested heavily in supporting its regional partners, as well as in pursuing geopolitical influence across the Middle East.

Previously, the Islamic Republic had shown few signs of swiveling its resources toward fixing its ever-expanding environmental problems.

And those problems are considerable. Around 11 percent of deaths and 52% of the burden of diseases across the country are attributable to environmental risk factors, according to the World Health Organization.

Excessive groundwater extraction has caused buildings and roads to crack and sometimes collapse. Tehran is often ranked as having the worst levels of air pollution in the world.

In 2025, local media reported 350 deaths caused by poor air quality within a 10-day period. Hospitals at the time reported rising numbers of cases of respiratory and cardiac complications across Iran.

Lake Urmia – once the Middle East’s largest saltwater lake – has dried out, leaving salt-laden dust plumes capable of traveling hundreds of kilometers and even crossing national borders in less than 12 hours.

A potential peace agreement between the US and Iran’s leaders could hand Tehran a significant financial asset. It may unfreeze Iranian assets in foreign banks that they were previously unable to access due to US sanctions. This would give the government access to billions of dollars. Iran is also now exporting millions of barrels of crude oil that had been held in storage during the conflict.

The question, then, is where will all this money be spent.

Many analysts suggest a massive reconstruction project is needed to rebuild damaged factories, roads, and other essential infrastructure. While it is thought highly unlikely that Tehran will see environmental investment as its top priority, the approach could provide major economic benefits.

Iran is now........

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