This report examines the impact of the new U.S. sanctions on Iran’s oil and condensate production and exports and their potential impact on natural gas production and export capacity. It then analyzes Iran’s strategies to weather these sanctions and its long-term oil and gas strategy. It finds that if sanctions are lifted, Iran will face few technical obstacles to returning oil production to pre-sanctions levels. However, it will be difficult to recover lost market share, because the global oil market is glutted due to U.S. shale growth and lower demand growth due to COVID-19. Iran would thus do better to use its oil domestically, while exporting other energy products, thus maximizing its broader economic benefits and energy strategy.