Iran's power grid is bracing for its toughest stretch as temperatures climb toward peak summer. Forecasts show electricity demand could outstrip supply by as much as 15 percent, prompting authorities to schedule rolling blackouts in major cities. The shortage threatens households and energy‑intensive factories, already coping with intermittent outages over the past year and raising concerns among investors today.

Years of sanctions and chronic under‑investment have left the grid fragile. Hydroelectric dams run low after a dry winter, while aging gas turbines operate at reduced efficiency. Officials estimate that without fresh capital, peak‑load capacity could slip another 5 percent by August, tightening an already strained supply chain for petrochemicals and steel across the national energy system and regional markets.

Industrial output is already feeling the pinch, with manufacturers reporting a 3 percent dip in June production. Inflationary pressure rises as electricity tariffs climb to cover emergency imports. Tehran may issue short‑term contracts to foreign generators, a move that could open limited windows for investors but also expose the economy to further volatility in the coming months ahead of election.