Iran’s plans to export gas to Europe already looked unfeasible given booming domestic demand. Low prices may be the final straw.

Reality has caught up with Iran, with its aim of exporting gas to Europe kicked into the long grass. Alireza Kameli, Iran’s gas exports chief, said on 11 September that the low cost of gas makes it uneconomical to invest in the necessary infrastructure.

Gas prices have been falling globally (see chart, p16). Additional US and Australian volumes...