Military budget of Iran

The military budget of Iran is the portion of the country's overall budget that is allocated for the funding of the Iranian Armed Forces and the Ministry of Defense and Armed Forces Logistics.

Contributing factors
Research shows that oil revenue has been a major economic factor on military spending of Iran and in the 1970s led to "petrodollar recycling".

A study investigating the impact of sanctions against Iran on the country's military spending, examining historical record between from 1960 to 2017 and using auto-regressive distributed lag model (ARDL), found that unilateral sanctions by the United States would have insignificant effect on Iran's expenditure while multilateral sanctions (imposed by the United Nations and the European Union in addition to the U.S.) would be statistically significant.

Under the Shah (until 1979)
According to data compiled by Shahram Chubin and Sepehr Zabih, the estimated military expenditure of Iran from 1960 to 1972, in constant price of 1960 and with exchange rate of the same year, would be calculated as the following: Morteza Gharehbaghian has compiled the following table based on Statistical Centre of Iran's consensus and various issues of SIPRI:

SIPRI annual estimates since 1960

 * Source: SIPRI Military Expenditure Database