Car hire in Iran

The IKIA airport has a car rental service but I really advise you not to rent a car in Iran (specially in Tehran). Driving in Tehran (and I guess most other cities) is very unsafe for someone who's not used to the driving culture here.

Just youtube Driving in Tehran.

To my experience, car rental isn't a developed industry in Iran. Many people use shared taxi's / busses and pay little to move around the country / city.

I'd say the best approach is to not expect anything in terms of rules/regulations. It will basically a deal between you and the one renting out the car.

About Tehran, yes it's hell driving there. Outiside it's pretty much ok. My benchmark is, if you can drive in India and get out alive you basically can take on every other traffic situation in the world.

One thing more - petrol in Iran is rationed. You need a chipcard distributed by the NIOPDC.
In 2007 it was about 3 liters a day maximum. For 2008 the plan is/was to remove the limit and pay a higher price if you really need the petrol. I don't know if that has been implemented yet.
For diesel there was no problem, but wouldn't be surprised if that rationing that too at some point.
Read about Iran's fuel quota system. Because of the rationing system a huge black market emerged.

About the police, they have checkpoints in and out the bigger cities. They might stop you and blurp out some farsi,
specially if you drive a car with local plates. A foreigner in a local car might trigger suspicion, in any case don't freak out and stay the calm and be the innocent tourist. It's probably good to have a few papers about the rental contract.
East of Bam you probably get police / military escorts because of a few incidents with foreigners in this area.
They are honestly concerned about your safety and won't let you go until they are really sure you're no fool. (and get their asses kicked when you get into trouble on the road alone)

Good luck!

Do NOT drive in Tehran. It is practically impossible and very very scary!

Hi,

If available, 'car hire' in Tehran has to be very expensive, maybe as much as $100 or more per day! Just rent a regular cab and go anywhere in Tehran for about $4. Even if you were to make 10 trips per day, that would be $40. Bye.

take a savaari/share taxi.They are everywhere.. Don't try to drive in Iran . It is quite hazardous.