Sulfur, as one of the most important by-products of the oil and gas industry, has significant potential for value creation, downstream industrial development, and export revenue generation. Despite Iran’s position as a major sulfur producer, a considerable share of its sulfur output is still marketed in raw or minimally processed form, and the potential of its value chain remains underutilized. This study aims to identify the key trends affecting the sulfur value chain and to formulate strategies for its development and upgrading in Iran. The present study is applied in terms of its purpose and qualitative in terms of its approach. It was conducted using a review of documents and previous studies, monitoring trends related to sulfur production, consumption, trade, and applications, strategic SWOT analysis, and Pareto analysis. Data was collected through a review of documents and previous studies, as well as interviews with stakeholders from relevant sectors. The findings indicate that high sulfur production capacity, reliable feedstock availability, extensive oil and gas infrastructure, and Iran’s strategic geographical location constitute the main strengths of the value chain. In contrast, the limited development of downstream industries, weak target market expansion, and policy and investment challenges represent its major weaknesses. Growing regional demand for sulfur-based products and the emergence of new sulfur applications were identified as key opportunities, while increasing competition in global markets and price volatility were recognized as the main threats.